Get your business growing, not stalling. Since 1988, Merchant Factors has offered invoice factoring to aspiring founders and CEOs of small-to-medium businesses to access funds  quickly and simply. Ready to benefit? Our friendly experts will guide you every step of the way.

[Turn your invoices into cash]

What is invoice factoring?

Invoice factoring is a form of invoice finance that helps businesses get paid faster. Instead of waiting weeks or months for your customers to settle their invoices, you receive up to 80% of the invoice value upfront. The balance of 20%, less fees flows back once the customer settles the invoice. The remaining 20%, minus any fees, is paid to you once the customer settles the invoice.

This provides immediate working capital to cover day-to-day expenses, manage cash flow, or invest in growth. The amount available is typically based on the value of your outstanding invoices, with safeguards to avoid overexposure to any single customer.

We understand how tight cash flow can hold back your big ideas. Our goal is to help you get paid faster, so you can focus on what matters most.

What invoice factoring is not

• It’s not a last resort or a sign your business is in trouble. Many healthy, growing businesses use invoice factoring as a smart way to improve cash flow, not because they’re struggling.
• It’s not something that will damage your relationship with your customers. Your chosen factoring company should manage collections professionally and respectfully, so your clients won’t feel pressured or uncomfortable.
• It’s not more expensive than traditional bank loans. While fees exist, the fees can be offset by supplier discounts offered for early settlement of accounts.

Is invoice factoring for you?

• You run a growing SME. You’re expanding, but there is a mismatch between your inflow (debtors) and your outflow (creditors and overheads).
• Your business sends out lots of invoices. Your day-to-day means waiting for customers to pay on credit terms.
• You struggle with erratic cash flow. Maybe it’s seasonal ups and downs, or just the odd slow payer.
• Current funding lines are restrictive. It is a well-known fact that commercial funding instruments, i.e. overdraft facilities, are not linked to growth. Invoice factoring, on the other hand, is scalable, as it’s driven by the debtors’ book.
• You primarily trade on credit with other businesses in the manufacturing, packaging, wholesale, transport and logistics sectors, typically working with repeat clients on a predictable basis.

Our approach to invoice factoring

Initial discussion

We start with a brief call to understand your business and determine if invoice finance is a suitable option. If it appears to be a good fit, our friendly team will arrange an in-person meeting.

Application overview and approval

We guide you through the application, explaining how the facility works, and request the necessary financial details. After reviewing your information and gaining credit approval, we provide a quote and formally approve the facility

Onboarding and ongoing support

We introduce you to your dedicated team, who verify debtor details and oversee onboarding. From there, your relationship manager and credit control team manage your facility day-to-day to ensure smooth operation and support.

[Chat with our team]

The advantages of invoice factoring with Merchant Factors

• Get paid faster and improve cash flow instantly.
• Avoid taking on additional debt.
• Access working capital without disrupting operations.
• Flexible financing tailored to your business needs.
• Focus on growth instead of chasing payments.
• Keep your team paid and your suppliers happy.
• Spend less time on admin and more on growing your business.
• Take advantage of settlement discounts from suppliers.
• Forego debtor discounts which eats into your profits, rather offer extended terms.
• Enjoy personalised support.

FAQs about invoice factoring

Do you offer free consultations or assessments before businesses commit to invoice factoring?
Yes, our team is on hand to have the initial conversation, where we explore your business needs and establish if we can offer value.

Are there any legal or regulatory considerations businesses should be aware of when using invoice discounting services?
None. It is not a requirement in terms of our product offering.

What is the average turnaround time for receiving advances on invoices?
You can expect same-day payouts once you’re a client and everything is set up.

Do I have to factor all my clients?
No. It’s up to you to determine which debtors’ invoices you offer to us.

What is the difference between invoice factoring and discounting?
Invoice factoring involves selling your invoices to a factoring company, which then manages the collection of payments from your customers. Invoice discounting, on the other hand, allows you to borrow money against your unpaid invoices, but you manage the collection process.

How do you qualify for invoice factoring?
Qualification typically depends on the quality of your debtor book – your customers’ credit-worthiness – and the size and regularity of your invoices. We’ll discuss this in detail during an introductory meeting.

Do banks do invoice factoring?
Yes, many banks offer invoice factoring services, but they often have stricter criteria and less flexibility than specialised factoring companies.

Why choose Merchant Factors

• South Africa’s largest independent factoring house and the only truly independent second-tier financier.
• 37 years in business (and counting).
• Personalised approach. You deal with real people, not automated messages or call centres.
• Fast, efficient decision-making by an entrepreneurial team that values direct communication and hands-on service.
• Quick turnaround on working capital.

[Speak to our team]