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Invoice discounting · South Africa

Invoice discounting for South African SMMEs you can trust

When your invoices are issued but your customer still owes you, Sourcefin advances the cash against those invoices, so you stop waiting 30 to 90 days for payment and keep your business moving.

Apply in minutes No collateral needed Cash in as fast as 24 hours
Apply now → See how it works
South African logistics SMME owner who uses invoice discounting to keep cash flowing

What is invoice discounting?

Invoice discounting – also called invoice financing or invoice finance – is funding that advances cash against invoices you have already issued for delivered goods or services. Instead of waiting 30, 60 or 90 days for your customer to pay, Sourcefin advances a portion of the invoice value now, then recovers it once the customer settles. It is not a loan.

Over the past five years, Sourcefin has deployed more than R3 billion to over 2 000 South African SMMEs, with a 100% delivery rate on funded deals. It is the NSBC National Funder Award winner, backed by a R150 million Futuregrowth investment, and named among Africa’s fastest-growing companies by the Financial Times and Statista.

Recognised by
First National Bank Futuregrowth NSBC Africa Gauteng Enterprise Propeller City of Johannesburg Northern Cape Department of Economic Development
4.9
136 Google reviews
Who it is for

Who is invoice discounting for?

Invoice discounting suits South African SMMEs that have delivered and invoiced creditworthy customers, but cannot afford to wait 30 to 90 days for that payment to land.

This is a fit if

  • You have issued invoices for goods or services already delivered
  • Your customers are creditworthy businesses or government buyers
  • You are waiting 30, 60 or 90 days for those invoices to be paid
  • The deal sits between roughly R250 000 and R100 million or more

What you need to qualify

  • Your verified invoice and proof of delivery
  • CIPC and SARS documents for your business
  • Confirmation of the customer and their payment terms
  • ID documents for the company directors
Start an application →
How it works

How does invoice discounting work?

Step 1

Send us your invoice

Apply online in minutes with your verified invoice and proof of delivery. No long forms, no surprise requirements.

Step 2

We verify and assess

Our deal team verifies the invoice with your customer, checks their payment history, and confirms the invoice is uncontested.

Step 3

We advance the cash

On approval, Sourcefin advances a portion of the invoice value to you, so you stop waiting on the payment terms and keep trading.

Step 4

Your customer pays

When your customer settles the invoice, Sourcefin recovers the advance plus the agreed cost, and you keep the balance. The deal closes.

Why Sourcefin

Why discount your invoices through Sourcefin?

Stop waiting 30 to 90 days

Turn invoices you have already issued into cash now, instead of waiting on long customer payment terms.

No collateral required

Funding is secured by the approved invoice itself, not by your fixed assets or a personal surety.

We back the deal, not the history

Sourcefin takes an open-minded view, so startups and businesses turned down elsewhere can still qualify.

Public and private invoices

Whether you have invoiced a corporate, a state-owned enterprise or a government department, an approved invoice can be funded.

We follow up on payment

Sourcefin verifies the invoice and follows up with your customer, so chasing the payment does not fall on you alone.

A partner, not a lender

We fund the gap and grow with you, recovering the advance only once your customer pays.

Proven track record

The numbers behind the funding.

South African professional-services SMME owner reviewing a confirmed invoice in her office
0
SMMEs enabled
0hrs
from invoice to cash
R250k
minimum deal
R100m+
maximum deal
“

Sourcefin helped us unlock the cash tied up in our outstanding invoices. That’s what kept our construction company afloat when we needed it most.

AAndaniInvoice discounting client
“

They settled our outstanding invoices so we could pay salaries again. Sourcefin genuinely changed livelihoods in our business.

SSithandwaInvoice discounting client
“

The invoice discounting process was efficient and quick, and Jared went the extra mile for us throughout.

BBabalwaInvoice discounting client
Google rating 4.9 out of 5

From our verified Google reviews (4.9 out of 5), lightly edited for length and clarity.

Questions, answered

Invoice discounting FAQs.

