Standard Bank BizFlex has disbursed more than R6.5bn to more than 11,000 South African businesses in just four years, making it one of the most successful revenue-based lending products in the market, and one of the fastest to achieve this milestone.
BizFlex is an innovative short-term loan solution that is designed to adapt to a business’s financial circumstances. Featuring a unique “pay as you earn” repayment structure, BizFlex enables businesses to link their loan repayments to revenue earned, giving them more flexibility than traditional fixed monthly instalment loans.
“When we developed BizFlex, our goal was to create a loan facility that would enable businesses to seize growth opportunities and navigate challenges effectively,” says Keldon Moodley, head of BizFlex at Standard Bank.
“We also wanted to make it easy to access, transparent in terms of costs, and free of the usual pain points like onerous approval processes and inflexible repayment structures. We are delighted that so many businesses are benefiting as a result.
“What really makes BizFlex a game-changer is the fact that qualifying clients can choose the percentage of revenue that they are comfortable committing towards the loan repayments.
“On days revenue is earned, their chosen percentage is applied and used as a loan repayment; on days no revenue is earned, there is no loan repayment. This gives businesses the cash flow breathing room they often need,” says Moodley.
BizFlex has the added benefit of being paperless, with businesses able to access the loan through their online banking platform. The chosen capital amount and the revenue repayment percentage determine the expected loan term, and the total cost of lending is quoted upfront.
... we understand that having access to flexible finance can make all the difference in today’s volatile economy
— Keldon Moodley, Standard Bank head of BizFlex
“By knowing the total cost of the loan upfront, clients can make a well-informed decision on whether it makes business sense to borrow,” says Moodley.
Each month Standard Bank automatically notifies qualifying clients of the BizFlex loan amount available to their business. Clients can then choose to take up the bank’s offer when the need arises, setting up the loan on their online banking profile themselves.
Once all directors have digitally signed, the money is deposited into their business current account within minutes. Clients wishing to apply for a higher amount than the qualifying limit will be subject to a simple credit assessment.
According to Moodley, the bulk of the 32,000 BizFlex loans issued so far have been taken up by retail, wholesale, manufacturing and construction clients.
“Significantly, most of these clients use their loans for growth activities, including investing to take on more work, renovation and refurbishment or one-off bulk stock purchases,” he says.
Many businesses have made use of BizFlex more than once, resulting in demonstrable boosts to their revenue generation. With the cost guaranteed and repayments linked to revenue, it's clear why BizFlex has gained such popularity.
“As Africa’s leading business bank, we understand that having access to flexible finance can make all the difference in today’s volatile economy,” says Moodley.
“BizFlex is the ideal solution for businesses that are looking to take advantage of opportunities that will enhance revenue and drive business growth.”
To find out more about BizFlex, businesses can click here.
This article was sponsored by Standard Bank.
