solve cash flow issues due to growth
The typical needs that a business would require Growth Funding for:
- you want to acquire a competitor – maybe its a distressed or retiring competitor and its its an opportunity and you need to be nimble and fast to acquire this competitor, the banks don’t usually get involved in funding acquisitions for SMEs – its a no mans land
- the business could be acquiring a company within the value chain so you could be in the transport business but want to acquire warehousing – so its a different context
- maybe there’s a BEE partner you want to get into the business or maybe the BEE partner wants to buy into the business and again its not a typical thing that a bank would do – certainly not in the SME segment
- you want to expand your infrastructure and its a growth context and normal specialised asset finance doesn’t cut it as it requires a different consideration and a different structuring of facilities for that
- another growth need could be that you want to buy your premises – you need funding to acquire this premises but perhaps a bank only gives a bond of 60-70% – how do you fill the gap?