What sets Merchant Factors apart from other invoice factoring companies?
If you have decided that invoice factoring is a smart way to improve your working capital efficiency, you may be at the stage where you’re researching and comparing different invoice factoring companies across South Africa. You may also be considering a factoring solution from a bank – as most bigger financial services institutions offer factoring as part of their broader product range.
Here are five reasons why Merchant Factors – a company that specializes in this niche sector of working capital management – should be your first point of contact:
Experience and reputation
Merchant Factors has been providing company-specific working capital solutions since 1988, when the firm was established, to offer businesses an alternative to traditional bank loans and overdrafts.
Since then, Merchant Factors has successfully guided over 2,000 SMEs and other enterprises through periods of growth as well as financial difficulty – establishing itself as the leading invoice factoring company in South Africa.
Born out of a culture of innovative and entrepreneurial thinking, Merchant Factors offers a range of working capital solutions tailored to suit each company’s unique business needs and operational cycle. These solutions include invoice factoring, local and cross-border trade, stock finance, bridging finance and business rescue finance.
While conventional banking facilities such as overdrafts have a set limit, Merchant Factors offers funding linked to a business' sales. The available finance increases as the business grows – it is not capped by the value placed by a bank on bricks and mortar! Being able to access more capital as your turnover grows offers you much more flexibility, which is why invoice factoring with Merchant Factors suits businesses with high growth trajectories.
Struggling to qualify for a bank loan or waiting long periods for business funding to be approved is a major headwind for many small and growing businesses in the country. While most of the big banks assess your business based on your balance sheet, a Merchant Factors assessment is reliant on your fixed assets, stock and debtors book. This means that you may be able to access working capital from Merchant Factors even when your balance sheet does not meet bank loan qualification criteria.
In addition, factoring facilities are based on the quality of your customer’s credit rather than your company’s credit score. If you have battled with credit record issues in the past, this will not necessarily affect your chances of factoring your invoices with Merchant Factors.
Unlike many other invoice factoring companies in South Africa, Merchant Factors is wholly independent. It is not part of a banking group and therefore has the authority, flexibility and resources to provide clients with swift, personal service.
Merchant Factors also has the shortest turnaround time in the industry from application to pay-out. Depending on the nature of the facility, Merchant Factors could have a response for you in as little as 48 hours and pay-out within two weeks.
This means that you can quickly access the working capital you need to keep your business running or to put your next phase of expansion into action.
One of the chief advantages of partnering with Merchant Factors, compared to many other invoice factoring companies and banks, is the comprehensive and highly professional debtor administration services that Merchant Factors provides.
You can focus your time and resources on other business-critical processes, while Merchant Factors takes care of your entire accounts and credit control function. This not only saves hours of valuable business time but also the frustration often associated with collections and managing receipts.
Merchant Factors’ team of trained credit control professionals carry out the following processes in close consultation with you – providing full details of all transaction on all factored debtors via an online portal that is accessible 24/7:
- Opening new debtors' accounts
- Performing necessary credit checks and calculating credit limits
- Sending reminder letters and final demands where necessary
- Verifying deliveries as an after sales service
- Banking and allocating receipts according to remittance advices received from debtors
- Assisting in settlement of disputes and liaising with attorneys when accounts are handed over
Are you ready to partner with a professional and supportive invoice factoring company that has your best interests at heart?For fast, flexible financing – contact Merchant Factors today.
Finance beyond the Numbers.