Retail Capital has become one of the most recognized names in SME finance in South Africa. Retail Capital provides business owners with quick, unsecured funding that adjusts to their cash-flow cycles—something banks have struggled to do.
Business Funding
For restaurants trying to stock up before the festive season, for clinics needing urgent equipment, or for contractors waiting on a delayed invoice, Retail Capital offers what matters most: speed, flexibility, and repayment models that follow turnover instead of crushing it.
Overview
Retail Capital is a division of TymeBank, specializing in alternative finance for small and medium enterprises. Unlike banks that demand collateral, multi-week reviews, and endless paperwork, Retail Capital uses digital processes and turnover-based repayment models.
Key characteristics:
- Unsecured funding up to millions of rand.
- Fast turnaround: applications approved digitally, funds within hours once accepted.
- Repayment linked to turnover: deductions scale with sales performance.
- Flat-fee pricing: no compounding interest.
- Shari’ah-compliant funding: aligned with Islamic finance.
This makes Retail Capital especially attractive for businesses with seasonal sales, fluctuating revenue, or cash-flow delays.
Features
- Funding speed: Approvals in hours, funds disbursed the same day in many cases.
- Facility size: Suitable for SMEs with R50,000–R10,000,000 monthly turnover.
- Repayment options: Choose fixed instalments or turnover-linked daily/weekly deductions.
- No collateral required: Facilities are unsecured.
- Shari’ah option: Structured to avoid interest while preserving flexibility.
- Equipment funding pathways: Financing available for tools, machines, or refurbishments.
- TymeBank ecosystem: Trusted brand ownership adds credibility and infrastructure.
Pricing (How Costs Work)
Retail Capital doesn’t quote interest rates. Instead, businesses see a flat, all-in fee upfront. That makes planning predictable.
- Turnover-linked repayments: Deductions move with your sales—high when sales peak, lower in quieter weeks.
- Fixed instalments: Predictable, constant repayment schedule.
- Early settlement: Paying off early reduces the overall fee.
Illustrative Example:
- A restaurant borrows R500,000 before December. The supplier offers an 8% discount for early stock payment. The saving offsets Retail Capital’s fee. By January, after the festive peak, the restaurant settles early, saving additional costs.
The principle is clear: if the return on investment from using the funds beats the flat fee, the facility pays for itself.
User Base (Who Qualifies)
Retail Capital is not for startups. It’s for trading SMEs with consistent turnover.
Eligibility highlights:
- Registered SA business (company, close corporation, or sole proprietor).
- Trading history: At least 3–6 months of revenue.
- Turnover: Typically R50,000 to R5 million per month.
- Proof required: Bank statements (3–6 months) or TruID link.
- Good standing: Healthy account behaviour improves approval odds.
Great fits include:
- Retailers, salons, and restaurants with seasonal peaks.
- Contractors and trades with milestone or PO-based projects.
- Healthcare clinics with recurring patient inflows.
- E-commerce shops scaling fast.
Advantages
- Speed: Digital application and approval in hours.
- Flexibility: Repayment models that follow cash flow.
- Unsecured: Keep property and vehicles free of liens.
- Early-settlement benefits: Save money by clearing balances early.
- Shari’ah-compliant option: Inclusive of Islamic finance principles.
- Strong ecosystem: Backed by TymeBank.
Disadvantages
- Higher costs: Compared to secured bank loans or overdrafts.
- Shorter terms: Facilities usually range from 3–12 months.
- Turnover floor: Businesses below ~R50k/month turnover may not qualify.
- Cash discipline required: Turnover-linked deductions can tighten margins in a weak month.
Safety & Trust
Retail Capital emphasizes transparency and compliance:
- Read-only bank access via TruID; no control over funds.
- POPIA compliance with encryption and secure handling.
- Clear, upfront fees with no compounding surprises.
- TymeBank ownership adds credibility and long-term backing.
Product Deep-Dive
1) Business Funding (Working Capital)
- Use cases: stock, payroll, refurbishments, marketing.
- Repayment: fixed or turnover-linked.
- Best for: retailers, restaurants, e-commerce shops, and clinics.
2) Shari’ah-Compliant Funding
- Structured without interest.
- Aligns with Islamic finance.
- Best for: SMEs seeking ethical, compliant facilities.
3) Equipment & Asset Funding
- Funds earmarked for equipment purchases.
- Not a traditional lease; you own the asset outright.
- Best for: machinery, ovens, diagnostic tools, POS systems.
How to Apply
- Start online: Enter business details and funding needs.
- Connect your bank: Use TruID for instant checks or upload 3–6 months of statements.
- Review your quote: Choose repayment model (fixed or turnover-linked).
- Accept digitally: Sign online.
- Get funded: Disbursement often within hours.
- Manage via dashboard: Track deductions and settle early if possible.
Pro tip: Apply ahead of seasonal peaks to ensure your facility is ready when needed.
Alternatives & Competitors
- Lula: Fast digital SME funding with a revolving facility.
- Bridgement: Revolving credit lines and invoice financing.
- Merchant Capital: Advances linked to card turnover.
- GENFIN / Payabill: Supplier and PO-focused funding.
- Banks: Cheaper if approved, but require collateral and time.
- DFIs (SEFA, IDC, NEF): Best for long-term, developmental projects.
Example Use Cases
- Retailer stocking up: R600k facility linked to December sales; early supplier discount covers fees.
- Contractor bridging payroll: 6-month advance keeps site running until milestone payments land.
- Clinic upgrading equipment: Finance diagnostic tools, start earning from day one, repay daily as patient fees flow in.
FAQs
- What is Retail Capital?
A TymeBank division offering fast, unsecured SME funding with flat fees. - How fast is funding?
In hours once approved and accepted. - Do I need collateral?
No, all facilities are unsecured. - Who qualifies?
Businesses with ≥3 months of turnover and ~R50k+ monthly revenue. - How do repayments work?
Choose fixed instalments or turnover-linked daily/weekly deductions. - What’s the cost model?
Flat all-in fee, not interest-based. - Can I repay early?
Yes, and early settlement reduces costs. - Is funding Shari’ah-compliant?
Yes, an Islamic-compliant option is available. - What can funds be used for?
Stock, payroll, marketing, refurbishments, equipment, and more. - Does Retail Capital offer asset finance?
Yes, equipment and asset funding pathways exist. - What documents are needed?
Bank statements (3–6 months) or TruID link; management accounts improve limits. - Are there hidden fees?
No, total costs are shown upfront. - What happens in a slow month?
Turnover-linked deductions scale down with revenue. - Is Retail Capital good for startups?
Not for pre-revenue businesses; trading history is required. - How does it compare to banks?
Faster, easier, unsecured — but more expensive than secured overdrafts or term loans.
Final Verdict
Retail Capital has carved out a niche by aligning business funding with real-world SME challenges. Instead of forcing rigid repayment schedules, it adapts to turnover, ensuring repayments don’t overwhelm during slow months. Backed by TymeBank, supported by digital processes, and strengthened with options like Shari’ah compliance, it’s a strong contender for SMEs seeking speed and flexibility.
For South African entrepreneurs who need to move fast—stocking up, bridging invoices, funding payroll—Retail Capital offers one of the most practical solutions available. If cash-flow timing defines your business, Retail Capital deserves a top spot on your shortlist.