Thursday, September 24, 2020

BizCapital finds financial solutions for SMEs

BizCapital, the local financial institution, is shoring up its image in the local market as it is embarking on a brand-positioning strategy that includes a fresh service level approach dubbed bridge financing as well as a new logo and new corporate colours.

The local company which specializes in working with capital finance for SMEs by offering financial services products which are tailor-made to meet unique needs of customers in different SME sectors.

“Most of small and medium scale enterprises’ growth rate is usually stunted by cash flow problems as well as lack of supplier confidence.

“At BizCapital, working capital finance is made available to deserving enterprises through invoice discounting on tailor made supplementary solutions such as purchase orders finance and inventory finance,” the company said Friday.

BizCapital Managing Director, Reuben Morapedi, said their financing is an excellent way for small growing businesses to manage their cash flow problems. He said most businesses sell goods and services to larger businesses or government agencies, on credit terms such as net 30 days or longer.

“This extension of payment terms by small businesses to large businesses or government agencies aggravates cash flow problems in the SMEs sector,” he said.
Although small business owners want to grow and prosper, Morapedi said very few have the necessary cash to invest in working capital to support increasing sales and orders in their businesses.
He pointed out that their discounting facility is more appropriate for growing SMEs since it is based on invoices issued by their clients to SMEs’ customers.

“Therefore, a client’s ability to raise cash by invoice discounting is based on the quality of accounts receivables or debtors, rather than on traditional measures of financial strength and long operational history,” he said.
Morapedi said that this means that as the business creates new sales, its power to obtain more cash increases, without necessarily going through the hassles of making a new application or renegotiation.

He said that successful business owners turn more and more to invoice discounting or accounts receivable financing, to obtain cash, for expansion and continued existence of the business. Subsequently, they receive a good return on investment without the restraints of a conventional banking relationship, he said.

Morapedi said their involvement ensures that periodic delays and negotiations are eliminated, allowing the business owner time to run the business. “We appreciate that your time as our customers or potential customers is valuable, therefore, we have committed to a turnaround time to a final decision and execution of a transaction of not more than 48 hours,” said Morapedi.

BizCapital was founded in 2004 and, over the years, they have acquired the necessary experience of the local market and developed fast track solutions for Batswana. Their working capital financing and free advice on working capital management will help SMEs take advantage of current and new business opportunities, build good and lasting relationships with their suppliers and customers.

“BizCapital, being a market leader in supporting enterprise growth, offers all these exciting financing solutions for your business,” Morapedi added.

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