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Supporting the growth ambitions of SME’s

Sasfin’s Specialised Lending division was approached by an entrepreneur to provide expansion capital to his small business involved in the build and transfer of fibre network infrastructure. The business had been unsuccessful at raising capital from traditional funders but, after examining the client’s order book and historic performance on similar projects, Sasfin recognised the potential. With that solid understanding of the business, Sasfin decided to back the entrepreneur’s growth story.

The solution was tailored to the client’s specific needs and cashflow profile by including elements of a revolving credit facility with deferred capital payments. Our solution also gave the client the flexibility to roll the facility forward in support of ongoing growth, which Sasfin would share in via a profit participation mechanism.

At the recent conclusion of the initial term, Sasfin recognised the client’s incredible growth and, as a result of the reduced risk profile, renewed the facility on vastly improved terms for the client.

The business has 24 direct employees but creates over 100 jobs indirectly by using subcontractors on its projects. In the 12 months that our funding was available, the business realised a 100% growth in revenue (compared to the prior financial year without funding) enabling it to pursue new, and larger, contracts.

In addition to unlocking substantial value for the client, Sasfin also generated above-average returns in what can only be described as a truly win-win relationship. This transaction reflects our ethos of becoming long-term financial partners to our clients through providing solutions and not products.

 

To find out how our Specialised Lending team can help you grow your business click here.

About the Author

Paul Pretorius
Head: Specialised Lending, Business and Commercial Banking