South African digital lending startup Payabill has secured an undisclosed amount of funding from financial services firm Sasfin to allow it to offer larger loans to SMEs.
Founded in 2017, Payabill provides working capital and trade finance to small businesses, settling suppliers directly for its clients and allowing them to select their own extended payment terms.
Until now, Payabill has offered loans of up to ZAR150,000 (US$10,800) to businesses, but will now be making larger loans available after raising funding from Sasfin, which last year launched B\\YOND digital platform for SMEs.
“We are incredibly excited by the opportunity afforded to Payabill by having Sasfin as an equity and debt partner. Sasfin will provide access to new channels and much needed funding that enables us to support the growth of small business finance in South Africa,” said Payabill chief executive officer (CEO) Eli Michal.
Sasfin CEO Michael Sassoon said his company has been investing in fintechs, building digital capabilities, and working with third parties for a number of years with the aim of adding value to its business and wealth clients.
“Payabill has made huge strides in giving businesses access to digital finance and we are thrilled to announce this investment,” he said.
“SMEs can now borrow digitally, via Payabill, and bank via B\\Yond from Sasfin – reducing admin and costs which often stifles small business growth. Both B\\Yond and Payabill are gaining meaningful traction in the SME market and there are a host of additional digital initiatives that we are working on to further help small businesses thrive.”