{"id":23763,"date":"2022-06-30T16:37:52","date_gmt":"2022-06-30T16:37:52","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management"},"modified":"2022-06-30T16:59:22","modified_gmt":"2022-06-30T16:59:22","slug":"invoice-discounting-allows-for-better-cash-flow-management","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management","title":{"rendered":"Invoice Discounting Allows for Better Cash-flow Management"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>TJIVINGURURA MBUENDE<\/p>\n

IT’S NO SECRET that poor economic conditions and Covid-19 have a significant impact on business cash flow.<\/p>\n

Debtor difficulties have been a significant root of the problem, as business closures have been widely reported. As a result, running a business has become even more challenging, necessitating participation in cash flow management programmes.<\/p>\n

Businesses now have a lot of money trapped in unpaid invoices, and entities of all sizes are scrambling to figure out how to access those funds in order to avert a negative cash flow curve.<\/p>\n

Invoice discounting is one method that businesses can use to offset negative cash flows.<\/p>\n

Simply put, invoice discounting is a debtor management solution that aims to unlock the untapped growth potential in a debtor’s book.<\/p>\n

When a company’s unpaid invoices are used as collateral for a loan, invoice discounting is referred to as an invoice finance facility. It specifically allows them to leverage the value of their sales ledger.<\/p>\n

In times of poor cash flow, which have led to businesses closing their doors or retrenching employees, invoice discounting is a crucial concept.<\/p>\n

According to data from the Ministry of Labour, Industrial Relations, and Employment Creation, 12 000 individuals were laid off from 896 enterprises in 2020; and 9 158 of those cases were due to economic factors.<\/p>\n

When invoices are unpaid, the business’s sustainability is threatened, and employees suffer.<\/p>\n

Managing debtors accounts can be time-consuming and expensive. Cash flows are often a matter of timing, and even a profitable businesses with a good strategy for collecting cash from its customers may experience cash flow pressures, and eventually fail.<\/p>\n

And in times when cash flows and debts are currently a pandemic in the operations of various businesses, companies are encouraged to explore any business-rescuing mechanisms available to them.<\/p>\n

A survey done by the Namibia Statistics Agency in 2020 indicated that 63,7% of businesses had reported revenue loss of over 50%, with the manufacturing sector (20,1%), hotels and restaurants (15,2%), and the construction sector (11,3%) being affected the most.<\/p>\n

This happened at a time when collecting cash from debtors was an almost impossible task due to a slowdown in business operations, as the effects of Covid-19 worsened the troubles already created by poor economic conditions.<\/p>\n

Suppose a business could access the money that is tied up in invoices due for payment.<\/p>\n

If that were possible, the business could negotiate better terms with suppliers or could gain access to much-needed working capital.<\/p>\n

Boosting cash flow is necessary to enable the growth of a business; for example, when bringing a new product to market, funding an expansion, or covering ongoing marketing expenses.<\/p>\n

Therefore, in these dire times, invoice discounting must be at the forefront. And for it to happen successfully, it requires the backing of a financial institution.<\/p>\n

Nedbank Namibia has developed a concept of invoice discounting that is tailor-made for struggling local businesses.<\/p>\n

The Nedbank invoice discounting programme is created with a business’s sustainability in mind, to enhance process and cost efficiency. It can also assist a company to seize an opportunity, while at the same time making it possible to negotiate improved banking terms.<\/p>\n

To date, Nedbank’s invoice discounting has released up to 80% of a company’s debtors book, making it an important solution for struggling enterprises to consider in order to maintain timely payment of salaries, expenses, and vendors’ invoices.<\/p>\n

There are many businesses that look excellent on paper or in the eyes of the public, while their existence and future prospects are actually being threatened by cash flow pressures.<\/p>\n

Such entities are encouraged to turn to invoice discounting for help.<\/p>\n

In order to stimulate opportunities and growth for cash-strapped businesses, Nedbank’s invoice discounting further offers a critical funding source for expansion or paying for ongoing operational costs.<\/p>\n

It is especially helpful in preventing business owners from using their personal assets and savings to keep their companies afloat.<\/p>\n

Partnering with a financial institution can better equip a business to manage debtors and absorb risk; for an SME it can materially improve the burden of debtor administration, and for a larger organisation, it can perfect the discipline of optimal daily cash management.<\/p>\n

* Tjivingurura Mbuende is the executive for corporate and investment banking at Nedbank Namibia.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. TJIVINGURURA MBUENDE IT’S NO SECRET that poor economic conditions and Covid-19 have a significant impact on business cash flow. Debtor difficulties have been a significant root of the problem, as business closures have been widely reported. As a result, running a business has become even more challenging, necessitating participation in cash flow […]<\/p>\n","protected":false},"author":84,"featured_media":23762,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[234,236,233],"class_list":["post-23763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nInvoice Discounting Allows for Better Cash-flow Management - Namibia<\/title>\n<meta name=\"description\" content=\"TJIVINGURURA MBUENDE IT'S NO SECRET that poor economic conditions and Covid-19 have a significant impact on business ca ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Invoice Discounting Allows for Better Cash-flow Management\" \/>\n<meta property=\"og:description\" content=\"TJIVINGURURA MBUENDE IT'S NO SECRET that poor economic conditions and Covid-19 have a significant impact on business ca ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-30T16:37:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-30T16:59:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/06\/postQueueImg_31-62bdd656b4518.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"724\" \/>\n\t<meta property=\"og:image:height\" content=\"483\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Invoice Discounting Allows for Better Cash-flow Management\",\"datePublished\":\"2022-06-30T16:37:52+00:00\",\"dateModified\":\"2022-06-30T16:59:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management\"},\"wordCount\":716,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/06\/postQueueImg_31-62bdd656b4518.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/invoice-discounting-allows-for-better-cash-flow-management\",\"name\":\"Invoice Discounting Allows for Better Cash-flow Management - 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