Why Funding Follow-Through Matters
When it comes to SME finance, most of the attention is on the start: applying, getting approved, and receiving the funds. But what happens next can be just as important as the money in your account.
Ethical funders know that support shouldn’t stop after the contract is signed. From collections to communication, what happens post-funding directly affects the long-term health of your business. It can mean the difference between growing with confidence or struggling under pressure.
That’s why SASFA’s Code of Conduct doesn’t just focus on the sale, it sets the standard for ongoing responsibility.
1. Transparent, Fair and Professional Collections
Business doesn’t always go as planned. Revenue dips, unexpected costs crop up, and repayments can feel harder than expected. Ethical funders understand this, and they don’t respond with penalties or pressure.
Instead, collections should be:
- Fair – avoiding aggressive or intimidating tactics.
- Flexible – where possible, working with SMEs to find solutions.
- Transparent – clearly outlining repayment expectations and what happens in the event of arrears.
SASFA Members commit to upholding professional conduct throughout the collections process, protecting both the SME and the funder’s reputation.
Plain language matters here, too. The collections process should never be hidden in legal jargon.
2. Continued Communication
A good funding relationship doesn’t go quiet after the money lands.
Ethical providers continue to communicate throughout the loan term – checking in, sharing updates, and being responsive if the business hits a bump in the road.
This doesn’t mean constant contact, but it does mean:
- SMEs can reach someone when they need support.
- Funders notify SMEs of any changes to terms, processes or expectations.
- There’s a clear channel for raising concerns or complaints.
The foundation? Respect. SMEs deserve to be treated as partners, not just payers.
3. Helping SMEs Stay on Track
Responsible lenders take a proactive approach to supporting SME success—even if it’s just by making sure repayments stay manageable.
This includes:
- Helping SMEs understand how their daily turnover or cash flow might affect payments.
- Providing early alerts or guidance if repayments are slipping.
- Offering educational support – like budget tools or growth planning resources.
In short, ethical funders want SMEs to succeed, because it’s a win-win. A healthy SME is a reliable partner.
4. Holding Themselves Accountable
If something goes wrong, from a miscommunication to an error in payment processing, ethical funders don’t shift the blame.
They:
- Investigate quickly
- Communicate clearly
- Offer solutions that are fair
At SASFA, we believe accountability isn’t optional, it’s essential. That’s why our Members are held to a standard that includes compliance monitoring and a commitment to continuous improvement.
5. Why This Matters: Trust, Reputation, Growth
When funders treat SMEs with care and respect after funding is disbursed, it builds trust. That trust leads to longer-term partnerships, better repayment outcomes, and stronger word-of-mouth.
For SMEs, it means:
- Less stress when things get tough
- Confidence to take on funding again in future
- Better understanding of their financial journey
For the industry, it means:
- A healthier, more credible SME finance ecosystem
- Less reliance on aggressive collections or predatory practices
- A reputation for responsibility and professionalism
Ethical Lending Doesn’t End at Disbursement
If your current funder disappears the moment you sign—or only shows up when payments are late, it might be time to rethink the relationship.
A good funder:
- Communicates clearly
- Supports your success
- Collects fairly
- Holds themselves accountable
That’s the standard SASFA Members commit to – before, during and after the loan.
Looking for a responsible provider? View our members at sasfa.net/members
