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 …

suitable
mechanism

to grow your business

structured finance solution

aligned to your specific need

responsibility & confidence

to take on contracts & projects

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

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

Bridging Finance

Our minimum finance criteria …

  • minimum finance amount from R1M and upwards
  • you are a small to mid-sized business [SME] 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]
  • read more about our Finance Criteria

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