Standard Bank’s BizFlex: A pay-as-you-earn loan designed for SMEs

It’s never been more important for entrepreneurs to read the signs and respond accordingly, by adjusting their strategies with out-of-the-box thinking and lightning-fast execution, in today’s disruptive and unpredictable environment. Here’s a look into how Standard Bank’s BizFlex: a pay-as-you-earn loan designed for SME helps.

The idea of a ‘one-size-fits-all’ approach simply does not work in this market, considering cash flow cycle peaks and valleys, as well as seasonality.

What is a BizFlex loan Standard Bank?

Standard Bank’s BizFlex loan is a groundbreaking, first-of-its-kind loan that adapts to your business’s financial situation. BizFlex’s innovative ‘pay as you earn’ payback structure allows you to return the loan as and when you make revenue, ensuring that your repayments always match your cash flow.

Standard Bank has devised a novel approach to company finance in this arena – BizFlex, a flexible, short-term unsecured loan option for SME clients – with this in mind.

What you get with a standard bank’s Bizflex loan

Here are the major features of a standard bank’s Bizflex loan;

1. A short-term lending solution designed to promote real, measurable business growth
2. Pay as and when your business earns revenue
3. A fixed annual interest rate is shown upfront, regardless of the time it takes for the loan to be repaid.
4. A quick and seamless digital experience – no need to visit a branch

How a Standard bank’s Bizflex loan works 

1. To qualify for a BizFlex loan, you must have an existing Standard Bank Business Current Account.
2. You decide what percentage of your daily earnings you will pay toward the loan. By doing so, your repayments will match your cash flow.
3. The total cost of lending, including interest, is quoted upfront giving you complete cost certainty.
4. Using Internet Banking, you can accept the offer and complete the signing process digitally. Upon finalisation, your account will be credited with the funds.

What it costs

1. No monthly fees
2. You determine how much you will contribute to your short-term business loan based on your daily earnings
3. A fixed interest charge is quoted and guaranteed upfront in Rand terms
4. There is no difference in interest charges regardless of how long it takes to repay your loan
5. Occasionally, pay-as-you-earn repayments may be subject to a minimum daily repayment if they are significantly lower than expected

How to apply for a Standard bank’s Bizflex loan

Minimum requirements:

To apply for a BizFlex loan, you need to:

1. To Have an active Standard Bank Business Current Account for at least 6 months
2. Have a business turnover of more than R1 million per annum
3. Have a business that is Proprietary Limited or Close Corporation

 

If you have an existing Business Current Account with Standard Bank:

1. Register or sign into Internet Banking to view your personalised BizFlex offer, or
2. Speak to your  Banker to see if your business qualifies

If you don’t have an existing Business Current Account with Standard bank:

1. You can open a business current account online
2. Apply for a BizFlex loan once you meet the above criteria

Advantages of this form of loan

1. BizFlex loans are available to Standard Bank Business Current Account holders with annual revenue exceeding R1 million.
2. Applicants submit their applications electronically through Standard Bank’s Online Banking platform.
3. Upon successful application, funds are paid out within hours of completing the digital signing process.

Conclusion 

Financial institutions are offering BizFlex as the first current account repayment loan that is based on revenue. Standard Bank has developed a new approach to business finance in this space – BizFlex is a flexible, short-term unsecured lending solution for SMEs.