FAQs

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FAQs about Sourcefin

Here are the answers to some frequently asked questions about Sourcefin.

^{What is Sourcefin?}

Sourcefin is a financier, specialising in providing purchase order funding for SMMEs who require a cashflow advance or sourcing support to deliver on their next PO.

^{Why does Sourcefin exist?}

Enabling SMMEs is at our core, and we are dedicated to helping small businesses deliver on their purchase orders successfully and grow their business.

^{Does Sourcefin offer general cashflow funding?}

Although we specialise in purchase order funding, we do offer invoice discounting should you need funding and have an invoice that is expecting payment. In some cases, we offer facilities for general cash flow support.

^{What makes Sourcefin different from other PO firms?}

We build lasting partnerships with a simple application process, smart approval, and seamless advance that supports your business growth. We strive to make every application work because we want to build a lasting business relationship with you instead of once-off funding.

^{Is Sourcefin too good to be true?}

Although it seems that way, we do exist and are ready and willing to partner with you to scale your business.

FAQs about purchase order funding

Here are the answers to some frequently asked questions about PO Funding and how it can benefit your business.

^{What is Purchase Order Funding?}

Purchase Order Funding is a financing solution that provides businesses with the capital needed to fulfill purchase orders from customers. It helps bridge the cash flow gap between receiving an order and getting paid.

^{What are the different names for Purchase Order Funding?}

Purchase Order Funding is also known as PO Funding, PO Finance, Purchase Order Finance, Tender Funding, and Order Financing.

^{How does Purchase Order Finance work?}

Once you receive a purchase order, we pay your supplier directly. The supplier ships the goods to your customer. After delivery, you invoice your customer and receive payment. We receive our advance plus a small fee, and you keep the profit.

^{What are the benefits of Tender Funding?}

Tender Funding allows you to accept larger orders, improve cash flow, grow your business without taking on debt, and focus on operations while we handle the financing.

^{Who can benefit from PO Finance?}

Any business that receives purchase orders but lacks the working capital to fulfill them can benefit. This includes startups, SMEs, and established businesses looking to scale.

^{How does Sourcefin support businesses with Purchase Order Finance?}

We provide end-to-end support including funding, supplier sourcing, logistics coordination, and project management to ensure successful order delivery.

^{How much does PO Funding cost?}

Our fees are competitive and transparent. We take a small percentage of the order value, with no hidden costs or surprise fees.

^{What documents do I need to apply for PO Finance?}

You’ll need the purchase order, your business registration documents, bank statements, and basic personal identification.

^{What do I need to qualify for PO Funding?}

You need a valid purchase order from a creditworthy customer, a registered business, and the ability to fulfill the order with our support.

^{Do I need good credit for PO Funding?}

Not necessarily. We focus more on the quality of the purchase order and your ability to deliver, rather than your personal credit history.

^{How quickly can I get funding through Purchase Order Finance?}

Once approved, funding can be arranged within days, allowing you to start fulfilling your order promptly.

^{What costs does Tender Funding cover?}

Tender Funding covers supplier payments, materials, logistics, and other costs associated with fulfilling the purchase order.

^{How does PO Funding impact cash flow?}

PO Funding improves cash flow by eliminating the need to use your own capital to fulfill orders, freeing up resources for other business needs.

^{Is PO Funding a loan?}

No, PO Funding is not a traditional loan. It’s a transaction-based financing solution where we fund specific purchase orders rather than lending money to your business.

^{What industries benefit the most from Purchase Order Finance?}

Manufacturing, wholesale, distribution, construction, and any industry that deals with large orders and significant upfront costs benefit most from PO Finance.

FAQs about invoice discounting

We’ve answered the most common questions about invoice finance.

^{What is Invoice Discounting?}

Invoice discounting is a form of short-term funding that allows businesses to access cash tied up in unpaid invoices. Instead of waiting 30, 60, or 90 days for clients to pay, you can receive a portion of the invoice value upfront, improving your cash flow immediately.

^{What are other names for Invoice Discounting?}

Invoice discounting is also known as invoice financing, invoice funding, receivables financing, or accounts receivable financing. These terms are often used interchangeably in the financial industry.

^{How does Invoice Discounting differ from Invoice Factoring?}

With invoice discounting, you retain control of your sales ledger and client relationships, while invoice factoring involves selling your invoices to a third party who manages collections. Invoice discounting is typically more discreet as your clients may not know you’re using the service.

^{Is there a difference between Invoice Discounting and Invoice Finance?}

Invoice finance is a broader term that encompasses both invoice discounting and invoice factoring. Invoice discounting is a specific type of invoice finance where you maintain control of your credit management.

