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Ventureburn is hosting a new webinar series in partnership with Bridginga fintech start-up that helps SMEs replenish cash through an easy-to-use online platform.
South African fintech start-up, Bridgement, helps SMEs replenish cash in hours
Leading up to the webinar, Daniel Goldberg, CEO and Co-Founder of Bridgement, discusses what business owners need to know about alternative financing options.
Fintech has been around for several years, and now more than ever, people are beginning to understand the power of technology to improve and automate financial services and processes.
One such fintech startup, Bridgement, has created a quick and easy financing option – arguably the fastest in South Africa for SMEs.
Why fintech financing?
There are many reasons an SME might consider applying for fintech funding. First, if your top priority is how quickly you can apply and access funds, then your best bet is with a fintech, where paperless applications and same-day funding are now a reality.
Aside from the fast application process, an SME may already qualify for bank financing, but it is growing rapidly and the bank is unwilling to match its growth with increased ease. Fintech financing presents a great option for that extra financing needed to take on a major project or large client.
Bridgement offers something even more important: lowering barriers to accessing finance – especially for SMEs with financing needs of less than R2 million, as well as for businesses in their two to three first years of activity.
Daniel Goldberg, CEO of Bridgement, explains how a fintech company can help SMBs with additional financing.
“Due to the costs and overhead incurred by traditional institutions on small business loans below R2 million, it is difficult for them to do this profitably. A fintech, on the other hand, leverages technology and automation to more effectively meet the financing needs of small businesses.
Goldberg adds that with traditional banks’ funding requirements being as stringent as they are, start-ups and certain industries are often completely overlooked when applying for funding.
“Fintechs solve this problem by using alternative data and credit scores to reduce requirements and make financing possible for young SMEs, even with only six months of trading history,” says Goldberg.
If any of the above rings true, and the thought of spending weeks filling out bank application forms puts you off, fintech financing might just be the best option for your business.
What fintechs do differently
Simply put, fintechs leverage technology and data to create new financial products and provide the best possible experience. A fintech like Bridgement does just that, creating the simplest app, the fastest turnaround times, and completely transparent pricing.
As an SME, it can take an average of 3 to 5 weeks to obtain financing from your bank. Unfortunately, that’s the time that many business owners don’t have. Fintechs, on the other hand, offer applications online, without the need for long forms and paperwork.
The Bridgement application process can take as little as two minutes. Automated assessments allow Bridgement to give applicants same-day decisions of their application – 9.2 hours is their average turnaround time to be exact.
“Our record to date is getting funds into a new client’s account within 90 minutes of initiating their request. This is a game-changer for SMEs in need and sets the benchmark for SME financing in South Africa. Eventually, our turnaround times will be down to minutes,” says Goldberg.
Fintechs have also innovated on the pricing of financial products. You will be charged a one-time, transparent fee per withdrawal, which represents the full cost of funding – no hidden fees, no surprises. It’s also completely pay-per-use. In other words, if your installation is not used, there is nothing to pay.
Another differentiator between traditional and fintech finance is the response to good behavior. While banks and other lenders often penalize early settlements with termination/cancellation fees, Bridgement does not. On the contrary, it rewards its customers by discounting the remaining part of the financial cost.
Costs
Where some traditional credit providers may charge an opening, application or opening fee of up to 3-5% when opening a facility (above your quoted interest rate), with Bridgement, it is free to apply and open a facility, with no obligation. Once an installation is opened, it is fully billed on a pay-per-use basis – there are no ongoing account or installation fees charged each month.
Essentially, you’ll know exactly what to expect right from the start, no fine-tooth comb required. With single, transparent fees, there’s no need to flip through a 200-page PDF to understand your bank’s complex fee structure.
Minimum Bridgement Requirements
- Any SME applying must be a formal business
- The business must have been in business for at least six months
- The company must show a minimum income of R40k per month
Your application can be completed online in two minutes and only involves a few steps:
- Create a free account at www.bridgement.com
- Submit your trading history by connecting your accounting software, banking feed or uploading documents
- Full company contact details
You will usually receive a decision on your application within a few hours. Once approved, you’ll have access to a no-obligation installation that’s ready to go when you are. Successful applicants will be able to withdraw from their dashboard with one click and receive funds within minutes.
Bridgement keeps its clients at the forefront of every decision, and removing all the unnecessary hassle and noise that traditional lenders have yet to reduce.
Bridgement is able to focus on what matters: financing SMEs and helping them grow their business and the South African economy.
Webinar Details
Date: October 29, 2020
Time: 11 a.m.
Register here: https://zoom.us/webinar/register/WN_1RWaGB2KR2uCNyX06u1xTQ
This content was created in partnership with Bridginga company that helps South African businesses solve their cash flow problems by offering instant working capital facilities online.
Read more: A local fintech start-up aims to help SMEs financially
Featured image: Daniel Goldberg, CEO and co-founder of Bridgement (provided)
