Sell on credit. Get paid instantly.
Better terms for buyers. Prime-rate funding for suppliers.
Maximise Working Capital
Instantly access 80% of your buyer invoices’ VAT-inclusive value by selling the proceeds from your receivables. Select which buyers you want to fund.
Optimise Buyer Terms
Align your payment terms with your buyers’ production or trade cycles, supporting their cash flow without compromising yours. Or provide a small discount to your buyer to share the reduced cost of selling on credit.
Strengthen your Supply Chain
Enable your suppliers to access 80% of the VAT-inclusive amounts of their invoices to you by utilising the proceeds from their receivables. This enhances working capital for your supply chain.
Scale Seamlessly
Scale your working capital seamlessly alongside the growth of your receivables book. We handle all collections on your behalf, ensuring you get all your payments from a single source.
No Debt
Not impacted or affected by existing finance arrangements, and no debt to you.
No Recourse
We don’t vet your business’s credit, and there’s no recourse against your business for buyer defaults, barring contract breach, fraud, or late payment penalties.
Competitive
Funding at Prime rate. Our innovative multi-funder structure secures competitive discounting rates from our funders. You can choose your funder and switch seamlessly. Your buyers can cover the cost by building it into your buyer payment terms.
Digital and Efficient
Manage everything through our user-friendly digital platform. Select which buyers’ invoices to sell. Sell your receivable proceeds at any time to optimise cash flow and minimise fees.
*Terms and conditions apply
Book a Demo
Requirements
Supplying Goods and Services to Businesses
You supply goods and/or services to businesses, either on credit terms or currently for cash but with plans to extend credit.
Hollard Trade Credit Insurance Policy
Don’t have a Hollard Trade Credit policy in place yet? No worries. We’ll facilitate the setup for you, typically within 7 working days.
Secure Promissory Notes (PN)
Your buyer to digitally sign a Promissory Note (PN) during or after the delivery of goods/services, committing to pay their debt into our funder’s collections account.
Identity Verification
Our unique one-time biometric check verifies each buyer you want to fund, adding an extra layer of security to safeguard your business against identity fraud.
Streamlined Collections
Credit Circuit acts as your collections agent, efficiently managing debtor statements and collections on your behalf.
Business Eligibility
To qualify, your business should have an annual turnover exceeding R1 million and should have been trading for at least 12 months.
Trading History Requirements
Provide proof of trading history with a buyer, whether cash transactions or credit terms, including debtor ageings/debtor statements, and your bank statements, spanning at least three months.
Fees
Fee | Rate | Service |
Platform Fee |
0.2% per 30 days pro rata, max 0.8%, min R750 per Promissory Note, applied to the amount funded. E.g. 30 days = 0.2% 60 days = 0.4% 90 days = 0.6% 120+ days = 0.8% |
Processing of Invoices, Promissory Notes, Statements, Collections, and Funding. |
Discounting Fee | Equivalent to Prime interest rate, applied to the amount funded. | Funder purchases 80% or more of the VAT incl. invoice value at a discount. |
Hollard Trade Credit Premium | Average of 0.4% of invoice value. | Insures 85% or more of the VAT excl. invoice value against default. |
Industries
Agriculture
Logistics
Manufacturing
Construction
FAQ
Why would I use Credit Circuit as opposed to conventional receivables financing or an overdraft facility?
Many businesses commonly rely on receivables financing or working capital facilities like overdrafts. However, these traditional financial options often come with certain limitations. They typically require collateral, and their capacity to adapt to your business’s growth is constrained unless your collateral also expands. Furthermore, these facilities are reflected as loans on your balance sheet, affecting your financial profile.
In contrast, Credit Circuit offers distinct advantages. It is non-recourse, which means you are not obligated to provide collateral. Moreover, our financing seamlessly scales alongside the growth of your receivables book. We provide funding equivalent to 80% or more of the VAT-inclusive amounts on your debtor invoices, ensuring that as your receivables book expands, your available funding line grows accordingly. Furthermore, we extend this benefit to your suppliers, allowing them to access 80% or more of the VAT-inclusive amounts of their invoices to you to enhance working capital throughout your supply chain. With Credit Circuit, you gain a versatile financial solution designed to empower your business and boost cash flow through invoices you and your suppliers generate.
What sets us apart is our innovative structuring and advanced processes, supported by cutting-edge technology. These elements collectively work to mitigate risk, allowing our funders to operate without the need for collateral.
Is It administratively burdensome?
Not at all. We seamlessly perform a ‘soft integration’ with your invoicing, accounting, or ERP system, ensuring a hassle-free experience for you. Even if you don’t use such a system and manage invoices manually, we offer a straightforward process to assist you.
Are there minimum invoicing requirements?
We don’t set minimum invoice limits. However, please be aware that we do apply a platform fee for each processed Promissory Note (PN), and there is a minimum platform fee per PN processed.
Do I need to finance all of my buyers?
No, you have the flexibility to select which buyers you want to insure and further decide which of those buyers you wish to fund.
Is Credit Circuit available on an ad hoc basis?
