Invoice Finance

Basically, invoice financing turns your unpaid invoices into cash. It’s a form of financing where you can get an advance on funds that you’ve already invoiced your customers for. You borrow money against the amounts due from your customers. This can help you improve your cashflow situation so that you can pay your business expenses, suppliers and employees. A key benefit of Bridgement’s invoice financing is that you’ll receive 100% of the value of your unpaid invoices (instead of the usual 70-80%) and the transaction is completely undisclosed. This means your invoiced clients will be kept unaware of the fact you’re getting invoice finance.

Bridgement charges a single fee for each invoice advance you receive. This single fee is the total cost of finance and there are no other fees or interest charged. There are also no fees to apply and no ongoing monthly facility fees. Our pricing is completely transparent and upfront – you will always know the exact cost for each invoice advance you take from Bridgement. The rate you’re charged will depend on a number of factors including your business situation, your receivable invoice and the quality of your debtors book. You’ll also qualify for a better rate the more you use your Bridgement facility and once you’ve built up a track record. View our pricing calculator to get a sense of what your rate could look like.

If you don’t have a long credit history or substantial assets, you’ll find it hard to apply for traditional business finance through a bank. What’s more, bank financing can take months to get approved. Bridgement invoice financing offers South African business owners a convenient, fast and flexible way to deal with late paying customers and get financing when you need it. The online application process is quick, simple and headache-free.

Invoice factoring, also known as accounts receivable factoring or debtors factoring is a similar concept to invoice financing or discounting, but there is one fundamental difference. Essentially with factoring, the company requesting funding does not retain ownership of the invoices and the lender, also known as the factor, assumes responsibility of these – collecting payments from the customers directly. When the customers pay their invoices, the factor deducts its fees and the discount, and the remaining amount is remitted to the company.