A Bellville-based entrepreneur-founded finance company, Quest Capital Solutions, has secured R75m in funding from private credit asset manager Creation Capital to expand lending to SMEs in the transport sector.
Freddy Magoro | imag e supplied
Quest, established in 2012 and registered with the National Credit Regulator, provides rent-to-own finance for trucks and trailers, together with asset management, maintenance and insurance. Almost half of its client base (48%) comprises black-owned enterprises.
Closing the SME funding gap
The transaction highlights the role of private credit in bridging South Africa’s SME finance gap, estimated at R350bn, as traditional lenders remain hesitant to back small businesses.
“SMEs account for 91% of formalised businesses in South Africa, yet remain underfunded. This is where private credit players can step in,” said Freddy Magoro, CIO of Creation Capital.
Supporting growth in logistics
The deal comes as South Africa’s transport bottlenecks continue to weigh on the economy, with an estimated R1bn lost daily due to inefficiencies. Quest’s clients operate in last-mile and short-distance logistics, a segment critical to improving supply chain capacity.
Jobs and inclusion
Quest’s funding model enables small transport operators to access vehicles and services needed to grow their businesses. The investment is expected to unlock benefits such as job creation and wider financial inclusion.
Quest CEO Charl Lehmann said the partnership with Creation Capital would support expansion into new markets and strengthen its ability to serve more SMEs.
