Invoice Discounting

Leverage the value of your sales ledger as collateral for a business loan

Gain access to cash tied up in unpaid invoices and tap into the value of your order book

GET ACCESS TO CASH FAST

Do you have cash tied up in unpaid invoices affecting your cash flow? Invoice discounting allows you to sell your unpaid invoices to a loan provider for a cash advance that reflects a percentage of the invoice’s value. 

No more strain on small to medium businesses waiting for payments!

Invoice Discounting (sometimes also referred to as Invoice Factoring or Debtors Funding) are bridging finance facilities where money is advanced to you by ‘selling’ your future income to a bridging company, who then collects the debt. 

This process can take a few weeks, as the lender has to assess your business, your debtors and the risk elements of the bridging facility.

Fact Sheet:

Risk: The lender ‘buys’ your debt and then collects the funds. If your client does not pay or does not pay on-time, then you are still responsible for the debt.

Requirements : The lender will want to see your audited financials (for 2 years) and up to date management accounts. Also all other statements of account e.g. debtors and creditors age analysis, assets register, contracts, leases, bank statements, stock lists and all other accounting records.

Time: The assessment process takes a minimum of 2 weeks.

Need cash while you wait for invoice factoring approval?

Apply for an unsecured business loan while you wait, unlocking R50k – R1.5 mil in cash within 3 days to help you manage your cash flow while we process your invoice discounting application.

Costs & Examples

 

Cost Structure

  • Minimum Term –  3 months
  • Maximum Term – 60 months
  • Minimum APR –  15 %
  • Maximum APR – 30 %

Example:

  • Loan                R 100 000
  • Term               6 months
  • APR                15 %
  • Repayment      R 115 000

A business starts an invoice discounting facility with a lender to help with cash flow. The agreement between the business and lender indicates that the advance percentage is 30%. The business completes a job and invoices their client for R10 000. 

As per their invoice discounting agreement, the business will receive an advance percentage of 30%, so on this invoice the business will receive R3000. 

When the client pays the R10 000 due, the lender will pay the remaining R7000 to the business less their fees. 

THE BELOW FORM ONLY APPLIES TO INVOICE DISCOUNTING. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.