Factoring Articles

How to cut costs without impacting quality

How to cut costs without impacting quality While South Africa’s economy appears to be on the mend, the recovery will likely be a slow one. There are indeed many positive indicators... (Read More).

How to nurture your business through each stage of growth

The SME guide to working smarter  The process of growing a small business to maturity can be a lot like raising a child: some key principles remain constant, while others require adapting to your business’s changing needs. Commitment is always paramount, but where you invest your time and energy must evolve. (Read More).

The SME guide to working smarter

The SME guide to working smarter  The phrase “work smart, not hard” has become a common business-motto in recent decades, with admin and inefficient workflows increasingly eating up time. This is especially true for SME owners, who often do the work of several people, rather than focusing on high-value work. (Read More).

Year-End Business Checklist

Year-End Business Checklist As we head into the holiday season, here are our top six business tips for ending 2018 on a positive note. (Read More).

How to negotiate better credit sales terms

How to negotiate better credit sales terms  As an organisation that trades business-to-business, do you sell to your customers on credit terms? You may, for example, have agreed to net 30 days. This means that the customer must pay within 30 days of the invoice date. Or, are you dealing with credit sales terms that run into months? (Read More).

How to spring clean your business finances

How to spring clean your business finances  For many companies, cash flow problems can feel like an eternal winter. When funds begin to dry up, business slows down and growth plans go into hibernation. If this sounds familiar – it may be time to spring clean your business finances. (Read More).

How to get paid on time without impacting customer relationships

How to get paid on time without impacting customer relationships  Collecting payments when these are due is vital for any business to succeed. Late payments by your customers can lead to an array of issues such as cash flow problems, low productivity and stress. (Read More).

The cost of factoring – and how to off-set these expenses

The cost of factoring – and how to off-set these expenses Are you gearing up for a new growth phase in your business? Or are you struggling to make ends meet as you wait for your customers to pay their invoices? There are many reasons why companies choose to factor their invoices. (Read More).

The growth factor: expand your business with factoring

The growth factor: expand your business with factoring    As a business owner, you may have reached the point where you’re ready to grow your sales. Perhaps you want to seize an exciting new opportunity in the market or expand into new locations. Maybe you’re ready to introduce a new product line or you want to hire new skills. While there’s no limit to your growth plans – you may well be limited by your cash flow. (Read More).

Online business loans vs. factoring

Online business loans vs. factoring  Accessing working capital to boost cash flow or pay off debt can be a challenge for any business. As a smaller company, this can feel especially daunting. When the banks turn down your loan application, where can you go? (Read More).

What happens when the bank says “no”?

What happens when the bank says “no”? Needing access to finance is part and parcel of running a business. And many companies explore the traditional bank loan route first. However, conventional sources of capital are not easy to get. (Read More).

Fintech and the future of factoring

Fintech and the future of factoring As a small company that has battled to access working capital in the past, you may be wondering whether fintech is the business finance solution you’ve been looking for.(Read More).

How to keep your small business afloat with factoring

How to keep your small business afloat with factoring In South Africa, experts predict that SMEs will provide 90% of all new jobs by 2030. As the owner or financial director of a small business, you may be wondering how you will ever get to the point where you’ll be able to hire more staff – staying in business is challenge enough! (Read More).

Battling to access working capital? Branch out.

Battling to access working capital? Branch out. Access to capital can be a huge stumbling block for small businesses in South Africa. This does not only apply to start-ups looking for funding to get off the ground.(Read More).

How to cut credit risk in your business

How to cut credit risk in your business When your company sells products to a customer and allows them to pay later, you are selling on credit. This benefits your customer, who gets to wait a month or more before paying your invoice. Credit sales terms vary, sometimes permitting customers 30, 60, 90 or even 120 days to pay after receiving the invoice. (Read More).

EU factoring industry continues to expand

EU factoring industry continues to expand Research shows that the European Union (EU)’s factoring market is expanding at a constant and steady pace. The EU Federation for Factoring and Commercial Finance recently released its half year turnover results for the region’s factoring sector. According to these findings, factoring turnover continued to increase in the first half of 2017 – following on from seven years of consecutive growth in this burgeoning market. (Read More).

New year’s resolutions for your small business

New year’s resolutions for your small business As 2018 begins, what are your business goals for the year ahead? If you’re planning to expand, explore new opportunities or simply keep your finances healthier than they were last year, here are three top tips. (Read More).

Five SME finance tips for 2018

Five SME finance tips for 2018 Is sound cash flow management high on your organisation’s agenda for next year? Here are five top tips for keeping your business finances healthy during 2018 and beyond. (Read More).

Survive and Thrive Successfully: Advice for Seasonal Businesses

Survive and Thrive Successfully: Advice for Seasonal Businesses Many businesses experience seasonal peaks and troughs in demand. These types of organisations face multiple challenges. Not only do they need to survive during slow seasons, but they must also find ways to thrive during periods of increased demand by capitalising on revenue opportunities without putting cash flow or long-term success at risk.(Read More).

