Originally published by DestinyMan
BY NAZLEY OMAR
Founder of ProfitShare Partners, Andrew Maren, is giving entrepreneurs who lack access to funding an opportunity to succeed
The failure rate of start-up businesses in South Africa is high, with some 50% of small, medium and micro-enterprises (SMMEs) failing to make it past the first two years. The lack of funding, infrastructure and support contributes to the premature failure of small businesses.
Maren says there is a gap between what traditional financial institutions offer and what government is driving for the sector.
Founded in 2017, funding solutions company ProfitShare Partners aims to offer such entrepreneurs a fighting chance.
The company is disrupting the market by offering small businesses 100% funding on valid purchase orders. The business model is based on transactions, rather than the financial history of business, which allows newcomers to enter the market and benefit from funding opportunities.
“When it comes to accessing funds for immediate transacting to deliver on purchase orders and contracts, business owners often face serious risk due to cash flow constraints,” he says.
“ We fund 100% of the transaction, offer business support for optimal delivery and we charge no interest. The company profit shares on every deal – which amounts to about a third of the profit.”
Empowering entrepreneurs
ProfitShare Partners has helped numerous clients increase their turnover tenfold – one grew their turnover from R1 million to R20 million in less than 24 months.
Any business with a valid purchase order or contract from a corporate company, state-owned enterprise, or government department can apply for funding online.
Entrepreneurs are required to complete the application, ProfitShare Partners determines if all the criteria are met, and if the transaction is approved a quote is sent within 48 hours.
The funding for the purchase order is then facilitated within seven days for new clients. Clients can also access ProfitShare Partners’ database of reputable resources, as well as assistance in navigating the red tape involved in tenders or binding contracts.
“The response has been overwhelming, we cannot keep up with demand at this stage. We are working on advancing our technology and are constantly trying to raise more capital to meet the demand,” says Maren.
As a serial entrepreneur, Maren has spearheaded various successful business ventures over the past 15 years. He is currently the CEO of Equity Capital Holdings, a boutique holdings company that houses financial services and property interests.
He has plans to expand the funding model to three continents and envisions listing the company on a public stock exchange in the next few years. His message to aspiring entrepreneurs is to find an area about which you are really passionate and find a way to solve a problem in that area.
“Money follows passion and real problem-solving solutions,” he concludes.
