Fincheck – a financial comparison site that compares insurance and loan for its users, has acquired FundingHub to become the major financial comparison site and lead aggregator with 71 banks, lenders and insurers.
The startup, launched in 2016 to help users compare financial service products, will now operate FundingHub’s platform which has 30 different lenders and banks.
FundingHub is an indigenous business finance market place that was launched in 2017 to help South African SMEs fund their business. The platform has since attracted an average loan size of R300,000 with the largest loan being R72 million.
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FundingHub, the acquired startup allows SMEs to apply for finance in six minutes, compare multiple accredited finance providers, and make appropriate loan decisions based on their business needs.
Micheal Bowren, Fincheck’s CEO said that prior to the acquisition, there were different forms of finance available for Small and Medium Scale Enterprises (SMEs), making it difficult for the FundingHub to choose the best lender that suits business needs.
Bowren gave the example of small-scale businesses not knowing the type of loan they need. They have the option to choose from either equipment finance, secured or unsecured loans, lines of credit, overdrafts, merchant cash advances or credit cards. The fintech platform will, therefore, make loan acquisitions for any of these easier by filtering through the options and offering quotes to customers, through the most appropriate funder for their businesses. The SMEs on the platform can acquire funds within 24hours of application.
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