Do you need finance to purchase stock and improve sales?

Rapid growth in business can put financial strain on the organisation, as stock levels may need to be increased even during periods when the cash flow is restricted. A Stock or Trade Finance facility is designed to provide additional funding at the times when the business is most in need of it. The asset backed facility enables businesses to increase their available working capital by funding the operational cycle from the time stock is purchased from suppliers, until the funds are recouped from customers

How trade finance from Merchant Factors works

Merchant Factors establish a relationship with your suppliers by direct payment arrangements or through Letters of Credit on your behalf.

Every payment made by Merchant Factors on your behalf would have an agreed repayment date, which is set according to your working capital cycle (allowing time for you to receive goods, sell them and collect the money from the sale). The terms, conditions and fees applicable to the facility are all agreed with your business upfront.

Find out if you qualify for trade finance

In order to qualify for Merchant Factors trade financing companies should:

– be a South African-registered company
– sell on credit terms not exceeding 120 days
– deal in business-to-business transactions (this is not suitable where goods or services are sold to individual consumers)
– have a turnover of at least R120 000 per month and be in a growth phase
– commit to monthly financial reporting to Merchant Factors