Standard Bank has seen significant uptake of its new three-minute loan, with R260-million worth of loans issued to small and medium-sized enterprises (SMEs).

The loan capability, which has been extended online, allows business owners to apply for and receive funds of up to R6-million in just three minutes.

In the past, applicants had to wait up to a month for the loan facility to be approved.

Standard Bank is the first commercial bank on the continent to offer this solution, which radically reduces the time it takes for businesses to have their working capital needs met.

The model solves one of the main challenges for SMEs by improving access to funding.

To ensure that loans are granted to credit-worthy clients individuals, the offering is only available to existing customers as there will be a credit/banking track record to vet them against. Standard Bank conducts a rigorous credit check before deciding on whether to issue the loan or not.

Funeka Montjane, CEO: personal and business banking at Standard Bank, says the bank sees large volumes of business loan applications throughout the year but more so ahead of and during the festive season, when SMEs require large amounts of cash in the form of loans in order to keep running and provide quality service.

“While the holiday period brings a boost in revenue for businesses, managing higher volumes of customers and sales can leave businesses falling short on inventory and cash flow. With access to funding to cover any shortfall or inventory related challenges we are giving clients the power to capitalise on the busiest retail period of the year.”

Despite the tough economic climate, South Africans made transactions to the value of R59-billion in during the 2018 festive season at grocery stores, service stations and restaurants – a 15% increase on the previous year’s R51-billion.

The research shows that consumers expect to expand their festive budgets in 2019.

“At Standard Bank, we dedicate time to understanding the needs of our clients and respond with appropriate solutions,” Montjane says. “It is in our interest to provide the tools to our customers to grow as it contributes to upward economic momentum and supports our overall business imperative of driving growth on the African continent.”