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Alternative Finance Group (AFG) business funding is making waves in South Africa’s finance space by tackling one of the oldest problems SMEs face—slow, rigid bank lending. Instead of waiting weeks for approvals, AFG offers fast, flexible funding from R50,000 to R50 million, with products structured around real business needs like purchase orders, invoices, assets, and property sales.
Business Funding
The difference? Every solution is custom-tailored, transparent, and delivered at speed. This review unpacks Alternative Finance Group end to end—its funding solutions, eligibility, pricing model, advantages, and how it compares to competitors—so business owners can make the right move today.
Overview
Alternative Finance Group is a specialist SME finance provider that merged multiple companies under one roof to simplify access to working capital. By combining expertise across asset-backed lending, property bridging, invoice discounting, and purchase order finance, AFG ensures businesses don’t have to shop around for different lenders.
The company positions itself as a partner rather than a once-off funder, focusing on long-term relationships and tailored deals. Its funding is available to businesses with annual turnovers starting at R1 million, and approvals are structured around collateral, turnover strength, and verified orders or invoices.
What sets AFG apart is speed and scope:
- Deals structured in days, not weeks.
- Funding that scales from R50k to R50m.
- Support across sectors—property, trade, government supply, and SMEs.
- A promise of no hidden fees and clear repayment schedules.
The goal is simple: keep businesses moving, help them deliver on contracts, and unlock growth opportunities when timing matters most.
Features
Asset-Backed Lending
- Amounts: R500k – R50m.
- Criteria: Annual turnover of at least R1m, with a 2:1 asset-to-loan ratio.
- Duration: 2–12 months.
- Best for: Businesses that need liquidity quickly and can pledge assets like property or equipment.
Property Bridging
- Amounts: R50k – R50m.
- Criteria: You’ve sold a property but haven’t yet received the proceeds.
- Advance: Up to 75% of the proceeds.
- Best for: Developers, investors, or owners stuck in transfer waiting periods.
Invoice Discounting
- Amounts: R250k – R50m.
- Criteria: Annual turnover of at least R5m, with approved outstanding invoices.
- Best for: Companies supplying corporates or government, tired of waiting 30–90 days to get paid.
Purchase Order Funding
- Amounts: R250k – R50m.
- Criteria: Verified government purchase order, with at least a 30% profit margin.
- Best for: SMEs that win tenders but lack upfront cash for suppliers and logistics.
Pricing
AFG operates on transparent, risk-based pricing. The exact cost depends on:
- Facility size (larger loans often get sharper rates).
- Risk profile of collateral, invoices, or purchase orders.
- Duration (shorter terms generally cost less overall).
- Margin profile (particularly for PO funding).
Unlike traditional banks, AFG avoids hidden fees, upfront costs, or surprise charges. Repayments are aligned to the funding type—once invoices are paid, properties transferred, or contracts completed, AFG collects its share.
User Base
- SMEs with government purchase orders needing upfront supplier funding.
- Property developers/investors waiting on transfer proceeds.
- Mid-to-large businesses with R5m+ turnover, leveraging invoices for faster cash flow.
- Companies with assets seeking short-term working capital.
- Entrepreneurs scaling operations but unable to rely on slow bank approvals.
Advantages
- Wide product suite under one roof.
- Funding amounts scale up to R50m.
- Fast approvals and turnaround.
- No hidden fees or upfront charges.
- Transparent repayment terms.
- Strong client-first culture—relationships matter.
- Products tailored by sector specialists.
Disadvantages
- Minimum turnover requirements may exclude micro-SMEs.
- Collateral or verified contracts/invoices are usually required—no unsecured loans.
- Profit margin requirements (30%+ for PO funding) can be a hurdle.
- Property bridging capped at 75% of proceeds, not full value.
Safety & Trust
AFG is positioned as a formal finance provider with decades of combined experience. Transparency is central to its model: clients know exactly what they’ll repay, when, and under what conditions. The company emphasises compliance, open communication, and a “client-first” culture that measures success by client outcomes.
Its presence in respected publications and partnerships reinforces trust, while the merged group structure provides scale and credibility in the market.
How Alternative Finance Group Funding Works
- Apply Online: Submit a basic application form with key documents.
- Specialist Contact: An AFG consultant calls to understand needs and structure the deal.
- Custom Offer: Terms are tailored to turnover, collateral, invoices, or PO details.
- Funding Advanced: Once terms are signed, funding lands—often within days.
Alternatives
- Sourcefin: Specialist in PO funding and invoice discounting with sourcing/logistics support.
- Geddes Capital: Broader toolbox—bridging, loans, invoice factoring, and even crypto-backed lending.
- Genfin: Flexible business loans for SMEs with strong revenue but no POs.
- Banks: Cheapest rates if you qualify, but slow and paperwork-heavy.
- Private investors/VCs: Equity-based, slower, and dilutive.
FAQs
1. How much can I borrow from AFG?
From R50k up to R50m, depending on the facility type.
2. How fast is approval?
Approvals are quick—funding can land in days once documents are verified.
3. Do I need collateral?
Yes for asset-backed lending. For other products, verified invoices or POs act as security.
4. Can startups apply?
Only if they have qualifying contracts, POs, or invoices.
5. What sectors does AFG fund?
Property, government supply, corporate supply, and asset-heavy industries.
6. What is property bridging?
An advance of up to 75% of your sale proceeds while you wait for transfer.
7. What margin do I need for PO funding?
At least 30%.
8. Are there hidden costs?
No. AFG commits to transparent pricing.
9. What turnover must my business have?
R1m annually for asset-backed, R5m for invoice discounting.
10. Can I use invoice discounting for private clients?
Yes, provided the invoices are approved.
11. What durations are available?
Typically 2–12 months.
12. Can I refinance with AFG?
Yes, subject to repayment history and turnover.
13. Do they fund small businesses?
Yes, but only if turnover and contract requirements are met.
14. Is there a minimum facility size?
Yes—R50k.
15. Can I settle early?
Yes, and early settlement terms can be discussed upfront.
Final Verdict
Alternative Finance Group has carved out a position as one of South Africa’s most versatile non-bank lenders, offering fast, flexible, and transparent funding up to R50 million. Its breadth of solutions—covering assets, invoices, POs, and property bridging—means clients don’t need multiple funders.
It’s not for everyone: micro-SMEs and unsecured borrowers won’t qualify. But for established businesses with assets, verified invoices, or government orders, AFG provides the speed, clarity, and scale that banks often fail to deliver.
Bottom line: If your business needs tailored finance to bridge the gap between opportunity and execution, Alternative Finance Group business funding is built to get you there