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Introducing Finmerge – Your new working capital solution

Introducing Finmerge – Your new working capital solution

Finmerge Pty Ltd is a registered credit provider and we are registered with the national credit regulator of South Africa. We provide small and medium enterprises with a means to an integrated working capital and debtor management solution.

The Finmerge way

For small businesses cashflow is a key component and as a new entrant to the market, SMME’s tardily pay their suppliers due to customers paying them late. In turn, SMMEs are unable to benefit from settlement discounts which places unnecessary pressures on  their margins, pricing and competitiveness. Our motto is to be a business of business. Therefore, we integrate our philosophy of enabling SMME’s with the use of effective partnerships to ensure business growth, through a healthy working capital solution.

Why we do what we do

Traditional funding options such banks and other lenders tend to restrict small businesses  because of their lack in development and therefore, more and more small businesses are needing to find and explore alternative funding options. The working capital finance solution from Finmerge is a great alternative to traditional credit lines and our Finmerge debtor management solution ensures efficient debt collection at a minimal cost to our partners.

Our solution is designed to provide SMMEs in South Africa with a stable, flexible and cost-effective liquidity solution while we strive to forge strategic partnerships with SMME’s to offer them an integrated working capital administrative solution.

What is our product?

Execution partner finance is designed for businesses who buy finished goods, materials or components from suppliers for onwards sale to confirmed customers. Our financing solution is designed to pay suppliers who might limit credit or at times even refuse it based on the SMME’s bankability. With our solutions your cashflow is not tied up in stock and working capital, and thus SMME’s can accept new order’s without worrying about how they’ll pay for the items they need to fulfil the orders.

We also provide SMME’s with value added services of accounting and tax management. This is of course at the option of the SMME.

Accounting and Tax services we offer;

  • Vat registrations
  • PAYE, UIF and SDL registration
  • Tax clearance certificate
  • VAT 201 submissions
  • EMP501 & EMP201 submissions
  • Monthly Management Accounting
  • Annual Financial statement

How do our services work?

  1. SMME receives an order from their customer
  2. They identify a suitable supplier
  3. The SMME will in turn notify Finmerge that they wish to use their facility for the purchase order. This will generally be for items contracted for with Finmerge.
  4. Depending on the order requirements the SMME will order the goods and send us the confirmation.
  5. Depending on the agreed terms, we pay the supplier in full or a part of the goods. However, some deals will require deposits from supplier to ensure commitment to the execution of order.
  6. The goods are shipped to the customer, a suitable warehouse or a manufacturing facility where they processed.
  7. As soon as the finished goods order is delivered to the end customer, we or SMME will raise the invoice to the customer using delivery note details. (Depending on the contract signed with Finmerge, we will handle the SMME’s debtor management process).
  8. Finmerge will have an agreement with SMME’s to secure a cession with customer, to ensure all monies to be paid are received directly to our Bank account.
  9. Depending on SMME’s margin and agreed terms we may at the time of invoicing refund the deposit to the SMME.
  10. When the SMME’s supplier settles the invoice, Finmerge deducts their fees and rebates the remainder to the SMME.