RainFin and Absa On CNBC Discussing Groundbreaking New Approach to Marketplace Lending in Partnership with Rise AfricaFeb 17, 2016 RainFin In the news Absa , RainFin , SME
Sean Emery, CEO of RainFin and Eugene Booysen, Chief Innovation Officer at Barclay’s Africa appeared on CNBC Africa last night to discuss the new partnership between RainFin, Rise Africa and Absa and their plans to change the financing landscape for small to medium sized businesses (SMEs) – enabling them to access unsecured working capital loans within 48 hours of application.
The result of the union is a proposition that is cheaper, more effective and quicker – leveraging an opportunity to better service SMEs. To date the majority of SMEs struggle to find traditional lenders willing to provide small loans (R1M or less). Writing such a loan has always been prohibitively costly for the provider, and prohibitively slow for the the applicant.
RainFin understands that the nature of small business (SMEs) is dynamic and immediate and to that end it has worked with Absa and Rise Africa to create a platform that seeks to meet those needs – removing some of the red tape and bureaucracy which, to date, has made the process unfruitful for all concerned.
RainFin offer borrowers and lenders a platform where they can take advantage of more streamlined, cost effective processes – acting as a conduit – connecting supply with demand. The added bonus is that RainFin’s credit marketplace enables lenders to share the risk of the loan – this in turn benefits borrowers, who, under other circumstances may have been less attractive to a single lender.
The innovation employed by the team: RainFin, Rise Africa and Absa means that tighter controls are in place – more advanced methods of credit checking provide more accurate, insightful data. What does that mean? It means that there is a reduction of risk – which is good for the lender but it also means that more SME’s are able to obtain financing which is not only good for the individual but, in turn, good for the economy.
Watch the video to learn more about this exciting and ground breaking development in SME financing.