Struggling South African small and medium enterprises (SMEs) urged to take tangible steps forward, despite an increase in business confidence according to Lula.
South Africa's ports consistently perform poorly in global rankings, impacting import and export businesses, a concern that has been raised recently. However, the focus should also be on the ongoing hardships small and medium-sized enterprises (SMEs) face, which are crucial to the country's economy. Garth Rossiter, Lula's Chief Risk Officer, argues that the headline figure conceals the struggles small businesses face.
The primary factors driving the SME crisis are high interest rates and declining consumer spending. To address these issues, fintech platforms like Lula are offering support to SMEs, particularly those neglected by traditional financial institutions.
Lula's technology-first, user-friendly, and flexible approach removes barriers and delivers faster, tailored solutions to SMEs. The platform offers immediate, fully digital, and tailored financial solutions that significantly differ from traditional financial institutions.
Key immediate and real-time solutions Lula provides include fully digital business banking and lending, fast funding disbursement within hours, flexible funding options, cash flow management, and trade credit solutions. Lula's banking platform includes powerful cash flow management tools integrated into the account. Their trade credit product, Lulapay, allows instant payments from customers with up to six months for them to pay back, directly addressing SME cash flow challenges in real time.
Unlike many traditional lenders, Lula offers real human support, helping SMEs navigate their financial options effectively. Lula's solutions include fast funding (up to R5 million within 24 hours), AI-driven cash flow management, and flexible repayments with no penalties. Early repayments of loans from Lula come with no penalties, offering greater flexibility and reducing financial strain for small businesses.
Lula's Chief Risk Officer, Garth Rossiter, cautions against complacency due to the SACCI Business Confidence Index (BCI) for March showing business confidence maintaining stability. Recent data shows a 50% year-on-year drop in SME turnover, reflecting the reality that many entrepreneurs face, being pushed to the edge. Rossiter calls for immediate action to support small businesses and fix the fundamentals for measurable economic growth.
Effective delivery of essential services, including efficient ports and well-maintained infrastructure, is crucial for business growth, according to Rossiter. He suggests that broader infrastructure reform beyond electricity supply is necessary. Lulaflow, a tool offered by Lula, provides real-time insights and optimizes financial management for small businesses.
Rossiter asserts that doing the basics well (delivering essential services effectively) will lead to more jobs, better cash flow, and a stronger tax base. He emphasizes the importance of addressing the specific needs of small businesses and supporting them to foster economic growth.
Small and medium-sized enterprises (SMEs) face ongoing hardships due to high interest rates and declining consumer spending, according to Garth Rossiter, Lula's Chief Risk Officer. To help address these issues, Lula, a fintech platform, offers various business solutions, including digital banking and lending, cash flow management, and trade credit solutions. This technology-first approach aims to remove barriers and provide faster, tailored financial solutions that differ from traditional financial institutions.
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