Factoring: a popular form of business financing globally

Factoring: a popular form of business financing globally Factoring is a financial service leveraged by businesses around the globe to maintain healthy cash flows, fund growth cycles and save time in the back office. (Read More).

5 tips for managing your accounts receivable successfully

5 tips for managing your accounts receivable successfully For a small or medium sized business, cash flow is critical. The client base may be growing. Sales may be up. But if accounts receivable are not managed in a sound and structured way, there simply won’t be enough capital to run the business effectively.(Read More).

Dispelling common misconceptions about factoring

Dispelling common misconceptions about factoring Many growing companies in South Africa, especially SMEs, are seeking business finance that provides more flexibility than a traditional bank loan or overdraft facility. Not all organisations are able to weather the lengthy approval processes that often go hand-in-hand with bank finance. They require working capital solutions that keep pace with their operational cycles or scale with their turnover. (Read More).

The value of having credit-worthy customers

The value of having credit-worthy customers Many business owners lose sleep agonising over their credit scores – which can be a major obstacle when applying for finance. A blip in your company’s credit record, even based on an issue that was resolved years ago, may affect your ability to access a bank loan or overdraft facility. (Read More).

Does factoring affect customer relationships?

Working capital and credit control services to take your business forward SMEs in South Africa and abroad use factoring to improve their liquidity ratios and keep their business finances healthy. Factoring is a form of debtor finance that involves a company selling its invoices to a third party (a factoring company) to improve cash flow and ensure ready access to the working capital required for growth.(Read More).

Invoice factoring and invoice discounting: what’s the difference?

Invoice factoring and invoice discounting: what’s the difference? As a small or medium enterprise, you may be looking for an alternative source of business finance – a funding mechanism that does not carry the same limitations as a traditional bank loan. You may need faster access to finance than the banks are able to give you; or you may be looking for a working capital solution that grows with your turnover. (Read More).

Working capital and credit control services to take your business forward

Working capital and credit control services to take your business forward Factoring is a type of business finance that provides an alternative to traditional bank loans and overdrafts. Despite local businesses factoring over R25 billion in turnover each year, some South African companies are still unfamiliar with this funding strategy, designed to provide growing businesses with fast access to working capital.(Read More).

How factoring helps to reduce your risk of bad debt and losses

How factoring helps to reduce your risk of bad debt and losses Regrettably, many businesses in South Africa have experienced a painful loss of income due to unpaid accounts receivable. Bad debt expenses occur when a business is unable to collect the funds that it is owed, because the debtor is facing bankruptcy or other financial problems, and all reasonable efforts to collect these outstanding payments have been exhausted.(Read More).

Cash flow squeeze? Invoice factoring may be able to assist you!

Cash flow squeeze? Invoice factoring may be able to assist you! “Never take your eyes off the cash flow because it is the lifeblood of business.” – Richard Branson. Many small- and medium-sized businesses invoice healthy amounts for products delivered and services rendered, yet experience a cash flow crunch because their customers require market related credit terms. (Read More).

A solution to the small business finance gap

Cash flow squeeze? Invoice factoring may be able to assist you! Small and medium enterprises (SMEs) are the driving force behind job creation in South Africa, where they provide employment to a significant portion of the population. According to the Business Partners SME Index for the fourth quarter of 2016, almost half – 47% – of local SMEs had hired new staff members in the past 12 months. (Read More).

How to unlock your working capital

Invoice finance a growing business finance trend Every business needs funds to pay for the operational cycle - the time it takes to invest in the inventory required to produce goods or services, sell these and receive cash in return. To ensure they can continue operating efficiently through each cycle, as well as remain on a growth trajectory, companies need a certain amount of cash in the business – known as 'working capital'. (Read More)

Business finance solutions: 10 reasons to choose factoring

Invoice finance a growing business finance trend When your business needs access to working capital, what are your options? Many small and medium enterprises find it difficult to obtain traditional bank finance in this economy; and even when they do, the approval and processing period can last weeks, sometimes even months. (Read More)

Invoice finance: a growing business finance trend

Invoice finance a growing business finance trend Asset-based finance, a term used to describe funding against a range of balance sheet assets including invoices, is a well-established and fast-growing financing strategy that is used by businesses on a global scale. (Read More)

Can you afford to wait? The solution to lengthy invoice payment terms

Can you afford to wait? The solution to lengthy invoice payment terms Late invoice payments are a major headwind for many business owners. This is an issue of particular concern for companies in the small and medium enterprise (SME) sector, because SMEs generally have fewer resources and their cash flows are more at risk when their debtors take months to pay. (Read More)

How healthy is your business?

How healthy is your business? A healthy business is a resilient, resourceful and forward-thinking business that can continue operating and meeting client expectations despite the ups and downs that are created by macro- and microeconomic factors. (Read More)

Survive or thrive? How to maintain profitability in all business climates

How to maintain profitability in all business climates When you have been running a business for any length of time, you know that there will always be ups and downs – no matter whether you’re navigating broader economic challenges or operating in a market that is characterised by seasonal demand. (Read More)

Bridging the gap: interim finance solutions to suit your business

Bridging the gap: interim finance solutions to suit your business Increased regulatory scrutiny in the wake of the 2007-2008 financial crisis has put pressure on banks to adopt a more risk-averse culture and prohibitive customer onboarding processes. In this environment, like many organisations around the globe, you may find it challenging to access the finance you need to weather business storms and put your growth plans into action. (Read More).

