Sibusiso Ngwenya, Managing Director, Telkom Financial Services.
Telkom has launched a loan facility, targeting businesses with loans of up to R5 million, joining its peers who also offer financing options to small and medium enterprises.
The telecom company unveiled the lending platform yesterday, inviting eligible businesses to apply online, saying it eliminates old-fashioned banking processes as fast business funding becomes a necessity.
With Telkom Lend, Telkom joined Vodacom, which already offers loans to small, medium and micro-enterprises.
This, as telecom operators continue to move into financial services, making it a hotly contested area for the sector looking to diversify revenue streams away from data and voice.
MTN is leading the charge in financial services, recording successful fintech deals worth over $116.3 billion (R1.8 trillion) in the first half of the year.
Vodacom has attracted 2.2 million downloads and 1.6 million registered users to its super app since its launch.
Telkom is now targeting small businesses, an area where Sibusiso Ngwenya, managing director of Telkom Financial Services, sees growth prospects.
“Telkom Lend’s business financing will ensure that small businesses have the opportunity to grow and grow with rapid financing, without having to provide collateral.
“With financing offers ranging from R20,000 to R5 million depending on monthly turnover, financing can be repaid over three to 12 months on a daily or weekly basis, depending on the company’s cash flow. company.”
Telkom claims that eligibility selection is fully automated, helping to reduce loan processing time.
Ngwenya explains, “The data is used to review companies’ creditworthiness and speed up the funding process. The combination of technology and data analytics not only provides business financing, but also promotes financial inclusion while supporting economic growth.
“Money will be released to the account within 24 hours once approved for a variety of needs, including business expansion, equipment purchases or building renovations.”
Minimum criteria include six months of ownership, three months of business history and a monthly turnover of R30,000.