Telkom’s fintech business Telkom Business has launched a new small business funding solution called Telkom Lend which will allow small businesses to access up to R5 million in business financing in as short a period as 24 hours.
In a statement released on Thursday Telkom Business says through an online application, small businesses can get access to a minimum of R20 000 in funding.
“Applications are checked for eligibility with Telkom’s proprietary automated scoring model,” it says.
“This saves time and gives business owners a chance to focus on their businesses instead of filling in forms and standing in queues.”
To qualify, businesses must have been in operation for at least six months, with monthly turnover of at least R30 000 and a trade history of at least three months.
Applicants will have the option of making repayments on a daily, weekly or monthly basis, and loans must be repaid within a year.
Early repayment rewarded, not penalised
Businesses that pay back their loans before the term is up will not be subjected to early payment penalties, and will instead qualify for a discount.
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“Business funding from Telkom Lend will ensure that small businesses are able to scale and grow with fast funding without the need to put up any collateral,” managing executive of Telkom Financial Services Sibusiso Ngwenya says.
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“Money will be paid into the account once approved within 24 hours to use for various needs including expanding a business, purchasing equipment or renovating premises,” Ngwenya adds.
Telkom confirms that the new offering is live and that interested parties can start applying immediately.
“Fast funding for businesses is becoming a necessity enabling businesses to get capital and to be responsive to immediate opportunities, instead of waiting for weeks for an old-style bank loan to potentially be approved,” Telkom Business says.
Good idea, says economist
Independent economist Dawie Roodt tells Moneyweb this new funding solution may provide struggling small businesses much-needed breathing room post the Covid-19 economic downturn and give them a fighting chance that could aid recovery.
“There are many businesses that could be saved by this and there are many potentially successful entrepreneurs that need a couple of bucks to restart or create a new business and there will be some successes,” he says.
“There is certainly a good angle to this and it will be good for the economy in the end.”
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