Vodacom launches alternative funding solution for SMEsBy Ryan Noik 21 November 2019 | Categories: news
TechSmart News sponsored by the Huawei Global Developer Programme
Here’s some potentially promising news for those looking to start or grow their small to medium sized business: Vodacom has launched a new business financing product for SMEs, called VodaLend Business Advance.
The move is intended to address the major stumbling block in the current SME landscape in South Africa - access to funding. SMEs are often forced to source funding in their personal capacity either from friends or family. That of course, depends on having friends or family who can afford to help you out financially.
With the VodaLend Business Advance, the company explained that hopes to provide businesses who do not have such resources with another alternative that is quick and easy.
The launch also has a broader impact, with it aimed at stimulating economic growth, something which is deeply needed in the country at present
“Small and medium-sized businesses are the backbone of South Africa’s economy and contribute significantly to employment in the country as well as the gross domestic product (GDP) which is why ensuring their growth and success is vitally important,” explained Vodacom Financial Services Chief Officer, Mariam Cassim. “Providing access to SME funding not only benefits the business owner by allowing them to grow their business but also creates job opportunities and positively impacts the economy as a whole.”
Here’s how it works and what you need to qualify:
- VodaLend Business Advance’s qualifying criteria requires SME’s to be registered and operational for at least 12 months with an annual revenue of over R500 000 and have a good credit standing.
- The size of the advance varies from R10 000 to R1.5 million and is repayable over 6-12 months.
- The application process is fully digital, hassle free and could take a business owner less than 10 minutes to complete. This means no need for printing out long application forms or taking time out to go into lending institutions with the hope of obtaining a business advance.
- Once the application is submitted with all the required information, a decision is immediate and, if successful, the money is transferred into the business account within a day.
Over and above the short-term finance, qualifying SMEs will also receive Business Legal Assist, at no further cost that will support the companies in their day-to-day business legal questions for the duration of the advance term.
“Vodacom Financial Services intends to go beyond just providing funding and is looking to be a partner in growth for SMEs. With the trust we have built as a leading telco, we want to ensure financial inclusion for all within the financial services space and will continue to deliver best-in-class services and products,” concluded Cassim. Interested parties can access the product or obtain further information at www.vodacombusiness.co.za/fundmybusiness
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