How factoring works 

 

STep 1

First the supplier secures the deal based on their capacity to deliver quality products for their buyers. The contract is then serviced, goods and services are delivered and an invoice is submitted. 

step 2

Rather than waiting for the buyer to pay the invoice, which may take weeks or months, the supplier turns to BeneFactors to turn the pending invoice into cash.

 

Step 4

Once due diligence is completed, BeneFactors makes an offer and can disburse up to 70% of the invoice amount within 24 hours of signing agreements. The supplier instructs the buyer to pay BeneFactors directly and is able to continue its business without having to wait for the buyer to pay. 

Step 3

BeneFactors conducts its due diligence. This involves checking the credit score of both buyer and supplier as well as their history. To facilitate this, BeneFactors asks the supplier for some documentation, including a bank statement, an invoice ageing report and previous invoices to the same buyer that they have received payment for. 

 

 

step 5

On the invoice due date (...or maybe a bit later), the buyer settles the invoice to BeneFactors.

 

step 6

BeneFactors disburses the remaining 30% to the supplier, minus fees. 

 

What are the requirements?

  1. Filled application form, detailing what invoice(s) you would like to factor
  2. Copy of previous invoices to the same buyer
  3. Copy of the signed contract, against which goods or services have been delivered
  4. Filled invoice ageing report covering all your sales in the past six months
  5. A bank statement no older than 30 days
  6. Full registration details from RDB

It takes five working days for us to consider your case and disburse funds if approved. 

 

Got questions? Check out our FAQ page