Sourcefin offers South African SMMEs short‑term financing through purchase order funding and invoice discounting, advancing cash based on the strength of specific deals rather than credit scores. The platform provides an automated online application, rapid smart approval, and access to a network of over 2,000 vetted suppliers, plus free tools to find and apply for government tenders.
Funding
$8.2M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
South African SMMEs often win government or private purchase orders and issue invoices but lack the working capital to fulfill orders or wait for payment, leading to cash‑flow constraints and missed growth opportunities.
Solution
Sourcefin provides two financing products—purchase order funding and invoice discounting—to bridge the cash‑flow gap for SMMEs. For purchase orders, Sourcefin advances funds directly to vetted suppliers, handling sourcing, logistics and project management, and recoups the amount plus a fee after the buyer pays. For invoice discounting, the company pays a portion of an approved invoice up‑front, monitors payment, and collects its fee once the client settles. Both products use an automated three‑pillar risk assessment (trust, delivery capability, and end‑buyer payment certainty) that allows businesses with limited or poor credit histories to qualify based on the strength of the specific deal. The process is streamlined through a simple online application, rapid smart approval, and seamless advance, with no hidden fees and repayment only when the underlying transaction is completed.
Target Audience
SMMEs in South Africa that have secured government contracts, tenders, or commercial purchase orders and need short‑term financing to deliver or receive payment, including manufacturers, distributors, construction firms, and service providers.
Features
- Automated online application and approval workflow that reduces processing time to days
- Three‑pillar risk framework (trust, delivery capability, end‑buyer payment) that evaluates deals rather than relying solely on credit scores
- End‑to‑end support for purchase orders, including access to a network of 2,000+ pre‑vetted suppliers, sourcing office, logistics and project‑management services
- Invoice discounting with advance of a configurable portion of invoice value, validation of invoices, and follow‑up on client payments
- Profit‑share or fee‑based pricing model with transparent, no‑hidden‑fee structure
- Real‑time referral tracking and affiliate partner portal for commission‑based lead generation
- Integration with government tender portals, providing free access to municipal, local and national tenders and automated reminders