The innovation of funding is evolving in South Africa.May 27, 2016 RainFin In the news RainFin , SME
Encouraging the growth of SME’s is essential to building a stable economy; however, since the recession there have been limited options for many South African’s looking for access to finance. It was from this need that RainFin was born; to provide a viable option for individuals and businesses looking for short-term funding.
In this discussion clip Sean Emery, CEO of RainFin discusses the process in which lenders can use the platform to invest their money into SMEs seeking to borrow funding. He talks about the need for innovation in funding for SMEs and how the South African market is in need of something other than overdrafts and contract financing.
Overdrafts are given based upon a personal credit score, which isn’t ideal when requesting funding for business purposes and they are also very expensive. Contract financing is notoriously difficult to obtain in South Africa, and if it is received, there is no room for freedom of use along with high interest rates and contractual binding. RainFin allows SMEs to receive funding from lenders who have chosen to do so, with the freedom to use the money in a way they see best, something that pre-existing funding restricts. Emery discusses how RainFin moves away from the traditional forms of SME funding and begins to explore a more unique and exciting way of assisting small South African business growth.
Please click the link to see the full video and more clips on SME lending.