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Frequently Asked Questions

Have questions? We’ve got answers. Below are some of the most frequently asked questions about our services and process. If you don’t see your question here, feel free to reach out directly – we’re always happy to help.

These are two distinct solutions tailored to different scenarios:

  • Purchase Order Funding is used when you have a confirmed order or contract and need funds before delivery (to pay for supplies, etc.). We fund the execution of the order and get paid back when your customer pays after delivery.
  • Invoice Discounting (Invoice Finance) lets you get an advance on an already delivered sale for which you’re awaiting payment. We pay you most of the invoice amount now, so you don’t wait 30-90 days for the customer to pay. When they do pay, you forward that to us to settle the advance.

In short, Purchase order funding = funds to fulfill an order before delivery; Invoice Discounting = funds against a completed sale awaiting payment.

Very fast. Our online application takes only a few minutes. In many cases we provide an approval and quote on the same day you apply – often within hours. Once you accept the offer and submit any required documents, we disburse funds as soon as possible. For invoice financing and smaller deals, this can be within 24 hours. Larger or more complex deals (like multi-million Rand purchase orders) might take a few days to coordinate, but we always move with urgency. We know that when you need funding, speed matters. Rest assured, quick turnaround is a top priority for us, without cutting corners on due diligence or security.

In most cases, no additional collateral is required beyond the transaction itself. Our funding is secured by the underlying purchase order, contract, or invoices that we’re financing. This means we typically do not ask you to pledge personal assets or property for PO Funding or Invoice Discounting. If it’s a more general cash flow bridge, we might take a cession of debtors or other simple security, but we do not generally insist on hard collateral like fixed property for short-term bridges (unlike traditional banks). Our goal is to make funding accessible. That said, principals/owners may need to sign a personal guarantee in some cases (common in SME finance) – but we evaluate on a case-by-case basis and discuss it with you upfront. No hidden requirements will pop up after the fact.

We pride ourselves on transparent pricing. There are no application fees or hidden monthly charges. Our cost structure depends on the product:

  • For Purchase Order Funding, we often use a profit-sharing model or a fixed fee structure. This means instead of charging an interest rate per annum (like a bank loan), we agree on a set fee or percentage of the profit of the deal. This fee is only paid once the deal successfully concludes and your client pays. In some cases, if the funding period is extended, fees may adjust slightly, but everything is clearly spelled out in our offer.
  • For Invoice Discounting, we usually charge a discount fee or interest rate for the period the invoice is outstanding. It could be a flat percentage of the invoice or a monthly interest rate (e.g., X% for 30 days). If your client pays earlier and you settle early, we will often reduce the fee accordingly (you only pay for the days you use the funds).

In all cases, our fees are competitive and reflect the convenience and speed of our service. We’re not the cheapest source of long-term capital (we’re not trying to be a bank loan), but for short-term financing, businesses find our pricing fair for the value delivered. We’re happy to discuss specific pricing once we know the details of your funding need.

We will perform some credit checks, but a less-than-perfect credit history doesn’t automatically disqualify you. Because our funding is transaction-focused, we look primarily at the strength of the purchase order, contract, or invoice you bring to us. We understand SMEs might have past difficulties – maybe you had a tough year or two; we won’t hold that against you if the current opportunity is strong. We do run basic credit bureau checks on the business and sometimes the directors, mainly to flag any serious issues (like active judgments or sequestration) that we should discuss. But no, we do not rely solely on credit scores or demand high credit ratings. We also do not do credit checks for certain products (like some invoice finance deals) if the transaction itself provides enough comfort. Importantly, we don’t do a hard credit pull without your consent. Our philosophy: good people can hit rough patches, and good businesses sometimes look messy on paper – we’re here to look at the whole picture, not just a number on a report.

If you have a valid contract, purchase order, or invoice with a reputable customer, yes, you likely can! We specialize in helping newer and growing businesses that haven’t built up years of financial history. Traditional lenders often won’t consider you until you have 2-3 years of financials; we’re happy to engage much earlier, provided you have a solid business opportunity and the means to execute it. For instance, a startup with a first big contract could use our PO funding to deliver it successfully. Or a young company with just a few clients can use invoice discounting to manage cash flow. We do require that the key people in the business know their industry and can perform the work – we’re funding the business deal, but we also bet on you as the entrepreneur to see it through. As long as you can demonstrate the capability to deliver (and sometimes we might ask what experience you or your team have), we’ll focus on that incoming revenue rather than the age of your business. In short, being new is not a deal-breaker – not seizing a great opportunity due to lack of funds is what we aim to prevent.

