Advance funds on accounts receivable before the invoice due date.
Debtor Finance offers a simple solution to manage working capital effectively without having to take on additional debt or extend lines of credit. It enables you to alleviate cash flow problems using your debtor’s book to secure advanced payments on your invoices.
We offer a specialised invoice discounting solution using your current sales to boost cash-flow.
Invoice discounting and factoring are methods of short-term financing that describe borrowing against your outstanding invoices. Factoring typically involves “selling” your receivables, whereas invoice discounting allows you to use accounts receivable as collateral for a loan.
Our tailored invoice discounting solution provides a convenient way to access funding at a fixed fee, with no additional upfront charges.
Benefits of Invoice Discounting / Debtor Finance
There are many advantages of debtor finance using invoice discounting:
- Manage working capital effectively. Gain access funds when you need a capital injection.
- Relieve cash flow shortages caused by offering payment terms or where customers are slow to pay.
- Allows your business more negotiating power to attain better settlement discounts from creditors as cash flow is no longer a problem.
- Flexibility to offer attractive trading terms without hampering business cash flow.
Getting Started With Debtor Finance through Transaction Capital Business Solutions
- Your business concludes a sale and delivers the goods or service.
- The invoice and proof of delivery are then uploaded to Transaction Capital Business Solutions.
- We will immediately pay up to 75% of the invoice value, less our minimal fee, into your bank account.
- At the end of the month, your dedicated credit controller at Transaction Capital Business Solutions will submit a statement to your debtor, collect the full amount owing and refund you the remaining portion less our minimal fee.
This is the cash-flow solution I’ve been looking for!
More about Debtor Finance
Debtor finance is the ideal solution for growing small to medium-sized enterprises that:
- Have funds tied up in unpaid invoices.
- Offer credit or payment terms of less than 30 days.
- Need to pay creditors to qualify for early-bird or bulk purchasing discounts.
- Want to offer more attractive payment terms to gain a competitive advantage in their market.
- Are experiencing unexpected project delays that require paying additional wages.
- Need to pay unplanned overtime expenses due to production demand or delays.
- Need a capital injection to acquire assets or finance growth.
Our solution is best suited for businesses that operate in industries such as:
- Importing and exporting
- Engineering and construction
- Transport and logistics
- Wholesale and Retail
- Printing and packaging
Debtor financing is a form of asset-backed finance where your debtor’s book (accounts receivable) is used as collateral. You receive the cash owed on issued invoices ahead of their due date, minus the financer’s fee.
Though often used interchangeably, invoice discounting and factoring are forms of debtor finance. The distinction is usually drawn between the associated costs, who remains in control of the debtor’s book, and whether or not the financer is responsible for collecting monies owed your debtors.
Our solution offers the affordability of invoice discounting and the convenience of handling collections from your debtors. Your business receives the cash-owed on outstanding invoices ahead of their due date, using your accounts receivable as a security for the loan.
Transaction Capital Business Solutions, previously Rand Trust, is an established company with over 60 years’ experience in providing funding to a variety of businesses throughout South Africa.
As a division of the listed entity Transaction Capital Ltd, we have an excellent standard within areas of high-risk management, compliance, governance, transparency and ethics.
We have earned a solid reputation for working with our clients to meet their specific and unique needs.
“Transaction Capital Business Solutions has added a great deal of value to our business. Our debtor book had increased which Transaction Capital Business Solutions were able to accommodate. The additional revenue generated additional expenses, but the ability of Transaction Capital Business Solutions to fund us based on the increased value of invoices submitted, allowed our business to grow.”
–Rishal Gayadeen, Cosmopolitan Hauliers
Do you need a larger loan to fund business expansion?
A property backed loan is a fast, convenient way to access business funding at lower interest rates than traditional lines of credit. This solution provides a secured business loan using your residential, commercial, or prime industrial property as a guarantee.
Property-backed bridging loans give you quick access to short-term funds that allow you to fulfil current obligations immediately. You may have money tied up in a pending transaction and simply need a cash injection to “bridge the gap” until you receive that money.
SME Credit Insurance protects your business from cash flow problems caused by debtors who are unable or unwilling to pay. It is an insurance policy for your debtor’s book with additional debt and risk management features to secure one of your largest financial assets.
No business can afford to carry the burden when customers fail to pay on time, or at all. We help our clients to manage these risks better and provide insurance against loss of income due to debtors defaulting, liquidations or being placed in business rescue. Our services are customisable and suitable for businesses of any size across any sector.