Entrepreneurship is often touted as the solution to South Africa’s high unemployment rate. While the SME sector stands to stimulate economic growth, the reality is that some 80% of small businesses fail within the first three years – largely due to a lack of funding and resources.

ProfitShare Partners is disrupting the market using FinTech solutions to offer small businesses access to short-term funding on valid purchase orders. SMEs with no security or financial history, located in even the most remote areas, can access 100% funding within unprecedented turnaround times – all online. The business model is based on transactions, rather than the financial history of an SME, which allows newcomers to enter the market and benefit from funding opportunities.

“The problem in the industry is that small business owners cannot access funds quickly enough to deliver on their purchase order commitments,” explains Andrew. “Because we believe in a paperless environment, ProfitShare Partners uses FinTech to fund 100% of the transaction, from online applications and document submission, to generating the term sheet and deal confirmation. We do not charge interest but instead, we profit share on every deal – which amounts to about a third of the profit. Our business philosophy is not to take on transactions where we will make more than the SME.”

Of the belief that entrepreneurs and emerging businesses are the drivers of the economy, Andrew founded ProfitShare Partners with the aim of helping small businesses to succeed and grow to spur economic trade.

“There is an obvious gap between what traditional financial institutions offer and what government is driving for the sector. When it comes to accessing funds for immediate transacting to deliver on purchase orders and contracts, entrepreneurs often face serious risk due to cash flow constraints.” 

ProfitShare Partners aims to bridge this gap and invites any business with a valid purchase order or contract from a reputable large corporate company, state-owned enterprise, and municipality or government department to apply for funding.

How does the funding work?

After clients complete the quick and convenient funding application online, ProfitShare Partners reviews the transaction and if all the criteria are met, the transaction is approved and a quote is sent within 48 hours. If the offer is accepted, the client is required to provide applicable company documents, copies of relevant IDs and other FICA documents.

Once the transaction is approved, it takes only seven working days to facilitate the funding for the purchase order or contract requirements. A qualified team of professional advisors offers each client essential business advice related to profitability, supply chain and any associated risk to ensure that these are mitigated for an efficient delivery process.

Furthermore, to ensure that clients can access the best value and quality when sourcing supplies for a project or contract, they can access ProfitShare Partners’ current database of reputable resources. They also receive help in navigating the red tape involved in tenders or binding contracts, as well as assistance in on-time delivery, packaging and presentation.

“With every successful transaction and project execution, each client gains insight and experience that they can adopt into their own business model to become more sustainable for the future. Our success is measured by the success of our clients. We build businesses up to ensure their sustainability – and when our clients have realised their success and no longer need us, that’s when we’ve achieved our goal,” concludes Andrew.