Small Enterprise Finance Agency, Providing Bridging Loans

Small and Medium Enterprises (SMEs) have been identified as productive drivers of inclusive economic growth and development in South Africa. Researchers have estimated that, in South Africa, small and medium sized enterprises make up 91% of formalised businesses, provide employment to about 60% of the labour force and total economic output accounts for roughly 24% of GDP. One institution assisting this critical sector is Small Enterprise Finance Agency (SEFA).

The Mandate of SEFA is to foster the development, survival and growth of SMMEs and thereby contribute towards poverty alleviation and job creation. One way in which this is being achieved is through the Bridging Loan.

The Bridging Loan is provided to an enterprise to finance working capital needs such as stock or operating overheads.Tailored to provide immediate cash flow, this loan is only provided to businesses that have secured firm contracts from their clients, and its only applicable in business to business transactions.

Clients applying for this loan must fulfill requirements such as being South African citizens with valid ID documents, be legally constituted, must have necessary contractual capacity, all business operations, including but not limited to projects, programs or enterprises, must be operated within South Africa, the enterprise must be compliant with generally accepted corporate governance practices appropriate to the client’s legal status, have a written proposal or business plan that meets the requirements of SEFA’s loan application criteria, demonstrate the character and ability to repay the loan and be owner managed.

SEFA can be contacted on 0127489600.