Real People Group’s SME finance offering anticipated to promote job creation
Commenting on the recent announcement that The Real People Group has expanded its purpose specific lending offering to include business finance to local SMEs (Small and Medium Enterprise), Neil Grobbelaar, Group Chief Executive Officer of the Real People Group says market research indicates that the local SME market is ripe for alternative funding facilities.
“The reality is that many entrepreneurs are unable to secure finance due to insufficient collateral. Research1 indicates that some of the major challenges facing local SMEs include not only access to finance, but a challenging regulatory environment and lack of entrepreneurial training. Our new SME finance offering plans to address both the financial and training aspects of these challenges,” he comments.
The Real People Group acquired WIZZIT Bank’s Loan book together with its entrepreneurship training facility in January 2014. The acquisition means it is able to add SME finance to its existing home finance product line in South Africa. The Group already has an established SME lending business in East Africa.
With the the strong growth prospects for SME lending in South Africa, Grobbelaar is optimistic that its new business finance offering will do much to promote much needed job creation.
“Thus far we have successfully created and sustained a total of 338 jobs in this business. These jobs naturally have a spin-off effect in local communities as the earnings generated are currently supporting over 1 690 community members. Adding real value within communities is very much in line with our vision of sustainably improving lives,” he explains.
Unlike commercial banks Real People do not require one hundred percent collateral to approve loans but Grobbelaar emphasises that finance is merely one aspect of the Group’s offering to SMEs.
“Our intention when it comes to entrepreneurs is that we want to be seen as a trusted business partner. We want to assist in providing the knowledge and skill to make them successful and keep them successful. In addition we will be able to bring further value by
offering supplementary finance opportunities in our other purpose specific lending areas,” he adds.
Grobbelaar says enabling and monitoring the business also forms part of their SME finance offering. “In addition to providing training and development for entrepreneurs our staff are involved in constant post-loan management and monitor the performance of each business through reviewing its monthly financials. Ultimately we are about building special relationships with clients through offering them a tailor-made personalised service,” he says.
For Grobbelaar the rationale behind the new SME finance offering is ultimately about deploying capital in the most job creative way. “Financing new franchises is the best way of doing this as it is guaranteed to create jobs. In terms of job creation in our experience 80 percent of franchise businesses employ on average five to ten people, the remaining 20 percent employ around 30 to 50 people.
“This ensures that our organisation is well aligned to sustainably contribute to the development of our economy and assist with what is arguably the greatest challenge we face in South Africa, that of unemployment,” he concludes.
About Real People:
Built on a focused portfolio of businesses, Real People is a responsible lender committed to providing responsible finance and customer-centric debt rehabilitation solutions that sustainably improve lives.
Incorporated in 2001, Real People employs over 1 700 employees in South and East Africa, providing focused solutions to individuals and businesses that include home finance, education finance and business finance, as well as rehabilitative finance and debt portfolio recovery solutions.
As a purpose-led organisation Real People recognises the unique challenges and opportunities people face in their lives. Through the responsible provision of financial services and products, Real People strive to share its expertise to create brighter futures and
drive financial wellness. Real People understand the indebtedness in the marketplace and is committed to providing a platform for growth, sustainability and improvement.
http://www.realpeoplegroup.co.za/
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