(1.) Our client will manufacture and deliver the goods that the customer has ordered — or render the service ordered — and will then
(2.) invoice the customer for the appropriate payment, and then wait to get paid.
(3.) Our client, however, wishes to have ‘cash today’ and arranges to sell the invoice to SGF for immediate cash at an agreed discount.
In order to complete the ‘legal’ process the client notifies the customer that the sale has taken place with SGF, and the customer acknowledges this to SGF, as well as confirming that all goods and/or services have been satisfactorily received from the client in accordance with their order.
(4.) Once this simple paperwork is completed, SGF completes the transaction by making payment direct to the client, and at which point title to the invoice/s pass to SGF.
(5.) The invoice will be paid in full directly to SGF at the end of the credit cycle to conclude the transaction.
SGF usually funds the transaction at 80% of the face value of the invoice.