The issue of accessing funding continues to plague small and medium enterprises in South Africa. This is a major concern, especially in an economy where our growth relies on the continued support for and growth of small businesses.Even more appalling is that the issue is not that there is a shortage of funds. This week alone, Barclays Africa announced plans to raise R1.3-billion for SME funding. The government and business committed to R1.5-billion a few months ago.Rather, the challenge is the numerous hoops and hurdles the small-business owner needs to jump through to get approval. This results in many businesses giving up before ever completing the process.Banks and other financial institutions normally require documentation, financial statements and the attachment of personal assets as collateral - all time-consuming and a personal risk to the business owner.story_article_left1Fortunately, some funders have realised the need for a quick and frictionless process for the provision of money. One such is Merchant Capital, which leverages technology to create a simple, seamless process for meeting the needs of small businesses for working capital. It has a simple online-based application process, and responses are provided within two to three days.Unlike traditional financial institutions, Merchant Capital does not require you to put up your house or personal assets as collateral. There are no fixed monthly repayments, either.Instead, businesses agree to repay the advance as a percentage of future sales. Thus, in good months, there is a high payment and in bad months little or no payment. Repayments are collected as automatic deductions from the point-of-sale machine during each sale transaction. This approach helps protect the business from going bankrupt in difficult times.The founder and CEO of Merchant Capital, Dov Girnun, came across this model in the US, where it has become a multibillion-dollar industry helping small businesses get working capital.Through initial mentorship from the industry leaders in the US, Merchant Capital has been able to recreate a similar model for supporting small businesses in South Africa.Girnun, who struggled as an entrepreneur while growing up in South Africa, finds it unacceptable that small businesses have such difficulties getting working capital. He finds the relationship between the owners of small businesses and financial institutions antagonistic."As a small-business owner, you often need working capital for unexpected events such as a recent flood in your restaurant or to take advantage of a limited-time discounted purchase price from a supplier."There should always be options to simply and quickly access funding during these times," says Girnun. To make a difference as an entrepreneur, you do not need to aim to be the next big thing after Uber or Airbnb  Since its founding three years ago, Merchant Capital has assisted thousands of small businesses, with 80% of them returning to re-use the service. The advances start from as little as R30,000. They are used to support anything from the refurbishment of a hair salon and marketing a new restaurant menu, to buying additional stock ahead of high sales periods.A good example of a small business the company has helped over the years is The Gallery Squared.It started out as two black sales assistants who decided to create their own bespoke men's clothing store in Melrose, in Gauteng.In the past three years, they have used the working-capital advances to expand into a bigger range and offering - which now includes women's clothing, dry-cleaning and personal-grooming services. The Merchant Capital product has helped increase sales 400% in three years.story_article_right2This innovative approach to how small businesses can get and repay funding may become one of the most important innovations in helping small businesses thrive.Merchant Capital has attracted investment from Rand Merchant Investment Holdings, an opportunity that will hopefully assist in providing the resources needed to reach thousands more small businesses.Girnun's own journey as an entrepreneur has increased his level of empathy for the owners of small businesses. His persistence and determination got him selected as an Endeavor Entrepreneur at the International Selection Panel in San Francisco and a finalist for FNB's Business Innovation Award last year.He has proved that, to make a difference as an entrepreneur, you do not need to aim to be the next big thing after Uber or Airbnb.zipho@ziphosikhakhane.comSikhakhane is an international speaker, writer and business adviser, with an honours degree in business science from the University of Cape Town and an MBA from Stanford University..