Telkom has partnered with Johannesburg-based fintech Fundrr to provide loans to local SMEs listed in an online platform by Yellow Pages by Telkom Business.
The lockdown imposed in March had an adverse economic impact on South African businesses. Significant financial losses incurred forced many companies to halt their operations during the early stages of the lockdown.
SME businesses took a hit where scores of employees were forced to take pay cuts or take forced unpaid leave. Yellow Pages – now owned by Telkom Business – provides a business directory and support package that assists SMEs to achieve online visibility while growing their sales into other markets.
The application process takes part in three phases. First, one has to fill in an application form in a process that is free, safe, and secure. Upon submitting your application, you get a decision within 24 hours. The software relies on a decision-making algorithm that evaluates the cash flow of your business, credit score, and other non-traditional data. If approved, you receive instant funding with a flexible repayment schedule.
Anyone borrowing R100,000 will pay a flat 17% interest rate for half a year. The loans offered range from R20,000 to R50,000.
According to Fundrr CEO Idan Jaan said, “We realized that new and innovative ways to evaluate small businesses for credit are needed.”
“So few SMEs actually qualify for funding and there’s a desperate demand for financial assistance, particularly during this pandemic,“ he added.