The impact of COVID-19 on South Africa’s economy has proved devastating, with the full extent yet to be determined as the country continues to fight the spread of the virus. Exacerbating matters is lockdown, which although necessary, has meant man a business has had to shutter its doors.
During the pandemic local funding platform Lulalend has been paying specific focus on SMEs, and with lockdown set to continue for some time still, it has decided to up its funding limit to R2 million.
“With half of all SMMEs telling us that access to funding is their main barrier to both survival and growth, and with the costs of running a business on the rise, it was clear to us we could better serve the nation’s entrepreneurs by offering larger amounts of capital,” explains Lulalend CEO, Trevor Gosling (pictured above).
While many SMEs are focusing on their operations and taking stock of where they can optimise processes to save money, Gosling believes that it is important that business owners and managers also use this time to focus on what they can do to adapt to the way that they do things in order to grow in 2021.
“Regardless of how the lockdown has impacted businesses in 2020, it’s critical to begin preparing for 2021,” he says.
“While many restrictions are still in place, SMMEs should be using this time to plan for the future by evaluating what worked well and what didn’t. What needs to change in your business model, financials, and customer experience to be able to meet the changing needs of your customers?,” adds Gosling.
With access to funding one of the biggest challenges that businesses face in South Africa currently, according to Gosling, the increase with which Lulalend is able to assist could prove vital for some SMEs.