ProfitShare Partners has started a movement. In response to the increasing need to develop SMEs to join the mainstream economy, this non-traditional funder has introduced a new approach that bridges the gap and enables entrepreneurs and the small business sector to access funding and deliver optimally on their orders. This, combined with collaborations from corporate South Africa and the financial sector, broadens the impact of the movement.
At an event with prominent industry leaders held recently, ProfitShare Partners shared its business model and vision. The solution and opportunities presented were welcomed with enthusiasm and support because of the quick turnaround for funding and the immediate return for small businesses to deliver on their orders.
“This is a very exciting model and what makes it especially impactful is the fact that it is real and responds to the transaction, rather than the history and track record of the small business,” said Jayesh Nair, Director at Edge Growth.
By addressing key corporate concerns, ProfitShare Partners eliminates the risk of non-delivery by small business due to cashflow constraints.This effectively allows a corporate to take a risk on any SME. The partnership on the transaction reduces potential complications by assessing only the purchase order delivery requirements, rather than the company’s history, which allows new entrants to the SME market to access funding.
“What this means for corporate enterprise development is that the SME receives the support to deliver proficiently and gains experience with each transaction. They eventually mature and graduate out of our model,” says Andrew Maren, CEO of ProfitShare Partners.
“Our business model eliminates the financial risk and guarantees performance for SMEs to deliver on a contract. When they build their track record and financial history, their corporate clients and banking institutions become more confident in their performance,” Maren continues.
The demand for this solution is insatiable. Operating as a counterintuitive business, ProfitShare Partners realises its success when customers become sustainable and no longer need transaction funding.
“By collaborating with corporate enterprise development programmes and financial institutions, we see our role as a stepping stone for SMEs to join the mainstream economy as fully sustainable businesses and bankable clients,” says Maren.
This is the start of a movement for change in South Africa. ProfitShare Partners is determined to change the status quo and collaborate with industry to find alternative ways to make funding and opportunities for SMEs easier.
