Standard Bank’s BizFlex: a pay-as-you-earn loan designed for SMEs

Introducing a new approach to SME lending – a revolutionary short-term loan that links repayment terms to daily business revenue.

Introducing a new approach to SME lending – a revolutionary short-term loan that links repayment terms to daily business revenue.

Published Dec 15, 2021

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When it comes to running a business in today’s disruptive and unpredictable environment, it’s never been more important for entrepreneurs to read the signs and respond accordingly, by adapting their strategies with out-of-the-box thinking and lightning-fast execution.

When you further consider the pressures of cash flow cycle peaks and valleys and the impact of seasonal trade, it’s clear that a ‘one-size-fits-all’ approach to this market simply doesn’t cut it anymore – innovation and flexibility is key.

With this in mind, Standard Bank has developed a revolutionary approach to business finance in this space – BizFlex is a flexible, short-term unsecured lending solution for SME clients.

A first of its kind

Globally, BizFlex is the first current account ‘revenue-based’ repayment loan offered by a financial institution.

Unlike traditional lending products, the BizFlex loan offers two distinct benefits to assist businesses in managing their cash flow and growth:

  • Firstly, a unique ‘pay-as-you-earn’ repayment approach whereby the loan is repaid based on a customer-selected percentage of daily revenue earned.
  • And secondly, a fixed and guaranteed cost structure that includes interest and does not change, irrespective of the time taken to repay the loan. This provides the client with cost transparency and no additional monthly fees or penalty fees, and helps business owners to manage their budgets.

“We’re proud to have assisted SMEs with over 10 000 loans to date, with loan disbursements exceeding a total of R2 billion,” says Darren Segal, Business and Commercial Group Executive at Standard Bank.

“With repayments that match the business’s real-time cash flow trends, we’re able to offer a cash boost to SMEs, tailored to their specific needs at an upfront cost, that is guaranteed,” Segal explains.

Access to additional funds

“We’ve seen our clients use BizFlex for a wide variety of reasons – from servicing day-to-day requirements such as bulk stock purchases, to refurbishment of premises, bridging cash flow gaps and more,” says Amit Kooverjee, Executive Head of BizFlex at Standard Bank.

“Clients with active BizFlex loans may apply for an additional disbursement. Once approved, the original loan and additional amount will be consolidated into a new loan,” Kooverjee explains.

Fast, easy online application process

  • Active Standard Bank Business Current Account holders who generate annual revenue of more than R1 million per year are eligible to be considered for the BizFlex loan
  • Applications are submitted digitally through Standard Bank’s Online Banking platform
  • Upon successful application, funds are paid out within hours of completing the digital signing process.

For more information: www.standardbank.co.za/bizflexloan