Ecsponent helps SMMEs with the right funding to grow your business
For any entrepreneur, it is both liberating and empowering starting a small business, however there are undoubtedly numerous challenges that business owners face along the way. One of these is accessing the capital required to continue growing the business sustainably.
To grow, SMMEs want incrementally larger orders to be more profitable. However, this growth requires funding, and SMMEs most frequently approach a bank for this, where the company is required to prove it has security for a loan, up-to date financials with enough equity and the ability to deliver on its orders timeously and profitably, before being granted funding. The track record and history of the banking relationship with the bank is also important especially when looking at large amounts.
The next best option for the business owner is often to seek out potential investors. However, getting in an equity partner is the most expensive form of funding especially if you need capital for short periods of time to execute on orders. Bringing an equity partner too early into your business means you dilute your shareholder value and effectively your wealth over the medium to long term.
As a specialist SMME funding provider, Ecsponent is able to bridge the gap between the SMME’s first order to the point at which they have generated enough profits to be self funding or to be able to access bank funding. Should the business have more orders than it is able to sustain with its current capital base, Ecsponent considers the merits of the transaction, the counterparties and other risks to find ways to fund viable and profitable orders.
This type of funding quickly creates credibility and history for the SMME which gives them a track record and capital base to enable traditional funders to look at their applications more favourably.
For the SMME, the biggest advantage is that Ecsponent doesn’t take equity in the company. It funds specific transactions irrespective of its capital base and financial history, and thereby provides the SMME with an invaluable opportunity to strategically bring in an investor or partner at the right time and thereby maximising their shareholder value and growing their wealth
Through its short-term focus, Ecsponent, continues to assist growing SMMEs with the right type of funding to suit their individual requirements.