MTN South Africa (SA) has announced a partnership with SME financing fintech, Payabill, to help the telecommunications service with its MTN Xlerator enterprise supplier development programme, which launched in September.
Having noticed how vital SMEs are, MTN’s Xlerator ESD programme seeks to double the number of SMEs on its supplier database and provide them with business strategy and skills development, and improved funding access.
MTN Xlerator is eligible for SMEs that are at least six months old, have over 51% black ownership, generate under R500m annual turnover, and whose key management staff comprise of blacks.
Managing cash flow has proven to be a real challenge for SMEs across sectors so Payabill was established to aid businesses lacking sufficient funds in purchasing stock, assets, or services from suppliers who require upfront cash.
The fintech targets SMEs with annual revenues between R500,000 and R30 million, provIding them with capital to grow their businesses. It offers various forms of finance including local and international trade finance, as well as asset finance.
Payabill CEO, Eli Michal, expressed excitement at having been “selected by MTN to partner on its Xlerator programme. Playbill has already paid many suppliers in most sectors chosen by its customers all over the country.”
Michal continued, “small businesses are neglected by banks and other lenders due to high perceived credit risk, and associated costs of assessment and collection. SMEs see these lenders as having onerous credit requirements to keep them out. Payabill is different. Payabill is welcoming, quick, and easy to deal with and can provide funding in hours due to its bespoke credit methodology. We take risk where it matters – at the coalface of SA’s businesses – by helping smaller businesses that have little security and struggle to get funding. We pay suppliers when sales aren’t yet guaranteed and take risks where no one else would consider it. We are intent on helping those businesses locked out of the market at a time when SA businesses need all the support they can get.”
MTN SA CEO, Charles Molapisi, commented, “MTN Xlerator is a symbol of our unwavering commitment to progress, innovation, and empowerment. We believe in the enormous, unearthed potential within South Africa. At MTN, we believe in the evolution of empowerment and our goal is to transition from a transaction-based supply chain to a values-based one, ensuring everyone enjoys the benefits of a connected world while building a better tomorrow.”
As part of the partnership, Payabill will also actively introduce and enhance the opportunities of its qualifying clients to the MTN Xlerator programme.