Amounts: Up to R4m+


Speed of Funding:
Fast to medium

Terms: No term

Invoice dependent


Interest Rates: Prime plus


What is Debtor Finance?

Debtor finance is when finance is offered based almost entirely on the value of your debtors book.  So if you are selling on credit and struggling to collect your book, this is a great option for you.  It is a quick and easy way to unlock the cash tied up in your debtors’ book.  Normally, the lender will pay you up to 80% of the value of your debtor’s book upfront and then either collect directly from your customers (this is called disclosed debtor finance) or the borrower will collect from your customers and pay it over to the lender (without disclosure).  The remaining 20% retention is paid once the customer settles his invoice.  Interest is then charged on monies lent to you.  Lenders offer debtor financing on the entire debtors book or single invoice discounting.  So, if you have invoiced a single, large order and need the cash now, this is a great way to receive your cash early.  The lender takes security over the debtors book and normally requires that you take out insurance in case of default.



  • Quick access to cash you have already earned

  • Flexible to use

  • Unlocks debtors book immediately


  • High interest rates

  • Sometimes complicated to manage process

  • Required to insure debtors book