The development and expansion of SMME’s in the South African economy is paramount for the growth of the economy and successful transformation of small businesses. It is well documented by several research and government institutions that the biggest obstacle to achieve growth and transformation is the lack of affordable capital for SMME’s; and specifically, the lack of working capital for day-to-day operations. The first world banking infrastructure in South Africa unfortunately does not cater for the requirements of SMME’s businesses operating in a 3rd world economic and business environment. Banking requirements for comprehensive financial and business information and security for funding disqualify SMME’s for access to bank funding.

The solution is a partnership between business, the government, financiers and the SMME’s where implementing a smart factoring and discounting process allows SMME’s to obtain credit against the amounts owed by their clients. With a digital administrative technology platform to administer and manage debtor account information from business and the credit provided by financiers, SMME’s gains access to credit and cash flow to fund their business operations. The solution does not put any additional financial liability on business and opens a new opportunity for banks and capital providers to enter the SMME funding space at a much-reduced risk and administrative burden. SMME’s obtain a permanent credit facility for their cashflow needs and have access to credit to fund their business operations within a few days of delivery a product or service to a customer. The solution can be implemented in any business industry and will benefit all types of small to medium service providers, contractors, vendors, and businesses.

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