Johannesburg based Digital Lending Startup Payabill has received an undisclosed amount of funds from Sasfin, a Private Equity Fund based in South Africa.
The funds disbursed will allow Sasfin offer larger loans to small and medium-sized enterprises (SMEs).
Sasfin provides financial products and services for business and wealth clients. The range of these products and services aims at the needs of entrepreneurs, corporates, institutions and individuals with huge financial assets. These products then form a strong basis for growth in loans and advances to select businesses, and assets under management and advisement for investors.
Payabill gives small businesses working capital and trade finance. The fintech firm brands itself as a digital and cost effective alternative to factoring. It enables suppliers offer better payment terms to buyers at the same time receiving early financing for their invoices.
The startup has disbursed loans up to USD 10.8K of funds to businesses. The investment by Sasfin will, however, enable them to offer larger loans.
“We are incredibly excited by the opportunity afforded to Payabill by having Sasfin as an equity and debt partner. Sasfin will provide access to new channels and much needed funding that enables us to support the growth of small business finance in South Africa,” said Eli Michal, Payabill CEO.
Sasfin CEO Michael Sassoon said “Payabill has made huge strides in giving businesses access to digital finance and we are thrilled to announce this investment.”
He added that “SMEs can now borrow digitally, via Payabill, and bank via B\Yond from Sasfin – reducing admin and costs which often stifles small business growth. Both B\Yond and Payabill are gaining meaningful traction in the SME market and there are a host of additional digital initiatives that we are working on to further help small businesses thrive.”
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