Fintechs Rewrite Business Funding Rules For SMEs In South Africa  

In the past year alone, payment provider Payfast by Network has disbursed over R127-million in pre-approved funding to its merchants through its Easy Advance solution in partnership with TymeBank. Launched in 2021, Easy Advance uses real-time sales data rather than rigid credit checks to determine eligibility– it’s about empowering businesses with the financial support they need, when they need it.

“Traditional funding models often fail SMEs, but payment providers like us have a unique advantage. We see the real-time cash flow of our merchants, their sales patterns, and their potential for growth. That insight allows us to offer funding in a way that other financial players simply can’t,” says Mpho Sadiki, Group Managing Director for Merchant Services in Africa (excluding Egypt) at Network International, the parent company of Payfast.

The funding gap that banks can’t fill

South Africa’s three million SMEs contribute around 40% of the nation’s GDP, yet many struggle to secure funding. The reason is that financial institutions rely on lengthy and often outdated risk assessments and credit history criteria, which many SMEs cannot provide. The application process is often complex, slow, and stacked with paperwork. SMEs often lack sufficient transactional or credit history – which makes it difficult for financial institutions to effectively disburse funding.

That’s where Easy Advance steps in – offering pre-approved funding without the red tape.

How Easy Advance works

Easy Advance offers funding based on a merchant’s daily transactions – not their credit score. Other benefits include:

• Instant approval – no long applications or unnecessary documents.
• Funds are available in as little as 24 hours.
• Repayments adjusted with sales cycles, ensuring businesses don’t struggle with fixed monthly costs.

“Whether you need capital to restock inventory, launch a marketing campaign, or renovate your store, Easy Advance puts funding in your hands – on your terms,” says Sadiki.

Real businesses, real growth: From seed to success 

When Grant Muller left his corporate job to start Seeds for Africa in 2011, he had one goal: control his own destiny. Today, his business sells the widest range of plant seeds on the African continent – and he credits cash flow stability as a key ingredient for success.

“Cash flow is king. Easy Advance helped us secure stock in slow seasons, so we’re always ready for peak demand. It’s seamless, fast, and a game-changer for small businesses like ours,” says Muller.

From side hustle to full-time brand 

Amber Aucamp started sewing custom dresses while studying, turning her passion into Flikker Fashion. When she took her brand full-time in 2021, she quickly realised that scaling a business requires investment.

“I never thought funding would be this easy. Easy Advance gave me access to capital exactly when I needed it, without the stress of traditional loans. It helped me make key investments that took my business to the next level,” says Aucamp.

The future of SME funding is fintech

With South Africa’s e-commerce sector booming and more businesses shifting online, payment providers aren’t just facilitating transactions – they’re becoming financial partners. “Fintech is rewriting the rules of business funding,” Sadiki adds. “This is just the beginning.”

If you’re an SME looking for funding on your terms, without the traditional hurdles, it’s time to explore a smarter way to grow.