Bridging Finance (Once-Off Order/Non-Construction Related)
Objectives Of The Fund
- To bridge the cash flow needs of SMME's who have to meet specific contracts or orders.
- Finance is targeted to SMME's in the service, manufacturing and retail industries.
Based on the capital needs the loan shall be limited to 80% of the contract amount or R1 000 000; whichever is lesser.
- Property financing
- 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
The following fees and costs shall be payable by all applicants:
- Initiation fees equal to 2% or R2 500 plus VAT(whichever is lesser) of the approved loan amounts exceeding R50, 000.00, is payable before implementation and disbursement of the loan (to be capitalised if requested by client).