Merchant Capital Partners with Discovery Business Insurance

Merchant Capital, a leading provider of alternative working capital solutions for small and medium retail enterprises (SMEs) in South Africa, is proud to announce its selection by Discovery Insure to join the Partner Network for Discovery’s new Shared Value Insurance product, Discovery Business Insurance.

Discovery Business Insurance is designed to create better and “healthier” businesses. Leveraging Discovery’s expertise in innovative insurance products, this new offering will provide clients with unique benefits across property, accident, motor, and other business liability claims.

Since its establishment in 2012, Merchant Capital has supported thousands of small businesses with working capital funding, helping sustain over 40,000 jobs. The company addresses South Africa’s growing SME financing gap—a significant barrier to economic growth and job creation—by providing lump-sum, unsecured working capital advances within 24 to 48 hours, in exchange for a fixed percentage of future card sales. Merchant Capital employs a proprietary credit-scoring algorithm that utilizes alternative data points to make quick and robust credit decisions, achieving a greater-than-70% approval rate.

“Merchant Capital was founded on the belief that SMEs are key to addressing South Africa’s systemic challenges, and Discovery Insure shares that belief. The founders of Merchant Capital are entrepreneurs at heart, and we are passionate about helping South African entrepreneurs grow their businesses. Discovery Business Insurance offers powerful incentives and benefits to SMEs, aiding in their growth, reducing insurance costs, and managing risks,” said Merchant Capital founder and CEO Dov Girnun.

Zuriel Naiker, Head of Discovery Business Insurance, stated, “We have utilized Discovery Insure’s insights to create a business insurance solution that takes a holistic approach, considering the risks businesses face in the twenty-first century.”

By collaborating with Merchant Capital, Discovery Business Insurance aims to provide clients, particularly SMEs, with access to alternative working capital, facilitating sustainable business development.

Girnun further noted, “It’s also personally gratifying to see that Discovery has partnered with Endeavour South Africa, a non-profit organization with 20 years of global experience supporting high-impact entrepreneurs. Together, they have developed a business diagnostic tool for Discovery Business Insurance clients. Having been selected to join Endeavour’s global entrepreneurship program in 2015, I recognize the depth of their knowledge and experience, and I’m confident that this tool will offer entrepreneurs valuable insights.”

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