Factoring stands the test of time

Factoring stands the test of time Like all financing strategies, factoring has evolved over the centuries to keep pace with developments in the commercial world and the legal sphere, as well as the emergence of technology such as air travel, telecommunications and IT. Increased regulatory scrutiny in the wake of the 2007-2008 financial crisis has put pressure on banks to adopt a more risk-averse culture and prohibitive customer onboarding processes. In this environment, like many organisations around the globe, you may find it challenging to access the finance you need to weather business storms and put your growth plans into action. (Read More).

Cash in on success: why cashflow is business-critical

Why do companies need ready cash The availability of cash resources is important to both the short- and long-term health of your company. You may be invoicing impressive sums of money, but until that cash is paid over to you, it can’t keep your business ticking over, fuel its growth, or protect you from the risk of unpaid bills and bad debt. (Read More).

The X Factor: what sets factoring apart from traditional bank loans?

The difference between factoring and loans Factoring is a financing strategy adopted by businesses around the globe to unlock working capital. Many companies can’t afford to wait for 30, 60 or 90 days until their clients pay their invoices. They need the cash that’s owing to them to pay salaries, process the next round of orders, or capitalise on new opportunities before their competitors do. (Read More).

Have You Factored in Rapid Growth?

case study have you factored in rapid growth Trek Plastics have been navigating the South African business landscape for over half a century, first as a tool & die manufacturer then expanding into the plastics industry in 1978. In 2015, landing a lucrative contract appeared to be a dream come true for the Port Elizabeth-based company but cash flow restrictions threatened to derail the golden opportunity. (Read More).

Face up to the Factor – Factoring myths busted!


Factoring Myths Busted One of the most underutilised working capital tools in the South African SME environment is factoring or invoice discounting. We bust 3 Myths surrounding Factoring to showcase this very adaptable, and viable, finance option for growing businesses. Read our infographic to find out more.

Keep Moving, Stay Liquid

Keep Moving Stay Liquid Whether you’re waiting for a phone call, an important email, or the kettle to boil, waiting can be frustrating. Waiting for cash inflow for your business can be just as frustrating as the anticipation builds, and you feel suspended, unable to progress, unable to grow. (Read More).

3 Cash Flow Tips for Business to Business Entrepreneurs

3 Cash Flow Tips for Business to Business Entrepreneurs Access to finance for SME's continues to be the make or break point for company growth and expansion. According to the World Economic Forum Competitiveness Rankings, South Africa, ranked 49 overall, "hosts the continent's most efficient financial market" placing the country at the 12th position in comparison to her global counterparts. (Read More).

WTF - Why The Factor


Why The Factor - Working Capital from Factoring to Expand Your Dreams In the current economic climate, SMEs need to look to service providers offering out of the box financial solutions to generate the working capital necessary for growth and expansion. With 28 years experience navigating the South African finance world, Merchant Factors offer just the maverick thinking business owners need. Outlined in the infographic is an introduction to one of our core financial alternatives – Factoring.

Merchant Factors celebrates 28 Years of Success

Since 1988, Merchant Factors have grown from strength to strength and today pride themselves on providing innovative and flexible working capital solutions to a vast array of clients spread across numerous industries. Now in 2016, on their 28th anniversary the Merchant Factors family can revel in the success of the company and its elite status within the finance fraternity. (Read More).

SA Economy Grew in 3rd Quarter


South Africa's economy grew marginally by 0.7% in the third quarter of 2015, Statistics SA announced on Tuesday.

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Internet Fraud Awareness


Increase number of attempts to obtain funds under false pretences. Criminals are targeting the debtors books of companies. Attached "Internet Fraud-Awareness Bulletin" kindly provided by Paul O’Sullivan & Associates.

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What SA Businesses can learn from Starbucks


When it comes to doing business in the digital landscape, there’s a lot local companies can learn about adding value to the customer experience and sustaining brand loyalty. Local businesses have not yet optimised the potential of mobile technology in loyalty programmes and have used it in limited ways. The digital loyalty programme of American coffeehouse, Starbucks, is seen as a global success story with 10.4m active members, says Nolan Daniel, director of Paradigm Group

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Tapping into craft beer boom


Wine makers plunge into the new craze of "craft beer". This Diversification is a result of wine makers catering to the ever widening variety of wine tourists visiting their estates. Craft beer is produced throughout the year unlike wine makers who traditionally operate seasonally. This has allowed estates to effectively utilize their facilities and manufacture beer throughout the year.

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2015 National Small Business Survey reveals SME optimism despite challenges


Results from the 2015 National Small Business Survey, released by the National Small Business Chamber (NSBC), show the continued resilience of South African SMEs in the face of economic challenges. The annual survey canvassed 18 500 small businesses throughout the country, providing valuable insight into current trends and sentiments in the sector.

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