Vodacom has launched its new business financing product for small to medium sized businesses, called VodaLend Business Advance.
This digital proposition will ensure that SMEs have access to the funding they need to grow, the operator said.
Access to funding has been identified as a major stumbling block in the current SME landscape in South Africa. SMEs are often forced to source funding in their personal capacity either from friends or family. In the interest of stimulating economic growth, Vodacom said it hopes to provide such businesses with quick and easy access to business funding.
“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,” said 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.”
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, and could take a business owner less than 10 minutes to complete, Vodacom noted.
“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,” it said.
Over and above the short-term finance, qualifying SMEs will also receive Business Legal Assist, at no further cost.
“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,” said Cassim.