Retail Capital, which provides working capital to businesses, is said to have raised around R200 million to date through institutions such as Futuregrowth, Ashburton and Gen-X Credit Opportunities Fund.
The company, which has recently been awarded the BB(ZA) rating, said being a rated financial institution would allow it to access new pools of capital at more cost effective rates, and open up opportunities for increased funding to small business and job creation in the sector.
The rating, which has been accorded by Global Credit Ratings (GCR), is the first rating for Retail Capital that was founded in 2011.
“This will lead to faster-growing SME businesses that will employ more people,” Retail Capital CEO Karl Westvig said in a statement this week. This
“Asset managers had indicated that Retail Capital had a very advanced and sophisticated debt-funding structure for a company of its size, and this has now been borne out by the rating,” Westvig said, adding that this will benefit the SME businesses that we finance and also allow us to expand the offering across South Africa
“The development of SMEs and their access to finance is critical for economic growth in South Africa. Retail Capital successfully provides this much needed finance and aligns well with Futuregrowth’s developmental preference,” he said.