suppliers to mines

financing for: Purchase Order, Contract/Project, Bridging, Medium Term and Specialised Equipment

mining houses
for your suppliers

structured financing program & early payment program – for your suppliers

large mining contractors
for your suppliers

structured financing program & early payment program – for your SME suppliers

OEMs
for your SME clients

close more sales to your SME clients with Purchase Order Finance and Specialised Equipment Finance

how Spartan helps the mining ecosystem ?

  • experience in financing SME suppliers within the mining sectors’ supply chain
  • financing for Purchase Order, Contract or Project, Bridging, Medium Term and Specialised Equipment

Spartan’s role in the mining sector …

The mining sector is a vital component of the South African economy and provides significant opportunities to SMEs suppling the mines and to SMEs supplying larger mining contractors.

It’s also an advantageous entry point for entrepreneurs to start and grow a stable business.

  • However, mining sector projects or purchase orders – require SME suppliers to have working capital and/or capex funding.
  • This is often a barrier to executing these projects/orders.

This is where Spartan comes in: we understand your space, we understand your challenges – and structure the funding to support your growth as a SME supplier to the mining sector.

specialist in 

financing SME suppliers to the mining sector

Our criteria …

We are strictly focused on SMEs … this is who we finance.

You can be considered for finance if:

  • minimum finance amount from R1M and upwards
  • minimum R10M annual turnover
  • alternatively, R5M to R10M annual turnover, if there is a growth context [e.g. a contract, project or large PO]

We don’t serve start-ups.

SME Suppliers to Mines

Projects or Purchase Orders from mines – despite being positive news, often come with challenges for SME suppliers:

  1. often these projects or POs are larger than previous projects/POs – triggering their need for working capital and/or capex funding
  2. but, SME suppliers’ financial history is unlikely to justify the larger working capital and/or capex funding
  3. additionally, the funding needs to be secured fast – as there is pressure from the mine to deliver against an operational deadline

This is where Spartan comes in: we understand this space, we understand these challenges – and structure the funding to support their growth as SME suppliers to the mining sector.

Mining Houses

Mining houses also need to appoint emerging suppliers to their mines

  • in appointing these SME suppliers – the mining houses often bears the brunt when:
    • the SME supplier has inconsistent or late performance issues – due to cashflow constraints
    • it’s pestered for early payments – due to suppliers’ cashflow constraints & poor planning
  • our answers to this are: our specialisation in the mining industry, our structured financing options & our early payment program – for your SME suppliers

Large Mining Contractors

Large mining contractors often need to appoint SME contractors/suppliers

  • in appointing these SMEs – the large contractor often bears the brunt when:
    • the SME supplier has inconsistent or late performance issues – due to cashflow constraints
    • it’s pestered for early payments – due to suppliers’ cashflow constraints & poor planning
  • our answers to this are: our specialisation in the mining industry, our structured financing options & our early payment program – for your SME suppliers

OEMs to Mining Suppliers

OEMs often lose sales to their SME clients [i.e. SME suppliers to mines] …

  • due to those SME clients not having the cash or credit limit to buy
  • those SMEs clients often receive larger POs from mines – than their credit limit with the OEM will allow
  • Spartan’s answer to this challenge is our financing program for orders from your SME clients

What our Mining Suppliers say …

“we needed financing that would give us more than the 1 or 2 trucks at a time – we got a contract with one of our biggest clients and they required that we should have more trucks”

Lindiwe Ntsabo, MD of SSN Transport (transporter to mining sector)

“Spartan offered us the finance for the 5 trucks, we definitely wanted to get all 5 at once – since we’ve started we have never got such a big fleet from the word go in one finance application”

Lindiwe Ntsabo, MD of SSN Transport (transporter to mining sector)

“the impact it has made in our business is more productivity, more income and more work … we’re also creating more jobs as we had to hire more truck drivers”

Lindiwe Ntsabo, MD of SSN Transport (transporter to mining sector)

How it works ..?

Timelines

Move swiftly from Application-to-Payout

These are the steps/stages that drive our overall timeline:

  • Application Stage: we actively reach out to you, and request all required documents. Once received you move on to the next stage
  • Assessment Stage: a Credit Analyst meticulously assesses your application
  • Interview Stage: our Credit Committee interviews you
  • Implementation Stage: signing contracts & fulfilling approval conditions. You sign, we action
  • Pay-Out Stage: shortly after the Implementation Stage is completed

We work together to make this process as fast as possible.

