Bridging Finance
what is Bridging Finance?
Our Bridging Finance is a solution that assists businesses with solving cash flow issues due to growth related challenges in their business. It is for either a once-off need or for regular use in your business – for 1 or 2 or 3 month terms. If your business is contract or project based – then this solution is a good match for you.
why use Bridging Finance …
how Bridging Finance works …
If you’re at a point where you need temporary cash flow assistance due to growth in your business – then Spartan’s Bridging Finance helps you cross this gap.
Typical Credit Criteria
Only for cash flow need triggered by growth & not distress context
Credit assessment of the business, ‘the jockeys’ and source of repayment & available collateral
Typical Transaction Terms
Loan size minimum R1M and maximum R25M
when to use Bridging Finance …
So you have secured a valuable deal [project or contract] and now need to get to work delivering it – but there are several new challenges mostly in the form of cashflow management… you need to pay your suppliers and staff for the next 2 months but only receive your payment from the new client after 90 days.
Typical reasons to use it:
capacitate with resources, stock, suppliers, etc. to deliver on the contract or project
once delivered you may need bridging finance due to the 30, 60 or even 90 day delayed payment from customers
VAT for large transactions when you invoice now and wait for payment – in the interim you still have to pay the VAT to SARS
between the sale of an asset (e.g. business, property, plant & equipment, etc.) and the collection of payment
who we finance ...
Spartan is strictly focused on Small & Growing Businesses ... this is who we finance. We're 100% committed to only helping SMEs grow. It's in our DNA. It's in our processes. It's in the way we engage.
We do not serve start-ups, micro or lifestyle businesses.
We believe we can make a greater impact by financing Small & Growing Businesses. They are defined as commercially viable businesses that have significant potential for growth.
you will be considered for finance if:
you are a small to mid-sized business in operation for 3 or more years
with a minimum annual turnover of R10M or
alternatively with an annual turnover between R5M - R10M, provided there is some current growth context [for example a contract, project or acquisition]
you will not be considered for finance if:
- you are a start-up
- you are a private individual
- you are a large corporate, with more than 500 staff