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Frequently asked questions

Business Partners tailors investment and added-value solutions to meet the specific needs of independent entrepreneurs, from single-owner businesses to multi-owner management buy-outs and buy-ins.

Since inception, the group has invested over $1 billion in businesses owned and run by entrepreneurs and, as such, is one of the most significant drivers of entrepreneurial growth and development in Africa.

Business Partners invests in all sectors, with the exception of on-lending activities, farming operations and the financing of non-profit organisations.
The sectors include manufacturing, property projects, retailing, the motor trade, travel and tourism, leisure and marine fishing.

Business Partners invests in start-ups, expansions, outright purchases, management buy-outs, management buy-ins, leveraged buy-outs, franchises, tenders and contracts.

Yes. Every proposal is assessed individually and so an entrepreneur or entrepreneurs may qualify for investment financing for more than one business.

No. Although providing investment financing of various types is Business Partners’ core focus, the group also provides a range of technical assistance services including mentorship and consulting.


Potential investments are assessed on the viability of a business. Viability of a business comprises of two important elements: the business and the entrepreneur.

The business evaluation includes matters such as the product or service (market acceptability, market size, gearing of the business, ability to exist and grow, history, the stage of its development and medium- to long-term profit potential, technical aspects and the location).

In evaluating the entrepreneur aspects such the ability to run a successful business, integrity, drive, vision and appropriate experience, will be considered.

Business Partners invests up to $500,000 in viable small and medium enterprises. Applications for Investment financing of below $50 000 are usually not considered while the average investment is about $250 000. The average value of property transactions is higher.

No, as a viability-based investment company, Business Partners doesn’t always require an own contribution, although an own contribution not only shows commitment on the part of the entrepreneur, but provides the basis for a more positive gearing structure for the deal. The entrepreneur’s contribution may, however, be structured as a shareholder’s loan.

As a viability-based investment company, Business Partners doesn’t have the same security requirements that the commercial banks do. Security, like an own contribution, is not always required, although the provision of some form of security will have an influence on the kind of transaction that Business Partners is able to offer.

Terms and conditions of investment vary from business to business, as each investment is individually structured.

Business Partners, in consultation with the client, will establish a suitable repayment period during the initial investment negotiations. On average, the repayment period is never longer than 5 years.

Individual solutions are structured after having assessed the level of risk and of potential return of the venture. Business Partners’ investments are structured using equity, shareholders’ loan accounts, royalties and term loans or any combination of these.

All entrepreneurs with a viable or potentially-viable formal business will be considered for investment financing. Each application is considered on its merits and on the potential profitability of the enterprise. The skills, experience and industry knowledge of the entrepreneur (or entrepreneurs), as well as the market need for the business’s products or services, are two of the most important criteria considered when assessing an application for investment financing.

Firstly, Business Partners is the leading specialised investment group for small and medium enterprises in Africa. Entrepreneurs are the company’s exclusive and only focus and, as such, it is able to offer products and services specifically tailored to meet their unique needs.

Secondly, Business Partners has been investing in entrepreneurs for more than 30 years and offers both investment and added-value solutions, catering for the entrepreneur every step of the way.

Most importantly, Business Partners is a viability-based investment company and does not have the same security requirements that the commercial banks do.

Other factors that make Business Partners different include:

• As Business Partners specialises in investing in entrepreneurs, its people have in-depth knowledge of the small and medium enterprise sector, as well as experience of and insight into the challenges facing independent businesses
• Business Partners’ range of investment and added-value services provide an integrated solution for entrepreneurs, catering for all aspects of their needs. Added-value services include consulting and mentorship. Business Partners is a one-stop business shop for small and medium enterprises
• Every Business Partners client is assigned an Investment Officer, who is dedicated to providing professional advice and superior client service on an on-going basis
• The company’s risk financing model is regarded as one of the most innovative in the world and has even been presented at World Bank conferences as a potential model for use in developing countries
• Similarly, the Business Partners due diligence process is thorough, tried and tested, often exposing the extent of inherent risk in a deal
• Business Partners’ systems and processes have earned the group ISO 9001:2000 accreditation. Business Partners believes that people are its real business and is committed to investing in entrepreneurs in every sense of the word. By doing this, the company believes that it will not only create individual wealth, but also fuel the growth of the economy and the creation of jobs

The price of the funding is the result of the risk associated to the transaction. A better secured facility will have a more market related rates compared to expected higher returns for risk capital.

The risk factors of each deal is determined and priced individually.

Business Partners structures unique, individualised solutions for small and medium enterprises using a range of investment models and added-value options. Investments are structured using equity, shareholders’ loan accounts, royalties and term loans or any combination of these. Business Partners has developed a range of proprietal investment models that offer entrepreneurs maximum flexibility to suit their specific needs.

No, not always. There is a range of financing products available where obtaining a shareholding is not done.

Where the risk is high, Business Partners may want to be compensated for the risk by negotiating a shareholding in the business.

No, the company prefers not taking a controlling shareholding in any of its client companies. The role of Business Partners is to provide investment financing, added-value services, advice and support to entrepreneurs to enable them to build sustainable and successful businesses.

A joint property venture may result in a different structure, depending on the circumstances.

Normally, the shares held by Business Partners can be purchased by the client company after the term loan portion of the investment has been settled. The client company always has first right of refusal.

No. As an investment company, Business Partners always takes a non-executive role as a shareholder. In other words, even as a shareholder, Business Partners is not involved in the day-to-day running of the businesses in which it invests.

