Andrew Maren from PSP and Thapelo Masoko from Edge Action, signing the deal.
ProfitShare Partners’ business model is a catalyst for growth for SMEs. Unlike traditional financial institutions that require a solid financial track record and history, ProfitShare Partners funds the transaction for SMEs with valid purchase orders to the value of R250,000 or more. The business model allows the funder to repeat deals with the same SME numerous times, which helps them build and improve on their credit and track records. In turn, the SME becomes more favourable for large corporate supply chains and banking institutions.
“I am pleased that Edge Action believes in the impact our business model is having in the South African market. Their R10m funding line will further enable ProfitShare Partners to fund and support more SMEs. In the last 10 months alone, through our business model, we’ve made it possible for our small business clients to collectively create 56 new jobs and sustain 236 jobs. This may seem small now, but I am confident that we can grow these figures exponentially with our disruptive funding model when we gain access to more funding lines. The demand is insatiable, and we want to maximise the social impact derived from our business model,” says Andrew Maren, CEO of ProfitShare Partners.
Now in its eighth year, the Edge Action Fund has been providing companies with ESD budgets of less than R50m with a pooled, yet effective way to implement their strategy, as well as bespoke solutions to corporates with budgets greater than R50m. The partnership with ProfitShare Partners offers a responsible investment opportunity that ensures compliance with the B-BBEE Code. The disruptive funder solves one of the key challenges that SMEs face - access to funds that enable them to deliver on their purchase orders for large entities.
“We’re excited to extend this funding to ProfitShare Partners. There is exceptional value in their business model and we are confident that their solution will enable SMEs quickly and efficiently,” says Thapelo Masoko, Edge Action Fund Head at Edge Growth.