Edge Growth has, since 2007, connected corporate strategy with SMME development using customised end-to-end solutions with a key focus on removing the constraints that small business face, both financially and non-financially. ProfitShare Partners is focussed on transaction funding that enables small business to deliver quickly, while also providing professional guidance and insights to do so optimally. This strategic partnership strengthens growth prospects for the sector because of its interest in building and developing SMMEs to become self-reliant and sustainable.
“We don’t believe in a one-size fits all approach because every business is specific to their market and business life-cycle, including SMMEs. We tailor our solutions to the needs of their operating environments and the impact objectives of their ESD programmes, which are long-term in nature,” says Daniel Hatfield, Managing Director of Edge Growth.
Although a new entry into the market, ProfitShare Partners is headed by Andrew Maren – an astute financial professional and serial businessman with more than two decades of experience in the financial services sector – who introduced the transaction funding model to the market approximately three years ago, which has already been adopted in several African states. The insatiable demand for this solution prompted the need to focus exclusively on transaction funding, making it easier and quicker for SMMEs to respond to purchase order funding requirements.
“There is a perception that SMMEs are generally high risk. We believe that these risks can be mitigated to enable small businesses to grow. We fund SMMEs 100% and we assist clients with no financial history or collateral,” says Maren.
The partnership introduces an interesting scope of funding for SMMEs. Through Edge Growth’s longer term, customised funding solutions for small business, and ProfitShare Partners’ transaction funding model, the SMME market has access to the financial and infrastructural support that it needs to respond swiftly to the immediate supply chain and procurement requirements of purchase order agreements and binding contracts, as well as longer term financial and non-financial assistance to grow their business.
“There is a definite synergy between the two companies that will broaden our offering to our clients. We have come across several instances where corporates issue spot orders and, to respond, the SMME requires quick funding. We see our partnership with ProfitShare Partners complementing what we do, and vice versa,” added Hatfield.
“Our partnership is an opportunity to disrupt traditional funding and unlock the market for SMMEs. We have witnessed rapid growth for small businesses in a period as short as two to three years, because of our funding model. We believe that it will change the SMME landscape quite dramatically in the near future,” concluded Maren.
Together, the Edge Growth and ProfitShare Partners collaboration will set the tone for traditional financial institutions to review their finance support models to enable small business growth and ultimately, growth for the South African economy.