What is invoice discounting and how does it work?
Invoice discounting advances cash against invoices you have already raised for delivered work. You invoice your customer as normal, Sourcefin advances a portion of the value within days, and once your customer pays, you receive the balance less the agreed cost. Your customer keeps paying you directly.
How fast can I get invoice discounting?
Once you apply with a verified invoice and proof of delivery, Sourcefin assesses the deal and can advance cash in as fast as 24 hours. There is no long approval cycle, so you stop waiting 30, 60 or 90 days for your customer to pay.
What is the difference between invoice discounting and factoring?
Both turn unpaid invoices into cash, but they differ in who manages the customer. With invoice discounting you keep the customer relationship while Sourcefin advances against approved invoices. Sourcefin still verifies each invoice and follows up on payment, so you get the cash early without selling off your whole debtor book.
Is invoice discounting a loan?
No. Invoice discounting advances cash you have already earned against a verified invoice, rather than adding a term loan to your balance sheet. Sourcefin advances a portion of the invoice value and recovers it, plus the agreed cost, once your customer pays.
Will my customer know about the funding?
Sourcefin verifies each invoice with your customer and follows up on the expected payment, so the customer is part of the process. This protects the deal for everyone and means you are funded against confirmed, uncontested invoices.
How much of the invoice can I get, and what does it cost?
Sourcefin advances a portion of each approved invoice and pays you the balance, less the agreed cost, once your customer settles. Deals run from roughly R250 000 upward, and the cost is disclosed in full in your term sheet before you sign, so there are no surprise fees.
Can a startup or a business rejected elsewhere qualify?
Yes. Sourcefin takes an open-minded view and assesses the strength of the invoice and the customer behind it, not only your trading history. Invoices to both private companies and government buyers can be funded, so startups and businesses turned down elsewhere are welcome to apply.
What should I look for in an invoice discounting company in South Africa?
Whether you call it invoice discounting, invoice funding or invoice finance, the same things matter. Look for transparent pricing on the discount cost with no layered fees, speed of advance once invoices are verified, and real experience with your type of customer – government, corporate or mid-market. References from SMMEs in your sector are the clearest signal that a funder actually delivers. The best invoice financing providers back the opportunity, not just the paperwork: Sourcefin verifies each invoice, advances in as fast as 24 hours, and discloses the full cost in your term sheet before you sign.
What is a selective invoice discounting facility?
Selective invoice discounting lets you choose which invoices to fund rather than committing your whole debtor book. It suits SMMEs with uneven cash needs – fund the large invoices that need bridging and let smaller ones settle normally. Sourcefin’s facilities are selective by default.
Where in South Africa does Sourcefin offer invoice discounting?
Sourcefin funds SMMEs across all nine provinces, with most clients in Gauteng, KwaZulu-Natal and the Western Cape, including Johannesburg, Pretoria, Durban and Cape Town. The application is online and assessment is remote, so where you trade does not slow the advance.
Funding Fit

What is your funding fit?

Six questions, about 90 seconds – find the funding that actually fits your deal.

Not every cash gap needs the same funding. The Funding Fit diagnostic reads your situation and routes you honestly, even to options beyond Sourcefin where those are the better fit.

  • A personalised result in about 90 seconds
  • Honest routing, even to options beyond Sourcefin
  • No obligation and no documents needed to start
Take the diagnostic →
Sourcefin Funding Fit personalised result screenSourcefin Funding Fit personalised result screen
Other ways we fund

Related funding for your business.

Purchase order funding

Won the order but not the cash to deliver it? Sourcefin pays your supplier directly so you can fulfil it.

Learn more →

Tender funding

Fund the supply side of a public-sector tender you have won and deliver with confidence.

Learn more →

Explore all funding

Not sure which option fits? See how purchase order, invoice and tender funding compare in one place.

View all funding →
TenderCentral

Find your next tender, free.

Discover, track and apply for government tenders across South Africa.

TenderCentral helps you find the opportunities worth chasing. Win one and Sourcefin can fund the work, so you can deliver it and get paid.

Go to TenderCentral →
The TenderCentral platform showing open South African government tenders
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Ready to unlock the cash in your invoices?

It is free to apply, and there is no commitment until you draw down. If your customers owe you, let us advance the cash now.

Apply now → Talk to us