Benefits

How will Invoice Factoring benefit your business

Convert your business into cash on delivery

You convert your business into a cash on delivery business and you will not have to wait for up to 90 days for payment from your customers. Finrock will pay you up to 75% of the invoice, less our fee, into your bank account, once you have delivered the goods and services to your customers.

Improve cashflow

More cashflow means:

  • increased bulk orders which will be at better prices thereby increasing your profit
  • early payment to your suppliers and earning better settlement discounts
  • having capital available to fund new contracts and customers having the capital available to fund this growth.

Access working capital

Spend your valuable time growing your business, not with your bank trying to access additional working capital. As your business grows and your sales increase, so does your debtors finance facility. The amount of working capital and cashflow you receive into your bank account will grow as you grow your business. The more goods and services you deliver, the more cashflow will be available to you. Finrock will purchase all eligible invoices that are uploaded, and you elect an advance against.

Professional guidance

Have a trusted advisor to help and guide you when you advance trade credit to your customers. The Finrock team has decades of approving trade credit. We will provide, free of charge, the credit granting approval and limits to guide and support you in growing a profitable and sustainable business.

Stop chasing debt

Spend your time growing your business rather than chasing debt. Free up your team from collecting debt, so that they can focus on growing your business. The credit administration of your outstanding invoices will be provided, free of charge, and will include the following:

  • Sending statements to your customers
  • Providing copy invoices on request to your customers
  • Providing copy proof of delivery notes to your customers
  • Confirming payments due from your customers at month end
  • Providing a cashflow forecast of expected month end payments to enable you to plan cashflow in your business
  • Allocate payments received against outstanding invoices
  • Follow up on non-payments by your customers

Collection services

Will provide legal collection services as required, through a network of approved associates.

  • Issue letters of demand (LOD’s) for overdue payments
  • Issue summons and manage the legal process on debtors that do not pay
  • Manage the business rescue process, in the event one of your customers enter business rescue
  • Manage the liquidation process, in the event one of your customers enter business rescue

​What industries will benefit from Debtor Finance / Invoice Factoring

Retail industry

The retail industry is very competitive. The big retailers will push their suppliers on every angle and specifically on payment terms. Invoice factoring will provide your business with the cashflow where you do not need to wait for your payment up to 90 days. The large retailers payment processes are very complex. If you do not submit your statements and other required documents according to their requirements they will not make payments on the due date. Finrock has decades of experience dealing with the large retailers and will streamline the collections from the large retailers to ensure that payments are made as soon as possible in line with the agreements. An invoice factoring facility will increase your working capital through collecting your outstanding invoices more effectively and advancing an upfront cash payment of 75% of your invoice thereby making your business more sustainable and profitable.

Manufacturing

The key to a profitable manufacturing business is to deliver a quality product and to maintain your profit margins. Invoice factoring will provide you with cashflow to negotiate better volume-based prices from your suppliers and higher settlement discounts making your business more profitable.

Transport and Logistics

Diesel suppliers are very restrictive in allowing SME’s to purchase on credit and an invoice factoring facility will provide you with the cashflow to purchase diesel and consequently grow your business. With the high cost of diesel an invoice factoring facility will provide the cashflow to enable you to negotiate much better cash prices and will make your business more profitable.

Importers

Foreign suppliers will seldom provide a credit facility and generally the payment terms include a deposit and the remainder due on presentation of the Bill of Lading. The working capital cycle is significantly increased for businesses with foreign suppliers. An invoice factoring facility will provide you with working capital to pay your foreign suppliers and increase your inventory and your sales making your business more profitable.

Your company will benefit from Debtor Finance / Invoice Factoring if:

  • You sell on credit terms not exceeding 90 days
  • You sell to companies
  • You sell on an outright basis, not on a sale or return or consignment basis
Man driving a forklift
  • Debtor management
  • Collection
  • Cashflow
  • Working capital
Finrock

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