- A new small business lending service by Telkom offers loans from R20 000 to R5 million.
- The digital service is aimed at helping enterprises access cash in a short period of time.
- Businesses applying for funding must have a trade history of at least three months.
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Telkom has unveiled an unsecured funding system offering small enterprises loans between R20 000 and R5 million, aimed at eliminating current red tape in business financing.
The telecommunications service provider says clients would be able access the funds within 24 hours from Telkom Lend.
The digital service will see Telkom Financial Services compete in the growing sector of fintech disruptors that have emerged in recent years, offering hassle-free micro-loans to small entities.
Businesses applying for funding must have been in operation for at least six months with a monthly turnover of at least R30 000 and have a trade history of at least three months.
"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," said Sibusiso Ngwenya, managing executive for Telkom Financial Services.
The company described funding for businesses as a necessity in enabling businesses to get capital and be responsive to immediate opportunities, instead of waiting for weeks for an old-style bank loan to potentially be approved.
Business finance was previously the domain of traditional banks, whose services came with requirements that often made it hard for some to qualify for funding.
But the field has been disrupted by online-based fintech operators who are increasing filling the gaps in the sector, such as MTN's mobile money, whose services extend to micro-lending to users.