A NEW online portal that instantly compares finance options for small and medium enterprises (SMEs) will help address the number one challenge that SMEs in South Africa face access to finance.

The business-to-business portal is the first of its kind and compares legitimate financial products that many business owners and entrepreneurs have never heard of.

It also allows users to compare business accounts, forex deals, merchant terminals and online payment gateways. Michael Bowren, Fincheck Business CEO, said: We found that many small business owners are taking out personal loans to finance their businesses because they don t know that other options exist. This puts a business poised for growth into survival mode and seldom leads to its sustainability.

Many entrepreneurs are desperate to take their business to the next level consider the government, the bank or the family and friends. But there are creative options developed by accredited financial institutions.

For instance, have you ever considered

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merchant cash advance, unsecured loans, invoice discounting or asset finance?” Bowren asked

SMEs can go for unsecured SME loans that do not require them to own an asset they do not need collateral.

A business that urgently needs cash flow may consider this loan option. Lenders will base their decision on a business credit report, income history and income potential. There are very definite advantages and disadvantages to unsecured SME loans that the business owner must thoroughly investigate first,” Bowren said.

In SA, invoice discounting is a popular option for merchants.

Companies with a consistent turnover of over R100 000, that have established supply chain structures and reliable systems for collecting payments are most likely to be suitable for invoice discounting. It is a great resource for an SME to continue operations, but it must be handled responsibly.