We take several precautions to protect both you and us from non-payment risk. First, we typically fund transactions involving established, creditworthy customers (like well-known companies or government departments) to minimize the risk of non-payment. We also verify the authenticity of orders and invoices, and sometimes require that the end-customer confirms the arrangement. However, if despite all precautions a customer fails to pay an invoice or cancels a contract, we will work with you to resolve it. The obligation to repay Unum Credit ultimately lies with you (since our agreement is with your business), but we’re not in the business of sinking our clients. If a debtor is late, we can often extend the term for a short period and charge additional days of fee/interest – giving you breathing room to chase the payment. If a debtor defaults entirely, we’ll assess on a case-by-case basis: we may help with collection efforts (our team has legal resources for this), restructure the debt or settle via other invoices if you have new business coming in. It’s important to note such cases are rare because we choose transactions carefully. We also encourage you to be transparent with us – if you sense a client might delay, let us know. Communication is key. By working in partnership, we can usually find a path through any trouble.

Yes, absolutely. Unum Credit (Pty) Ltd is an Authorised Financial Services Provider and a Registered Credit Provider with the National Credit Regulator (NCR). We take compliance and responsible lending seriously. Our registration number with the NCR is NCRCP18447. This means we adhere to all regulations set out in the National Credit Act. You can trust that our contracts are fair, our practices transparent, and your rights protected. We also have robust data security and privacy measures in place, so any information you share with us is kept confidential and used only for the purpose of providing you with financing. We’re a proudly South African company operating under South African law – no fly-by-night schemes or predatory lending here. Our reputation is built on trust and long-term relationships with our clients.

We serve a wide range of industries across the South African economy. Our solutions are commonly used in:

  • Construction & Engineering: To fund project start-up costs, bridge payment milestones, or finance purchase orders for materials.
  • Manufacturing & Wholesale: To fulfill large retail or government orders, manage stock purchases, or ease cash flow when supplying big customers.
  • Services & Consultants: To bridge payroll and expenses while waiting for big invoices to be paid, or to ramp up resources for a new contract.
  • Transportation & Logistics: To cover fuel and operating costs on new delivery contracts before the first payments come in.
  • IT & Technology: To finance hardware/software procurement for client projects, or to smooth out cash flow in tech service contracts with net payment terms.
  • Retail Suppliers: If you’re supplying large retailers who pay on long terms, we can fund those invoices so you aren’t left in a cash lurch.
  • And many more: From agriculture to healthcare procurement, if there’s a valid business transaction, we likely can fund it. We do evaluate trading businesses, entrepreneurs, and startups on their merits.

We do not fund personal loans or purely consumer finance. Our focus is business-to-business transactions. Also, we avoid businesses involved in illegal activities (obviously) or those in extremely high-risk of default without any mitigants. But generally, whatever your industry, if you are selling products or services to reputable buyers, we’re happy to assist.

Traditional bank loans and overdrafts often require collateral, lengthy approval times, and fixed repayment schedules that might not align with your cash flow. Unum Credit’s solutions differ in several ways:

  • Speed and Accessibility: We move much faster than banks. Banks might take weeks to approve a loan (and many SMEs get declined due to strict criteria). We can fund in days and are more flexible with requirements.
  • Transaction-Linked Repayment: Instead of requiring monthly payments come rain or shine, our funding is usually repaid from the transaction we’re financing (your client’s payment). If your client hasn’t paid, a bank still wants its instalment, but we structure things so that repayment naturally coincides with your inflows. This reduces pressure on your cash flow.
  • No Asset Collateral Needed: Banks often want a bond over your house or a charge on your equipment. We typically do not. Our security is the PO or invoice and the assignment of that receivable. This makes our funding more accessible if you lack big assets to pledge.
  • Flexibility: You can use us as needed, for specific contracts and invoices. With an overdraft, you might not get an increase when a new opportunity arises; with us, you simply put in a new request for the new deal. We scale with your opportunities, not just with your balance sheet.
  • Partner Approach: We often call ourselves partners because we actively want to help you succeed in the transaction. Banks lend money but don’t get involved in your deal execution. We, on the other hand, will even help verify your suppliers or advise on managing the order if needed. Your success ensures we get paid too, so our interests are aligned.
  • Costs: Our costs might be higher than a bank’s prime-linked interest if you compare purely the percentages. But remember, we’re taking more risk without collateral and providing agility and service banks don’t. Many clients find the value far outweighs the cost because our funding enables profits and growth that wouldn’t happen otherwise. And unlike an open overdraft that incurs interest indefinitely, our facilities clear out once the deal is done, so you’re not paying for a moment longer than necessary.

In summary, think of Unum Credit as a bespoke working capital solution rather than a one-size-fits-all loan. We’re here to fill the gaps that banks can’t or won’t, in a manner that’s convenient and advantageous to your business operations.

Have more questions? Contact us directly at any time. Our team at Unum Credit is always ready to provide clarity. We know finance can be complex, but it doesn’t have to be confusing, let’s talk and make it simple