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.

Exclusions

• 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%.

Securities

• 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.

Fees
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).

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Objectives Of The Fund

• To fund Co-operatives for expansion and sustainability;

• Acquiring and supplying of any product produced by the Co-operative
• The loans will be considered only for income generating assets for purpose of ensuring that the Co-operatives produce and supply goods and services;

Financing Policy

Loan size

Based on the capital required but not to exceed R500 000 per investment

Exclusion

• Purchase of shares from existing businesses;
• Debt financing;
• Guarantees;
• Plant relocation;
• Non income generating assets
• Financing of vehicles/automobiles for private use is explicitly excluded
• Property Development

Loan repayment terms

• 60 to 72 months maximum

Interest Rate (Fluctuating)

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

Grace period

• The grace period for payment will depend on the nature of a project, which in the case of a new business shall not exceed three months from date of the first disbursement.
• The interest charged during the grace period shall be capitalized.
• In the case of a existing business the grace period may not exceed one month from date of the first disbursement.

Own Contribution

• No equity contribution shall be required for this loan products

Objectives Of The Fund

• To actively promote franchise businesses in the Free State.
• Targeting entrepreneurs from previously disadvantaged groups, with the view of promoting Broad Based Black Economic Empowerment.

Financing Policy

Maximum Loan

• Based on the capital needs, but shall not exceed R5 000 000 per investment.

Exclusions

• Franchise fee
• Financing of Vehicles/Automobiles for private use and/or commuter services is explicitly excluded;
• Purchase/payment of non-income generating assets or expenditure;
• Debt financing.

Loan Repayment terms

• 60 to 72 months maximum

Interest Rate (Fluctuating)

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

Grace Period

• The grace period will depend on the nature of a project, which in the case of a new business shall not exceed six months from date of the first disbursement.
• The interest charged during the grace period shall be capitalized.
• In case of an existing business the grace period may not exceed one month from date of first disbursement.

Own Contribution

• Not required

Securities

• A 100% security cover is desirable; however, a minimum cover of 60% may be considered depending on the product and capital required. Viability and risk of the venture shall also be considered for the purpose of determining the security cover.

Fees
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, is payable before implementation and disbursement of the loan. (To be capitalised if requested by client).
• Security registration costs shall be borne by the client and may be capitalised.

Insurance

• The borrower must be covered by the FDC group credit insurance scheme for projects limited to a maximum capital exposure covered by the FDC group credit insurance scheme (the premium to be included in the monthly instalment); or cession of own life cover policy on total exposure.
• Comprehensive insurance to be ceded to the FDC.

 
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Objectives Of The Fund

• Increase participation of previously disadvantaged individuals (PDI) in areas of economy in which they are underrepresented.
• Establishment of a significant manufacturing sector in the Province.
• Development of agro-processing industry in the Province.
• Development of the ICT and BPS&O industries.
• Promote and encourage tourism development in the Province.
• Diversification and Technology upgrading of existing manufacturers.
• Financing of commercial vehicles (Light and medium trucks) including heavy duty trucks with semi-trailer configuration for transporting goods can be financed by the FDC.
• Financing of plant, machinery and equipment including industrial equipment.

Financing Policy

Loan size

• Based on the capital needs, above R50 000 and not exceeding R5 000 000-00 per investment.

Exclusions

• Purchase of shares from existing businesses
• Debt financing
• Guarantees
• Plant relocation
• Non income generating assets
• Financing of Vehicles/Automobiles for private use is explicitly excluded

Loan Repayment terms

• 60 to 72 months maximum
• Loans for property : Maximum 120 months

Interest Rate (Fluctuating)

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

Grace Period for Loan Payment

• The grace period will depend on the nature of a project, which in the case of a new business shall not exceed six months from the date of the first disbursement.
• The interest charged during the grace period shall be capitalized.
• In case of an existing business the grace period shall not exceed three months.

Equity Contribution

• An equity contribution is not required

Securities

• A 100% security cover is desirable; however, a minimum cover of 80% may be considered depending on the product and capital required. Viability and risk of the venture should also be considered for purpose of determining the security cover.

Fees
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).
• Security registration costs shall be borne by the client and may be capitalised.

Insurance
The borrower will be covered by FDC group scheme insurance for projects limited to maximum capital exposure covered by the FDC group credit scheme ( the premium to be included in the monthly instalment); or cession of own life cover policy on total exposure. Comprehensive insurance to be ceded to the FDC.

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Objectives Of The Fund

• Alleviating unemployment through micro-enterprise initiatives
• Financing of businesses, which are at formation stages
• Targeting the informal sector and small start-up businesses
• To assist unemployed and preferably people with technical skills to start micro manufacturing businesses.

Financing Policy

Loan Size

• Based on capital needs, a minimum of R5 000 and not exceeding R50 000 per investment.

Exclusions

• Purchase of shares from existing businesses
• Debt financing
• Guarantees
• Non income generating assets
• Property Development
• Financing of Vehicles/Automobiles for private use is explicitly excluded

Loan Repayment terms

• Loans for stock and equipment: 60 to 72 months maximum

Interest Rate (Fixed)

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

Grace Period

• The grace period will depend on the nature of a project, which in the case of a new business shall not exceed three months from date of the first disbursement.
• The interest charged during the grace period shall be capitalized.
• In case of an existing business the grace period may not exceed one month from date of the first disbursement.

Own Contribution

• No equity contribution shall be required for this loan product.

Securities

• A 100% security cover is desirable; however, a minimum cover of 60% will be considered depending on the product and capital required. Viability and risk of the venture will also be considered for the purpose of determining the security cover.

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

• No initiation fees are required for this loan product.
• Security registration costs shall be borne by the client and may be capitalised.

Insurance

• The borrower is covered by the FDC group scheme. The premium will be included in the monthly instalment.
• The borrower has an option to cede own life cover insurance policy
• The borrower must cede comprehensive short-term business insurance to the FDC.

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Objectives Of The Fund

• Alleviating unemployment amongst the youth through business initiatives.
• Financing of start-ups, expansions and buy-in/out operations.
• Companies, co-operatives and close corporations owned, managed and operated by the youth.

Financing Policy

Loan Size

• Based on capital needs, a minimum of R50 000 and not exceeding R500 000 per investment.

Exclusions

• Property financing;
• Debt financing
• Purchasing of shares
• Non-income generating assets
• Guarantees
• Financing of Vehicles/Automobiles for private use and/or commuter services is explicitly excluded

Loan Repayment terms

• 60 to 72 months maximum

Interest Rate (Fluctuating)

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

Grace Period for Payments

• The grace period will depend on the nature of a project, which in the case of a new business shall not exceed three months from the date of first disbursement.
• The interest charged during the grace period shall be capitalized.
• In case of an existing business the grace period may not exceed one month from the date of first disbursement.

Own Contribution

• No equity contribution shall be required for this loan product.

Securities

• A 100% security cover is desirable; however, a minimum cover of 60% may be considered depending on the product and capital required. The viability and risk of the venture should also be considered for the purpose of determining the security cover.

Fees
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. Initiation fee may be capitalised by client if requested.
• Security registration costs shall be borne by the client and may be capitalised.

Insurance

• The borrower will be covered by the FDC group scheme insurance for projects limited to a maximum capital exposure of R300 000 per loan (the premium to be included in the monthly instalment); or cession of own life cover policy on total loan balance.
• Comprehensive insurance to be ceded to FDC.

 
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