Growth Finance

Spartan’s Growth Finance is for SMEs that are beyond the survival stage and are well into the growth phase of their lives.

This growth stage is a stage that is very exciting but yet very painful – its exciting as there is a lot of positive action happening and the business is on a growth strategy – the pain is because how does one fund this? Its also very difficult to get a funder to understand the unique growth strategy for a particular SME.

SMEs 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 specially structure something thats unique to the SMEs context.

Thats where Spartan’s Growth Finance comes in…

Why use growth finance?

The typical needs that a business would require Growth Funding for:

  1. 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
  2. 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
  3. 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
  4. 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
  5. 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

  • minimum finance amount from R1M up to R25M
  • 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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