The Genfin Holdings Group partners with RMB, expands SME support via Genfin Business Finance
Submitted by: Gerda Heyman
Genfin Holdings Pty Ltd (“Genfin Holdings”) announced that it has concluded a transaction with the Family Office Group Solutions (“FOGS”) business unit of Rand Merchant Bank (RMB), a division of FirstRand Bank Limited. As part of the transaction, RMB has acquired a 20% minority equity interest in Genfin Holdings alongside key RMB family office clients and provided funding facilities across the Genfin Holdings group including its subsidiary, Genfin Business Finance.
The move deepens the long-standing relationship between RMB and Genfin Holdings and positions the group to pursue strategic growth opportunities and expand its existing businesses. This includes accelerating Genfin Business Finance’s growth and market share in the small and medium-sized enterprises (SMEs) alternative lending space via a substantial increase in its lending capacity.
In 2022, Genfin Business Finance rebranded and relaunched with a 100% digital online application process offering SMEs uncomplicated and transparent lending products. Genfin Business Finance’s robust credit risk model fast-tracks offers that prioritises affordability and flexible terms for customers. The business lender is committed to providing South African SMEs with working capital to invest and realise vital economic growth and diverse employment opportunities nationwide.
Representing 98% of businesses in South Africa, SMEs are responsible for about 40% of the country's GDP and employs up to 60% of the workforce across all sectors (McKinsey & Company, 2020). Despite the sector’s significance, access to finance remains one of the greatest challenges facing South African SMEs today. Technology and access to data are transforming the lending industry through the introduction of smarter, faster, and more flexible lending solutions that change how business owners access finance.
Genfin Business Finance believes that with the right financial support, SMEs presents the most significant untapped potential for growth, employment, and economic transformation in South Africa.
Jaco Erasmus, CEO of Genfin Business Finance, has indicated that, “Our experience as a trusted funding partner over the past seven years has enabled us to launch robust funding solutions underpinned by a credit risk model that pioneers responsible lending on an unsecured basis. We have seen first-hand how access to fast and flexible working capital funding solutions empowers SMEs to innovate and achieve growth. Together with RMB, we look forward to supporting more SMEs to realise their ambitions with sustainable funding that prioritises cash flow and long-term business health.”
Hugo le Roux of Family Office Group Solutions at RMB added, “We have built a deep relationship with the Genfin Holdings group, its founders, and experienced management team via its shareholders who are long-standing clients and trusted partners to RMB. Genfin Business Finance has demonstrated significant credit risk management experience in the unsecured SME lending space. Their risk models and operational processes have proven robust despite challenging market conditions and major credit events in recent years. As proudly South African companies, our joint prerogative is to positively contribute to our financial landscape and add value to society. In partnership with the Genfin Holdings group and Genfin Business Finance, we can apply our collective clout to help more SMEs grow, create jobs, and benefit the broader economy.”
For more information about Genfin Business Finance visit: www.genfin.co.za
Genfin is a proudly South African company built by entrepreneurs for entrepreneurs. We understand the challenges of building, running, and growing a business. Our country’s entrepreneurs are an indispensable source of economic growth and job creation but remain limited by a lack of funding. That’s why we’re passionate about supporting SMEs and mid-corporates with accessible capital and generous terms. We don't require collateral or a business plan. We don't believe in hidden fees or early settlement penalties. We believe in growth. Our alternative lending solutions give businesses more options, more flexibility, and more opportunities to unlock sustainable growth. Genfin is backed by the Genfin Holdings Group, a leading business lending conglomerate in South Africa and the United Kingdom. Our strategic funding partners include RMB and Sanlam Investments.
