Invoice discounting is the selling of unpaid invoices for work already done to a financier. If the work has not been done, it is referred to as Purchase Order discounting. There are no monthly repayments that you need to plan for, as the debt is settled with the financier only when the invoice is actually paid.
By selling your unpaid invoices you will receive a cash advance that’s a percentage of your invoice’s value. You can then use these funds to purchase stock to finance the next order you need to complete. You can use this option to fund your business if you do not have a turn-over of R 1 million or more in the past year.
