NEF iMbewu Procurement Finance

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Organisation: National Empowerment Fund

The iMbewu Fund is designed to support black entrepreneurs wishing to start new businesses as well support existing black-owned enterprises with expansion capital. The Fund supports these entities by offering debt, quasi-equity and equity finance products with the funding threshold ranging from a minimum of R250 000 to a maximum of R10 million.

 

The Procurement Finance product is aimed at assisting black-owned SMEs that have been awarded tenders or contracts by public and private sector entities. The product’s main objective is to ensure that qualifying SMEs have the capacity to carry out the contracts.

Qualifying Entrepreneurs/Businesses
  • The term of the loan will match the duration of the contract
  • NEF funding is generally limited to R10 million
  • There must be active participation by black individuals in the operations of the business
  • Minimum black ownership of 50.1% is required
  • Industry knowledge by management or there must be clear transfer of skills through relevant partnerships
  • Funding instrument include term-loan, bridging finance, asset finance, revolving facilities and debt finance
  • NEF will fund both the acquisition of assets and the working capital requirements of the business
  • NEF funding is charged at prime linked interest rates
  • The NEF reserves the right to oblige applicant to participate in the NEF mentorship programme
  • NEF will support contracts awarded by reputable entities
  • NEF does not generally support subcontracts especially those awarded by agents and entities that have a weak financial position and lacking track record
  • The contract must be commercially viable and generate sufficient profit and cash flow to repay NEF’s loan
Documentation
 
Start-Up Businesses
  1. Application Form
  2. Business Plan
  3. Five (5) year financial projections (Income Statement, Balance Sheet and monthly Cash Flow Statement) with first year prepared on a monthly basis
  4. Personal Statements of Assets and Liabilities of all the members or directors including those of spouses if person married in Community of Property
  5. Certified ID copies of all members or directors
  6. Registration Documents and all the relevant legal documents relevant to the entity
  7. Fica compliance – Proof of residence
  8. Detailed CV of principle Applicant
Existing Businesses
  1. Application Form
  2. Business Plan
  3. Affidavit from members or directors that they are aware of the contents of the application form
  4. Three (3) year audited financials (Income Statement, Balance Sheet, Cash Flow Statement)
  5. Five (5) year financial projections (Income Statement, Balance Sheet and monthly Cash Flow Statement) with first year prepared on a monthly basis
  6. Recent management accounts (Income Statement and Balance)
  7. Personal Statements of Assets and Liabilities of all the members or directors including those of spouses if person is married in Community of Property
  8. Business bank statements for the past twelve (12) months
  9. Certified ID copies of all members or directors
  10. Registration Document and all the relevant legal documents relevant to the entity
  11. Fica compliance – Proof of residence
  12. Detailed CV of principle Applicant*
*www.nefcorp.co.za
Offices – All 9 Provinces
Application Process – Physical or Email(application@nefcorp.co.za) Submissions

Contact Details

Website: http://www.nefcorp.co.za
Telephone: 0861 843 633
Email: info@nefcorp.co.za
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