Purchase order funding
Fund confirmed orders and tenders – with detailed PO funding FAQs on the page.
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Questions, answered
Business funding FAQs for South African SMMEs
The questions SMMEs ask us most – what Sourcefin does, how to choose the right funding, and how applying, qualifying, costs and repayment work. For deep answers on a specific product, each funding page carries its own FAQs too.
How does funding with Sourcefin work?
Sourcefin is a funding partner for South African SMMEs. Instead of lending against your credit history and collateral, we back a real opportunity you already hold – a confirmed order, an unpaid invoice or an awarded tender – and are repaid when that deal pays out. You apply online, we assess the deal, and on approval we release funding, often with a term sheet in 24 to 48 hours. The questions below cover the rest.
About Sourcefin
Who we are and who we fund.
Is Sourcefin a legitimate, established funder?
Yes. Sourcefin has funded South African SMMEs since 2020 and has deployed more than R3 billion to over 2 000 businesses, with a 100% delivery rate on funded deals. We are a 2026 NSBC National Funder Award winner, were named among Africa’s fastest-growing companies by the Financial Times and Statista in 2026, and are backed by a R150 million Futuregrowth investment.
Who does Sourcefin fund?
Sourcefin funds registered South African SMMEs – private companies and close corporations – that have won a confirmed order, hold an unpaid invoice, or have been awarded a tender from a creditworthy public- or private-sector client. If you have a real deal you cannot yet fund yourself, you are who we exist to back.
Is Sourcefin a bank or a lender?
Neither. Sourcefin is a funding partner that backs specific deals rather than issuing loans against your balance sheet. Where a bank looks at your credit history and assets, we look forward to the opportunity in front of you – a confirmed order, invoice or tender – and structure funding around it.
Sourcefin sounds too good to be true – what is the catch?
There is no catch. Sourcefin earns an agreed, transparent fee on the deals we fund, set upfront with no hidden costs. We back opportunities others may pass on because we assess the deal and your ability to deliver, not only your trading history – and we only succeed when your deal does.
Where in South Africa does Sourcefin fund?
Sourcefin funds SMMEs across all nine provinces. Most of our clients are in Gauteng, KwaZulu-Natal and the Western Cape, with active deals in Johannesburg, Pretoria, Durban and Cape Town. The application is online and assessment is remote, so where you are based does not slow things down.
Choosing your funding
Which funding fits your situation.
What is alternative funding, and how does it differ from a traditional business loan?
Alternative funding is finance that sits outside a traditional bank loan. Rather than weighing your credit history and collateral, the funder backs a real opportunity you already hold – a confirmed order, an unpaid invoice or an awarded tender – and is repaid when that deal pays out, so it need not add long-term debt.
What types of funding are available to South African SMMEs?
South African SMMEs can draw on several types: traditional bank lending, government-backed development finance, equity from investors, and alternative funding tied to a specific deal. Sourcefin focuses on the last – purchase order funding, invoice discounting and tender funding – built for SMMEs supplying larger buyers.
Purchase order, invoice or tender funding – which one do I need?
It depends on where your cash gap sits. If you have won an order but cannot pay your supplier, that is purchase order funding. If you have delivered and are waiting to be paid, that is invoice discounting. If you have been awarded a public tender, see tender funding.
Can I get business funding without putting up collateral?
Yes. Sourcefin does not require fixed assets or property as security. Because we fund against a specific confirmed deal and are repaid when it pays out, the order, invoice or tender itself anchors the funding – so you can access working capital without pledging the assets a traditional facility would expect.
Will funding from Sourcefin put debt on my balance sheet?
Not in the way a term loan does. Sourcefin funds a single deal and is repaid directly from that deal’s proceeds, so there are no monthly instalments to service. This keeps your balance sheet cleaner and means funding scales with the orders you win rather than sitting as long-term debt.
Can I use more than one type of funding at the same time?
Often, yes. Purchase order funding, invoice discounting and tender funding solve different stages of the same cash cycle, and many SMMEs use them together as a deal moves from order to delivery to payment. We assess each application on its own merits and structure what fits your situation.
How do I choose a business funding partner?
Look beyond the headline rate. A strong funding partner is transparent on cost upfront, assesses the opportunity rather than only your credit history, moves quickly, and supports delivery, not just the payout. Ask about track record with buyers like yours – references from SMMEs in your sector are the clearest signal.
