SMEs get financial support to purchase generators
Additional financial assistance will now be granted to small to medium enterprises (SMEs) that have been facing challenges due to the ongoing load shedding that the country has been experiencing.
Business Partners Limited, a company specialising in risk finance for formal SMEs, announced on Thursday 12 March that it will be offering additional finance for SMEs so that they can purchase generators.
Executive director of Business Partners Limited, Gerrie van Biljon, explained in a press release that the current electricity crisis has placed strain on SMEs as it affects their growth and sustainability.
“[While] larger businesses may have the resources to install sophisticated generators to ensure continuous power when Eskom cannot deliver, SMEs often don’t have the financial resources available to obtain a generator,” said van Biljon.
What will the SMEs get?
Van Biljon revealed that Business Partners Limited will be offering SMEs specialised finance of up to R250 000 to purchase generators.
“The initiative aims to support existing clients and forms part of our value-added services offering to entrepreneurs with the objective to see local businesses prosper.”
He added went on to say that while SMEs might try to plan around the load shedding schedules, in many instances that is not possible.
“Such interruptions are threatening the industry’s growth, as not only does this decrease a business’ turnover and output, but many businesses have delayed the implementation of growth plans due to the uncertain future of the electricity supply in South Africa,” said van Biljon.
Applying for financing
The Business Partners Limited website explains that when applying for finance, the company looks at two aspects of the SME: the business and the entrepreneur.
“The business evaluation includes matters such as the product or service and its market acceptability, market size, the gearing of the business, and its ability to exist and grow, as well as the business’s history, the stage of its development and medium- to long-term profit potential, technical aspects and the location of the business.
“In evaluating the entrepreneur, aspects such the ability to run a successful business on sound business principles, integrity, drive, vision and appropriate experience, are considered,” states the website.
According to the website, Business Partners Limited will consider financing applications up to R25 million to SMEs that have gross assets under R100 million or have an annual turnover not exceeding R200 million, as well as have less than 500 employees.
The financing is offered to most business sectors. However direct farming operations, underground mining, non-profit organisations and on-lending activities are excluding from financing.
The website adds: “Applications for financing below R500 000 are usually not considered; and the company does not operate in the informal or micro enterprise sectors.”
To apply for financing or for more information, contact Business Partners Limited on 0861 763 346 or www.businesspartners.co.za
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