BizFunding offers bespoke funding for fashion businesses in South Africa, with funding options that are designed specifically to help apparel and related businesses overcome barriers to growth.
Whether your business designs, manufactures or sells clothing, accessories or footwear, we can assist with:
- purchase order funding
- tender funding
- funding against invoices.
How our funding model differs from traditional funding
The funding model at BizFunding is based on a partnership, where we provide the capital and expertise in exchange for a share of the profits.
We offer fixed-fee cash advances against purchase orders, government tenders and unpaid invoices. We only get repaid once your business has been paid by the end user.
The average approval time is 72 hours – a fraction of the time it takes for banks and other traditional lenders to process loan applications.
In addition to unlocking immediate access to funds, we assign a BizFunding consultant to your business to provide hands-on assistance with the management of the project.
Challenges for fashion businesses in South Africa
A stagnating local economy, logistical issues and a consistent flood of fast-fashion and cheap imported goods are among the challenges facing fashion businesses in South Africa.
These challenges, alongside limited access to skilled labour, global markets and affordable funding to fuel growth and innovation, are identified as key constraints of supply chain management.
In particular, SMEs are struggling to compete due to high operating costs, late payment by clients, and a lack of capital and credit facilities.
Moreover, a report on the South African clothing industry has highlighted the “heavy reliance on imported materials” as increasing market vulnerability to:
- supply chain disruptions
- exchange rate fluctuations
- international events, such as recent tariffs imposed by the Trump administration.
To ensure local clothing and apparel entities thrive in an adverse environment, stakeholders must deliver mechanisms to mitigate these challenges. That’s where BizFunding steps in.
Purchase order funding for the apparel industry
BizFunding provides the capital required to fulfil purchase orders on time and within budget.
We pay suppliers, cover the costs of day-to-day operations, and offer our expertise and business acumen every step of the way. Once the buyer has paid for the order, the business pays us.
Purchase order funding ensures fashion and apparel businesses never say “no” to large, lucrative purchase orders.
It provides the liquidity SMEs need to bridge the gap between manufacture and end payment, a factor that can impact cash flow for weeks or even months.
As a finance option, purchase order funding is particularly attractive to an industry that traditionally outsources garment production to CMTs. Paying suppliers on time helps to build trust, cement strong relationships and drive future growth.
With purchase order funding, clothing and apparel brands in South Africa can quickly scale up to meet growing retail demands.
Tender order funding for clothing and accessories businesses
Tender order funding is finance backed by an existing tender from a government agency.
It may be to cover the cost of the supply and delivery of nurses’ or SAPS uniforms, personal protective clothing for the Department of Forestry, Fisheries and the Environment, or safety gear for an expanded works programme.
To ensure businesses can deliver as promised, BizFunding covers the expenses associated with the fulfilment of the tender.
We also offer expert advice and assistance with the execution of the tender.
Funding against invoices for fashion businesses
Invoice funding is a financial tool that’s readily available to South African clothing and fashion brands.
It reduces the cash flow burden by instantly converting a percentage of one or more unpaid invoices into working capital. This type of funding allows businesses to operate as usual without waiting for the payment terms on their invoices to kick in.
At BizFunding, we finance up to 80% of the invoice’s value, up to R2 million. Fees are fixed, repayment terms range from 30 to 90 days, and there is an average turnaround time of three working days.
We offer funding for fashion businesses in South Africa. Call BizFunding now on 010 157 2499 or apply for funding online. Give your clothing, footwear or apparel brand the boost it needs to grow and prosper.
