HOW DOES A BUSINESS ADVANCE COMPARE
TO TRADITIONAL FINANCE?
| TRADITIONAL FINANCE | RETAIL CAPITAL |
|---|---|
| Application Process | |
| Detailed | Simple |
| Collateral Required | |
| Yes | No |
| Equity / Share Sacrifice | |
| Yes | No |
| Simple Cost Structure | |
| No | Yes |
| Turnaround Time | |
| Long | Short |
| Fixed Repayment Term | |
| Yes | No |
| Fixed Repayment Amount | |
| Yes | No |
| Excellent Personal Credit Record Needed | |
| Yes | No |
| Additional Fees (To apply, late payments, early settlement penalties) | |
| Yes | No |
| Restrictions on Use of Funds | |
| Yes | No |
| Ongoing Access to Funding as Original Extension Paid Down | |
| No | Yes |
HOW WE CAN HELP:
Small business entrepreneurs are a hugely underserved segment in the South African banking and credit environment. Obtaining a small business loan from the mainstream banks is often a complex, time consuming, onerous and frustrating process.
In recent times, the 'credit crunch' and the associated bank liquidity problems have resulted in banks becoming far more conservative in lending policies which has increased overall decline rates and reduced the lending limits for those applicants that are accepted. Some banks have exited entirely from the small business market segments that are perceived as 'higher risk'.
In summary, the business need for working capital has increased, but the availability and accessibility of credit has reduced.
The Business Advance funding product was introduced/established in the USA over a decade ago and is available to businesses that accept credit and debit cards as payment for goods and services.
Retail Capital has made this innovative and flexible product available to South African businesses.
BENEFITS OF A BUSINESS ADVANCE FROM RETAIL CAPITAL:
- Easy application process and quicker decision turnaround
- No personal financial guarantees, security or collateral required
- No fixed monthly debit orders, payment schedules, term of installments
- Repayment is linked to business turnover – we get paid when you get paid
- Transparency of overall costs, no additional fees or charges
- No cost to apply, no late payment fees, no penalty interest etc.
- On-going source of capital which is renewed as the advance is paid down
- Repeat advances can be paid out within 48 hours
- No restrictions on the use of the funding