We provide business finance ranging from R500 000 to R50 million to established entrepreneurs with a viable formal business. Finance can be used for expansion, working capital, equipment, takeovers, property, franchises, property finance for owner occupied businesses, revamps, or management buy-outs.
Our first assessment is based on the cash flow viability and potential of the business, the product/service and its market acceptability, market size, the gearing of the business – debt to capital ratio of the business which influences its ability to exist and grow, the business’ track record, the stage of its development and medium to long-term profit potential, technical aspects, location of the business. This makes us different from most traditional financiers, particularly banks, who focus on security (the extent of the owner's equity and collateral).
Our next assessment is on the entrepreneur – we evaluate their technical and management skills and experience, their business acumen – their ability to run a successful business on sound business principles and their personal principles such as integrity, drive and vision.
Our Property Fund caters to established entrepreneurs with a viable business who want to refinance or purchase their own premises, but may have limited capital or security to contribute, or may not want to compromise the business’ cash resources for the deposit. We also finance Residential property developments, Properties for student accommodation and Commercial property developments. You should choose our commercial property finance because:
In most cases, conventional financiers require a cash deposit before considering financing a property deal. The deposit amount depends on the risk appetite of the financier and deposits of up to 50% may be required.
We allow the business owner a choice of different financing options and can structure the deal by advancing up to 110% of the financing required, subject to terms and conditions.
Annual financial statements of the underlying business.
Details of the proposed property.
PROPERTY JOINT VENTURE FUND
Our Property Joint Venture Fund provides finance to established entrepreneurs looking to add multi- tenanted properties to their investment portfolio. We do this because we understand that multi-tenanted properties provide both capital appreciation and a rental income.
We co-invest in multi-tenanted property projects mainly in two instances:
When a potential investor (established entrepreneur) is unable or unwilling to invest the full deposit (equity) required by a commercial lending institution.
Where a viable property investment has been over-geared and needs a restructuring of the existing debt, converting debt finance to equity finance.
We provide finance to established entrepreneurs with viable small and medium enterprises in the green industries that endeavour to enhance the environment, reduce carbon emissions, adopt renewable energy technologies. Green industries considered include Energy, Waste, and Water sectors.
We consider financing for businesses that limit or prevent harm to the natural environment compared to conventional alternatives. These are businesses that:
• Actively develop, manufacture, and/or provide goods and services that have positive environmental benefits.
• Seek to implement or are implementing measures and/or technology for sustainable energy, waste and water practices.
• Adopt and/or are receptive towards green innovations and broader eco-industry, including greener properties.
• Are less polluting and/or use all-natural resources in a more sustainable manner.
• Recycle more of their wastes and products.
• Handle residual wastes in a more acceptable manner.
• We consider financing applications from businesses whose gross assets are under R100 million, where annual turnover does not exceed R200 million and/or employees are less than 500 in number.
• Each application is considered on its merits.
• We apply the following Green metrics to determine if the business meets the Green Outcomes Fund criteria:
• Persons reached by reliable green energy grid/source that were with prior access to the traditional energy grid.
• Persons reached by reliable green energy grid/source that were without prior access to the traditional energy grid.
• Green energy generated (kWh p.a.).
• Energy efficiency – energy saved based on deemed savings values (kWh p.a.).
• Waste to landfill avoided.
• Avoided waste incinerated.
• Waste recycled / re-used.
• Chemical recovery (metric tons p.a.).
• Water use reduction.
• Wastewater treated.
• Water sourced from an alternative sustainable resource (cubic meters p.a.).
Many business failures can be attributed to financial, management and reporting factors that can ordinarily be addressed through mentorship and technical assistance support throughout a business’s life cycle. It is for this reason we provide technical assistance through expert consultants to help business owners navigate the many challenges they face in their business journey and close the skills gap that may exist within a business.
Through this Technical Assistance Programme, implemented with the support of the Swiss State Secretariat for Economic Affairs (SECO), we provide access to the skills and support a business owner needs, when they need it.
The Technical Assistance Programme is only available to existing and new Business Partners Ltd clients and the cost of the services offered is charged at a zero-interest rate. Technical assistance is coupled to the finance deal, repayable over the term of the said finance deal. The Technical assistance funding may not exceed 30% of the original finance received from Business Partners Ltd.
Note: If you are not a Business Partners Ltd client, please consider our Mentorship Support Service for support.
General business technical assistance and consulting
This covers advice and assistance with basic and practical functions, coaching, problem diagnosis, customised solutions and implementation assistance, e.g., allowing a seasoned mentor or skilled consultant to review your business performance to maximise on opportunities or resolve problems.
Specialist technical assistance and consulting
This includes specialised assistance with specific management functions such as budgeting, marketing, credit control, cash flow management, accounting, and taxation. It may include improving business performance through ISO certification or even HACCP compliance for those businesses exporting products abroad.