^{What are the benefits of Invoice Financing?}

Benefits include improved cash flow, faster access to working capital, the ability to take on larger orders, reduced stress from waiting for payments, and the flexibility to grow your business without traditional loan constraints.

^{How quickly can I access funds through Invoice Funding?}

With Sourcefin, you can access funds in as fast as 24 hours after approval. The exact timing depends on the verification process and the specifics of your invoice.

^{Who can use Invoice Discounting?}

Any business that issues invoices to other businesses (B2B) can use invoice discounting. This includes startups, SMEs, and established companies across various industries.

^{What costs are associated with Invoice Financing?}

Costs typically include a service fee and interest on the advanced amount. At Sourcefin, we’re transparent about all fees with no hidden costs, and our consultants will explain everything clearly.

^{How do I apply for Invoice Discounting with Sourcefin?}

Simply click the ‘Apply Now’ button and complete our straightforward online application. Answer a few questions about your business and the invoices you want to finance, and our team will guide you through the rest.

^{What documents are needed to apply for Invoice Funding with Sourcefin?}

You’ll typically need copies of the invoices you want to finance, proof of delivery or service completion, your business registration documents, and recent bank statements.

^{What type of invoices can be discounted by Sourcefin?}

We can discount invoices issued to both private companies and government entities. The invoices should be for goods or services already delivered and must be from approved purchasers.

^{Can I use Invoice Discounting if I have existing loans?}

Yes, invoice discounting can often be used alongside other forms of financing. We assess each application individually and work to find solutions that fit your specific situation.

^{How does Sourcefin support businesses with Invoice Discounting?}

Beyond funding, we offer specialist support for business processes, invoice validation, client follow-up, and guidance to help you grow. We’re partners in your success, not just a funding provider.

^{Why should I choose Sourcefin for Invoice Finance?}

Sourcefin offers an open-minded approach, fast funding (as quick as 24 hours), transparent pricing, specialist support, and a partnership-focused model that helps your business grow sustainably.

FAQs about how Sourcefin's application process works

We’ve answered the most common questions about acquiring funding through Sourcefin.

^{How does the application process work?}

Answer a few simple questions to see if we’re the right fit for your PO funding needs
Provide basic information using effortless automation and simplified forms
Provide details related to banking, accounting and other info to speed-up the qualification process
Tell us about your purchase order deal

^{Can I submit more than one application at the same time?}

If you have multiple purchase orders, then you can submit more than one application at the same time. However, if this is your first time working with Sourcefin, we suggest starting with one application to see if you qualify. If you have been awarded multiple purchase orders for the same client, we can consider bundling them into a single facility and support you deliver on each of them.

^{Can I submit an application if I was denied by another funder?}

Yes, you are encouraged to submit an application to Sourcefin, and we will do everything we can to make it work. This is our promise.

FAQs about how Sourcefin's qualification process works

^{Do you offer PO funding for any order size?}

We typically provide funding on orders requiring an advance amount of more than R250,000; however, in certain situations, we can support orders requiring more than R100,000, provided your business earns more than R1 million per year or holds a net asset value exceeding R1 million. We offer funding up to R100 million.

^{How can I increase chances of qualification?}

Ensure you have been awarded a purchase order, that there is sufficient margin for a financial partner to support you and provide all information requested during the application process. Providing us with additional information, such as your business bank statements and financial statement during the application process may increase the speed and likelihood of us approving your application and may result in a more favourable pricing of the advance we provide.

^{How long does qualification take?}

If you provide all of the information we require during the application process, then we will be able to provide an answer in as little as 24 hours.

^{Do you offer funding for government and corporate purchase order funding?}

While we specialise in supporting SMMEs delivering on South African government purchasing orders, we are able to fund corporate order as well. Please click here to see if we’re the right fit and get started on your application.

FAQs about how Sourcefin's funding process works

^{How long does it take for you to release funding?}

Payment is made directly to your supplier and timed to ensure that the items purchased will be delivered to your client on time, every time.

^{What percentage of profits does Sourcefin charge?}

This varies based on purchase order value, costs and deal complexity. We personalise our cost of credit based on these factors.

^{Do you have restrictions on funding amounts?}

We tend to fund deals that require an advancement of more than R250,000. In some cases, we can support deals requiring more than R100,000, provided your business earns more than R1 million per year or holds a net asset value of more than R1 million. We can fund purchase orders up to R100 million.

^{Are there hidden fees for funding?}

Sourcefin never charges hidden fees and always remains transparent about procedures and costs. We ensure that you are in control of all of your financial decisions by providing you with all of the information you need when it comes to costing.

Let's grow together

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