NEF uMnotho New Venture Finance

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Organisation: National Empowerment Fund

The uMnotho Fund provides capital to black-owned and managed enterprises, black entrepreneurs who are buying equity shares in established black and white owned enterprises, starting new ventures, expanding existing businesses and BEE businesses that are or wish to be listed on the JSE.

This product provides capital of R5 million to R25 million per project for BEE parties seeking to participate in medium-sized greenfields projects with total funding requests of between R10 million and R200 million.

Qualifying Entrepreneurs:

  • Minimum 25.1% BEE shareholding
  • Investment instruments can include a combination of debt, equity and mezzanine finance in support of BEE
  • BEE-specific financial contribution assessed on a case-by-case basis
  • NEF exposure to the project generally not to exceed 50% of total project costs
  • Proven management experience within consortium
  • Active BEE involvement in investee companies

Debt funding raised from the market to match equity funding provided by NEF and other project sponsors

  • The NEF investment horizon is 5 to 10 years
  • Security to include personal guarantees
Documentation for Application:
Start-Up Business:
  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 members or directors including those of spouses if person is 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. Detailed profile of the Franchisor
  8. Historical financials of other franchises that are similar in size and in similar locations
  9. Indication from the Franchisor of how much a new Franchise in a similar location would cost
  10. Indication of whether the lease agreement will be ceded to the new company after the sale or a new lease agreement will be signed if lease is ceded, how long will it still run before renewal? New lease if it is a new franchise.
  11. Fica compliance – Proof of residence
  12. 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 account (Income Statement and Balance Sheet)
  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 statement for the past twelve (12) months
  9. Certified ID copies of all member or directors
  10. Registration Documents and all the relevant legal documents relevant to the entity
  11. Detailed profile of the Franchisor
  12. Details of why the business is for sale
  13. Sale Agreement
  14. Franchise Agreement
  15. Historical financials of other franchises that are similar in size and in similar locations
  16. Indication from the Franchisor of how much a new Franchise in a similar location would cost
  17. Indication of whether the lease agreement will be ceded to the new company after the sale or a new lease agreement will be signed if lease is ceded, how long will it still run for before renewal? New lease if it is a new franchise.
  18. The prospective buyer must have been approved by the franchisor
  19. Fica compliance – Proof of residence
  20. Detailed CV of principle Applicant*
*www.nefcorp.co.za
Offices – All 9 Provinces
Application Process – Physical or Email(applications@nefcorp.co.za)

 

Contact Details

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