Tag Archives: finance

Overcoming Cashflow Crisis

“If your business is a South African SMME (small, medium, micro-sized enterprise) struggling with cash flow problems as a result of mainstream banks stringent lending criteria or if your business lacks working capital then we at Tebfin, could be your answer,” says  CEO, Tebogo Mogashoa.

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Tebfin is a 100% black-owned company and a market leader in South African SMME financing. They provide cash to businesses operating from market sectors as broadly as construction to other companies within the supply and delivery of goods and services.

Tebfin’s products and services include Invoice Discounting, Debt Factoring Solutions, Asset-Based Finance and Supply Chain Finance.

Tebfin’s flagship offering is ‘Invoice Discounting’ which is a form of short-term borrowing that improves their client’s cash flow.

Mogashoa explains that “Invoice Discounting allows a business to draw money against its sales invoices before their customers have actually paid. To do this, the business borrows a percentage of the value of its sales ledger from Tebfin, effectively using their unpaid sales invoices as collateral for the borrowing.

In effect, this model operates on a project basis and Tebfin’s client’s credit sales and accounts receivable are converted into cash.  Tebfin offers a very quick turnaround time of approximately three work days as opposed to the industry standard of 30 or more days.”

Mogashoa says that “Tebfin’s Asset-Based Finance solutions are in simple terms, lending secured by an asset.  We commonly lend to businesses and corporations using assets not normally used in other loans. Typically, these loans are tied to inventory, accounts receivable, machinery and equipment.

Examples of this are our clients who service the public sector.  In this market, government and public entities procure goods and services on a rental basis and we enable our clients to finance the cost of leased equipment from internal resources or their own balance sheet.

If neither of these suits a potential or existing client then there is also cash made available in the form of ‘material acquisition’ on behalf of the SMME –

We have a professional procurement team who get the right materials at the right price, which results in early settlement discounts or a discount given for cash.  This translates into customers meeting project deadlines without the burden of raising capital.”

Part of Tebfin’s winning formula is has proved to be their outstanding business ethic and the timeous manner in which we settle creditors.

“Our successful track record is an enabler for our clients, whether start-ups or medium sized enterprises to become profitable companies and in turn employ others and so contribute to the stimulation of the South African economy ” says Mogoshoa proudly.