Credit

Emerging businesses in Africa fuel the economy and provide most of the local job opportunities. In South Africa, the Government has identified entrepreneurship and business development as important building blocks for a growing, sustainable economy. South Africa’s National Development Plan (NDP) states that about 90% of jobs in South Africa will be created through SMEs and SMMEs by 2030.

As result, emerging businesses have tremendous opportunity for growth, if they can overcome the challenges SMEs and SMMEs face, especially in Africa. The major challenges include, limited access to financing and markets, limited trade skills and an overabundance of red tape.

Barriers to finance is perhaps the biggest challenge that businesses face, especially SMEs. Economic research shows that both start-up and existing businesses struggle to access capital to start or expand their activities. Therefore, one of Ecsponent’s core business activities is providing secured credit to fund the business operations of qualifying entities. Our offerings include:

Supply Chain Solutions

The Ecsponent Supply Chain Solution offers considerable benefits to enhance large businesses’ preferred procurement spending recognition on its B-BBEE scorecard by developing emerging SMEs.

Merchant Business Cash Advance

Up to R1 000 000 with maximum repayment term of three years

Suitable for retail traders or merchants in the formal sector requiring capital of up to R1 million to purchase stock or assets, or to expand their businesses.

SME Collateralised Loans

R250 000 – R5 000 000 with a maximum loan term of seven years

Use your existing collateral to secure a loan suitable for a start-up or an existing businesses (e.g. franchises, acquiring an existing business, expansions, revamps, asset purchases, working capital, etc).

SME Uncollateralised Loans

R15 000 – R250 000 with a maximum loan term of three years

Available to businesses with an operating history of at least six months, based on the credit-worthiness of the owners and business, and the business’ viability and financial status. Suitable to fund working capital or expansion.

Purchase Order/Vendor Assistance

R10 000 – R25 million for purchase order/vendor contracts normally not exceeding three months.

Available to businesses with valid purchase orders or vendor contracts from a reputable large corporate business (LCB).

Property Bridging Loans

R250 000 – R1 100 000 with a maximum loan term of six months

Suitable for Ecsponent-accredited property investment companies requiring bridging finance to purchase and resell residential properties.

Watch this video to learn more about the Supply Chain Solution

The Ecsponent Supply Chain Solution offers considerable benefits to enhance the large businesses’ preferred procurement spending recognition on its B-BBEE scorecard. The solution potentially covers 55% of the scorecard measurement categories, including skills development, preferential procurement, supplier and enterprise development. It also adds value in the following ways:

  • Effective training of the vendor in respect of the transaction and related regulatory conditions, and especially the:
    • financial implications and cash flow management
    • functional guidelines to ensure effective procurement and sourcing
    • financial management of the cash flows in the vendor’s business (including VAT and other taxation provisions)
    • financial implications and cash flow management
  • Protection for all parties in respect of the potential fraud often associated with such transactions.
  • Large organisations can in turn:
    • deploy funding into the training
    • deploy funding into the transactions
    • receive greater BEE scores in respect of preferential procurement and supply chain development — enjoy the financial benefits of Ecsponent Procurement Services’ collective buying power and specialist procurement expertise. Find out more about our specialist procurement services.

Merchant Business Cash Advance
Cash advance of up to R1 000 000 with maximum repayment term of three years

Our merchant business cash advance is perfect for retail traders or merchants in the formal sector needing a cash advance of up to R1 million to purchase stock, assets or who might need working capital to expand their businesses.

Qualifying criteria

  • Businesses trading for six months or longer
  • The business must be profitable
  • Annual projected turnover must preferably exceed R1 million
  • 50% or more of turnover must be from debit or credit card transactions
  • Start-up businesses do not qualify. Similarly, Bridging Finance & Purchase Order Funding transactions do not qualify

Supporting documentation required

  • Most recent financial statements/management accounts
  • Merchant POS (point of sale) statements for the last six months
  • Personal and business bank statements for the last six months
  • Rental statement from the landlord for the last six months
  • A proforma invoice of goods you want to finance (if applicable)
  • Certified company registration documents.
  • Certified FICA documentation, which includes ID, proof of address, SARS income tax and VAT number (if applicable).

SME Collateralised Loans
R250 000 – R5 000 000 with a maximum loan term of seven years

Use your existing collateral to secure a loan for more than R250 000 and less than R5 million. This loan option is suitable for either a start-up business or an existing business (e.g. franchises, buying an existing business, expansions, revamps, asset purchases, working capital etc.).

Qualifying criteria

  • Start-up businesses and existing businesses may apply
  • A minimum of 10% own contribution/equity in the business
  • A minimum collateral equal to 50% of the loan amount

Supporting documentation required

  • Most recent financial statements/management accounts (if applicable)
  • Financial projections for the next 12 months
  • Personal and business bank statements for the last three months
  • A proforma invoice of goods you want to finance (if applicable)
  • Certified company registration documents.
  • Certified FICA documentation, which includes ID, proof of address, SARS income tax and VAT number (if applicable).

SME Uncollateralised Loans
R15 000 – R250 000 with a maximum loan term of three years

Available to businesses with an operating history of at least six months, based on the credit-worthiness of the owners and business, as well as on the viability and financial status of the existing business. This loan is suitable to provide working capital or funding for expansion. for the expansion of your existing business.

Qualifying criteria

  • Businesses trading for six months or longer
  • A minimum of 10% own contribution/equity in the business
  • Start-up businesses do not qualify. Similarly, Bridging Finance & Purchase Order Funding transactions do not qualify

Supporting documentation required

  • Most recent financial statements/management accounts
  • Personal and business bank statements for the last six months
  • Rental statement from the landlord for the last six months
  • A proforma invoice of goods you want to finance (if applicable)
  • Certified company registration documents.
  • Certified FICA documentation, which includes ID, proof of address, SARS income tax and VAT number (if applicable).

Purchase Order/Vendor Assistance
Assistance of between R10 000 – R25 million for purchase order/vendor contracts normally not exceeding three months

Available to businesses with valid purchase orders or vendor contracts from a reputable large corporate business (LCB). and you need vendor assistance, then we might be able to assist you through our Purchase Order / Vendor Assistance product, which is offered by Ecsponent Development Fund (Pty) Ltd. We will assist both start-up and existing business entities with contractual obligations that qualify for assistance.

Qualifying criteria

  • Start-up businesses and existing businesses may apply
  • A valid PO (purchase order) for goods from a reputable LCB
  • POs subject to performance risk do not qualify, e.g. POs to supply bricks are acceptable. Funding to build a brick structure falls outside the scope of this offer
  • A valid quotation from a reputable supplier to fulfil the PO requirements
  • The PO/vendor contract deal term should preferably not exceed three months

Supporting documentation required

  • Rental statement from the landlord (if applicable)
  • Certified company registration documents.
  • Certified FICA documentation, which includes ID, proof of address, SARS income tax and VAT number (if applicable).

Property Bridging Loans
R250 000 – R1 100 000 with a maximum loan term of six months
This loan is suitable for Ecsponent-accredited property investment companies requiring bridging finance to purchase and resell residential properties.

Qualifying criteria

  • Ecsponent-accredited property investment companies with a good track record that have:
    • adequate operational infrastructure to handle volumes
    • access to credible conveyancing attorneys
    • access to a good network of estate agents and agencies

Supporting documentation required

  • Most recent financial statements/management accounts
  • Personal and business bank statements for the last three months
  • Certified company registration documents.
  • Certified FICA documentation, which includes ID, proof of address, SARS income tax and VAT number (if applicable).

Contact us

Thank you for submitting your contact request.