David Lewis, Chief Executive Officer of Retail Capital – a business cash advance provider – believes that small business entrepreneurs are a massively underserved segment in the South African banking and credit environment. “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. Some banks have exited entirely from specific small business market segments that are perceived as ‘higher risk’. In short, the business need for working capital has increased, but the availability and accessibility of credit has reduced.”

Alternative funding sought when banks decline business loans