The Association was launched given the rapid growth of the SME Funding Marketplace in South Africa. This has led to a need to create industry standards to ensure SME customers are fairly treated and the reputation and sustainability of the SME Finance Sector is maintained.
and responsible lending
Ensuring SME customers are fairly treated and the reputation and sustainability of the unregulated SME Finance Sector is maintained.
Ensuring that small businesses have access to funding and working capital is one of South Africa’s top priorities.
The micro-lending space, where much of this funding has taken place, has been fraught with problems. But a new and fast growing industry made up of merchant cash advance companies and SME finance companies is determined to do things differently.
The South African SME Finance Association (SASFA) has been established to encourage transparent and responsible lending in the unregulated SME Finance Sector and has published a code of conduct on its roles and responsibilities in order to protect its customers, and ensure the industry does not fall into the same traps as micro-lenders.