Many businesses commonly rely on loans 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, our receivables and supply chain financing solution at 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% 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% 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.

Credit Circuit charges a transparent platform fee and our funders charge a discounting rate linked to the Prime interest rate. The fees are very competitive due to our unique product structure that minimises risk for our funders. We will quote you on sign-up.

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.

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.

No, you have the flexibility to select which debtors you want to insure and further decide which of those debtors you wish to fund.

Our funding process follows a comprehensive approach, where all invoices from a debtor must be funded from the first funded invoice onwards. This means that you cannot selectively fund some invoices while excluding others from the same debtor; it’s an all-inclusive arrangement.

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 debtors and handling debtor payments. Your business name prominently appears on the statements we send. We conduct a one-time biometric check on each debtor you wish to fund, ensuring they are aware of our role in assisting your credit control.

A Promissory Note (PN) is a clear and binding commitment from a debtor to repay a debt. When a debtor, who has received and is satisfied with goods or services, hesitates to sign a PN, it’s often due to one of two reasons.

1. Unfamiliarity: Many debtors are not accustomed to signing PNs. It’s a traditional financial instrument that has seen less use in recent decades due to difficulties in digitisation.
2. Seeking Time: In some cases, debtors might be looking for extra time in case they struggle to repay the debt. By not signing a PN, they might aim to delay the repayment process.

However, it’s important to note that there is generally no valid reason for a debtor to avoid signing a PN. PNs offer numerous benefits, including reducing dispute risks in trade credit transactions, lowering costs, and expanding the scope and capacity of receivables and supply chain financing. They benefit not only the creditor 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.

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 debtors. The biometric check is conducted via email with a one-time phone call and is a streamlined process that doesn’t require your debtor to register on any platform.

No, the digital signing of a Promissory Note is sufficient evidence of the invoice and transaction.

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.

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.

Promissory Notes represent unconditional promises to pay and remain unaffected by an existing cession of your trade receivables to your bank or other financier. Therefore, it’s important to note that we do not require a first cession on your trade receivables book. Instead, we will secure a reversionary cession on the debtors financed by our funders, but that is an easy seamless process.

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 contingent 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, devoid of any debt obligations. This unique financial approach optimises your financial standing while providing the working capital your business requires.

Receivables financing 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 debtors. While Hollard vets your debtors, you can conduct your vetting too. This way, you can concentrate on business growth while we handle receivables insurance and financing.

Any business that sells on credit to other businesses can benefit from receivables financing. Typical industries that use receivables financing 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 get a quote.