Kenote Finance has carved out a space as a serious player in the Purchase order funding space by responding to the barriers that exist for businesses trying to access funding. Established in 2016, Kenote Finance offers solutions for traditional Purchase order funding avenues. Avenues which are a response to the stringent criteria, that have automatically cut out a large percentage of SMMEs.
A recent illustration is the Covid-19 loan guarantee scheme, which was established as an effort to support struggling businesses. The scheme aimed to provide loans, substantially guaranteed by government, to businesses in order to meet some of their operational expenses. A partnership between National Treasury, the SA Reserve Bank (SARB) and the Banking Association of South Africa (BASA), the scheme was criticised for its stringent criteria which saw a lot of businesses rejected. The criteria included being in good standing with their banks, business forecasts and historical data, which then saw most businesses abandoning the application process as well as being rejected.
These criteria are some of the reasons that make it hard for businesses to access funding and remain sustainable. “One of our driving forces is to offer support for SMMEs, who we recognise as the backbone of South Africa’s economy” said Kenote Finance’s Account Manager, Mr Thapelo Mothala. Kenote Finance has a no barriers to entry model, which offers an easy, reliable and convenient application process, which only requires the submission of valid Purchase order, supplier quotations and specifications. Our turn around time for responses is normally 24 hours. Thereafter should an application be accepted an obligation free proposal will be issued. Our funding model is key to unlocking the funding possibilities for SMMEs, especially black owned SMMEs, who were traditionally barred from accessing funding and resources.
With a funding bracket of between R350 000 – R5 000 000, Kenote Finance considers a variety of projects. Our project partnerships range from straightforward supply and delivery of goods to more complex projects, which sometimes involve manufacturing, building and installations. Our ethos is that each project is unique and is assessed on its own merits. Kenote Finance has inhouse expertise, which allows us to take on the risk that the banks and government lending houses cannot fulfil, as traditional Purchase order funding houses do not normally venture into building and manufacturing projects.