South African challenger bank Sasfin has moved to boost its SME business by buying a stake in local digital lending startup Payabill.
Neither the size of the "strategic" stake nor the amount paid for it have been disclosed.
Launched in 2017, Payabill operates a 100% digital lending business that provides working capital and trade finance of up to R150,000 to small businesses.
The firm settles suppliers directly for its clients which then get to select their own extended payment terms.
In addition to buying an equity stake in Payabill, Sasfin is becoming a debt partner, helping the firm to start offering larger loans.
Michael Sassoon, CEO, Sasfin, says: "While Sasfin has always offered a trade and debtor finance solution, this was largely for more established businesses.
