R16.8 Billion in Overdue Government Invoices: BizFunding Warns SMEs to Plan for a Tough Festive Season Cash Crunch

As late payments squeeze small suppliers ahead of December, BizFunding explains how funding against invoices can help businesses pay staff and suppliers while they wait to be paid.

South African small businesses are owed billions of rand for work they have already completed, and the approaching festive season is likely to make the wait even harder. BizFunding, a Johannesburg-based business funding partner for SMEs, is urging business owners to plan now for the year-end cash squeeze and to consider funding against their outstanding invoices to keep their operations running while payments are delayed.

According to National Treasury’s annual report on non-compliance with the payment of suppliers’ invoices, national and provincial government departments ended March 2026 with unpaid invoices older than 30 days worth R16.8 billion, despite a legal requirement to pay suppliers within 30 days. Provincial departments accounted for almost all of this, with more than 87,000 overdue invoices worth R16.6 billion

Why December makes it worse

Late payment is not limited to government. Many SMEs supplying large corporates work on 60- to 90-day terms, and payments often slow down further over the festive period as clients close their offices and finance teams go on leave. For suppliers, this comes at the worst possible time. December brings salaries and, for many, year-end bonuses, as well as supplier accounts, rent and stock orders for the new year, all of which must be paid regardless of when clients settle their invoices.

“A business can be profitable on paper and still struggle to pay its staff in December,” says a BizFunding spokesperson. “The work is done and the invoice is sent, but the money is sitting in someone else’s bank account. That gap is what puts healthy small businesses under real strain.”

Turning unpaid invoices into working capital

BizFunding’s funding against invoices service allows businesses to access working capital against invoices they have already issued, rather than waiting for clients to pay. The service is designed to work alongside a business’s normal operations:

• Up to 80% of the invoice value. BizFunding advances up to 80% of the value of an outstanding invoice, so the business can meet salaries, supplier payments and other obligations.
• Repayment when the client pays. Funds are repaid once the client settles the invoice, rather than through monthly installments.
• No change for clients. Businesses continue to collect payment through their usual processes, so relationships with their customers are unaffected.
• Transparent fees. Fees are fixed and agreed upfront.
• Partnership and support. A dedicated agent guides the business through the process, from submitting the invoice and supporting documents to receiving funding.

To apply, businesses provide details of the invoice and the client, together with supporting documents such as the related purchase order and company and FICA documents, which are verified before an agreement is drawn up.

Plan ahead for year-end

“Our advice to business owners is simple: don’t wait until the week before payday to act,” says the BizFunding spokesperson. “Look at what you’re owed, what you need to pay out between now and January, and where the gaps are. If you’re carrying large unpaid invoices, there are ways to put that money to work now.”

BizFunding also recommends that SMEs confirm their clients’ year-end payment cut-off dates early, submit invoices promptly and accurately to avoid disputes, and follow up on overdue accounts before offices close for the holidays. Suppliers to government can also escalate unpaid invoices older than 30 days through National Treasury’s reporting channels.

Keep the business moving while you wait

Late payments are a reality for many South African suppliers, but they do not have to stall a business that has already done the work. SMEs with outstanding client invoices can find out more about BizFunding’s funding against invoices here.

About BizFunding

BizFunding is a Johannesburg-based business funding partner for South African start-ups and small and medium-sized businesses. Rather than offering traditional loans, BizFunding works alongside its clients on a partnership basis, providing working capital and hands-on support so they can fulfil purchase orders and tenders, bridge the gap between invoicing and payment, and take on larger opportunities with confidence. 

Its services include purchase order funding, tender funding, funding against invoices, and funding against vehicles and business property. Each client is supported by a dedicated agent throughout the process. For more information, visit https://www.bizfunding.co.za/. 

Media Contact

• Tel: 010 157 2499
  
• Email: info@bizfunding.co.za
  
• Web: www.bizfunding.co.za
  

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Tags: Press Release, invoice funding South Africa, SME cash flow management, sme, funding