Business Partners: Manufacturing Fund

Company/organisation decsription:

Business Partners Limited is a specialist risk-finance company that provides customised financial solutions, sectoral knowledge, mentorship, business premises and other added-value services for formal small and medium enterprises in South Africa and selected African countries. The company is passionate about funding, supporting and mentoring entrepreneurs.

Funding instrument:

Blended debt and equity finance offerings for small and medium-sized enterprises.

Fund description:

The Business Partners Manufacturing Fund aims to deliver finance in a commercially sustainable manner, to Small and medium-sized enterprises (SMEs) in the manufacturing sector. The sector must continue to be supported for the country’s long-term growth and economic well-being.

Fund focus area(s):

The targeted segment is viable SMEs in the manufacturing sector, eg: Food and Beverages; Metals, metal products, machinery and equipment; Automotive parts and accessories; Textiles, Clothing and Leather products.

Size of investment/funding thresold:

Applications from viable businesses requiring up to R50 million. The Fund will consider first round funding up to a maximum of R10 million with a focus on deals between R500 000 to R3.5 million.

Funded business activities:

Funding is considered for viable businesses that require finance for expansion; Working capital; Equipment; Management buy-outs; Property finance to obtain own premises.  In addition, there is a Technical Assistance Programme which offers interest-free loans to Business Partners Limited’s clients in order to procure technical support services. Based on the commercial viability of the business, the investee companies may access technical assistance funding for an amount up to 30 percent of the investment finance provided. For this reason, the technical assistance funding is provided to the entrepreneur not as a grant, but as an interest-free loan that must be repaid during the term of the principal facility.

Non-funded business activities:

On-lending activities; Underground mining; Direct farming operations; Non-profit organisations.

Fund eligibility criteria:

Applications for financing below R500 000 are usually not considered; and Business Partners Ltd does not operate in the informal or micro enterprise sectors.

Fund application instructions:

The business must exhibit economic merit in terms of profitability and sustainability. The applicant must avail the following documents: Business plan; Annual financial statements; Up to date management accounts; Cash flow forecast; CV of entrepreneur/s.