Financial comparison site Fincheck said on Monday it had taken over the full management and equity in FundingHub, becoming South Africa’s largest such website and the biggest lead aggregator with a toal of 71 banks, lenders and insurance firms in their portfolio.
FundingHub provides 30 alternative lenders and banks able to meet the needs of South Africa’s small and medium enterprises (SMEs) seeking finance to grow their businesses.
FundingHub began business in 2017 and has attracted loan sizes of 300,000 rand, with the biggest loan being 72 million rand.
Businesses that apply for funding on the online platform must have been in operation for at least 12 months and with a turnover of 1 million rand.
“FundingHub allows SMEs to apply in under six minutes for business finance, comparing multiple accredited finance providers and to make the most appropriate choice based on their business needs,” Fincheck CEO Michael Bowren said.
Bowren noted that several different forms of finance were available to SMEs, making it hard for them to decide which lender was best suited to their business needs.
“For instance, a business may not know whether it needs equipment finance, unsecured or secured term loans, overdrafts, lines of credit, debtor finance, merchant cash advances or credit cards,” said Bowren.
“Free-to-use and independent FundingHub makes this really simple by filtering options and offering quotes from the most appropriate funders for their business.”
Fincheck is a gold member of AlphaCode, Rand Merchant Investment Holdings, incubation, acceleration and investment instrument for startups which can disrupt the financial services sector.
“Business finance has come a long way since the days when SMEs had to approach their business bank manager, who didn’t know their business, who wanted a great deal of information and then would take around five months to revert with a no,” AlphaCode head Dominique Collett said.
“Many of the fintechs on the FundingHub platform can put money in a business account within 24 hours.”
Finchecksaid it would continue its main offering which allows customers to compare business finance, personal fiancé, business insurance, life insurance, funeral cover, motor vehicle finance and insurance, debt consolidation, counselling, and allowing a total health check.