Following five consecutive quarters of GDP growth and continued interest rate cuts, a South African alternative business funder is reporting its strongest portfolio performance to date. Internal data shows rising approval rates, improved credit quality and growing demand from new industries. Jonti Strimling, co-founder and chief risk officer of GroWise Capital, unpacks the data.
Funding volumes and approval rates
The average amount advanced per deal has grown by 15% over the last six months. Average terms are longer and overall approval rates are increasing. Refinanced clients are qualifying for larger facilities, and stable refinance approval numbers point to sustained repayment performance over time.
GroWise has also seen a notable uptick in return business from clients who were previously funded, took a break, and have now returned with stronger financials.
Credit quality
Repayment performance across the portfolio has improved over the past 12 months, even among higher-risk credit segments. The quality of applications has risen sharply, with better credit files and higher credit scores, and businesses with stronger profiles are increasingly choosing alternative funders like GroWise over traditional bank finance. “We are seeing a dual effect. Applicants are bringing better credit histories to the table, and businesses with higher-quality credit profiles are recognising the value of approaching GroWise for funding,” says Strimling.
New industries
Sectors traditionally reliant on bank facilities are now actively seeking alternative funding, including healthcare, professional services, construction, manufacturing, logistics and energy supply. Despite Stats SA data showing that the electricity, gas and water sector contracted by 4.3% and construction by 4.4%, Strimling explains that businesses operating in these sectors are under pressure but have an even greater need for fast, flexible capital.
“Businesses in these sectors are thinking strategically about their funding mix. Industries exposed to commodity and import/export price volatility need a funder that is nimble enough to respond when market conditions shift, and that is exactly what GroWise does,” he says.
Macroeconomic tailwinds
South Africa recorded its fifth consecutive quarter of growth, with GDP expanding 0.4% in Q4 2024 (Stats SA) and full-year 2025 GDP up 1.1%. Continued interest rate cuts have eased debt serviceability and boosted consumer spending, improvements GroWise says are translating directly into better application quality and portfolio performance.
“We can see through GroWise Capital data that South Africa’s business owners are resilient. Improved macroeconomic conditions, combined with a maturing approach to alternative funding, are creating a new generation of well-capitalised, growth-focused SMEs,” says Strimling.
GroWise Capital provides business funding between R15 000 and R3 million, with no collateral required, in under 24 hours and with flexible repayment terms.