RainFin Moves Into SME FieldDec 19, 2014 Blog Business Finance , News
RainFin CEO, Sean Emery, was interviewed by Phakamisa Ndzamela from Business Day recently. In this interterview, Sean was asked about RainFin’s plans for 2015. Sean replied with the following:
RainFin will pursue an ambitious target to help advance R1bn in loans on its platforms next year since it has diversified its lending infrastructure to cater for small and medium-sized enterprises (SMEs) looking for credit.
RainFin’s decision to diversify to SMEs, especially those rejected by banks, could help in facilitating growth in the small business sector, seen as vital to job creation and economic growth in SA.
We want to do over R1bn in 2015. The reason we want to do that is we have launched SME loans. We started in October and we are careful with that,” RainFin CEO Sean Emery said.
“We are lending to SMEs with invoices, people with contracts that are part of a supply chain. We think that segment will have the smallest bad debt.”
Sean said when RainFin began, it made three or four loans a day, each averaging R15,000. But by the first quarter of this year this had grown to about R350,000 in loan applications a day, at an average of R35,000.
RainFin is now looking to attract larger, institutional investors such as asset managers, to invest capital for lending.
When Barclays Africa Group bought a 49% stake in RainFin this year, the firm had to slow the levels of lending as it adjusted its systems to meet Barclays Africa Group’s requirements.
To read the whole article, please click here