Sasfin invests in fintech lender Payabill
Financial services group Sasfin says it has acquired a strategic stake in fast-growing fintech lender Payabill.
Payabill, a 100% digital lending business, provides working capital and/or trade finance to small businesses. The collaboration between Sasfin and Payabill accelerates financing opportunities for customers, the group said.
This latest venture follows the launch from Sasfin of its digital platform, B\\YOND, for SMEs.
“Sasfin has been investing in fintechs, building digital capabilities (such as B\\YOND) and working with third parties (such as XERO Accounting) for a number of years with the aim of adding value to our business and wealth clients. Payabill has made huge strides in giving businesses access to digital finance and we are thrilled to announce this investment,” said Sasfin CEO Michael Sassoon.
Payabill CEO Eli Michal launched the fintech startup in South Africa in 2017. Payabill settles suppliers directly for its clients and allows clients to select their own extended payment terms.
According to Michal, traditional lenders have neglected finance for small businesses due to the high costs associated with on-boarding and assessing these customers, as well as managing their credit risk. “It made no sense to us that a retail consumer could get multiple forms of credit, almost instantly via electronic channels, but small businesses could not. They were being neglected.
“With this in mind, we set out to build a completely paperless, digital solution to address this market’s unique requirements.”
Currently, Payabill offers loans of up to R150,000 to businesses. The intention is that with the investment made by Sasfin, Payabill will be able to offer larger loans to SMEs in the near future.
“SMEs can now borrow digitally, via Payabill, and bank via B\\Yond from Sasfin – reducing admin and costs which often stifles small business growth.
“Both B\\Yond and Payabill are gaining meaningful traction in the SME market and there are a host of additional digital initiatives that we are working on to further help small businesses thrive,” said Sassoon.
“While Sasfin has always offered a trade and debtor finance solution, this was largely for more established businesses. The new offering speaks to smaller businesses that are passionate about growth, and our larger Trade and Debtor Finance offering will be there to support businesses that reach the next phase in their development.”
Read: Sasfin launches new banking platform aimed at small businesses
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