Kentucky Finance

Jul 6 2017

Invoice Factoring -an advance on money due to you from a business in South Africa


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Invoice Factoring

Its what your looking for

What is factoring:

Invoice factoring is essentially an advance on money / cash due to a business, by means of the sale of the invoices to a bridging company. This is not a loan against invoices but an outright sale of selected invoices ( one or many ) or the full debtors book, to a bridging finance company, but with recourse to the seller of the full invoice value.

Why use single invoice factoring or selective invoice discounting

This is a very simple and reasonably quick method (within 2 weeks of receipt of all documents) used by businesses to improve cash flow or working capital as and when needed. There is no lock in period and no penalty for early settlement. You elect to bridge one or a few invoices not the entire debtors book.


Costs Once

Once off set up fee of approx 3 % to 5 % depending on the size of the invoice bridging required. Monthly cost of between 4,5 % and 6 %

Pre-Conditions to Discount Invoices:
The goods /services must have been delivered / rendered and the customer must have accepted the goods / services with no pending disputes. The company requesting the bridging should be profitable and have a clean credit record.

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