Fintech offers frictionless financing – Gadget

A new breed of nimble fintech companies has emerged to respond to the need of South African retailers for quick access to funding.

These finance providers offer retailers access to “opportunity capital” so they can move quickly in response to new business trends.

So says Steven Heilbron, CEO of Capital Connect, a fintech that offers fast and flexible business financing. He says that in an environment of constrained consumer spending, disrupted supply chains and rising inflation, small to mid-sized retailers must be nimble and require access to financing to respond to new opportunities.

They can no longer afford to wait weeks for a business loan to be approved, but need the funds in their bank account as soon as possible to take advantage of opportunities such as a time-sensitive bulk purchase.

Heilbron says: “Retailers know they must be agile and innovative to thrive, given increasing competition, economic volatility and the ever-changing needs and tastes of the consumer. Innovative fintechs can support them because they leverage digital technology to offer easy, fast and problem-free loans to qualified dealers.”

Heilbron gives six examples of how retailers can put fintech finance to work to outperform and grow in a difficult climate:

• Industrial deep fryers: By some estimates, consumers have already purchased more than 24,000 deep fryers during the Black Friday 2022 promotional period. With cooking oil and energy prices rising, hospitality and fast food businesses are following suit. Industrial air fryers are more oil efficient than deep fryers. They also enable retailers to save on electricity costs and offer customers a healthier food option.
• Container stores: Shipping containers are already popular for spaza and tuck shops. But they are a convenient way for any retail business to get started with a seasonal or pop-up store for events or holiday shopping.
• Meal replacement at home: Many retailers are making home meal replacement a booming business. These offers save consumers time with fully or partially prepared meals that are varied, nutritious and affordable. There is a growing demand for vegan options.
• Perishable refrigerator doors: Experts expect electricity prices to double in South Africa over the next five years. Adding doors to open perishable fridges is a great way to save up to 40% on electricity costs.
• Fast and premium deliveries: According to Wunderman research, 25% of South African consumers want their delivery to arrive in less than two hours. A scooter or delivery vehicle can enable a retailer to fulfill this expectation. We also see more competition in premium sectors such as wine deliveries. Retailers without an online ordering system or delivery service simply lose out.
• Vending machines: Adding a vending machine for hot drinks or medical supplies (basic pharmacy items) to a gas station forecourt is a hassle-free way to add a new revenue stream.

“From improving in-store shopping experiences to creating revenue streams like e-commerce, there’s no shortage of great ways to grow a retail business,” says Heilbron. “But dealers require affordable and convenient financing to take advantage of these opportunities. With Capital Connect, dealers can apply for a loan of up to R5 million from our app and the funds will be in their bank account within 24 hours or less.”