R15.5 Billion in Unpaid Invoices Is Crushing Small Businesses. Your Truck Could Keep the Doors Open

South Africa’s small and medium enterprises are caught in a cash flow trap. National Treasury data published in July 2026 confirmed that R15.54 billion in government invoices older than 30 days remain unpaid and in the private sector, payment cycles regularly stretch to between 90 and 150 days.

For a small business that has just won a government tender or a construction firm waiting on a signed-off invoice, that gap between completing the work and receiving payment can mean the difference between making payroll and closing the doors. Traditional bank finance often isn’t available quickly enough or at all. The OECD’s 2026 SME Financing report found that banks continue to apply stringent lending terms amid economic uncertainty, leaving many smaller businesses without recourse.

Pawn My Car, a division of Lamna Financial Services, is highlighting a practical and underutilised solution: using a paid-up commercial vehicle such as a bakkie, light truck, or medium-duty truck as collateral for a short-term cash injection that can be in a business owner’s account the same day.

No Credit Check. No Waiting. No Bureaux Impact.

The Pawn My Car model is asset-based, not credit-based. Loan decisions are made on the value of the vehicle, not on the borrower’s credit history or debt-to-income ratio. This makes it particularly relevant for small business owners who may carry a high personal debt load, have a complicated credit profile or simply cannot afford the time a traditional loan application requires.

The process is designed to be fast. A business owner contacts Pawn My Car, provides the make, model, year and mileage of their vehicle then brings it in for a valuation. If the offer is accepted, documentation is completed and funds are transferred directly into the business bank account. The vehicle must be registered in the owner’s name and free of any outstanding finance.

Critically, none of this appears on a credit bureau record. For SME owners who need to preserve their borrowing capacity for future asset finance or supplier credit, this is a significant advantage.

The Construction Business Owner Who Used It

Pawn My Car has heard this story more than once. One client, a construction business owner, found himself unable to cover payroll while waiting on a late government payment. He pawned a vehicle, received funds within a day, met his payroll obligations and reclaimed his vehicle once the invoice was settled.

This is not a niche use case. Any business owner who owns a paid-up vehicle, whether a bakkie, truck, car or motorcycle, has an asset that can be converted into working capital at short notice.

The Broader Cash Flow Crisis

The R15.5 billion figure cited by National Treasury represents only the government-side of the problem. In the private sector, payment cycles of 90 to 120 days are standard practice and the end-to-end cash cycle for an SME supplying a large corporate can exceed 150 days. Against this backdrop, 85% of small businesses with turnover below R1 million annually are operating with almost no financial buffer.

For businesses in this position, a short-term vehicle-backed loan is not a last resort. It is a practical financial tool that requires no relationship with a bank, no audited financials and no extended application process. The value of the asset determines the loan.

About Pawn My Car

Pawn My Car is a division of Lamna Financial Services, a registered credit provider compliant with the National Credit Act (NCA). Lamna is registered with both the National Credit Regulator (NCR) and the Financial Services Board (FSB).

Pawn My Car offers short-term, asset-backed loans against vehicles including cars, motorcycles, trucks, and boats. Loans are available from a minimum term of three months to a maximum of 24 months, with fixed rates ranging from 36% to 60% APR. No credit checks are required and funds can be transferred on the same day. Pawn My Car operates with complete confidentiality — no information is supplied to credit bureaux.

For more information, visit pawnmycar.co.za or call 0861 112 866.