Telkom Business has announced today the launch of Telkom Lend, a new service to enable small businesses to apply online for funding and get an answer within 24 hours. Telkom says that Telkom Lend is an end-to-end digital process means no paperwork, no long queues and no waiting for a response from a financial institution.
This marks a further fintech option by the South African telecom.
“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,” says Sibusiso Ngwenya, ME, Telkom Financial Services.
“This also means that businesses take control of their payments. With funding offers ranging from R20,000 ($1,200) to R5-million ($300,000) depending on monthly turnover, funding can be paid back over three to twelve months on a daily or weekly basis, depending on the business cash flow,” he explains.
Applications made through Telkom Loan are checked for eligibility with Telkom’s proprietary automated scoring model. The telecom says that this saves time and gives business owners a chance to focus on their businesses instead of filling in forms and standing in queues.
Ngwenya says it is not only the application that is handled quickly. “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.”
Another benefit is that a business does not pay a penalty to settle the outstanding balance earlier, as it will instead qualify for a discount.
Businesses that apply for funding must have been in operation for at least six months with a monthly turnover of at least R30,000 ($1,800) and have a trade history of at least three months.
The telecom says that any business can apply, not only those that have a relationship with Telkom Business.
“Data is used to review the creditworthiness of businesses and speed up the funding process. The combination of technology and data analytics not only provides funding for businesses but is also driving financial inclusion while supporting economic growth,” Ngwenya concludes.
For more information go to telkombusiness.co.za/businessloans