Merchant Factors

Established in 1988, Merchant Factors offers a viable alternative to conventional bank loans and overdrafts, catering to the needs of expanding businesses.

As prominent pioneers in the field of trade finance and factoring, they have become the go-to company for enterprises in need of initial capital. With a remarkable track record spanning 34 years, Merchant Factors has consistently made the lives of entrepreneurs more manageable, solidifying their position as industry leaders.

Flexible and innovative to cater for SMEs

They help businesses in maintaining optimal cash flow, creating a supportive environment for business growth and saving significant time. Their adaptability and forward-thinking approach enable them to meet the unique trade finance needs of both local and cross-border operations, specifically catering to small and medium-sized enterprises. By offering flexible and innovative solutions, Merchant Factors empowers businesses to thrive in their respective industries.

Finance your business with Merchant Factors

Merchant Factors' strategic presence in key metropolitan areas such as Johannesburg, Durban, and Cape Town positions them as an unrivaled provider of factoring services for businesses.

With a strong commitment to expanding their market presence in the small and medium-sized enterprise (SME) sector, Merchant Factors actively supports the growth and development of the economy.

Their expertise lies in a wide range of financial solutions, including debtor and administration, factoring, term loans, trade finance, cash flow finance, and bridging finance, ensuring that businesses have access to comprehensive and specialised services to meet their specific needs.

Fast and reliable cash when you need it most

Knowing how stressful and challenging it is to own a business and make it a success. At Merchant Factors, they’re presenting their customers with solutions not just to make their business survive but flourish. They offer fast and reliable cash when needed the most.

It’s not always easy to get a loan from the bank if you happen to run short of cash to finance your business. The bank will scrutinise your company, and look for things like;

• Your company’s credit history
• Amount of time your company has been operating
• The financial health of your company
• And your debt coverage

If the above items don’t fall within the bank’s criteria, the chances of your loan being approved by the bank get slim. In this case, you’ll have a great alternative. Merchant Factors helps out when you’ve exhausted all options to get some cash injection to your struggling business.

• Are innovative thinkers
• They value integrity, trust, respect, and confidentiality
• Their services are delivered in a flexible and consistent manner
• Staff’s commitment to satisfying the business growth is at its top level

Bridging Finance is one of the important services offered by Merchant Factors. It provides access to funding during the periods when your business is producing less or no profit.

Bridging finance helps your business from losing a major deal or closing entirely.

Bridge financing narrows the gap between the time when businesses’ funds will run out and the time when cash injection is anticipated. This only works on a short-term basis when a company requires working capital. A company needs to provide proof that it can grow and produce profits at least for a period of 12 months.

And has capital that can cover operating expenses for up to six months. Then, that’s when bridging financing is considered to be given to the company in need.

A bridge to oversee your urgent financial obligations

The name alone says it all, bridging finance works as a “bridge” when an entrepreneur is expecting future cash flow but has urgent financial obligations they need to cover. Bridging financing is the best substitute for traditional lending, as turnarounds are fast and flexible. This is a form of financing that is used to maintain a business while waiting for it to make sales.

How bridging financing is determined?

In bridge financing, they look at the amount you’re borrowing, the term you choose to pay the amount as well as other factors around bridging transactions for each situation. Merchant Factors can customize a unique bridging transaction to accommodate your situation.

Benefits of Bridging Finance

During tough times when your business is slowly generating a profit and you’re struggling to keep it afloat without any gains, this is where bridging finance comes to the rescue. With bridging finance, your company will be flexible enough to take on as many opportunities as your business comes across without worrying about money.

It’s of great benefit as your business awaits for sales to generate more funds, but certain urgent operational costs need to be settled. These costs may include staff salaries, running costs, and other organizational costs. The benefits are then broken down into four;

1. Access to fast funds
2. Plans for business growth are not put on hold
3. Expansion of Equity
4. Flexible payback preferences

Merchant Factors knows that every South African entrepreneur needs support at some point in their business life. They realize that there’s a thin line between profit and loss in business. That’s why they chose to provide much-needed relief for South African businesses, which normally lasts for 3 to 24 months.

Bridging Finance can also help you invest in property

Bridging finance is also a good option for those who want to invest in property but can’t afford to secure a certain rare deal due to lack of funds. Running a successful business is tough nowadays.

Grow your business without worrying about cashflow

Clients who are failing to pay on time might cause a major problem for some businesses, thus creating financial strain on the business. This might affect the company’s ability to pay wages for their staff and buy new inventory without delay. With Merchant Factors, you’ll be allowed to effectively grow your business without worrying about cash flow.