Populous World, an overview for invoice financing newcomers

Invoice financing, although widespread and now a popular, trusted form of lending, remains relatively unknown to SME’s. It is important that businesses of all sizes are aware of the many options available to them when looking for funding, and the processes involved when adopting a factoring company.

At Populous World, we are an invoice discounting platform that provides SME’s with funding solutions using blockchain technology, to offer speed, transparency and flexibility, allowing global investors to participate in the funding of an invoice.

If you are currently in the search for an invoice financing company, here is everything your business needs to consider when selecting Populous World to finance your outstanding receivables.

What steps does your business undertake when adopting Populous World? Our process is as simple as these 5 steps:

1. You provide sale of goods or services to your customer.

2. Upon verification and risk assessment, provide the invoice that will be payable to ‘Populous World’ to your customer.

3. Upload said invoice onto our platform which then invites invoice buyers to bid on your invoice.

4. Receive the cash flow within 24 hours of the auction closing sans interest fee.

5. Upon repayment, the customer repays the invoice by making a full payment to ‘Populous World’.

What fees are involved?

Populous World offers a fixed fee service with no hidden charges. All quotes are final and once accepted, will be the only fee levied by Populous World. Our fee ranges from 4% — 5% of the amount of the invoice within a 30-day repayment term.

(Please feel free to contact our team for fee quotations if you require a specifically structured product).

What invoice discounting structure does Populous World offer?

Invoices can be sold on the Populous World platform individually. This presents a client with full control of their facility, where they can subscribe to the service on a ‘pay-as-you-use’ basis. A client can choose to discount their entire trade receivables or appoint our services tailored to the needs of the business.

Credit ratings — what is involved?

There are many factors involved in providing a credit rating to your company, which will determine the quoted interest rates. Among the factors considered is the Altman Z-score where it takes into account a client’s past and current financial information.

Generally, the process involves the client’s most recent audited financial statements, or equivalent for companies that receive exemptions from financial statement audits and other documentations as necessary.

What are the requirements?

As with all financial services, certain criteria does need to be met in order to ensure that the factoring contract will be beneficial and sustainable. Populous World requires the following:

Credit insurance
We require our clients that we work with to have credit insurance with us as the beneficiary.

Deed of debenture

A debenture is a written agreement between an invoice buyer and seller, which sets out the charges and details the terms and conditions.

When utilising Populous World’s services, your business would be entering into a deed of debenture with us, to securitise assets of your company. In the event that your business cannot meet the repayment terms, Populous World would legally be entitled to claim any funds owed to us.

A signed guarantee from the client over the balance of the outstanding invoice amount.

For more information or to speak to a member of our team, please leave your contact details at [email protected] and a funding specialist will contact you as soon as possible.

Lou Chan, Populous World.