The Sourcefin Brief
Week Ending 23 June 2026

This Week’s Theme

Rate relief is not guaranteed – fund confirmed work now

Why rate relief is not guaranteed

South African inflation rose less than expected in May, which has lifted hopes of an interest rate cut at the SARB’s next decision in July. But a fresh bout of global volatility, driven by the Middle East crisis, is keeping pressure on the rand and on imported costs. If that feeds back into inflation, the rate relief many SMMEs are counting on could be pushed out. Building your working-capital plan around cheaper credit that may not arrive on time leaves your growth exposed.

Fund the work, not the wait

You do not have to wait for rates to fall to take on confirmed work. Transaction-based funding prices against the deal in front of you, not against a moving interest-rate cycle. Purchase order funding pays your supplier directly so you can deliver a confirmed order, and invoice discounting advances cash against invoices you have already issued. Either way, your funding cost is tied to a single transaction, not to where the prime rate lands in July.

Position your funding now

Now is the time to review your funding plan rather than wait on the rate cycle. Map your confirmed orders and outstanding invoices, then line up a facility that prices per transaction so a delayed rate cut cannot stall delivery. If you have work on the table, apply for funding now and keep your working capital moving, whatever the SARB decides in July.

What to do next: Review your funding plan against your confirmed orders and outstanding invoices. If you have work in hand, line up transaction-based funding now rather than betting on a July rate cut that global volatility could delay.

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Yahoo Finance  ·  23 Jun 2026, 08:58 CAT

With borrowing costs likely to stay elevated into the next decision, SMMEs with confirmed work are better served by transaction-based funding that prices per deal than by waiting for cheaper credit that may be delayed.

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If your next deal only works once rates fall, you are exposed. Transaction-based funding prices on the deal in front of you, not the rate cycle, so you can move on confirmed work now.

Rate relief can be delayed by forces well outside your control. Funding tied to a single transaction keeps delivery on track whatever the SARB decides.

Deal size: R1.2m

Food manufacturer secures national retail orders with PO funding

A growing food manufacturer recently secured a major purchase order to supply a national supermarket chain. The upfront cost for raw materials and packaging was substantial, creating a temporary cash flow gap. Purchase order funding allowed the business to pay its suppliers directly and fulfil the large order without depleting its operating capital. This ensured timely delivery and positioned the manufacturer for repeat business.

This is a fictional illustration of how Sourcefin’s products are typically used. Names and figures are not real.