The massive funding gap faced by South African entrepreneurs has led to a demand for alternative funding solutions. Events like the SME South Africa finding summit aim to not only help entrepreneurs understand what they need to qualify for funding, but also to expose them to other forms of funding.
Without exposure to alternative funders, SMEs are constantly running after traditional funders, such as banks. One of the alternative funders that was present at the SME South Africa Funding Summit is Flow48. We got to visit the Flow48 exhibition stall to gain insight into who they are and how they serve the SME market.
Additionally, we’ll dive into the importance of alternative funding and how SMEs can strategically use alternative funders for business growth.
What is Flow 48?
Flow48 is a startup fintech company, originally from the UAE, but then, because of gathering the amount of SMMEs that are in South Africa, the company saw the need to penetrate the South African market.
The company was originally founded in 2022 and then branched out into South Africa in 2023. They offer non-dilutive working capital, and because of the technology they utilise, SMEs can seamlessly apply.
“There’s no red tape, we don’t require a list, a handful of documents, we just require two sets of documents, a 12-month bank statement and your aged receivables, and that’s it,” says Thabiso Mkhasibe, Flow48’s Business Development Manager.
What SMEs Can Do to Help Themselves?
For many entrepreneurs, the biggest hurdle is not only securing funding but also knowing how much capital they actually need and how best to use it. Without financial knowledge and planning, businesses can either underfund themselves or take on more than they can manage.
To avoid creating unnecessary strain on the business, businesses should do the following:
- Keep accurate financial records.
- Understand how much cash flow you need.
- Be prepared to clearly demonstrate their revenue streams, expenses, and growth potential.
The above allows you to stand a much better chance of accessing funding. Beyond record keeping, entrepreneurs should also think strategically about capital. Funding should not only be used to cover immediate gaps, but also to position the business for long-term growth.
Mkhasibe explained that funding isn’t only for businesses going through tough seasons. “Whether it’s seed capital or expansion capital, you often find that some SMEs that are thriving will say, ‘We’re making money, we don’t need funding.’ But that’s a big mistake, because they end up using their cash reserves to fund major projects or buy expensive equipment. I’ve seen it happen where a client I approached 12 months ago told me, ‘I’m liquid, I don’t need funding,’ only to come back a year later in financial trouble,” Mkhasibe says.
This highlights an important lesson. Being profitable does not mean your business doesn’t need funding. Funding can serve as a buffer that ensures your business growth is sustainable.
Securing external capital at the right time can prevent entrepreneurs from depleting their cash reserves. Additionally, it gives them the flexibility to scale faster, expand into new markets, and cushion themselves against future challenges.
Building Trust Through Visibility
For Flow48, participating in platforms like the SME South Africa Funding Summit is also about strengthening trust with the SME market. As a new fintech entrant in South Africa, one of the company’s biggest challenges has been visibility.
“We often found that entrepreneurs liked what we were offering, but they’d say, ‘I’ve never heard of you before.’ Even when we directed them to our website or LinkedIn page, there was still hesitation because funding is a trust-based decision,” Mkhasibe explained.
This is why events like the Funding Summit are so valuable. They give funders multiple touchpoints to engage directly with entrepreneurs, creating familiarity and credibility. “In marketing, someone needs to interact with your brand at least five times before making a decision,” he added. “This event gives us another opportunity to build that trust, so that SMEs start seeing Flow48 as a reliable partner.”
If you missed the 2025 SME South Africa Funding Summit, fear not! You still have a chance to join us in 2026. Expect incredible insights, funding partners, networking opportunities designed to help your business grow, and much more. Join the waitlist now.
