A new CCTV Africa video report revealed that SMEs in South Africa now have another avenue to pursue when planning a budget or expansion. The International Finance Corporation (IFC) and Mercantile Bank have secured a partnership — or business — which provides “non-core” equipment rentals so that SMEs can disburse more efficiently or hold onto streams of revenue.

“Mercantile’s provided all the funding in order to grow the book, but we didn’t really want to use up all of our liquidity — because we’ve also got big growth plans on the Mercantile side for our business and our commercial bank,” Karl Kumbier, Deputy CEO of Mercantile bank told CCTV Africa. “So, we had to come up with a self-sustaining funding mechanism.”

From the IFC-Mercantile deal, accessibility of $24 million will be granted to the bank for the equipment rental business. Not only is the equipment rental venture an opportunity for the bank to experience growth, but increased returns for SMEs are also expected.

While one small business owner doesn’t believe there’s enough flexibility, the IFC says that such a securitization tool is key in lending to private sector enterprises. If the business is successful, the equipment rental practice may expand across the continent, the report said.