POS solution developer Yoco has launched a new cash advance service for small businesses.
Yoco Capital will provide its merchant clients with access to a cash advance of between R 2,500 and R 75,000 (£129 – $3,874). To be able to apply, the merchant has to have been transacting with Yoco for at least three months. Loan sizes will be based upon the company’s monthly revenue.
Loans come with a transparent, fixed fee and there are no hidden fees or early repayment charges. Merchants pay back a small portion of the cash advance through each payment they process through their Yoco card machine, with all deductions happening automatically.
Yoco completed research on more than 3,600 small businesses of its customers, of which 51% said access to funding is important to run their business, but only 13% applied, and successfully received the funding they wanted, according to the company.
This product launch comes just a month after the company raised $16m in its Series B round, which was led by Partech. Other commitments to the round came from Orange Digital Ventures, FMO, Quona Capital and Velocity Capital.
Yoco co-founder and CEO Katlego Maphai said, “We understand that accessing capital is one of the hardest challenges faced by small business owners. It’s also one of the biggest reasons why small businesses remain small.
“We are therefore offering a solution that leverages smart technology to help small businesses grow. We’re confident that Yoco Capital’s ability to deliver frictionless access to funds will revolutionise small business funding, in the same way that Yoco lowered barriers to card payment acceptance in the sector.”
South Africa-based Yoco is a POS and card reader solution developer for small businesses in South Africa. Its offerings include point of sale software, business intelligence, accounting integrations, and working capital financing.
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