Structured Finance

Structured finance is used to finance businesses that require funding that fall outside the parameters of term and bridge loan facilities. The support is provided by way of a debt facility but mainly tailored around the requirements of the project (tailored finance).

Duration of the Loan:

The loan can be taken over a period of maximum 5 years.

EXCLUSIONS

The following industries are excluded:

  • Tobacco, liquor, gambling, sex trade
  • Armaments
  • Speculative real estate
  • Leveraged buy-out funds:
    • Hedging
    • Borrowings
    • Ventures inconsistent with the mandate of sefa
    • Loans to partners, the fund managers, their employees and affiliates, except for members of FSCs
  • Any business involved in illegal trade
  • Any business whose trade or operations may prejudice the reputation and good standing of sefa
  • Any political organisation
  • People under debt review
  • Any business having directors ( or equivalent ) who are un-rehabilitated insolvents individuals
  • Technically insolvent businesses and individuals

ELIGIBILITY CRITERIA

Clients applying for financial assistance from sefa must fulfill the following requirements:

  • South African citizens with valid South African Identity Documents or legal entities controlled by South African Citizens with valid South African Identity Documents or permanent residents who hold a valid RSA ID document;
  • Be legally constituted including sole traders with a fixed physical address;
  • Must have the necessary contractual capacity;
  • The controlling interest of the enterprise for an applicant which is a juristic person (51% of the issued ordinary share capital) must be held by South African citizens with valid South African Identity Documents or a South African Registered legal entity itself controlled by South African citizens with valid South African Identity Documents;
  • All business operations, including but not limited to projects, programs or enterprises, must be operated within South Africa;
  • The enterprise must be compliant with generally accepted corporate governance practices appropriate to the client’s legal status;
  • Have completed official loan application forms;
  • Have a written proposal or business plan that meets the requirements of sefa’s loan application criteria;
  • Have provided all initial and supporting documentation for application in a professional manner;
  • Demonstrate the character and ability to repay the loan;
  • May incur debt in terms of relevant legislation;
  • Have provided personal and / or credit references;
  • Be owner manager;
  • A trust that has within the trust deed the power to borrow money and pledge assets as security and to give surety for borrowing.

HOW TO APPLY

  • Applicants approach sefa’s nearest regional office for the initial basic assessment
  • Regional office issue and assess application forms from qualifying applicants
  • Due diligence is performed by sefa and application submitted to Committee for a decision
  • The Committee decision is then communicated to the applicant and in case of approved facilities, the client enters into a contractual obligation with sefa
  • Funds are then transferred to successful clients and post investment monitoring and/or mentorship support is provided (where applicable)