Small businesses can now get up to R5 million in funding within a day
Fast funding for small business of up to R5 million within 24 hours is becoming a reality with Telkom Business announcing recently that it is launching Telkom Lend, with an end-to-end digital process that means no paperwork, no long queues and no waiting for a response from a financial institution.
“Business funding from Telkom Lend will ensure that small businesses are able to scale and grow with fast funding without the need to put up any collateral,” says Sibusiso Ngwenya, managing executive of Telkom Financial Services.
He says this also means that businesses can take control of their payments. With funding offers ranging from R20 000 to R5 million depending on monthly turnover, funding can be paid back over three to twelve months on a daily or weekly basis, depending on the business’ cash flow.
Applications are checked for eligibility with Telkom’s proprietary automated scoring model that saves time and gives business owners a chance to focus on their businesses instead of filling in forms and standing in queues, says Ngwenya, adding that this further entrenches Telkom Financial Services as a fintech disruptor.
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Fast funding and fast pay-out
He says it is not only the application that is handled quickly. “Money will be paid into the account once approved within 24 hours to use for various needs, including expanding a business, buying equipment or renovating premises.”
Another benefit is that a business does not pay a penalty to settle the outstanding balance earlier. Instead, it will actually qualify for a discount.
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Businesses that apply for funding must have been in operation for at least six months with a monthly turnover of at least R30 000. Small businesses must also have a trade history of at least three months and a relationship with Telkom Business is not a requirement.
“Data is used to review the creditworthiness of businesses and speed up the funding process. The combination of technology and data analytics not only provides funding for businesses but is also driving financial inclusion while supporting economic growth,” Ngwenya adds.
Fast funding for businesses is becoming a necessity enabling businesses to get capital and to be responsive to immediate opportunities, instead of waiting for weeks for an old-style bank loan to potentially be approved.