In The Press
Merchant Capital Named SA’s Best Small Business Funder

Alternative fintech lender Merchant Capital has been awarded the title of Best Small Business Funding Solution in South Africa at the UK-based Wealth & Finance magazine’s 2020 FinTech Awards.

The FinTech Awards, hosted by Wealth & Finance for the fourth consecutive year, recognize outstanding digital innovations and technology-enabled business models across the fintech market. Merchant Capital was the outright winner in the funding category, selected from 15 nominated companies, five of which competed in the sub-category of Small Business Funding.

Merchant Capital Founder and CEO Dov Girnun stated that the award highlights the company’s innovative approach to providing financing solutions for South African SMEs. Over the past seven years, the company has assisted more than 7,000 SMEs with working capital exceeding R1.5 billion.

“We’re delighted to receive global recognition for our business model and approach. Our founding principle was to support small businesses in both good and challenging times, providing clients with innovative solutions that evolve according to the changing business environment,” said Girnun. “This principle has been tested to its limits during the COVID pandemic, so receiving this award is a great endorsement.”

Winners were chosen by an independent judging panel, which conducted merit-oriented research and scrutinized information across various mediums. To advance from nominee to category winner, awardees had to demonstrate expertise in their field, dedication to client service, and a commitment to excellence and innovation.

“The fintech market has evolved rapidly and continues to transform and innovate the financial services sector in areas such as payments, lending, personal finance, and banking, to name a few. Providing safer and more reliable solutions to numerous economic institutions and individuals, there was a great deal of work worthy of praise and admiration,” said Chloe Smart of Wealth & Finance Magazine.

Merchant Capital allows small businesses to access funds for working capital in as little as 48 hours, with repayments based on a set percentage of future card sales, providing flexibility during periods of low turnover. SMEs can access additional capital once they have repaid 70% of the cash advance.

There are approximately 2.5 million SMEs in South Africa, employing about 60% of the labor force. Their total economic output accounts for roughly 34% of South Africa’s GDP. However, the funding gap for SMEs ranges between R86 billion and R346 billion at any given time.

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