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Merchant Factors

Updated
  • Small and medium businesses
  • Funds paid to suppliers
  • Quick and efficient application
Merchant Factors homepage
Author Merchant Factors. Screenshot of Merchant Factors website.
[Accessed July 25, 2023]

About Merchant Factors

Merchant Factors is a financial services provider that specializes in offering financial solutions to small and medium-sized businesses in South Africa.

Nationwide support for business financial needs

By providing flexible and innovative financing solutions that meet the specific requirements of each business, they’ve successfully helped numerous clients achieve their business objectives. With offices in Cape Town, Gauteng, and KwaZulu-Natal, Merchant Factors is strategically positioned to offer personalized assistance to businesses nationwide.

Invoice discounting and factoring services for cash flow

Their services include invoice discounting, factoring, and supply chain finance. Invoice discounting is a financing option that enables businesses to access cash quickly by selling their outstanding invoices to Merchant Factors. Factoring is similar, except it entails Merchant Factors assuming the responsibility for collecting customer payments. On the other hand, supply chain finance helps businesses optimize their supply chain to improve their cash flow.

Innovative financing options for South African businesses

Merchant Factors is a dependable and trusted partner for businesses searching for financial solutions. They have a proven track record of success in helping clients achieve their business objectives. Their flexible and innovative financing solutions make them a top choice among South African businesses.

Get in Touch with Merchant Factors: Valuing client interaction and building relationships

Merchant Factors extends a warm welcome to all its website visitors and values client interaction. The business is eager to introduce itself and its services to interested institutions and independent financial advisors.

To learn more about the company and its offerings, interested parties are invited to contact Merchant Factors. They look forward to hearing from prospective clients.

Multiple communication channels for client convenience

Clients can contact Merchant Factors by reaching out to their head office in Cape Town or one of their regional offices in Gauteng or KwaZulu-Natal. Each office has a team of dedicated professionals who are available to offer personalized support and guidance to businesses seeking to achieve their financial goals. Clients can contact a specific team member through email or telephone, as provided on the company's website.

Merchant Factors Services

Merchant Factors has developed a specialized type of trade finance called purchase order finance. This form of finance aims to support growing businesses in funding their operational cycle from payment to suppliers until payment is received from customers.

Purchase order finance: The key to increasing working capital

The purchase order finance facility enables businesses to increase their working capital, freeing up internal funds for more productive use, such as sales growth. By bridging the cash flow gap between payment to suppliers and receipt of payment from customers, it’s an asset-backed facility that provides numerous benefits to businesses.

Competitive advantage through real-time delivery with purchase order finance

Businesses can also use purchase order finance by Merchant Factors to grow their stock levels, responding to increased sales and business activity demands.

Additionally, this facility allows businesses to capitalise on price fluctuations, ensuring they remain competitive. By implementing "real-time delivery," businesses can gain a competitive edge over competitors, potentially resulting in increased sales and profits.

Driving profitability through purchase order finance's settlement discounts

Another notable advantage of purchase order finance is that businesses can purchase goods in larger quantities, accessing purchasing benefits previously out of reach. This also enhances businesses' relationships with suppliers, allowing them to take advantage of settlement discounts, which can be particularly beneficial for businesses seeking to reduce expenses and increase profitability.

How purchase order finance by Merchant Factors empowers businesses

One unique point about purchase order finance by Merchant Factors is that it gives businesses greater flexibility in their operations. With this facility, businesses can take on larger orders without the fear of running out of funds, allowing them to scale up their operations and increase their revenue.

This flexibility also enables businesses to respond quickly to market demands, ensuring they can promptly and efficiently fulfil customer orders. By offering this kind of flexibility, Merchant Factors empowers businesses to take control of their growth and achieve their full potential. Merchant Factors is committed to providing revolving funding facilities that empower businesses to make advance payments to their suppliers, guaranteeing they have the financial resources required to expand their operations and remain competitive.

Merchant Factors – Purchase Order Funding

  • Loan Type Purchase Order Funding

Benefits of Merchant Factors

  • Specialises in providing financial solutions to small and medium-sized businesses in South Africa.
  • With offices in Cape Town, Gauteng, and KwaZulu-Natal, Merchant Factors offers nationwide support for business financial needs.
  • Services include invoice discounting, factoring, and supply chain finance to optimise cash flow.
  • Offers flexible and innovative financing solutions tailored to individual business requirements.
  • A team with over 40 years of industry experience ensures innovative and up-to-date finance solutions.
  • Provides purchase order finance to support operational cycles and increase working capital.
  • Helps businesses respond to increased demand, capitalise on price fluctuations, and access settlement discounts.
  • Enables businesses to take on larger orders, scale up operations, and respond quickly to market demands.
  • A straightforward and efficient application process for purchase order finance.
  • Funds are disbursed directly to suppliers, ensuring timely delivery of goods.

Eligibility criteria to apply for Purchase Order Finance at Merchant Factors

Merchant Factors provides purchase order finance to growing businesses that meet certain eligibility criteria. To be considered for this facility, a business must:

  • Be registered in South Africa and have a physical presence in the country.
  • Have a minimum turnover of R10 million per annum.
  • Have been in operation for at least 12 months.
  • Have a proven track record of successful trade transactions.
  • Be in possession of a purchase order or confirmed sales contract from a creditworthy customer.
  • Enjoy a gross profit margin of at least 15%.
  • Have the necessary systems in place to manage the transaction process.

A streamlined application process designed for maximum efficiency

The application process for purchase order finance at Merchant Factors is straightforward and streamlined. Interested businesses are required to provide their financial statements, management accounts, and other relevant financial information to help Merchant Factors evaluate their creditworthiness.

The information is used to assess the lending risk and determine the loan amount that can be provided to the business. Once the application is approved, the funds are disbursed directly to the supplier, ensuring the goods are delivered on time.

  1. Contact Merchant Factors and provide basic information about your business, such as your turnover and order book/sales pipeline.
  2. A representative from Merchant Factors will conduct an initial assessment of your business and determine if you are eligible for purchase order finance.
  3. If your business meets the eligibility criteria, you’ll be asked to provide additional documentation, such as financial statements, supplier and customer contracts, and purchase orders.
  4. Merchant Factors will evaluate the documentation and determine the maximum funding amount for your business.
  5. If you agree to the terms and conditions, a purchase order finance facility will be set up, and funds will be made available to your business as needed.

Customer success stories - will you be next?

Merchant Factors has helped numerous businesses across various industries to achieve their growth objectives. The company has a proven track record of providing reliable financial services that enable businesses to increase their working capital and fund their operations.

Some customer success stories include a manufacturing company that expanded its production capacity, a distributor that increased its revenue by taking on larger orders, and a service provider that invested in new equipment and technology. These success stories demonstrate the effectiveness of purchase order finance and the value that Merchant Factors brings to its clients.

Merchant Factors Contact

Physical Address


Postal Address

  • P.O. Box 749, Cape Town, 8000, South Africa

Opening Hours

  • Monday 08:30 – 16:30
  • Tuesday 08:30 – 16:30
  • Wednesday 08:30 – 16:30
  • Thursday 08:30 – 16:30
  • Friday 08:30 – 16:30
  • Saturday – Closed
  • Sunday – Closed