What's usually happening
The gap between paying and selling
A supplier wants payment, often upfront or on tight terms, before the stock can be sold on. The gap between paying for stock and selling it can strain cash flow, especially before a busy period.
Likely routes
Two routes usually fit
Does this fit you?
Check the three signs
- Your turnover is regular and at least R600,000 a yearMay fit a Merchant Cash Advance.Likely fit.
- Turnover is steady but under R600,000 a yearWorking capital may fit instead of a Merchant Cash Advance.Possible fit.
- Most income is invoiced to other businessesSee invoice discounting instead.Probably not this route.
What you'd need
What you'll be asked
- Who we can help
- Registered companies (Pty Ltd or CC) trading for at least 12 months, with funding from R50,000. A Merchant Cash Advance also needs annual turnover of R600,000 or more; other funding types have their own criteria.
- Asked first
- How you're paid, how much you need, what it's for
- Asked later, if you go ahead
- Bank statements, company documents, ID
- What they'll never ask for upfront
- Money before any funding is paid out