Invoice Discounting

Unlock cash trapped in your invoices to big suppliers, immediately.

What's the invoice amount?

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Speed of Funding

Within Hours
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Interest Rate

Starting at 15%
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Finance amounts

Up to R5M
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Finance amounts

From R10k to R5M
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Interest Rate

From 0.1% per day
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Speed of Funding

Takes a Few Days

The Pro's and Cons of Invoice Finance

Here are some details which will help you decide whether a invoice factoring is the best bet for you.


  • Helps with cash flow
  • Fast approval
  • Very accessible, risk not dependant on the business


  • Can get expensive if you need it over a long period
  • Requires invoice from a big company to work
  • Won't work if your customers are consumers

Interested in pricing?

Use our Invoice Discounting Calculator to get an estimate on loan pricing

Fair and transparent fees

No referral fee

FundingHub does not charge you anything for an application - we're free to use, forever.

Automatic Repayment

The invoice discounting lenders we work with will almost always collect payment directly from your debtor.


Invoice discounting is charged on a per-day usage. That means no extra fee's when you don't need the facility.

Invoice Discounting Calculator

Use this calculator to get an estimate for how much an invoice discounting facility might cost you.

What is Invoice Discounting?

Invoice discounting is a form of short-term business finance that enables businesses to borrow money from a finance provider based on the value of their unpaid invoices (hence the term ‘invoice financing’).

It works by companies selling their future income stream as an asset to the lender. This allows businesses to access funds quickly and easily if they often work with clients who have long payment terms.

Discounting vs Factoring vs Finance - What's the Difference

Nothing! Invoice discounting is the same as invoice factoring and invoice finance.
The terms are used interchangeably and you're generally going to get the same

Do you qualify?

Through FundingHub, you are likely to qualify for an invoice discounting loan if you meet the following criteria:

  • An established business that actively trades and earns revenue.
  • You sell goods/services to large businesses or corporates.

* Figures are for example purposes only, and may vary from business to business.

How Does Invoice Discounting Work?

The process of getting an invoice paid by an invoice discounting lender is very simple:

Step 1: You apply for finance with an invoice discounting lender. You can do so here, through FundingHub, and we’ll automatically match you with the best Invoice Discounting Lender in South Africa.

Step 2: The lender will look at your client, and quote you a fee for the invoice. You can use the calculator above to get an estimate for invoice discounting fees.

Step 3: Once you accept the contract with the lender, they will pay you up to 80% of the invoice amount. You can choose to access less cash if you only need a little bit.

Step 4: The financer then gets paid by your debtor for the full invoice amount on the agreed invoice terms.

Step 5: The financer settles the remaining portion of the invoice with you, less their fee.

How Much Does Invoice Discounting Cost?

Fee's on invoice discounting facilities range from around 0,1% of the amount borrowed, per day through to 0.3% of the amount borrowed per day.

A typical invoice discounting example:

A business is a supplier to a large corporate, like Pick 'n Pay. PnP only pays this business 90 days after their products have been delivered. The business makes a big sale to PnP ahead of the Christmas season, the invoice amount is R200 000. The invoice date is 1 December 2021.
The business needs to pay their employees bonuses, because it is year-end. They need cash. They use this invoice from PnP to get an invoice discounting facility.

Because PnP is a large corporate company, and the business applying is an established business, the finance amount quoted is cheap: 0.15% per day.

The business opts to get the maximum amount possible out of the invoice: 80%.
The lender transfers the invoice away from the business, into the lender's name. The lender pays the business R160 000 on 5 December 2021.
On 15 January, PnP settles their invoice, and pays the lender directly an amount of R200 000.
The cost of the facility is calculated below.

Price per Day
Total Cost
160 000 x 0,15% = R240
R240 * 41 = R9840

The lender then pays the business the remainder of the invoice, less their fee:
R40 000 - R9840 = R30 160.
The total cost of finance as a percentage of the loan amount was 6.15%.

* Figures are for example purposes only, and may vary from business to business.

Factors that affect the cost of an invoice discounting facility:

As always, the cost of the facility depends on a few things:

  1. The amount borrowed,
  2. The period over which it is borrowed,
  3. The risk that the invoicee will not pay the invoice when it becomes due,
  4. The lender

Who Should Use an Invoice Discounting Facility?

Invoice discounting is perfect for small businesses that have large corporates or government municipalities as clients. These big companies often enforce long payment terms on their supplier contracts, which means cash can get locked up. This is the perfect use case for invoice factoring.

Invoice financing has been used by many businesses across multiple industries and sectors over recent years – but it is particularly popular in industries like:

  • Retail,
  • Construction,
  • IT, and
  • Wholesale

These are industries where the payment terms are typically longer than those in other sectors (for example, construction projects can often take months or even years to complete).

It can also be very useful if you’re looking to make a big purchase that your existing working capital doesn’t quite cover – like buying new equipment or making improvements to your premises.

How Does an Invoice Discounting Application Process Work?

We've designed our Invoice Discounting application process to be as fast as and easy as possible.


Step 1: Apply through FundingHub

One application form will mean you find invoice discounting offers from over 20 different lenders.

It's fast, and free, and fully online.


Step 2: Add Information and Documents

The more information we have on the invoice/invoices that you need factored the better we are able to help.


Step 3: View Loan Offers

We will present you with a list of all your invoice discounting offers. This takes seconds to fetch, and the list will be continually updated as you add more information to your profile.


Step 4: Choose an Offer

All the specifics around, pricing, fee's, speed of funds and the different lenders is laid out for you. If you have questions, we've got an independent analyst who can help you choose the right offer. Just give us a call.


Step 5: Finalise Application with Lender

Once you've chosen the preferred offer, the lender will reach out to you automatically. All the details from your application will be there and you won't have to apply with the lender again. It should be a matter of finalizing pricing.


Bonus: We're Here all the Way Through

FundingHub has got business finance consultants which you can call and ask questions from throughout your application. There are no queries or concerns that are too much. Just give us a ring.

Check your Invoice Discounting Options

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Start now. Get capital in 48 hours.

By answering a 5 minute set of questions, you'll be able to fetch a full list of invoice finance offers.

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Applications are free, and won't affect your credit score.