South African small business owners are often frustrated by the lack of funding support offered by traditional banks. A survey conducted amongst owners of restaurants, boutiques, auto repair shops, guest houses, private medical practices and beauty salons highlighted that over 50% identified that access to working capital was the number one factor limiting their business growth.
Businesses that accept credit/debit cards can obtain easier access to funding from Retail Capital, without having to provide financial guarantees and with the benefit of flexible payments that are linked to daily turnover.
The RCS Group, continues to ‘make things possible’ for consumers by providing loans, insurance and revolving credit cards through a merchant network and they identified a synergistic opportunity to add value to their merchants, by offering small business funding through the partnership with Retail Capital
By acquiring an equity stake in Retail Capital, the RCS Group has invested in providing innovative funding solutions to card-accepting merchants, including many of whom have been loyal supporters of the RCS card program. The deal facilitates access to funding, an established merchant base and sales support from the RCS customer management team.
“We are very excited about the partnership with Retail Capital. The timing is right to be able to offer SME’s an alternative to traditional lending, with an easy and flexible product, linked to the unique cash flow needs of the business” states Jaco Snyman, Chief Financial Officer, RCS Group
“As a company with roots in both financial services and retail, RCS Group represents a natural partner for Retail Capital. Our unique business cash advance product offering is ideal for the RCS merchant base and we are looking forward to a long and successful partnership”
The RCS Group was founded in 1999 and is co-owned by The Foschini Group (55%) and Standard Bank of South Africa (45%).
Retail Capital was founded in January 2011 and has already helped many retailers and restaurateurs to fund their business growth by means of providing quick, innovative and flexible access to working capital solutions.