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Disruptive times call for a fast, flexible SME funding platform

* 18 November 2021 12:28 PM
Tags:
Small businesses
Small business owners
Old Mutual
SMEs
SMMEs
small business owner
small and medium enterprises
Sponsored Content
SME funding
African small and medium businesses
SMEGo
Old Mutual Corporate
SME owners

Old Mutual has partnered with the best funders in SA to bring SMEs an innovative online funding platform called SMEgo.

One of the biggest challenges that small and medium enterprises (SMEs) around the world face is cash flow problems, and South Africa is no different.

COVID-19 has exposed the devastating impacts that South African SMEs have faced in their attempts to survive amid macro-environmental issues such as ongoing lockdowns and power outages that have forced them to stop operations.

Research shows that, at the start of the pandemic, 93% of South African small business owners had no other source of income and 86% didn’t know where to access emergency funding.

The pandemic created an acute liquidity crisis for South African SMEs... Cash is the lifeblood of a business. A few days without an income can cripple, if not destroy a small business, which is tragic considering that the health of SMEs is vital for the long-term prosperity of the country’s economy.

Nobesuthu Ndlovu, SME Director at Old Mutual

While the announcement about various funding initiatives at the start of the pandemic seemed to like a lifeline during tough times, SME owners struggled to find and apply for funding – and when they did, they struggled with complicated application processes.

To compound matters, well-meaning funders struggled to find SMEs that were a fit for them.

There is no time for entrepreneurs and business owners trying to save their companies to submit a detailed business plan to get access to finance. It’s abundantly clear that there was a need for a user-friendly platform to facilitate funding applications.

Nobesuthu Ndlovu, SME Director at Old Mutual

This funding problem shone a bright light on the pressing need for a new approach in times of crisis and, for this reason, Old Mutual has powered SMEgo, an easy-to-use online portal that allows SMEs to apply online for funding between R20,000 to R20 million from multiple funders with one application.

The platform enables small businesses to apply for diverse products such as small equity loans, invoice factoring, and merchant capital finance. Whether they need to fulfil a large shipment or scale operations to facilitate longer-term growth, the platform was designed to give SMEs the funding support they so desperately need.

One of the strengths of the platform is that a business only needs to complete and upload documents once. The process is fast, flexible and they can track and check their progress online and also get access to support and mentorship.

Nobesuthu Ndlovu, SME Director at Old Mutual

No two circumstances are the same, which is why businesses need to be able to access different funding types depending on their unique set of circumstances. However, experience has shown that the process still needs to be fast and user-friendly which is why SMEgo was created, Ndlovu concludes.

Old Mutual ownsand maintains the operations of the SMEgo platform. SMEgo is NOT a lender, itis a platform which assists SMEs to access lenders.

Old Mutual LifeAssurance Company (SA) Limited is a licensed FSP and Life Insurer


This article first appeared on CapeTalk : Disruptive times call for a fast, flexible SME funding platform




* 18 November 2021 12:28 PM
Tags:
Small businesses
Small business owners
Old Mutual
SMEs
SMMEs
small business owner
small and medium enterprises
Sponsored Content
SME funding
African small and medium businesses
SMEGo
Old Mutual Corporate
SME owners

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