“Small businesses tend to not have deep entrenched structures built into their operations; they often work from month to month and do not have cash reserves to deal with unanticipated expenses or seasonal fluctuations in their business,” says Karl Westvig, CEO of Retail Capital. “What’s more, they don’t tend to have assets that they can easily sell, or expenses that they can easily cut, so it can be fairly tough managing unpredictable cash flow cycles. Traditional financial institutions are not an option as they offer secured lending products, so when SME owners have shortfalls they rely on friends and family for help.”
In response to this funding gap, Retail Capital launched into the market in 2011, with a cash advance product, which allows business owners to access funding lines against their future cash flows. As a solution to many of the challenges entrepreneurs face when they don’t have the upfront capital to assist them with their business operations like the purchasing of stock, repairing equipment or renovating their stores; Retail Capital grows businesses through partnerships and funding. “We don’t require security, but look at your trading history and make a decision based on that. As the amount of information required is minimal, the turnaround is very quick at within five days,” says Westvig. “We consult with all our prospective clients and ensure that the return-on-investment will be worthwhile; if your business won’t profit from the funding, we don’t advise taking the cash advance. We find though, that the business owners that we deal with are commercially savvy and are using the investment to fund significant growth. They are expanding to new sites, or refurbishing and revamping their restaurant or retail store. We see up to a 20% improvement in turnover as a result of freshening up the interior and facade of an outlet. Even if a business could access traditional funding, the delay would mean they would miss out on significant opportunities, especially over seasonal booms.”
If you’re looking to boost your business’s performance, contact Retail Capital, who have advanced over R1.2 billion to thousands of businesses including restaurants, retailers, beauty spas and medical practitioners.
Call 087 095 2240 or visit: www.retailcapital.co.za