How does it work?
You sell invoices (factor), or receivables, to us. We then collect payments on those invoices from your business’s customers.
The main reason that companies choose to sell their invoices is that they want to receive cash quickly on their receivables, rather than waiting the 30 to 60 days it often takes a customer to pay. This allows companies to quickly build up cash flow, which makes it easier for them to pay employees, handle customer orders and add grow your business.
Is my business eligible for invoice factoring?
Any business that serves businesses (B2B – Business-to-Business) or governments (B2G – Business-to-Government) are eligible. Minimum requirements may apply depending on the business sector.
I’ve been denied/declined by the bank for a loan. Can I still get funding?
Yes. Our decision process is different than a bank’s. While we take credit history into consideration we focus on the quality of your customers, not only personal credit history. A great advantage is that you can leverage the credit-worthiness of your customers.
Do you provide any financial advice?
No. We do not provide any financial advice.
Do you provide any loans?
No. We do not provide any loan or credit facility.
What industry do I have to be in to apply?
We are industry agnostic. You can apply in all industry sectors.
Is invoice factoring the same as getting a loan?
No. We give you an advance on the invoice amount, then on the invoice due date, your customer will simply pay the amount due to your Devjee Capital Account instead of sending it to your business address or account. As long as the invoice is paid by your customer as expected, there’s no repayment on your part.
What is a Cash Advance?
When you sell an invoice, we provide advances to you as a percentage of that invoice value, usually within 24 – 48 hours. We will then pay you the balance of the invoice, minus fees, after we collect payments from your customer. The cash advance rate can vary depending on what industry your company is in. The advance rate can range from 70% of an invoice value to as much as 95%. Your industry, your customers’ credit history and other criteria help determine the advance rate you receive.
Why not just wait for my customers to pay?
The long wait on customer payments can limit the amount of cash your company has on hand to meet expenses and achieve financial goals. The main benefit is quick payment on your invoices. Let’s say, for example, that your company averages R 100,000 in receivables each month. However, you have nothing to show for it at month’s end because your customers wait longer than 30 days to pay. Once approved, we ensure that you receive cash on those invoices immediately. Even at a 70% advance rate, your business can count on having R 70,000 in the bank at the end of the month, instead of zero.
What is the difference between Recourse and Non-Recourse?
Recourse means that you ultimately takes responsibility for payment of an invoice if the factor cannot collect payment from the customer, or debtor.
Non-recourse allows companies to sell their invoices without the credit risks for collecting on the invoices.