This is how South Africa’s SMEs will weather the economic storm…Apr 20, 2016 RainFin In the news News , RainFin
In a recent article on BizNews Sean Emery, RainFin CEO, talks about the changing economic landscape.
Emery talks about the challenges for South Africa as we face “looming ratings downgrade, inflation potentially hitting the 8.1% mark by the end of the year, an impending petrol price increase, and one of the most unfavourable exchange rates we have seen in a long time”.
These conditions have the potential to stunt the growth of SMEs – or worse. SMEs seeking support with cashflow may find it difficult to secure funding from traditional lenders – who tend to favour more established businesses.
For South Africa’s SME ecosystem to flourish a new approach to lending is needed. RainFin taps into innovative technology and the power of the sharing economy to offer just such a solution. South Africa’s first and leading lending marketplace, connects high-quality individual, institutional or business borrowers with lenders who compete to fund them enabling many lenders to provide smaller amounts of funding to businesses and so reducing the risk
This model benefits both parties – SMEs receive the funding that they need and the individual lenders make a healthy return across a diverse portfolio.
Emery goes on to say “This win-win is enhanced by the collective power of lenders, which can be significant. Indeed, one thousand lenders each providing R1 000 equates to a million rand, an amount which can change the life, and business, of a restaurant owner”
Read the full article here.