Assessment

Credit Analyst engages & asseses > the Credit Committee interviews you

Once we have your application and all supporting docs a Credit Analyst reviews this and will either ask for additional docs (when required) or will arrange for a Credit Interview where you meet directly with our Credit Committee. It’s here that rubber really meets the road.

We don’t ask for business plans as we believe that by making the effort and time to understand you and your business we are in a better position to make a credit decision. In this interview we really get to understand how your business works, its strengths, challenges and if our finance can help it grow.

Pay-Out

After Term Sheet; Agreements; Conditions met

Based on a signed & completed term sheet and our compliance team having checked that all the paperwork is good-to-go… we expedite the pay-out process.

A few FAQs …

We do not serve start-ups, micro or lifestyle businesses.

We finance small to mid-sized business in operation for 3 or more years.

  • minimum finance amount from R1M
  • minimum R10M annual turnover
  • alternatively, R5M to R10M annual turnover, if there is a growth context [e.g. a contract, project or large PO]

Depending on your unique situation, Spartan can help by crafting a finance option tailored to your exact requirements and needs.

Such as:

Our minimum finance amount is R1M and upwards. Some of our finance facilities can be structured with multiple phases &/or as revolving facilities, where appropriate.

  • Bridging Finance: 1-3 months
  • Working Capital Finance: 1-3 months or 6-12 months
  • Growth Finance: 12-60 months
  • Specialised Asset Finance: 12-60 months

Our application process is designed to get you from application-to-payout swiftly. We work together to make that possible. We can only move as fast as you.

  • we focus exclusively on South African SME’s
  • if your business is based in South Africa but also operates outside of South Africa then we may be able to finance you

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.

  • Spartan finances in a no/low collateral context, with an approx 5-10 day turnaround
  • therefore we supplement your bank rather than substitute it
  • our pricing is relative to the above
  • however, against usual secured overdraft rates – our costing is reasonable

  • we adopt a structured/customised approach to funding SMEs
  • we supplement a bank we do not substitute a bank
  • this means our clients utilise the banks for their traditional/vanilla finance needs & Spartan supplements this for their specialised/growth needs
  • your bank will typically require a higher degree & higher quality of collateral where Spartan as an alternative funder focuses more on backing an entrepreneur
  • Spartan’s application process is geared towards specialised & complex funding needs

Documents we require include:

  • online or offline finance application
  • historical financial information (for Spartan to assess business retrospectively) – this includes AFS/Management accounts and Bank account details/statements
  • business owners personal assets – we do secured and unsecured lending, this helps us with our risk mitigation

Why no business plan? We believe in meeting with the entrepreneur in order to understand the business holistically – from their perspective.

  • With Spartan you can sign all our docs online, on your mobile – wherever you are in the world
  • It is completely safe and legal
  • We make use of a top tier service that enables quick, easy and safe e-signing
  • find out more about our e-signing safety here
  • find out how to e-sign here

  • we define collateral as a tangible asset, with a liquid, secondary market [e.g. property]
  • we define security as a legal instrument that provides some comfort [e.g. cession of debtors]
  • depending on the nature and context of the financing required we will often require some form of collateral/security however
  • as an alternative financier we also try to give consideration to the needs of the business and its context
  • in certain cases security/collateral can take forms more relevant to purchase orders and contracts

Whilst we finance Small & Growing Businesses across all industries – we find that the businesses in the following segments tend to get significant benefit from our niche finance offerings:

  • manufacturing
  • construction
  • engineering
  • tech businesses
  • education
  • healthcare
  • business services
  • professional services firms
  • project related businesses
  • contract related businesses
  • digital media
  • agribusiness

It’s both our philosophy & policy not to finance businesses that negatively impact People and Planet.

  • Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international bans, such as pharmaceuticals, pesticides/herbicides, ozone depleting substances, PCB’s, wildlife or products regulated under CITES.
  • Production or trade in weapons and munitions.
  • Production or trade in alcoholic beverages (excluding beer and wine) (Primary).
  • Production or trade in tobacco (Primary).
  • Gambling, casinos and equivalent enterprises (Primary).
  • Production or trade in radioactive materials.
  • Production or trade in unbounded asbestos fibres.
  • Drift net fishing in the marine environment using nets in excess of 2.5 km. in length.
  • Production or activities involving harmful or exploitative forms of forced labour/harmful child labour.
  • Commercial logging operations for use in primary tropical moist forest.
  • Production or trade in wood or other forestry products other than from sustainably managed forests.
  • Industries related to pornography

Contact us …

complete this quick form and we’ll get right back to you …