When a shareholding or equity component forms part of an investment, its purpose is to compensate Business Partners for the risk inherent in the deal, not to give it decision-making powers over the running of the business. Instead, Business Partners’ role is to provide investment financing, added-value services, advice and guidance in order to increase the net value of the shares for all shareholders over the investment period.

Yes, Business Partners has developed a special investment model called Contract Partner to assist entrepreneurs who require investment financing to fulfill a tender or contract.

What if a business needs to purchase commercial or industrial property to provide long-term premises or to grow its manufacturing capacity?

Business Partners offers a number of options for entrepreneurs who need to purchase commercial or industrial property for own use, as well as the expertise to find the right property for the business’s needs. Investments of this nature are structured using equity, shareholders’ loan accounts and term loans or any combination of these. As with investment financing, Business Partners has developed a range of proprietal investment models that offer entrepreneurs maximum flexibility to suit their specific needs.

Business Partners’ proprietal property investment models are Property Equity Partner and Property Risk Partner.

Indeed. This means that the entrepreneur can utilise available cash flow in operating the business and not tie up much needed cash resources in a deposit for business premises. Even when a deposit is not available (or all tied up in the business), purchasing business premises is possible.

Acquiring premises for own use offers many real benefits, including security of tenure, security of capital invested in property improvements, long-term capital appreciation, long-term market share and customer loyalty by trading from a permanent location and ultimate ownership of a valuable fixed asset.


Yes, for those entrepreneurs seeking a property component for their portfolios, Business Partners offers the same investment financing facilities as for those seeking property for own use.

Acquiring premises for investment purposes offers such benefits as long-term capital appreciation, reliable, market-related rental income and the possibility of a post-retirement income from the property.


Business Partners provides these services through a parallel Technical Assistance Facility.

Business Partners knows that there are as many technical assistance, mentorship and consulting needs as there are entrepreneurs and so has developed a range of options to suit every entrepreneur.

The Technical Assistance Amount proceeds may be used for the following allowable Mentor Services, with the cost of the Mentor Services to include travelling and disbursement expenses general business assistance, mentorship and consulting:

• Engineering or other technical services intended to create or enhance production or distribution of products or services of a Portfolio Company;
• Other technical consultancies related to the operations of a Portfolio Company;
• Writing or assisting in the preparation of a marketing plan of a Portfolio Company;
• Legal assistance relating to business formation or reorganization of a Portfolio Company (excluding litigation); Legal assistance relating to licensing agreements, establishment of trademarks and patents, or other protections of proprietary technology of an Portfolio Company (excluding litigation);
• Recruitment costs of key personnel of a Portfolio Company;
• Creation of Internet capability and other information and communication technology capacities of a Portfolio Company;
• Creation of customized accounting or management information systems for a Portfolio Company;
• Preparation for, and travel of Portfolio Company personnel to, trade exhibitions and trade fairs; and
• Non-operational costs directly associated with qualification by an Portfolio Company for a specific certification or license, including ISO certification, which may be necessary or advisable for a Portfolio Company in order to engage in an existing, expanded, or new business activity;
• Payment for one-time acquisition and installation of software, which shall thereafter be the Portfolio Company’s sole accounting, management information, and reporting system;
• Turnaround of a company in distress;
• Problem solving on behalf of the Portfolio Company;
• Training of any employees of a Portfolio Company, as further defined below in this Section;
• Literacy or other similar training for a Portfolio Company's workers;
• Any other service deemed to be of the nature of technical assistance by the Investment Committee of the Fund.

The mentors and consultants contracted by the unit are carefully-selected individuals with proven track records in their areas of expertise. They undergo rigorous screening before being accredited and support the stated mission of the group’s mentorship and consulting programme. This is to harness the expertise, skills and wisdom of senior business and professional people and to make their services available to South Africa’s burgeoning small and medium enterprise sector. Mentors are typically retired executives who are able to provide services to entrepreneurs at preferential rates negotiated by Business Partners Technical Assistance on their behalf. Consultants, on the other hand, are independent advisors in private practice and provide services at market-related rates.


A business plan for the enterprise must be in place before an entrepreneur can apply for investment financing from Business Partners. Each enquiry and application is assessed on its merits and the Investment Officer will guide entrepreneurs – meeting the broad investment criteria – through the application process.

No. However, the Company provides a free business planning guide on its website www.businesspartners.ke, as well as free information booklets at its offices.

A business plan is the road map for an enterprise, detailing how an entrepreneur intends to establish, run and grow the business. It sets out such important facts as manufacturing and retailing plans, sales and profit projections, marketing plans and financial management methods. This enables Business Partners to assess the viability of the business. Research done by the Harvard Business School shows that entrepreneurs who write down their goals and plans are ten times more likely to achieve them than those who don’t.

Entrepreneurs are advised within seven days whether their applications for investment have been accepted in principle, or rejected. If the application has been accepted in principle, a due diligence process is undertaken before the investment is finally approved. The time taken for due diligence depends, of course, on the size and complexity of the venture, but on average takes a month.

The investment is paid out as soon as possible after the completion of due diligence, providing that legal requirements such as bond registrations, loan agreements and insurance policies are in place.

Yes, interest charged on investment amounts is linked to the prime lending rate. Clients with lower risk profiles will, however, be offered interest rates closer to the prime rate than those clients with a high risk profile.

The investment agreement is usually a medium- to long-term contract and early termination does not make the investment viable for Business Partners. As a result, royalty fees remain payable as contracted, even if the term loan portion of the agreement is settled early.