French version
Financing Your Brickyard : Where to go?
At Hydraform, we know your business is your passion. One of the most daunting challenges facing potential business owners is a lack of funding with which to launch their dream. Whether your business requires funding at the launch stage or expansion phase, the biggest challenge is finding money. There is no single perfect-fit approach for all situations. According to the required amount, purpose, type of business, ownership, the sources may vary dramatically.
There are, however, various institutions within South Africa supporting the development and upliftment of communities by funding small businesses. We’d like to provide you with a few possibilities you may want to investigate.
First National Bank (FNB)
Once our sales team has helped you select the machinery you need to build a better brickyard, we will provide you with access to the online loan application form. As with all loan applications, there are a few requirements you will need to meet. The following is a list of requirements:
- Depending on the application type, you will need to provide seven months’ business statements (note that the type of account you will need to have is a business bank account).
- You company documentation will need to include CIPC documents, proof of residence, and the member IDs.
- You will also need to provide financial statements (IS, BS, Cash Flows) covering the most recent 12 months (this will need to include the loan amount).
- Along with the applicant’s personal information, you will also need to provide the director’s ID and proof of residence.
- You must demonstrate a minimum turnover of R20 000.00 per month.
- Your business must have been operational for 12 months, or more.
- You will need to demonstrate a fair credit record and score from the credit bureau, with no defaults or judgments.
- Loan amount – Balance Sheet dependant
The loan amount is balance sheet dependent, and the interest is completely personalised. The loan term is max five years. Turnaround time is three to five days, if all documents are in order, and the finance amount is – of course – risk dependent.
Standard Bank (STD Bank)
When you have made your selection from our wide range of machinery and accessories available, you will be provided with application forms which you can fill in at our offices. One of our team will even help you complete the forms! Here’s a list of the requirements you will have to meet:
- You will need to provide six months’ worth of personal or business bank statements if you are not a STD Bank customer. STD Bank clients don’t need to submit statements.
- You will need to supply your company’s CIPC documents, proof of residence, as well as the member IDs.
- You will need to supply business financial statements covering the most recent 12 months, including the loan amount. You will also need to supply Cash Flows and the personal balance sheet/s of your company’s member/s.
- The type of bank account may be either business or personal.
- As the applicant, you will need to supply your own personal information, as well as copies of the Director’s ID and proof of residence.
- You must be able to demonstrate a turnover of R300 00.00 per annum.
- Your business must already have been operating for 12 months or more.
- You must be able to demonstrate a fair credit record and score, with no defaults or judgments from the credit bureau.
- Loan amount – Balance Sheet dependant
The loan amount is balance sheet dependent, and the interest is personalised. The loan terms is a maximum of five years. The turnaround time for approval is three to five days, if all documents provided are deemed to be in order. The finance amount is risk dependent.
SEFA
SEFA does not decline applicants based on their credit profile, provided that there are valid arrangements in place between the applicant and his/her creditors. The supporting documentation is vital and must be in order to be granted the loan. The applicant will need to go to his/her regional SEFA offices, but application forms are available on their website – www.sefa.org.za. The following requirements must be met:
- You must provide 6 months’ worth of personal or business bank statements.
- You must provide you company CIPC documents, proof of residence, and member IDs.
- Your financial statements must cover no less than three years. Start ups must be projected.
- The type of bank account must be business and personal.
- Along with your own personal information, you must provide copies of the Director’s ID and proof of residence.
- The major shareholder of the company must be a South African citizen.
- The demonstrable turnover is as per the financial statements.
- You will need to supply a viable business plan, as well as a valid tax clearance certificate.
- Loan amount – R50 000 to R5 million
The Department of Small Business Development (DSBD)
The DSBD provides two different scheme for financing, and we will provide you with the details of both to better empower you to choose the right fit for your loan.
