By Johann Swanepoel, Nedbank Regional Manager: Relationship Channel, for Tshwane and North West.
South Africa’s franchise sector has shown tremendous resilience in what has been a tough time in South Africa. However, the sector continues to be a robust contributor to the economy, providing around 15% (R721 billion) to the country’s gross domestic product (GDP), according to the Franchise Association of South Africa.
As a bank that recognises the value and importance of the franchising sector for South Africa’s economic future, Nedbank is committed to supporting franchisees and franchisors. We partner with reputable franchisors that are founded on strong operating models, principals, values and integrity. Nedbank services franchises across various industries including retail, food and fuel, and provides an integrated solution that incorporates lending, transactional and value-added offerings. Our highly competitive pricing is structured to the needs, individual risk profile and track record of each specific franchise business.
While franchising has a significantly lower failure rate than independent businesses – reportedly up to five times less – four out of five franchises fail due to financial mismanagement. With Nedbank however, you get a partner that is strategically aligned to your growth narrative – one that understands that you need more than just products and that can help your business reach the next level. Through our bigger-thinking approach, the members of our highly experienced, specialised franchise teams in Tshwane and North West immerse themselves in your franchise and sector so that they can become an extension of your team, with a full understanding of your financial needs and business aspirations.
We leverage our own extensive business experience to offer expert guidance, financial and business inputs, and innovative payment and e-commerce solutions to help franchise businesses reposition themselves for a digitally enabled operating model in future. Research shows that contactless transactions have increased by up to 50% since the start of the Covid-19 pandemic - and facilitating these through next-generation payment methods is a significant value-add we offer our franchise merchants. For example, our innovative tap-on-phone feature turns compatible smart phones into a point-of-sale card-acceptance device at no extra cost, and our market-leading e-commerce solutions mean you can accept credit card payments directly from your own website, while managing cash flow and stock levels in real time.
Our first-in-market data information tool, Market Edge, provides insight into your customers’ behaviour that your competitors do not have. Providing intelligence built on actual cardholder customer data, Market Edge reduces reliance on costly data research companies and is specifically designed to help your franchise business gain and maintain a competitive edge.
Ultimately, our ability to see and respond to the bigger picture and unlock growth opportunities through conventional and unconventional financing approaches, combined with our advanced digital capabilities, make us a valuable partner to any franchise business that is serious about repositioning itself to survive and thrive – whatever the future brings.
Talk to one of our franchising specialists in Tshwane to find out more about how we can help you grow your franchise business. You are also welcome to email me at [email protected]; our Card and Payments Acceptance Regional Managers, Wimpie Oosthuizen or Brandon van Eeden at [email protected] or [email protected]; our National Franchise Manager, Karen Keylock on [email protected]; or simply visit www.nedbank.co.za.