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Invoice Discounting

Instant access to cash

What is Invoice Discounting?

Invoice factoring, often referred to as invoice financing or debtors factoring, is a financial transaction where a business sells its unpaid invoices to a third party (a factor) at a discount. This strategy is used by companies to improve their cash flow and offset slow payment cycles.

invoice discounting in south africa

How Invoice Financing Can Benefit Your Business

Immediate Cash Flow

We convert your outstanding invoices into instant cash, improving your working capital and enabling business growth.


Invoice factoring is a flexible solution that grows with your business, unlike traditional loans that can be restrictive and limit growth.

Credit Management

Our team handles the collection process, freeing up your time to focus on growing your business.

Determining whether invoice discounting is the right choice for your business depends on several factors. Unlike invoice factoring, with invoice discounting, your business retains control of the collections process. This means that you are responsible for ensuring that your clients pay their invoices. However, this also means that your clients do not need to know about your financial arrangements.

Invoice discounting can be an excellent choice if:

You Have a Robust Credit Control Department

Your business should have a strong credit control department or process in place to manage and collect outstanding invoices.

Your Business Has High Sales Volume:

Invoice discounting tends to be more cost-effective for businesses with high sales volumes.

Client Relationships are Paramount:

If it’s critical for your clients to remain unaware of your financial arrangements, invoice discounting allows you to maintain client relationships as you handle all communications.

You Value Confidentiality:

Your clients won’t be aware that you’re borrowing against their invoices, as you’re still responsible for managing your customer relationships and collecting payment.

While invoice discounting offers greater control and confidentiality, it does require robust internal systems to ensure invoices are paid promptly. 

Invoice discounting is ideal for businesses that have the resources to manage their credit collections and prefer to maintain confidentiality in their financial arrangements. 

Is Invoice Discounting Right for Your Business?

How Invoice Discounting Works

When you choose our invoice discounting services, the process is quick and straightforward:

    Invoice Your Client

    Provide your goods or services as usual and invoice your client. 

    Submit Your Invoices

    Submit the invoice details & signed delivery notes to us, and we’ll assess the invoice for eligibility.

    Get Paid

    Once approved, we’ll pay you up to 85% of the invoice’s value within 24 hours.

    Invoice Collections

    Chase up your outstanding payments and ensure all invoices are paid up.

    Final Payments

    Once the invoice is fully paid, we provide you with the remaining balance, minus a small factoring fee.

    Frequently Asked Questions

    Your Guide To Invoice Finance

    How Much Does Invoice Discounting Cost?
    • 3% per month of invoice value
    • R300 payment processing fee
    • No minimum facility fee
    • Credit Insurance premium included

    Min Term            14 days

    Maxim                  12 months

    Min APR               15 %

    Maxim                  36 %

    Loan                      R 50 000

    Term                     6 months

    APR                        15 %

    Repayment         R 107 500

    How quickly can I receive funds?

    At Invoice Factoring, we understand that speed is of the essence. Once your invoice is approved, we typically provide funds within 24 hours.

    Does my business qualify for invoice discounting?

    Specific Criteria:

    • Goods must have been delivered
    • Proof of delivery received
    • Invoice issued
    • Value to be over R 50 000 per month ( multiple invoices possible) eg  4 invoices of R 12 500 each
    • End debtor to be credit worthy (CGIC cover taken)

    General Criteria:

    • No balance sheet required (some lenders)
    • Advances of up to 80 % of the invoice value
    • Clients margin to be minimum of 15 %
    • Single Invoices can be factored / bridged
    • No need for entire debtor book to be factored
    What are the benefits?

    Invoice discounting is a fantastic financial solution for many businesses. Here are seven compelling benefits:

    1. Improved Cash Flow: By allowing you to access cash tied up in outstanding invoices, invoice discounting improves your cash flow, enabling you to meet expenses and invest in growth opportunities.

    2. Confidentiality: Unlike invoice factoring, invoice discounting is confidential. Your customers won’t be aware of the arrangement as you maintain control of the invoice collection process.

    3. Control Over Customer Relationships: Since your business is responsible for collecting payments, you retain direct contact with your customers, which can help maintain and strengthen business relationships.

    4. Flexibility: Invoice discounting is a flexible finance solution that grows with your business. The cash you can access increases in line with your sales, providing more funds as your business expands.

    5. Quick Access to Funds: Once set up, invoice discounting allows for quick access to funds. As soon as an invoice is issued, you can draw down the value, typically within 24 hours.

    6. Financial Freedom: Unlike traditional loans, invoice discounting doesn’t add to your business’s debt load. This means you maintain a healthier balance sheet, which can be beneficial for future financial dealings.

    7. Resources Remain In-House: All credit control processes stay within your business. This can be beneficial if you have a strong credit control department and would prefer to keep this function in-house.

    Invoice discounting can be an invaluable tool for businesses of all sizes. Whether you’re looking to improve cash flow, maintain confidentiality, or simply want to handle customer relationships directly, invoice discounting can provide a powerful and flexible financial solution.

    Is invoice factoring considered a loan?

    No, invoice factoring is not a loan. It’s a way for businesses to get immediate cash based on the value of their outstanding invoices.

    Will my customers know about the factoring arrangement?

    In most cases, no. Since you handle the collection process, your customers will typically be unaware of the factoring arrangement.

    How are factoring fees determined?

    Factoring fees depend on several factors, including the volume and value of your invoices, your customers’ creditworthiness, and the terms of your invoices.

    What is the minimum facility?

    The minimum facility is R50 000

    Apply for Invoice Discounting Here

    Complete the below form and our lenders will contact you with the next steps.

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