The Co-Operative Incentive Scheme (CIS)
Black Business Supplier Development Programme (BBSDP)
The Co-Operative Incentive Scheme (CIS)
The CIS aims to improve the viability and competitiveness of co-operative enterprises by lowering the cost of doing business through an incentive that supports Broad Based Black Economic Empowerment. Co-operative clients will need to go to the regional DSBS office, or to the main office at the DTI in Pretoria. Applications forms are available online at www.dsbd.gov.za.In order to qualify for a loan from this institution, you will need to meet the following requirements:
- One month’s current bank statement must be supplied if your business is a start-up. If your business is expanding, you will need to provide three months’ bank statements. The type of account must be a business account.
- You will be required to provide the CIPC documents, proof of residence, and certified member IDs for your company.
- Your financial statements will need to detail your three-year projections, and you will be required to provide a signed constitution of co-operation.
- You must provide copies of the company members’ CVs and certified copies of their IDs.
- The shareholding of your company must be majority black-owned and must fall within the Historically Disadvantaged Individuals (HDI) category.
- The turnover of your company must be demonstrated in your financial statements (whether projected or actual).
- You must provide a business plan, as per the guidelines on the DBSB website.
- You will also be required to provide a valid tax clearance certificate.
Loan amount – Maximum R350 000.00 The loan amount covers a maximum amount of R350 000.00, and the turnaround time for the loan is two to six months. There are no limitations to the loan.
Black Business Supplier Development Programme (BBSDP)
The BBSDP is a cost-sharing grant offered to black-owned small enterprises in order to assist them with the improvement of their business when it comes to competitiveness and sustainability in order to enable such businesses to become integrated in the economy.
Small business clients have to go to their regional DSBD offices, or to the DSBD main office at the DTI in Pretoria. Application forms are also available on the DSBD website (www.dsbd.gov.za). In order to qualify for this loan, clients will have to meet the following requirements:
- While you will not be required to provide bank statements, Hydraform advises providing a bank statement covering the most recent three months if the enterprise is already trading.
- You will be required to provide the CIPC documents, proof of residence, and certified companies of the members of your enterprise.
- Signed financial statements for the latest year of the enterprise, or management accounts from an accountant will be needed.
- The type of bank account must be a business account.
- The applicant will need to provide copies of IDs for managers, directors, shareholders, and employees of the enterprise.
- The enterprise must be predominantly black-owned at 51%, with black management at 50%.
- You will need a valid tax clearance certificate.
- Loan Amount – Maximum R1 million
The loan amount is determined by the financial statement of the enterprise (projected or actual). The loan amount is a maximum of R1 million, with a maximum of R800 000.00 for tools, equipment, and machinery at a cost sharing of 50:50. Enterprise Support Services loans are a maximum of R200 000.00, with a cost sharing of 80:20. The turnaround time for the loan approval ranges from two to six months. It is important to note that requested amounts for each intervention is not permitted to be greater than 30% of the enterprise’s previous year’s turnover.
Vodalend
Hydraform is now a registered affiliate on Vodalend, and we can even apply on your behalf if you should require this service. With Vodalend, you apply and receive the decision within minutes, and your cash within 24 hours. The terms and rates are unique to each individual customer. The only restrictions are that your business must be registered, and has to have been operating for 12 consecutive months. Your business must be located within South Africa and have a good credit standing, with a turnover of R500 000.00 per annum, and a minimum of R40 000.00 per month. The minimum requirements for funding are much less intensive than those of banks, and the process is relatively simple. It is important to note that Vodalend will not be able to assist you if you have any adverse listings on your name, or adverse listing against your company’s name. Here’s how the Vodalend process works:
- You provide the basic details about yourself and your business.
- Your cash will be available within 24 hours, and you repay the loan in standard instalments.
- You will be required to provide your business’s company registration number and VAT number if you’re operating as a Sole Proprietorship, as well as your company’s financial history.
- You will be required to provide a minimum of the last three months’ bank statements.
- Repayment of the loan amount has a six to 12 month repayment plan, and every month you pay back a portion of the total funding amount plus the monthly cost.
- You apply at the Hydraform offices, or you can call 087 057 2766, or email [email protected].
With so many different financing options available, you may finally be able to realise your dreams for your brickyard company. It just makes sense to investigate all the options, and Hydraform is ready and waiting to help you make your business a success!
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