Sourcefin

Sourcefin operates as a specialized financial services provider in South Africa, focusing on the small and medium-sized enterprise (SME) sector.

Established in 2020 by co-founders Joshua Kadish (CEO), Marom Mishan, and Jordan Hertz (CCO), the company was created to address a significant working capital gap faced by SMEs in the country. The leadership team, which also includes Chief Strategy Officer Jedd Harris, aims to support businesses often overlooked by traditional financial institutions. A notable milestone was securing R150 million (approximately $8.2 million) in funding from Futuregrowth Asset Management in late 2024, intended to scale its investment into the SME sector. The firm has also established key partnerships with public sector entities, including the Gauteng Enterprise Propeller (GEP) and the Ithala Development Finance Corporation (IDFC), to extend its reach.

The company's business model is centered on providing working capital solutions through two primary offerings: purchase order (PO) funding and invoice discounting. With PO funding, Sourcefin finances the upfront costs for an SME to fulfill a confirmed purchase order from a client. This service is structured as a comprehensive solution that includes not only financing but also sourcing goods from a pre-vetted network of over 2,000 suppliers, managing logistics, and offering project management support to ensure timely delivery. Invoice discounting allows businesses to access cash tied up in unpaid invoices, providing immediate liquidity instead of waiting for standard 30 to 90-day payment terms. Sourcefin generates revenue by taking a portion of the profit from the funded transaction once the SME's client has paid. This model allows SMEs to take on larger contracts and manage cash flow constraints without upfront fees.

Sourcefin serves SMEs across various sectors, including construction, medical equipment, and emergency housing, that have secured contracts with both public and private sector clients. The company's approach combines technology with procurement and project management expertise, offering a full-service platform that goes beyond simple financing to include operational and strategic support. This integrated service is designed to mitigate risk and improve the likelihood of successful contract fulfillment for its clients.

Keywords: purchase order funding, invoice discounting, SME financing, working capital solutions, South Africa, fintech, supply chain finance, tender funding, alternative lending, trade finance, asset-based lending, small business loans, procurement support, logistics financing, Futuregrowth Asset Management, Joshua Kadish, SMME funding, business finance, contract financing, government contract funding