Free State Development Corporation

Bridging Finance - Construction Related

Objectives Of The Fund

  • To bridge the cash flow needs of SMME’s who have to meet specific contracts or orders.
  • Provide finance for contractors who have been awarded construction related tenders by the Government departments and Municipalities.

Financing Policy

Loan size
Based on the capital needs, the revolving credit lines, may not exceed R5 000 000 per project, limited to a threshold of 50% of the contract amount.


  • Property financing
  • Franchise
  • Financing of Vehicles/Automobiles for private use and/or commuter services is explicitly excluded.
  • Debt financing

Loan Repayment term

  • Linked to the project cycle.

Interest Rate (Fluctuating)

  • The interest rate charged will be based on the prevailing prime rate plus 1%.


  • Registration of cession of payments in respect of contract.
  • The cedent must make payments of money directly into FDC’s bank account.
  • In case where cession of payment is not possible, the security as applicable for General Enterprise Fund shall be registered.

The following fees and costs shall be payable by all applicants:

  • Initiation fees equal to 2% or R2 500plus VAT(whichever is lesser) of the approved loan amounts exceeding R50 000, is payable before implementation and disbursement of the loan. (To be capitalised if requested by client).

FDC Head Office

33 Kellner Street

Tel: 051 4000 800
Email: \

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Fast Facts

  • Capital: Bloemfontein
  • Languages: 64.4% Sesotho
    Languages: 11.9% Afrikaans, 9.1% isiXhosa
  • Population density: 23 people per km²
  • Area 129, 480 km²
  • Share of total SA area 10.6%

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