What is Spartan Growth Finance?
Spartan Growth Finance provides structured funding for established South African businesses entering a growth phase. Unlike traditional banks, Spartan offers structured loans from R1M to R75M to support complex needs like business expansion [locations or capacity or capabilities], business acquisition, property finance and property development finance.
This growth stage is a stage that is very exciting – but yet very painful. It’s exciting as there is a lot of positive action happening and the business is on a growth strategy – yet the pain is because how does one fund this? Its also very difficult to get a funder to understand the unique growth strategy.
Businesses in this stage may be reluctant to get an equity funder on the one hand as this may be a bit extreme and they’re unwilling to sacrifice equity – on the other hand a traditional ‘vanilla’ funder is not able to take the time to understand and structure something that’s unique to your context.
Thats where Spartan’s Growth Finance comes in…
Why use growth finance?
The typical needs that a business would require Growth Funding for:
- you want to expand your business [locations or capacity or capabilities], acquire a business, finance property or finance property development –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
- you want to acquire a competitor or business in the industry value chain – 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 man’s land
- 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?
How growth finance works …
Spartan provides a structured finance solution because each growth context may be unique so we take a suite of our normal funding products which could be longer term funding, shorter term funding, perhaps a combination of these – we’ll bring these to the table in a way that is structured to meet the growth need for the particular business – its a customised and highly structured solution – that’s the big emphasis of our Growth Finance.
Our minimum finance criteria
- Loan amount from R1M to R75M
- 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 how our process works and what you will need
Let’s get the conversation started …