Supply Chain Financing - Factoring

Invoice Discounting – Order capture by Customer

• Corporate customer creates and submit invoice discounting order through Client Front-end
• Customer user to enter details of one or more invoices and club them under one order/request and submit it for bank review and approval.
• The discount order capture can be a 4-eye process i.e., customer maker should create the record and customer checker should approve it.
• Facility to checker to return the transaction to maker
• After approval from the customer checker
• A request should be sent to Courier for physical invoices pickup.
  • The discount order should be then sent to Bank for review and approval.
  • Customer should be able list and view discount orders.
• Customer should be allowed to cancel discount order before submission to bank for approval.
• Customer should also be able to view the status of records, both pending and completed with uptodate information

Order processing at bank

• At bank side, the discount order should be first verified by bank maker and then should be approved by Bank checker.
• Bank maker would then verify the data captured on the order with copy of invoice. Once verified, record moves to checker for approval.
• When Bank checker approves the order, the order should be executed, and the bookings should be triggered.
• System to validate the availability of discounting limit and compliance with tenor permitted
• On approval, system to send details to Core Banking system for posting necessary accounting entries
• The checker should be able to Approve, Reject or Return to bank maker.
• Rejected records are permanently closed. Customer may reupload the invoice as a new record
• Upon realization system to update and close the records
• If unpaid on due date system to close the record by debit to Operating Account of the customer
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