Selective Invoice Discounting as an alternative funding solution Michael Naidoo From time to time, small and medium-sized businesses are strapped for cash as their funds are often locked in invoices that have not yet been paid. This is one of many reasons businesses should consider using Selective Invoice Discounting to release funds and improve cash flow. Selective Invoice Discounting can allow you to increase turnover, improve cash flow thus improving your total profitability. Michael Naidoo, CEO of FNB Specialised Finance says, “Invoice discounting is a short-term finance solution that gives businesses access to cash while their invoices are yet to be paid. At any one point there may be multiple invoices that are pending or about to be paid. These invoices are access points to cash. Either one invoice or multiple invoices for selected quality debtors are ‘sold’ to release funds and improve cash flow.” The facility can be used on multiple occasions to meet the  busines...

Trade Finance is pivotal for South’s Africa’s economic growth prospects How Collateralised Trade Finance can help Michael Naidoo In the South African economy, much like many other developing countries’ economies, the importance of the manufacturing, mining and agriculture sectors cannot be underestimated as key factors to help build budding economies. As these industries can be credit-intensive, Collateralised Trade Finance (CTF) can offer unique and tailor-made solutions to counter possible financial constraints.  Michael Naidoo, CEO of FNB Specialised Finance says, “CTF involves the financing of commodities, goods and products being exported, imported, bought or sold locally and internationally. It provides structured trade finance and innovative risk-hedging solutions for traders, importers and exporters, merchants buyers and sellers, intermediaries and agents.” Cross border trade involves multiple risks and CTF structures and transfers the risks associated with tra...

Grow your Business through Acquisition Michael Naidoo Whilst organic growth is an important element of any business as it is a source of shareholder returns, the impact of growth through an acquisition can be more beneficial for any business. Michael Naidoo, CEO of FNB Specialised Finance says, “The key to growth through acquisition is taking advantage of good opportunities and could be a quicker, cheaper and less risky proposition to grow your business. Furthermore, acquisition offers a number of other advantages such as easier financing and instant economies of scale.” Managing the risks involved in an acquisition can be equally complicated. Acquisitions might provide business owners with a way to grow and strengthen their companies, but they can also present unique challenges.  Naidoo explains that “for a smooth acquisition process; a solid and comprehensive strategy needs to be put in place. Before contacting the company you want to buy into, research and ge...