Our funding process follows a comprehensive approach, where all invoices from a buyer must be funded from the first funded invoice onwards. This means that you cannot selectively fund some invoices while excluding others from the same buyer; it’s an all-inclusive arrangement.
Will I lose control of my collections?
Absolutely not! Our team ensures that you remain fully informed and engaged throughout the collections process. You can monitor all debtor collection activities directly from your profile on our platform.
We act as your authorised collection agent, managing the distribution of statements to your funded buyers and handling buyer payments. Your business name prominently appears on the statements we send. We conduct a one-time biometric check on each buyer you wish to fund, ensuring they are aware of our role in assisting your credit control.
What is a Promissory Note?
A Promissory Note (PN) is a clear and binding commitment from a buyer to repay a debt.
PNs offer numerous benefits, including reducing dispute risks in trade credit transactions, lowering costs, and expanding the scope and capacity of funding. They benefit not only the supplier but the entire supply chain.
While the digitisation of PNs is a growing trend globally, and Credit Circuit is at the forefront of this innovation in South Africa, it’s essential to understand that PNs remain a reliable tool for secure transactions and can simplify financial agreements for all parties involved.
Why do you biometrically verify a buyer at onboarding?
This is designed to safeguard both you and our funders. Identity fraud occurs when one entity impersonates another by utilising the impersonated entity’s registration or identification documents, as well as its financial statements, to secure credit from your business. Should you engage with such a deceptive business and attempt to recover payment, you’ll discover that the transaction was fraudulent, making it impossible to collect your funds. Traditional trade credit insurance policies typically exclude coverage for this type of risk. Therefore, we provide protection to both you and our funders through a one-time biometric verification of your buyer. The biometric check is conducted via our platfrom and is a streamlined process that doesn’t require your buyer to register on any platform.
Do you verify each invoice with a buyer?
No, the digital signing of a Promissory Note is sufficient evidence of the invoice and transaction.
How will my customers react when Credit Circuit sends statements to them and perform collections?
Managing finances, especially when cultivating relationships to grow your business, can be delicate. At Credit Circuit, we understand the importance of maintaining positive customer relationships. You can trust that our approach to credit control is professional, benefiting your business while preserving your standing with your customers.
It’s important to note that we never take action without your consent. We don’t operate as debt collectors or engage in aggressive tactics towards your debtors if they fall behind on payments. Instead, we work collaboratively with you to address late payments while keeping our insurance partner, Hollard, and our funders informed about the situation.
In situations where payments are 60 days past due, we may need to initiate a claim with Hollard, unless both Hollard and the funder agree to extend the timeline further. This decision is made in accordance with your best interests and is a part of our responsible financial management approach.
Will my customers perceive that my business is in trouble if they discover I am selling the proceeds on some or all of my buyer's trade receivables?
It’s a common concern that arises when considering receivables financing. However, it’s important to note that this practice, where businesses sell tens of billions in trade receivables to funders annually for working capital, can actually be a sign of a rapidly expanding and dynamic business, rather than one facing financial difficulties. Many blue-chip listed companies make use of receivable and supply chain financing.
At Credit Circuit, our dedicated and professional team is here to support you. We can help you communicate our involvement to your customers in a manner that not only puts their concerns to rest but also instils confidence in the strength and growth potential of your business.
How does the receivables financing appear on your balance sheet?
Receivables financing through Credit Circuit is fundamentally distinct from a conventional loan; it represents the sale of the proceeds associated with your trade receivables. Importantly, there is no recourse against your business in the event of debtor default, barring instances of contractual non-performance or fraud. When your auditor assesses this financial arrangement, it is typically classified as a limited recourse liability rather than a traditional loan. What sets this arrangement apart is the limited recourse it offers, which you can further ensure by diligently meeting the specified contractual conditions. As a result, your balance sheet remains notably healthier. This unique financial approach optimises your financial standing while providing the working capital your business requires.
Who handles everything?
Credit Circuit simplifies your workload. Handling the administration and collection of receivables can be a significant challenge. At Credit Circuit, we take care of it all – from insurance and financing to debt collection on your chosen buyers. While Hollard vets your buyers, you can conduct your vetting too. This way, you can concentrate on business growth while we handle receivables insurance and financing.
Which industries typically use Credit Circuit?
Any business that sells on credit to other businesses can benefit from Credit Circuit. Typical industries that use Credit Circuit are wholesale, distribution, manufacturing, engineering, construction, information technology, agriculture, transport and logistics, staffing and recruitment, marketing, consulting and professional services.
Certain industries have small cumulative invoice values per debtor per month and therefore our minimum platform fee might not make it cost-effective. But you are welcome to book a demo to discuss.
White-Label Partnership
Join our Distribution Partnership! Whether you’re a logistics company seeking to distribute our products or a financier aiming to establish or enhance a receivables financing business, leverage our cutting-edge technology and competitively priced funding.
With our white-label solutions, you can seamlessly integrate our services into your business model. As you grow, you can transition into an insurance broker role, distributing policies attached to our financing, and you can even become a financier, plugging in your own funding lines into our platform.
Partner with us to expand your offerings and boost your success.
Get In Touch
For more information, speak to your insurance broker or contact Credit Circuit