Sectoral technical assistance and consulting
This is industry specific assistance involving support with expertise in the sector, e.g., manufacturing, hospitality, transport, or construction.
This is for business owners experiencing difficulty in their businesses and assistance would be for turning the business around to profitability, usually through a mentor or independent consultant.
Training of any employees of a portfolio company
Assistance provided involves training staff in the business, either through group or one-on-one sessions with the view to enhancing capacity, e.g., training for optimum use of plant and equipment, maximising efficiency or even specific software programme training.
Your application for technical assistance will follow these steps:
Applying for technical assistance can be done in two ways. Either as part of your finance application, where you and the member of our investment team assisting with the process identify the need for technical assistance services and include the application along with your finance application OR if you already are a client, you can submit a separate application to the investment team member managing your portfolio.
EVALUATE AND SELECT A MENTOR/SERVICE PROVIDER
Once your technical assistance application is duly assessed and approved, we will present you with a choice of appropriate mentors, or service providers, from which you may make a final selection.
Once you have selected a mentor or service provider, we will prepare and submit a comprehensive Terms of Reference to them. The mentor or service provider will in turn meet with you to confirm the Terms of Reference and to finalise the timeframe, costs, and related matters.
If all parties reach an agreement, you will enter into a contractual agreement with Business Partners Limited.
POST ASSIGNMENT REVIEW
After the technical assistance has run its course and the business intervention is complete, the mentor or service provider is required to submit a payment form to Business Partners Ltd. For this form to be submitted your signature is required to acknowledge the assignment was completed to your satisfaction. We will then settle the payment with the mentor or service provider.
Once the process is complete and the mentor or service provider has been paid by Business Partners Ltd, you will then be required to start repaying the technical assistance loan under the terms and conditions mentioned in step 4.
The Technical Assistance Programme complements the new and existing client’s loan and as such the application request will be assessed as part of the finance deal. Enquiries can be made to the investment team reviewing your application and/or managing your portfolio.
MENTORSHIP SUPPORT SERVICE
Our support of entrepreneurs goes well beyond finance and our Mentorship Support Service is one way we provide business support. The Mentorship Support Service links senior business and professional people with business owners in a mentorship relationship aimed to share business expertise, technical skills, and wisdom and assist business owners to improve the efficiency, profitability, and growth of their businesses.
The business and professional people participating in the programme are carefully selected individuals who are successful in their business or careers and are committed to provide a service of a high standard and quality.
The services provided are available to all entrepreneurs including non-Busines Partners Limited clients at a fee commensurate with the complexity of the entrepreneur's business development needs.
The mentor fulfils the role of a business counsellor to the business owner and supports the business owner with the full spectrum of functions of managing a business, depending on the nature and size of the business and the expertise of the mentor. Apart from advising on and assisting with basic and practical functions of management, the mentor gets involved in problem diagnosis, investigations, formulating solutions, recommendations, appropriate actions, coaching, implementation, and follow-up.
Consultants are made available to provide specialised assistance with a specific management function such as budgets, administration, credit control, cash flow, information systems, marketing, human resources, production, and other business activities such as expansion, construction, installing a new plant or an accounting system where specialised expertise which is not available internally, is needed for a short period of time.
As far as possible, we match the consultant or mentor with the appropriate expertise and skills to the needs of the business.
Industry sectoral assistance
Consultants or mentors with specific knowledge of a certain type of business may be required for sectoral assistance, such as someone who has experience with restaurants, garages or in the manufacturing sector. In cases like these, we assign the right consultant or mentor with the proven experience and skills, to assist.
Consultants or mentors may be required to get involved in businesses in financial trouble, to assist in turning these businesses around to profitability.
This is usually a short to medium term intensive service which requires out-of-the-ordinary arrangements with all parties concerned.
The first step towards applying for business finance at Business Partners Limited is to confirm whether you have all the required documents to apply for finance and then complete the Pre-application Assessment Form online. Based on our assessment of the information provided, we will either request you to continue with your application process or recommend alternative sources of finance.
We aim to be as quick as possible in giving you a response to your application. You can expect to undergo the following steps in your application process:
You complete our Pre-application Assessment.
We conduct an initial assessment and provide you with an in-principle response.
If your application meets the minimum requirements, we invite you to complete our finance application.
We conduct due diligence - this process may involve you submitting additional documents e.g. business permits or municipal rates clearance certificate.
We structure the financing terms including pricing and negotiate with you. Once we reach an agreement, we obtain approval from internal approval committees.
We provide you with feedback regarding your approval. If your application has investment committee approval, we prepare legal documentation for signature.
We disburse funds to you according to agreed terms.