This ‘pay-as-you-earn’ loan for SMEs is an exciting global first

When it comes to running a business in today’s disruptive and unpredictable environment, it’s never been more important for entrepreneurs to read the signs and respond accordingly, by adapting their strategies with out-of-the-box thinking and lightning-fast execution.

When you further consider the pressures of cash flow cycle peaks and valleys and the affect of seasonal trade, it’s clear that a one-size-fits-all approach to this market simply doesn’t cut it any more: innovation and flexibility is key. 

With this in mind, Standard Bank has developed a revolutionary approach to business finance in this space: BizFlex a flexible, short-term unsecured lending solution for small- and medium-sized enterprises (SMEs).

Globally, BizFlex is the first current account revenue-based repayment loan offered by a financial institution.

Unlike traditional lending products, the BizFlex loan offers two distinct benefits to assist businesses in managing their cash flow and growth:

1. A “pay-as-you-earn” repayment approach where the loan is repaid based on a customer-selected percentage of daily revenue earned, and
2. A fixed and guaranteed cost structure that includes interest and does not change, irrespective of the time taken to repay the loan. This provides business owners with cost transparency — there are no additional monthly fees or penalty fees — helping them manage their budgets.

“We’re proud to have assisted SMEs with more than 10,000 loans to date, with loan disbursements exceeding R2bn,” says Darren Segal, business and commercial group executive at Standard Bank.

“With repayments that match the business’s real-time cash flow trends, we’re able to offer a cash boost to SMEs, tailored to their specific needs at an upfront cost, that is guaranteed.” 

Executive head of BizFlex Amit Kooverjee says: “We’ve seen our clients use BizFlex for a wide variety of reasons — from servicing day-to-day requirements such as bulk stock purchases, to refurbishment of premises, bridging cash flow gaps and more. 

“Clients with active BizFlex loans may apply for an additional disbursement. Once approved, the original loan and additional amount will be consolidated into a new loan.”

Active Standard Bank business current account holders who generate an annual revenue of more than R1m a year are eligible to be considered for a BizFlex loan.

Applying for one is a fast, easy online process that's done through Standard Bank’s online banking platform. After successful application, funds are paid out within hours of completing the digital signing process.

Click here for more information.

This article was paid for by Standard Bank.