Vodacom Financial Services announces that it will offer short-term cash loans to small, medium and micro businesses as part of an initiative to foster financial inclusion.
VodaLend | Business Cash Advance will provide financing to unregistered small businesses that need quick access to short-term cash advances, the group said in a statement on Monday (June 14). It will offer financing of between R3,000 and R350,000 to customers using VodaPay point-of-sale (POS) devices.
Mariam Cassim, Managing Director of Vodacom Financial and Digital Services, said Business Cash Advance will further enhance financial security for SME partners.
“It often happens that a small business has intra-month cash flow problems. Although the business is liquid in the long term, it sometimes finds itself unable to meet its short-term cash flow needs. This is where our Business Cash Advance product comes into play.”
Business Cash Advance provides financing to SME partners who trade using VodaPay POS devices including VodaPay Max, E-Commerce Switch and VodaPay Chop-Chop QR Code. Financing is offered to the SME based on its monthly turnover and, if accepted, is paid to the company within 24 hours.
“Refunds are specifically designed to help SME partners by being tied to the amount of money the business earns each day. When the business is not trading, no refunds are required,” Cassim said.
To be eligible, users of VodaPay’s POS devices must have been trading for four months or more, have a monthly turnover of at least R3,000 (collected through the merchant’s wallet, regardless of mechanism of acceptance) and make 10 transaction payments per month on the defined payment rails.
No business registration or VAT number is required, Vodacom said. Businesses seeking funding should apply through Vodacom’s SMME portal and from there traders can view the funding options on offer. Once funding is approved, they can take it back whenever needed.
Non-eligible VodaPay customers can also access the SMME portal, where they receive a dashboard showing what they need to do to qualify. Once qualified, acceptance can be done in less than two minutes, he said.
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