GENFIN introduces new 6-month SME loan product – built for fastmoving business opportunities
South African businesses are approaching the busiest operational period of the year, and it comes with many exciting opportunities for growth.
However, many SMEs may not have the capital available to take advantage of these opportunities.
In GENFIN’s experience, these SMEs need a short-term capital injection that gives them immediate access to the resources they need to embrace the opportunity and reap the rewards.
This is where GENFIN is stepping in with its new 6-Month Business Loan.
The GENFIN 6-Month Business Loan is the result of extensive research into the SME sector’s biggest needs, and is much more than a simple evolution of GENFIN’s existing 12-month loan product.
Instead, this new solution has been purpose-built to serve the short-term needs of South African SMEs.
While its 12-month loan is focused on helping businesses achieve and maintain operational stability and make longer-term investments, the 6-month loan is specifically designed to give a quick injection of cash for unique, dynamic opportunities.
For example: an SME may get a much larger order from a new client than they are usually equipped to handle, and may need a quick injection of cash to fulfil the order.
If the SME told the new client that they could not fulfil the request, they would be forgoing a potential long-term relationship with a major partner.
With the GENFIN 6-Month Business Loan, however, the SME can receive financial help to fulfil the order – and build an important partnership that promises incredible long-term growth potential.
Key features of the 6-Month Business Loan
The 6-month Business Loan from GENFIN differs from the 12-month loan product in several key ways.
Firstly, these loans will be processed faster, as GENFIN understands the immediate needs of clients taking out this type of loan.
Only six months of bank statements are required – provided that recent turnover supports the loan amount. If turnover is lower, businesses can still apply, and GENFIN will simply request 12 months of statements instead.
Secondly, because this loan is not designed to help people handle their longer-term cash flow and debt commitments, the repayment period is significantly shorter.
This is because in these scenarios, immediate execution is the focus, at the expense of a longer repayment horizon.
Lastly, the maximum loan value is also lower – up to R500,000.
This is because of the nature of this type of loan, which is focused on a short-term injection of cash, rather than a longer-term strategic investment.
Value to SMEs
The GENFIN 6-Month Business Loan is being introduced at the perfect time, as the end-of-year period is a time when there is a higher demand for short-term funding.
This busy time of the year often results in last-minute project requirements, operational challenges caused by increased festive retail demand, complex procurement cycles, end-of-year projects, and much more.
GENFIN has identified a general rise in the number of SMEs seeking short-term funding solutions that prioritise speed over term length – and this always spikes during the end-of-year period.
The 6-Month Business Loan is therefore a direct response from GENFIN to the needs of these SMEs.
