Funding Solutions for SMEs: Options for Apps and Web Platforms

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CIARAN RYAN: Today, we’re discussing Old Mutual’s SMEgo, a digital platform and app designed to aid small and medium enterprises (SMEs) in South Africa with their business operations and growth. One of the app’s most appealing features is its capability to connect SMEs with an extensive network of businesses and varied funding options, potentially enhancing their chances of survival and success.

To explore this further, we have Thandeka Dludla, the business manager for Corporate SME at Old Mutual, joining us. Thank you for being here, Thandeka. Could you begin by explaining what SMEgo is to our audience? Who is it meant for, and how can businesses apply for funding?

THANDEKA DLUDLA: Thank you, Ciaran, for having me. SMEgo is a digital platform developed by Old Mutual, specifically designed for small and medium enterprises that need mobile access—available on both desktop and mobile devices. SMEgo is tailored to address the unique challenges faced by these businesses.

When we refer to small to medium enterprises, we include micro, small, and medium businesses. A significant hurdle for SMEs is obtaining funding.

SMEgo offers a substantial funding capability.

This funding concierge service consolidates various funders and their products into a single platform, featuring both internal and external funding options. Beyond just aggregating these resources, we assist SMEs along every step of the funding journey—matching them with suitable funders according to their profiles and requirements.

CIARAN RYAN: Let’s dive into that. Can you provide more details about the different funding packages available and why it’s essential for SMEs to familiarize themselves with these options?

THANDEKA DLUDLA: Absolutely! We offer a variety of funding products, so let me highlight a few.

We have business loans, which are typically utilized for working capital to pay suppliers and staff.

Asset finance is available for purchasing tangible assets.

We also offer contract finance and purchase-order finance for valid agreements, enabling businesses to secure funding based on these contracts.

Additionally, there’s early-invoice discounting for companies waiting on payments after completing work, allowing funders to provide immediate payment on those invoices.

For those that may not be funding-ready, we offer personal loans as well.

We’re particularly excited about our recently introduced overdraft option.

Each funding product is designed to meet different business needs.

Understanding these products is vital for SMEs, even if they often lack the time to thoroughly investigate each choice.

We act as intermediaries, linking them with the right funders. We know their specific needs and the various funding products available, which facilitates effective matching.

Grasping the nuances of different funding products is crucial, as each funder has unique requirements. Not every funder serves all industries or business sizes; therefore, we tailor the connections appropriately.

CIARAN RYAN: Many SMEs express concerns about not receiving adequate attention from traditional banks. You’ve mentioned options like asset finance and invoice discounting; what led SMEgo to include the overdraft feature for these businesses?

THANDEKA DLUDLA: Thanks, Ciaran. This new funding option is quite exciting. Unlike other products, it serves as a flexible facility. We’ve launched a 12-month revolving funding facility for SMEs. The appealing aspect is that repayment focuses mainly on interest rather than both interest and principal.

This is crucial as it alleviates cash flow pressures; traditionally, businesses had to manage both interest and capital repayments, which could be financially burdensome.

With our overdraft facility, offered through one of our partners, SMEs can service interest for 11 months and then repay the principal in the 12th month. This facility is also renewable for another year, providing businesses with continued access to finance when necessary rather than waiting for urgent situations to arise.

CIARAN RYAN: Another common issue among SMEs is the lengthy application processes imposed by traditional financial providers. Is the application process through SMEgo quicker, and what is the typical turnaround time?

THANDEKA DLUDLA: There are some required documents, which can slow down the process.

It’s important for applicants to have these documents ready. Once submitted, we can facilitate a quicker turnaround with our funders, often within as little as 72 hours.

Sometimes, if everything is in order, it might even be faster.

Applicants can access the SMEgo platform to apply for funding through our newly introduced landing page. They simply respond to a few questions about their business and upload required documents, including financial and bank statements.

Once their application is submitted, it goes to the funder for review, who will respond with available funding options if the requirements are satisfied.

CIARAN RYAN: It seems SMEgo is constantly enhancing its offerings. Have any new features been added recently?

THANDEKA DLUDLA: Yes, SMEgo is continually evolving. We’ve recently rolled out several exciting features, including The Marketplace, which boosts cash flow opportunities by enabling businesses to buy and sell from one another.

We’re also in the process of enhancing our financial management tools, so stay tuned for those upgrades.

CIARAN RYAN: Thank you for sharing your insights. This has been Thandeka Dludla, business manager for corporate SME at Old Mutual. Thank you, Thandeka.

THANDEKA DLUDLA: Thank you, Ciaran.

Brought to you by Old Mutual Corporate.

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