South Africa-headquartered TymeBank has reached an agreement to acquire Retail Capital, an SME-focused organisation providing alternatives to traditional business loans in the form of funding and asset finance.
Launched in 2011, Retail Capital has funded over 43,000 businesses with more than $329 million in working capital. The acquisition will enhance its impact as it becomes a division of TymeBank and the foundation of the bank’s expanded business banking offering.
With this acquisition, TymeBank will include working capital finance to its offerings for entrepreneurs who can also buy stocks and resources required to boost the growth and development of their business.
TymeBank believes owner-managed businesses, as well as small businesses are the most underserved and under-capitalised segment of the South African economy. In this regard, Retail Capital has a unique set of capabilities that will allow TymeBank to accelerate its business banking proposition.
Coen Jonker, CEO of TymeBank notes: “This acquisition will enable TymeBank to expand its offering to entrepreneurs to include working capital finance. Retail Capital has acquired significant risk management experience over the past decade and through different economic cycles. They have an experienced team in place and their risk models and operational processes have been battle-tested and optimised to a significant degree for small-business funding.
“Together, we look forward to providing access to innovative solutions to ensure business owners can fuel their growth, drive job creation and contribute to the broader economy.”
TymeBank affirms to have a customer base of five million, 100,000+ small businesses, entrepreneurs and owner-managed businesses, added to a growth rate of about 150,000 new customers month-on-month.
The bank will include the provision of new offerings to SMEs, including TymePOS and TymeTrybe.
The TymePOS is a mobile point-of-sale app that turns an NFC-enabled cellphone into a tap-and-go payment device. While the TymeTrybe is a financial community platform that equips business owners with a range of business tools, accredited courses and other educational services, as well as access to networking opportunities.