If there’s one thing almost every South African business has in common, it’s having to deal with late payments.
With invoice financing, it’s possible to turn unpaid invoices into cash, to unlock cash flow for your business.
South African statistics about late payments
According to a widely quoted report by Xero, 91% of surveyed companies were due payments outside their payment terms.
More recently, the National Treasury released a report on the settlement of invoices by national and provincial departments. In the financial year 2022/23, the number of invoices paid after 30 days amounted to 344,653 with a rand value of a whopping R32.7 billion.
The number of invoices older than 30 days and not paid by national and provincial departments at the end of March 2023 was 75,147 with a rand value of R6.86 billion.
Government isn’t the only culprit. Big business regularly drags its feet when settling invoices. This means smaller companies that are facing their own cash-flow issues may be unable to pay their service providers and suppliers.
Impact of late payments on small businesses
The effects of late payments on small businesses can be devastating.
Without a predictable cash flow, businesses may not be able to pay employees on time, settle bills or meet rental agreements.
How invoice financing can help
Invoice financing enables businesses to stop panicking and stay operating while they’re waiting for payment.
A cash advance against one or more unpaid invoices could be the injection of cash a business needs to survive, or to take on or complete a new project. The business can pay suppliers, salaries and other costs before payments come in.
What to know about invoice funding with BizFunding
At BizFunding, unlocking cash flow for your business through invoice financing is quick and easy.
We partner with your business, providing invoice financing of up to R2 million against outstanding invoices. The amount paid is a proportion of the invoiced amount, up to 80% of the invoice value.
Fees are fixed and the financing is only paid back when you get paid by your clients. This differs from a traditional loan, which you pay back on a monthly basis.
It takes just three steps to secure invoice financing. Simply apply online. For same-day preapproval, give us details of the invoices payable to your business.
We’ll then need to see your invoices, RFQ, purchase order, company and FICA details to draw up an agreement. If you decide to proceed, we can fund your business, paying out usually within 72 hours.
If your business is looking for invoice financing, consider partnering with us. Apply online or contact us on 012 001 0095, and we’ll guide you through the process – which is fast, reliable and straightforward.