Applying
How to apply with Sourcefin.
How do I apply, and how long does it take?
Applying starts online and takes minutes. You answer a few questions about your business and the deal, then share supporting details. With a confirmed order or invoice and complete information, our deal team can assess it and issue a term sheet, often within 24 to 48 hours.
What documents do I need to apply?
To assess your deal we typically need the purchase order, invoice or tender award, your business registration documents, recent bank statements and basic ID for the owners. Providing financial statements as well can speed up the decision and help us price the funding more keenly.
Does applying cost anything?
No. It is free to apply and there is no commitment until you draw down on an approved deal. Sourcefin weighs the opportunity in front of you and your ability to deliver, not only your credit history, so it is worth applying even if a previous funder has said no.
Can I apply if another funder has already declined me?
Yes, and we encourage it. A decline elsewhere is often about credit history or collateral rather than the quality of your deal. Sourcefin assesses the opportunity and your ability to deliver, so a solid order, invoice or tender can still qualify even when a traditional facility did not work out.
Can I submit more than one deal at once?
Yes. If you are holding several orders or invoices, you can bring them all to us. If it is your first time working with Sourcefin, we usually suggest starting with one deal to move through the process quickly, then scaling up – and related orders for the same client can sometimes be bundled into one facility.
Qualifying
What it takes to qualify.
What does Sourcefin look at to approve a deal?
Three things matter most: a confirmed order, invoice or tender; a creditworthy client who will pay; and enough margin in the deal for funding to make sense. We assess the opportunity in front of your business rather than only its trading history, which is why newer businesses can qualify.
Do I need a strong credit record or long trading history?
Not necessarily. Sourcefin looks forward to the deal you hold rather than back at your credit file, so a confirmed order from a creditworthy client carries real weight. A clean record and trading history can help with pricing and speed, but they are not the only thing that decides an application.
What deal sizes does Sourcefin fund?
Sourcefin typically funds deals needing an advance from around R250 000 up to R100 million. Smaller deals from about R100 000 can be considered where your business turns over more than R1 million a year or holds net assets above R1 million. Funding is sized to the deal in front of you.
Can startups or newer businesses qualify?
Yes. Because Sourcefin assesses the deal rather than only your history, a newer business with its first major order can qualify on the same basis as an established one. What matters is a confirmed order, an identified supplier where relevant, and a creditworthy client who can pay.
Does Sourcefin fund government and corporate orders?
Yes. Public-sector orders and tenders are a core part of what we fund, alongside orders from listed corporates and state-owned enterprises. As long as the order is confirmed in writing and the buyer is creditworthy, the deal can be assessed. For awarded tenders, see our tender funding page.
Funding & costs
Costs, repayment and support.
What does Sourcefin’s funding cost?
Cost is a single agreed fee on the deal, set upfront before you commit. It varies with the size, margin and complexity of the order, invoice or tender, so we price each deal individually rather than quoting a one-size rate. You see the full cost before you decide to proceed.
Are there any hidden fees?
No. Sourcefin’s cost is agreed and disclosed upfront, with no surprise charges along the way. You will know exactly what the funding costs before you draw down, so you stay in control of the numbers and can weigh the deal with full information.
How and when is Sourcefin repaid?
Sourcefin is repaid directly from the deal we funded. Once your client pays for the delivered order or settles the invoice, our advance plus the agreed fee is settled and the balance is yours. There are no monthly instalments – repayment is tied to the deal paying out.
How quickly can funds be released once approved?
Once a deal is approved and the term sheet is signed, funds move quickly. For purchase orders we pay your supplier directly, timed so goods reach your client on schedule. For invoices, funds can be released in as little as 24 hours after verification, depending on the deal.
What support do I get beyond the funding?
More than money. Sourcefin can help with supplier sourcing, logistics coordination and deal structuring so your order actually gets delivered, not just funded. We work as a partner through the deal because our return depends on it succeeding – which is why we back the delivery, not only the invoice.
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
Go deeper
Funding pages with their own FAQs.
Invoice discounting
Turn unpaid invoices into cash now – including invoice finance FAQs.
Learn more →Tender funding
Funding and support for public-sector tenders – and answers to frequently asked tender funding questions.
Learn more →Still have a question?
If your question is not here, talk to our team – or if you already have the deal, apply and we will assess it. It is free to apply, with no commitment until you draw down.