FINFORMATION: Unleash the Potential of Unsecured Funding

Published: 10 November 2023

What is Unsecured Business Funding?

Small and medium-sized enterprises (SMEs) are often the backbone of the South African economy, providing essential services, products, and employment opportunities. However, growth opportunities can be stifled by a lack of access to funding, particularly through traditional channels like banks that require collateral. Unsecured business funding offers a lifeline to growing businesses by providing financial support based on future turnover, without the need for collateral, allowing for immediate investment in growth opportunities​​​​.

Secured vs. Unsecured Business Funding

While secured loans involve pledging assets against the funding as surety, unsecured business funding relies on the lender’s faith in the business’s future performance. This is usually reflected in the business’s turnover and cash flow. SMEs often prefer unsecured options due to the lack of collateral requirements, which can be a barrier for businesses without substantial assets​​.

The Advantages of Unsecured Business Funding

The main advantages of unsecured business funding include the speed of obtaining funds—often within hours—and the flexibility of use without restrictions on how the funds are deployed. This agility can be critical for businesses that need to act quickly to capitalise on market opportunities or to address unforeseen challenges. The absence of collateral requirements opens up funding possibilities for a broader range of businesses, including those with limited assets such as online and eCommerce businesses​​​​.

How to get Unsecured Business Funding?

At Retail Capital we simplify the funding process into three steps: getting a quote, applying online and receiving the funds within hours. This streamlined approach is designed to minimise the time and effort required from business owners, enabling them to focus on running and growing their business​​.

Qualifying for Unsecured Business Funding

To qualify for unsecured business funding, SMEs must demonstrate a healthy turnover—for example a monthly turnover between R50,000 and R10 million—and provide proof of turnover and ownership. This due diligence ensures that funding is directed to businesses with a track record of revenue generation and responsible financial management​​. While unsecured business funding is an excellent tool for growth, it should be approached with careful planning and confidence in the business’s financial stability​​. 

Unsecured business funding solutions represents an alternative, flexible, fast and accessible funding option for SMEs in South Africa, designed to facilitate growth and overcome the limitations of traditional funding routes. With the right strategy and understanding of your business’s financial health, you can leverage unsecured funding to scale your operations, innovate and stay competitive in an ever-evolving market​​.

Need access to unsecured Business Funding to grow your business? Apply online now.