BUSINESS NEWS - Responsible for employing up to 60% of the country’s workforce and accounting for over a third of the GDP, South Africa’s small businesses are the lifeblood of the economy and play a significant role in poverty alleviation and wealth creation.

As key players in providing opportunities for job creation and inclusive growth, SMEs deserve all the support they can get, whether it be in the form of enabling policies, accessible finance, or support from communities.

Tom Stuart, Chief Marketing Officer at SME services provider Lulalend believes that for many SMEs, access to funds is one of the biggest challenges and the difference between simply getting by and building a booming business able to grab opportunities when they arise.

“Enabling SMEs to grow through providing easy and quick access to working capital not only paves the way for business expansion but is helping to secure the future of SA’s economy – especially at this crucial period in the market,” says Stuart.

For SMEs, the upcoming Black Friday and festive season period can mean the biggest sales opportunity of the year or a time of standstill, depending on the sector and each business’ readiness.

For those who see their peak season over this period, having sufficient working capital to make sure that there is enough stock to take advantage of the increased demand, as well as to meet customer expectations and sales targets, is critical.

Conversely, for businesses that experience seasonal slowdowns during this period the risk of cash flow drying up and the consequent negative impact on the business can be difficult to recover from. 

Stuart points out that having access to working capital to ensure that financial responsibilities can be taken care of over this time will allow these businesses to bounce back more easily when things return to normal in the new year.

There are many reasons why SMEs may need extra cash flow on hand. From adapting to supply chain delays, coping with stock scarcity and covering material cost increases, as well as weathering repeated bouts of load shedding.

“Whatever the reason, we believe that small businesses are key players in ensuring the sustainability of South Africa’s economy and future. Their agility and responsiveness to market movements, especially at a time when consumer demand and price sensitives are shifting, allows SMEs to play an even more crucial role in reigniting a variety of sectors that have been hit hard by the pandemic and recession,” explains Stuart.

“We understand the importance of instant access to working capital when it’s needed. It’s why we’ve made the application process as quick and easy as possible so that funding can be received within hours of applying for it,” Stuart points out.

He explains that Lulalend’s application process takes just minutes to complete and uses scoring tech to instantly evaluate the performance of the business in order to provide a pre-approved line of credit of up to R5 million.

“To make this funding as accessible as possible over this period, companies applying before the end of November can enjoy a repayment break until 11th January 2023,” says Stuart. He adds that companies only pay for what they use if they use it and are able to repay early with no repayment penalties.

Lulalend’s new digital solutions for flexible funding are disrupting SA's finance landscape with accessible, affordable funding options for SMEs. These innovative products are making it easier and faster to access to unsecured funding, without the traditional drawback of long delays before you can access the money.

Businesses that have been active for at least a year, and whose annual revenue is at least R500 000 qualify for Lulalend’s business funding products. Applications can be made from anywhere in the country and the funds will be available within 24 hours.

Lulalend is currently offering up to 90 days of cost-free business funding to get you fast, easy access to working capital when you need it. You only pay for what you use, and these products incur no monthly account charges or admin fees.

"SA's modern-day business landscape is dynamic, temperamental, and unpredictable," he says. "Staying one step ahead by having the right funding partner and working capital available is crucial for smaller businesses to capitalise on opportunities to grow their businesses.”

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