A recent study completed by TransUnion has reportedly indicated that access to funding is one of the biggest challenges faced by businesses in South Africa. Therefore, resulting in Lulalend, one of the country’s leading B2B digital SMME lenders has increased the amount of funding it is able to offer to $132,000 (R2-million).
Trevor Gosling, co-founder, and CEO of Lulalend explains that Lulalend is focused on providing a service that caters to local businesses’ needs and has consequently increased its lending amount.
“With half of all SMMEs telling us that access to funding is their main barrier to both survival and growth, and with the costs of running a business on the rise, it was clear to us we could better serve the nation’s entrepreneurs by offering larger amounts of capital.”
The importance of funding
The Covid-19 pandemic has wrung many local businesses dry with the economic impacts having a domino effect on many industries causing a massive decline in overall revenue. As a result, many local SMMEs have developed creative responses to the financial constraints being placed such as innovating their current offering product to cater to consumer demands during the pandemic.
Gosling has explained in a statement to Ventureburn that it is important that business owners and managers also use this time to focus on what they can do to adapt the way that they do things to help them grow in 2021.
“With greater acceptance of online services, along with a shift of public and private sector spending, ensuring that businesses are ready for any changes that might be needed to meet these changing demands is critical,” Gosling adds.
Access to increased capital assists businesses in not only managing their daily expenses but also plan for the future well-being of their business. With many lockdown restrictions still in place in South Africa, creating a stable foundation for one’s business is critical to not only survival but growth.
