Potential investments are assessed on the viability of a business, which comprises two important elements: the business and the entrepreneur.
The business evaluation includes an assessment of 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, are considered.
We consider financing options from US$ 50 000* up to US$ 1 million* per application (*Paid out in local currency).
Although there is no minimum requirement regarding own contribution, the lack thereof places strain on the gearing of the business, i.e. its debt vs its equity, thus affecting the ability of the entrepreneur to repay the debt and the viability of the project.
As a viability-based investment company, we do not have the same security requirements that the commercial banks do. We work with the security provided. However the level of security will have an influence on how the transaction is structured and also effects the overall pricing of the finance.
We will, in consultation with the client, establish a suitable repayment period during the initial investment negotiations. On average, the repayment period is five years.
Our investments are structured using term loans, equity and shareholders' loan accounts or any combination of these. We tailor make each transaction to each client.
All entrepreneurs with a viable or potentially-viable formal business are considered for investment financing. Each application is considered on its own 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' products or services, are two of the most important criteria considered when assessing an application for investment financing.
At BUSINESS/PARTNERS, we focus on the viability of the business and as such, need as much information reflecting the business' feasibility. Submission of a business plan assists in this regard as it helps clarify the background and activities of the business, the funding requirement, the entrepreneurs involved and where the business is heading.
A business plan framework is available on our website for your reference, but information in other formats is acceptable. Sufficient information is required for us to make an informed decision.
Contact your local country office to speak to an investment consultant.
This depends on the comprehensiveness of the business plan, the complexity of the due diligence process and the level of co-operation from the entrepreneurs, for example to submit additional required information timeously.
The price of the funding is calculated based on the risk associated to the transaction. A better secured facility will have a more market related rate compared to transactions with a higher risk profile, due to the inherent financial (security) risk as well as the business risk (the business and the entrepreneur).
The circumstances of each application differ and we evaluate possible financing solutions together with the applicant and tailor make each transaction per client.
No. There are a range of financing products available where obtaining a shareholding is not obtained.
Where the risk is high and/or finance required is too high for the business to afford repayments, we may negotiate a shareholding in the business. It should be noted that we only ever take minority shareholding and the entrepreneur gets the opportunity to buy us out of the business in future.
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2019 © Business Partners Limited