How This Alternative Funding Solution Can Solve Your Business Growth Problems
You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.
Did you know that SMEs with access to credit can grow faster and achieve optimal size sooner, while those with limited access to finance potentially remain stagnant and smaller in size? This is according to the Finmark Trust study, released in 2016.
“Working capital is essential for the day-to-day operations of a business,” explains Shayne Burnstein, director of SwypeFin, an alternative funding solutions provider. “More often than not, business owners lack sufficient working capital to meet their daily cash flow requirements or expand their operations. This can ultimately lead to the failure of the business.
“It’s common for a business to borrow capital and by using the basic principles of leverage, they can invest in assets that generate higher returns.”
Working capital when you need it most
Are you currently experiencing cash flow constraints due to:
- Unforeseen expenses
- Purchasing more inventory
- A need for new equipment
- Revamps and refurbishments
- Employing more staff
- General maintenance
- Retail seasonality.
Growth capital can be used in any industry and any-sized business, from a dentist or doctor’s business to a clothing manufacturer. “Advancements in 3D printing technology enable dentists that historically relied on outsourcing a technician to make dental crowns, for example,” says Shayne.
“This process typically takes a few weeks at a considerable cost. By borrowing capital to purchase 3D printing equipment, the dentist can bypass the technician and make the crown in an hour, allowing them to see more patients, which would significantly increase their turnover.
“As a business owner, you need to critically consider what will help you grow your business: Is it new equipment, bigger premises or marketing spend? What can you invest in that will grow your turnover and your profit margins? That’s where financing makes sense.”
Revenue is vanity. Profit is sanity. Cash is reality
As business owners themselves, Swype Financial Services understand how critical cash flow is in the daily operations of your business. They also understand the challenges in trying to access funds to address immediate cash constraints.
“Currently retailers are trading under very challenging conditions. With VAT and the price of petrol increasing, consumers have tightened their belts,” says Shayne. “Under these conditions suppliers are offering retailers trade discounts for COD payments. It often makes sense for them to borrow the capital to take advantage of the trade discounts, enabling the retailer to increase their margins.”
What services do SwypeFin provide?
- Quick and simple access to capital without providing collateral security
- Flexible repayment terms
- An upfront fixed fee with no penalties for early settlement.
How does the process work?
SwypeFin purchase a portion of your future sales and provide you with an upfront cash advance. The amount that they purchase, of your future sales, is collected by taking an agreed fixed percentage of your daily sales (There is no fixed term or fixed instalment).
To apply, your business must be registered and owner-operated for a minimum of 12 months and have a minimum of R50 000 in turnover per month.
How to apply?
Call Swype Financial Services to book an appointment on 087 135 3020 or visit www.swypefin.co.za for more information.
Please note that Swype Financial Services do not finance start-up businesses.