Fintech company GroWise Capital, a specialist small business funder, is able to provide business funding of up to R3 million in as little as two hours after the completion of a 5-minute online application.
“We have honed our model to assess the propensity of a client to make repayments and the sustainability of their cashflow. This model enables us to viably fund businesses that other funders tend to avoid. Clients get quick and flexible funding, designed around the particular needs of their businesses – and it is available when they most need it,” says Jonti Strimling, GroWise co-founder and chief risk officer.
Alternative business funders have a differentiated approach to mitigating risk and understand the cashflow requirements of small businesses. They, therefore, make quick decisions and tailor the funding and repayments to each client’s specific circumstances.
Offering cash advances, merchant cash advances and stock advance funding, GroWise has four payment runs each day to successful applicants. Funding requests span various sectors, including construction, logistics, fuel supply and various verticals of the supply chain within each industry.
GroWise offers funding from R35,000 up to R3 million. After the online application is submitted, a dedicated and skilled consultant contacts the entrepreneur immediately. Feedback is given within 24 hours and payouts can be made within two hours of approval.
The business’ suitability for funding is assessed using a variety of financial and non-financial data points such as day-to-day transactional data and social media presence. GroWise offers short-term funding solutions, with repayment terms ranging from 6 weeks to a year. There is no upfront fee and repayment methods are split processing through a point-of-sale credit card terminal, and debit order. The specific terms of the funding are bespoke for each application.
Says Strimling, “Even the most prosperous businesses need funding and often the need arises due to growth. Reasons include expanding the business to keep up with demand, cashflow for the less busy months for seasonal businesses, and buying or upgrading equipment. We are seeing more entrepreneurs applying for business funding before they need it, which allows them to assess all their options when there is no emergency and so avoid irrational business decisions.”
Qualifying businesses are strong and solvent and seek financing to assist with growth and supplement working capital.
Strimling says that the relationships it builds with business owners is comparable to a private banker, where skilled consultants work with each client to find the best solution as well as offering broader business advice. “We support our clients to grow fast. We fuse our advanced underwriting models and customise our funding solutions to specific requirements. We speed up the funding so that our clients speed up their growth,” he says.
The approach is clearly working for GroWise clients. 80% re-apply for further funding due to their positive service experience and the speed of payouts. GroWise Capital is South Africa’s most reviewed business funder on Google. Client Levi Silverman, CEO of MaxFit, suppliers of high-quality gym equipment, recently reviewed GroWise: “Our requirements were incredibly time sensitive as we had a 20ft container sitting at the Durban port waiting to be cleared and forwarded. Our full application was processed and our company paid out all before 4pm the same day.”