The Small Enterprise Finance Agency (Sefa) was established in 2012, following a merger between the South African Micro Apex Fund, Khula Enterprise Finance and Small business activities of IDC.
The Agency’s mission of delivering wholesale and direct lending is driven by the aim to foster the establishment, survival and growth of SMMEs in South Africa.
The growth of many SMMEs is dependent on the need for capital.
This is why Sefa’s provision of bridging loan facilities for small companies is highly valuable for growth in the sector. Sefa’s bridging loans are short term loans provided to an enterprise in order to finance working capital needs. This facility is limited to businesses that have secured firm contracts (orders) from their clients.
The loan period is for one year and needs to be backed by collateral in the form of sureties, etc.)
The application process is simple, with applicants required to visit Sefa’s nearest regional office for a basic assessment. This is followed by an assessment of the application, and submission to the committee for a decision. The decision is then communicated to the applicant. Thereafter the client enters into a contractual obligation with Sefa and funds are transferred to successful clients.
Applicants who are eligible should be South African citizens, with a valid South African identity document; be legally constituted (i.e. being a sole trader with a physical address and have necessary contractual capacity.) All business operations must be operated within South Africa and the enterprise must be compliant with generally accepted corporate governance practices appropriate to the client’s legal status. Applicants also need to have a written proposal or a business plan that meets the requirements of Sefa’s loan application criteria, demonstrate the character and ability to repay the loan, etc.
Sefa can be contacted here: 012 748 9600.