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Invoice Discount Finance

Invoice discount finance is an arrangement in which the exporter assigns the receivables to obtain funds on a limited recourse basis or non–recourse basis. The purchasing bank typically funds the value of the receivables less discount to the exporter and receives full payment on the receivables from the importer.

This arrangement, which improves the exporter’s short–term liquidity position, could be used as an off–balance sheet treatment, subject to consultations with your local accounting, tax and legal advisors.

Structure of a Typical Invoice Discount Finance Arrangement

Structure of Invoice Discount

Benefits of Invoice Discount Finance

Business expansion

  • Mitigate exposure against the importer or its country while increasing the transaction volume

Finance and accounting

  • Secure additional funding sources
  • Improve cash conversion cycle and working capital efficiency
  • Improve the short–term liquidity position

Notice

  • The use of the above products or services is contingent upon the credit assessment in accordance with Mizuho Bank’s prescribed procedures. As part of this assessment, you may be required to submit certain documents.
  • Fees may be charged for using these products or services.
  • Please consult an attorney, accountant, or tax accountant regarding any legal matters, accounting issues, or taxation concerns.