Fundrr, a Johannesburg-based fintech start-up, has partnered with Telkom. The partnership will provide loans to local SMEs listed in an online platform by Yellow Pages by Telkom Business.
In addition, the partnership will assist cash-strapped businesses by providing quick turnarounds for business loan applications.
The South African start-up provides small businesses funding tailored to help the business grow on its own terms. By understanding the business’ needs, Funddr provides easy access to small business financing and provides the freedom to focus on other aspects of running the business. Basically, Fundrr’s vision is to become South Africa’s number one small business lender and provide financing at the most affordable, flexible and transparent way.
Idan Jaan, the CEO of Fundrr commented on the need for Fundrr and how it started. He said, “We realized that new and innovative ways to evaluate small businesses for credit are needed. So few SMEs actually qualify for funding and there’s a desperate demand for financial assistance, particularly during this pandemic.”
About Yellow Pages by Telkom Business
Most recently, the Yellow Pages division of Telkom Business has launched its Yep application which helps SMEs get online easily. Since the lockdown regulations entered force in March, most South African businesses have suffered financial losses. SME businesses took a hit where scores of employees were forced to take pay cuts or take forced unpaid leave. To help overcome this tough time, Yellow Pages provides a business directory and support packages. These assist small businesses develop online visibility and expand their sales and branding into new markets.
The loan application
Fundrr’s loan applications and on-boarding require less than eight minutes to complete. Fundrr’s response time to the applicants is within 24 hours.
According to Fundrr, its automated credit model analyses close to 100 data points from sources such as social media presence and online marketing. This provides a complete picture of a small business and its growth possibilities. The company offers loans for businesses in any industry. However, there are requirements including at least a twelve-month track record, a minimum of ZAR 1 million turnover or asset value, and being operational under the current lockdown.
The loan application process takes part in the following phases. Fill an application form in a process that is free, safe, and secure. The software relies on a decision-making algorithm that evaluates the cash flow of the business, credit score, and other non-traditional data. If approved within 24 hours, the business receives instant funding with a flexible repayment schedule.