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Invoice discounting (debtor finance) vs working capital funding
Both close a cash-flow gap. The real question is whether you want cash tied directly to invoices you've already issued, or a facility you draw on more generally.
How it's tied to your business
Advanced against specific invoices you've issued. As they get paid, the facility repays itself.
Fits best if most of your revenue is invoiced to other businesses.
A general facility, not tied to any one invoice or asset. You draw and repay on its own schedule.
Fits best if your income doesn't run through issued invoices, or you want flexibility beyond one customer relationship.
Who tends to get approved
Businesses invoicing other businesses (not consumers), with a reasonable spread of customers.
A wider range of trading businesses, assessed more on overall cash flow than on any one invoice.
Cost
Indicative: about 1.5% to 5% per 30 days, depending on the debtor, invoice value, payment terms and transaction.
Risk-based and set by the funder, so we don't publish one rate across all funders. The funder confirms the cost after reviewing the application.
Pricing shown is for registered companies (Pty Ltd or CC) trading for at least 12 months, with funding from R50,000. All pricing is indicative and subject to funder approval.
Neither option is scored as an overall winner here: the right one depends on how your business actually gets paid. If you're not sure, Quick Access Capital can talk through both on a call.