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In the wake of the Covid-19 pandemic, it is more important than ever for SMEs to be flexible and innovative. Acting quickly to take advantage of new business opportunities usually requires cash flow. Fortunately, there are credible alternative finance lenders who can help retailers access the financing they need to quickly increase their cash flow.
Steven Heilbron, CEO of Connect Group, says corporate finance has changed in South Africa, with credible fintech lenders offering financial solutions that make it easier for retailers to access working capital. These products allow companies to be agile, to react to changes in their markets in innovative ways, so that they can survive and thrive in these unusual times.
Heilbron describes a few things that retailers should be aware of when choosing a corporate finance partner:
The Need for Speed ââ- Alternative lenders like Capital Connect understand the need for speed, especially in the rapidly changing retail environment. They offer SMEs quick access to business finance, providing a financial boost that enables retail traders to take advantage of business growth opportunities.
Guarantee vs no guarantee – this is an important aspect to consider. While traditional lenders require business owners to provide collateral, alternative financing solutions allow retailers to take out business loans in many cases without collateral. .
Alternative lenders use important data point analysis and modeling to make informed lending decisions and therefore can provide hassle-free business financing. These streamlined financing solutions eliminate the paperwork associated with, for example, collecting audited financial statements that are typically associated with applying for a business loan.
Retail traders can apply directly from an app and get funds into their account within 24 hours without hassle. This is a great helping hand for SMEs in a difficult time when many companies need cash to rebuild and innovate.
Flexibility – Alternative financing solutions, such as Capital Connect, are designed for the rapidly changing retail industry, providing merchants with shorter and more flexible loan terms. The loan repayment period is not tied to a few years or large monthly repayments, but a shorter period that is more suitable for the business owner. With Capital Connect, merchants can choose their loan amount, select a preferred repayment period, and pay off the loan in small daily installments. This allows business owners to be agile and seize opportunities that will allow them to increase their profit margins and revenues.
“With the current pressures facing our retail industry, time is money for South African retailers, especially as they seek to rebuild themselves from the pandemic. of Covid-19, “Heilbron said.
âAccess to working capital gives retail entrepreneurs the ability to adapt and thrive in the face of adversity. Alternative lenders can help merchants access finance quickly when they can’t wait weeks for an urgent loan application to be granted.