Invoice Discounting
Unlock cash tied up in your outstanding debtor book to fund immediate capital equipment acquisitions or seasonal supply-chain expansions without long waiting periods.
Invoice Discounting in South Africa
Dynamic Rental Solutions offers invoice discounting for South African businesses needing rapid working capital. Following approval of the facility, DRS/Funder advances up to 80% of approved invoices within 24 hours of receiving the funding request, releasing the cash locked in your unpaid debtor book.
DRS/Funder waits out the payment terms with the debtor (up to 90 days) and pays the balance — less an admin fee of 2–3% per month depending on the risk evaluation of the debtor. For exports, the advance is at the spot rate on the date of advance. The facility scales directly with turnover: as sales and the debtor book grow, the available facility grows with them.
Invoice discounting is a powerful complement to asset finance for fast-moving operations, funding growth alongside asset acquisition and supporting seasonal demand cycles and export operations that need rapid capital.
How fast can I access funds?
DRS/Funder advances up to 80% of approved invoices within 24 hours of receiving the funding request.
What are the admin fees?
The admin fee is 2–3% per month depending on the risk evaluation of the debtor. For exports, the fee is 2.0%–3.0% per month, with the advance at the spot rate on the date of advance.
How Invoice Discounting works
Invoice discounting releases the working capital locked in your unpaid invoices — DRS/Funder advances up to 80% of each approved invoice within 24 hours of receiving the funding request, so you can fund equipment, expansion or seasonal demand without waiting 30, 60 or 90 days for customers to pay.
The facility scales directly with your turnover: as your sales and debtor book grow, the available facility grows with them, making it a powerful complement to asset finance for fast-moving operations.
Key benefits
Rapid working capital
DRS/Funder advances up to 80% of approved invoices within 24 hours of the funding request.
Scales with turnover
The facility grows as your sales and debtor book grow — no fixed ceiling on available capital.
Funds growth, not just assets
Use released capital for equipment, expansion or seasonal demand alongside asset acquisition.
Following approval of the facility
Documentation
Following approval of the facility, the client provides DRS/Funder with the invoice to the debtor and proof of delivery (POD) from the debtor of the goods or services rendered (Bill of lading in the case of exports).
Debtor confirmation
DRS/Funder requires confirmation from the debtor that they will pay to a DRS/Funder nominated bank account.
Advance
DRS/Funder advances up to 80% of the invoice within 24 hours from receiving the funding request.
Settlement & admin fee
DRS/Funder waits out the payment terms with the debtor (up to 90 days) and pays the client the balance of the invoice not advanced, after deducting the admin fee of 2–3% per month depending on the risk evaluation of the debtor.
Export invoices
For exports, the advance is at the spot rate on the date of the advance, and the admin fee is 2.0%–3.0% per month depending on the risk evaluation of the debtor.
Qualifying client criteria
- Client turnover — more than one million Rand per annum.
- Time in business — more than 1 year in operation.
- Clean credit record — no judgments or defaults.
- Tax clearance — clean and recent tax clearance.
- Bank facility letter (if applicable) — no prior debtor cessions.
Qualifying debtor criteria
Must meet at least one of the following:
- JSE main board listed company.
- Your debtors are covered by a credit insurance policy (if the debtor is in default, you have insurance to pay the invoice).
- You can provide recent audited financials of your debtor for evaluation by DRS/Funder.
Agreements to enter
General Invoice Discounting Agreement
Advances against debtor invoices are made with recourse — the client remains responsible for payment by the debtor.
Cession of Debtors Agreement
Surety by Shareholders / Directors
Cession of Credit Insurance Policy to DRS/Funder
If applicable — where a credit insurance policy is in place over the debtor.
How it works
- 1We agree the facility, advance rate and admin fee structure based on your debtor book and turnover profile.
- 2You raise invoices to your customers as normal and submit the invoice with proof of delivery to DRS/Funder.
- 3DRS/Funder advances up to 80% of the invoice value within 24 hours of receiving the funding request.
- 4DRS/Funder waits out the payment terms with the debtor (up to 90 days) and pays you the balance, less the agreed admin fee.
Is this right for you?
- Businesses with strong debtor books and credit-worthy customers
- Operations funding growth alongside asset acquisition
- Seasonal demand cycles needing rapid capital
- Export businesses needing cash-flow aligned to shipping cycles
Questions we hear
How fast can I access funds?
DRS/Funder advances up to 80% of approved invoices within 24 hours of receiving the funding request.
What are the admin fees?
The admin fee is 2–3% per month depending on the risk evaluation of the debtor. For exports, the fee is 2.0%–3.0% per month, with the advance at the spot rate on the date of advance.
Does my customer know?
Invoice discounting is usually confidential — your customer relationship stays with you, though DRS/Funder requires debtor confirmation of the nominated bank account for payment.
What happens if the debtor doesn't pay?
Advances are made with recourse — the client remains responsible for payment by the debtor. Where a credit insurance policy is in place, it may cover the debtor's default.
Explore Invoice Discounting
Structure a facility with a DRS specialist
Finance structures, ownership arrangements, VAT treatment and accounting implications depend on the applicable agreement, legislation and the customer's circumstances. All financing is subject to credit approval and final contractual terms. Customers should obtain independent accounting and tax advice where appropriate.
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