Telkom Launches Telkom Lend to Offer Small Businesses Funding up to R5m within 24 hours
Small businesses can now apply online for funding between R20,000 ($1,100) and R5,000,000 ($300,000) through Telkom Lend, a new service from Telkom Business, within 24 hours. Without paperwork, lines, or waiting for a financial institution’s response, Telkom Lend replies to applications in less than 24 hours using an end-to-end digital approach.
According to Sibusiso Ngwenya, managing executive of Telkom Financial Services, asserts that business funding from Telkom Lend will ensure that small firms are able to scale and flourish with fast capital without the need to put up any collateral. He noted that funding can be repaid over three to twelve months on a daily or weekly basis, depending on the business cash flow, with offers ranging from R20 000 to R5 million based on monthly turnover.
“Business funding from Telkom Lend will ensure that small businesses are able to scale and grow with fast funding without the need to put up any collateral.
“With funding offers ranging from R20 000 to R5-million depending on monthly turnover, funding can be paid back over three to twelve months on a daily or weekly basis, depending on the business cash flow,” said Ngwenya.
By providing hassle-free microloans to small businesses, Telkom Financial Services will compete in the expanding field of fintech disruptors that has recently emerged.
Traditional banks used to handle business finance, but their rules made it difficult for some people to obtain financing. However, the industry has been upended by online-based fintech companies that are increasingly filling in the industry’s holes.
How Telkom Lend Will Operate
With the help of Telkom’s proprietary automated scoring model, applications are evaluated for eligibility. This saves time and allows business owners to concentrate on running their operations rather than “filling out forms and waiting in lines,” further solidifying Telkom Financial Services’ position as a fintech disruptor.
According to Ngwenya, rapid processing extends beyond the application. Money will be paid into the account once authorized within 24 hours to be used for numerous needs, including growing a business, buying equipment, or remodeling facilities.
A firm may pay the outstanding balance early without incurring a fee since it will be eligible for a reduction instead of a penalty. Any business that has been in operation for at least six months, generates at least R30,000 ($1700) per month in revenue, and has a minimum three-month trading history is eligible to apply for funding.
To evaluate a company’s creditworthiness and expedite the funding process, data is employed. Technology and data analytics work together to assist economic growth by not only giving businesses money but also by promoting financial inclusion.