Retail Capital: Business Loans Guide

If you are a small or medium enterprise (SME) owner in South Africa, you know how challenging it can be to run and grow your business in a competitive and uncertain market. You may face cash flow problems, lack of working capital, outdated equipment, or limited access to credit. That’s where retail capital comes in.

Retail capital is a form of alternative financing that provides SMEs with quick and flexible funding solutions based on their sales performance. Unlike traditional bank loans, retail capital does not require collateral, fixed repayments, or lengthy approval processes. Retail capital can help SMEs boost their cash flow, invest in new opportunities, upgrade their infrastructure, or overcome unexpected challenges.

According to a report by Retail Capital, a leading SME funder in South Africa, retail capital has helped more than 30,000 SMEs across various sectors generate over R18 billion in turnover since 2011. Retail capital has also supported over 100,000 jobs and contributed to the economic growth and social development of the country.

Types of Retail Capital for SMEs

There are different types of retail capital available for SMEs, depending on their needs and preferences. Some of the most common ones are:

Asset finance: This type of retail capital allows SMEs to purchase or lease new or used assets, such as vehicles, machinery, equipment, or technology. Asset finance can help SMEs improve their productivity, efficiency, and quality of service.

Express funding: This type of retail capital provides SMEs with fast and easy access to cash within 24 hours. Express funding can help SMEs cover urgent expenses, such as salaries, rent, taxes, or suppliers.

Business funding: This type of retail capital offers SMEs a lump sum of cash based on their future card sales. Business funding can help SMEs expand their operations, launch new products, or enter new markets.

Each type of retail capital has its own features, benefits, and requirements. For example, asset finance typically has longer repayment terms and lower interest rates than express funding or business funding. Express funding and business funding usually have flexible repayment options and no fixed monthly instalments. However, they may also have higher interest rates and fees than asset finance.

How to Apply for Retail Capital Online

Applying for retail capital online is simple and convenient. Here are some tips on how to do it:

Choose a reputable and reliable retail capital provider, such as Retail Capital, that has a proven track record of helping SMEs in South Africa.

Visit their website and fill out a short online application form with some basic information about your business and your funding needs.

Upload the required documents, such as your ID, bank statements, and proof of turnover.

Wait for the retail capital provider to review your application and perform a credit assessment. This usually takes a few hours or days, depending on the type of retail capital you applied for.

If your application is approved, you will receive a funding offer with the amount, interest rate, and repayment terms of your retail capital.

Accept the offer and sign the contract electronically. You will then receive the funds in your bank account within 24 hours or less.

What to Expect from the Process

Applying for retail capital online is a straightforward and hassle-free process. However, there are some things you should expect from the process, such as:

The amount of retail capital you can get depends on your business performance, credit history, and risk profile. You may not get the full amount you requested or you may get more than you expected.

The interest rate and fees of your retail capital may vary depending on the type of retail capital you choose, the retail capital provider you work with, and the market conditions. You should compare different offers and read the fine print before accepting any offer.

The repayment terms of your retail capital may differ depending on the type of retail capital you select, the retail capital provider you partner with, and your sales performance. You should monitor your cash flow and sales closely and communicate with your retail capital provider regularly to avoid any issues or delays.

Benefits of Retail Capital

Retail capital is a form of alternative financing that provides small and medium enterprises (SMEs) with quick and flexible funding solutions based on their sales performance. Some of the benefits of retail capital are:

It can help SMEs boost their cash flow, invest in new opportunities, upgrade their infrastructure, or overcome unexpected challenges.

It does not require collateral, fixed repayments, or lengthy approval processes.

It offers flexible repayment options, such as a fixed amount or a percentage of turnover, and a discount for early settlement.

It can provide tax benefits, such as claiming the interest and depreciation allowances or the rental expense, depending on the type of retail capital.

It can support the economic growth and social development of the country by generating more turnover and jobs for SMEs.