CIDB and Construction Finance

for public sector projects & contracts

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CIDB and Construction Finance

So what has your CIDB grade got to do with Construction Finance?

Construction businesses holding (or qualifying for) CIDB certificates at Grade 5 or higher and delivering work on these projects and contracts – are ideally suited to apply for Spartan’s Construction Finance.

For those larger construction projects that need ongoing working capital to bridge their cash flow gaps – Spartan is a specialist financier for the construction industry. Here is where our Construction Finance comes in, as a structured financing approach covering: Bridging FinanceContract FinancePurchase Order Finance and Specialised Asset Finance.

what is Construction Finance?

Construction Finance is an alternative funding solution specifically suited for the construction industry. Construction businesses have multiple financing needs such as: project mobilisation, materials & labour, late payment terms from end-client, plant and machinery. Spartan’s financing solves these needs with our structured financing approach covering: Bridging Finance, Contract Finance, Purchase Order Finance and Specialised Asset Finance. Our funding facilities are usually structured as – Revolving Finance Facilities to continually fund construction contracts.

Construction businesses are plagued with a set of challenges that increases their complexity – and ultimately affects their cash flow. Some of these challenges are: highly competitive tender bidding, project delays (due to lack of funding or site disruptions by “construction mafia”), suppliers wanting COD or not giving terms, payment delays by end clients, project penalties and a lack of consistent project pipeline.

The construction businesses that we finance do projects covering the following areas:

Government/Public Sector

  • civils construction (such as roads, bridges, etc.)
  • affordable housing developments
  • public sector infrastructure

Private Sector

  • retail
  • urban residential
  • commercial & industrial

Because no two construction businesses are the same we take the time to look at the entrepreneur and we make financing decisions based on the particular business context and the nature of the project/development. We provide construction finance throughout South Africa.

how does Construction Finance work?

why get Construction Finance from Spartan?

  • Spartan’s Construction Finance is an alternative funding solution specifically suited for the construction industry

  • we’re open to discuss joint venture options

  • we have over 39 years of experience financing South African SMEs across many industries and needs

  • financing amounts from R5 million to R50 million (with revolving credit for even greater requirements)

Who would use this:

  • civil or public works construction businesses (e.g. government contracts)

  • businesses that focus on the private sector construction (retail, urban residential, commercial & industrial)

  • seeking an alternative funder to traditional financiers

what is the CIDB?

The Construction & Industry Development Board (CIDB) is an organisation that certifies a construction company’s capacity to carry out a specific government construction tender. The certificate determines the type of construction project as well as the value that a company can bid for in a government construction tender. These certificates range in ‘grades’ from 1 to 9, representing differential abilities of the company to complete and thus apply for larger construction projects.

A list of the criteria and costs can be found here on the CIDB website.

get construction finance …

get in touch
apply online