Telkom is entering the realm of loans, helping out small businesses with up to R5 million where it’s needed. Banks are often considered the go-to for a loan and Telkom is looking to change that. The idea is to avoid queues, unnecessary paperwork, and to provide businesses with their loans as soon as possible.
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Dubbed Telkom Lend, the company claims that applications have a 24-hour turnaround time and that the entire process can be completed online. Any business in operation for longer than six months, with a monthly turnover of over R30,000 and a trade history longer than three months can apply. Incoming applications are automatically checked using Telkom’s proprietary automated scoring model. This is how the company plans to keep applications to that 24-hour turnaround.
Telkom Lend entertains applications asking for anything between R20,000 and R5 million, based on the business’ monthly turnover. There’s no need for any collateral. Lenders just need to pay the loan back (duh). Telkom (mostly) leaves the decision of how and when it gets paid back in the lender’s hands. Depending on cash flow, the debt can be repaid over three to twelve months, on a weekly or monthly basis. Paying back the debt early isn’t an issue either. Rather than paying a penalty fee to settle the debt, businesses receive a discount.
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“Data is used to review the creditworthiness of businesses and speed up the funding process. The combination of technology and data analytics not only provides funding for businesses but is also driving financial inclusion while supporting economic growth,” said Sibusiso Ngwenya, Telkom’s Financial Services managing executive.
Once an application is approved, money will be deposited in less than 24 hours. What those small businesses do with the money isn’t up to Telkom, but it’s probably best to use it to make even more money.
Source: TechCentral