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Business Finance

Are you a small to medium enterprise that requires access to finance? Do you seek more progressive methods of risk evaluation? Yes? Then you are the person we are looking for. You don’t have to be a business based in the Eastern Cape to qualify for any of our products.

As long as your business headquarters are in the province, or you can prove that the major developmental impact will be felt in the province, we will consider your application. Business finance also understands the historical lack of access of small to medium enterprises to finance, hence we have moved away from collateral lending, and we now use adequate management capacity and business viability as a key criteria.

Through our short-term and long-term product offering, we have set ourselves apart as the financial service provider of choice for initiatives that bring a meaningful development impact to the Eastern Cape economy. We facilitate financial viability and sustainability of these initiatives through the provision of financial resources at highly competitive rates. We want to be your lender of choice.

Our solid product offering…
Our products are offered across two main categories: short-term and long-term business finance. ECDC Future, our long-term offering, consists of a long-term debt finance vehicle, and an equity finance vehicle, the TERMcap and EQUItrader products respectively.

Our short-term offering, ECDC Access, provides short-term debt financing products that are geared towards facilitating efficient cash flow management in our client businesses. These products are the NEXUStrade loan, WORKflow contract loan, POWER+ small loan, and IMBEWU micro loan.

For more information on these products, please contact 0860 3232 346  and speak to one of our account managers. The account manager will conduct a preliminary interview with you to capture your details and the reason for making the application before forwarding you an application form.

What we require from your proposal…
Finance applications that facilitate job creation and/or retention, economic empowerment, value addition to the economy, rural/ township development, and increased export income are the most suited to ECDC’s business finance products. Any project that is a new Greenfield initiative, where expansion and rehabilitation will be the resultant benefit, will also be eligible for application for ECDC finance.

What we will not finance…

ECDC will not finance applications that propose the following circumstances:

  • Where the idea might be offensive to the community directly affected by your operation, or the community at large;
  • Where the application is made for finance to be used in the purchasing of shares that are unrelated to the target of meaningful development in the Eastern Cape;
  • Where the application is made for a loan to acquire property which will be receiving its income from lease rentals only, and the loan proceeds will be used for the acquisition of that property only;
  • Where the application puts forward an idea that requires a period in excess of the recommended period of viability; and
  • Where the application for a loan is to be applied to a purpose that does not create or save jobs directly, is speculative in nature, and is made by a service provider to ECDC.

What happens if your request for finance is approved…
Once the suitability of your application has been approved, the process will start to determine the terms and conditions of the application. The suitability of the application does not guarantee that it will be successful.  The contract will be considered binding once it is signed by ECDC and the applicant concerned.

A unique “aftercare” service philosophy…

ECDC offers an aftercare philosophy that aims to provide efficient client service for the entire duration of the contract term. This means monthly account management and quarterly report-back visits to ascertain the health of your business. In the event that the account manager raises concern about the viability of your business and your ability to sustain repayments on your loan, we will provide business support to assist as far as possible to turn your operation around favourably.

Quicker settlement plans encouraged…

As an entity concerned with sustainable development, ECDC welcomes the situation where its clients are able to settle the loan amount before the end of the contract term. If you do run into financial difficulty during the contract term, a maximum six months moratorium from final drawdown is allowed on all new development investments, and this is only considered in the event that the cash flow of the promoter indicates that such a moratorium is required.

What if your loan account falls into arrears…

In the event that your loan account defaults on monthly repayments, so that the contract is more than three months in arrears, a full investigation as to why this is the case will be set in motion. The account will be charged a 1% investigation fee, and in compliance with the National Credit Act, the relevant credit bodies will be informed of the default.

Our unique collateral policy…
ECDC operates under different collateral policies to South African banks. Should 100% collateral be unavailable, the loan may still be granted and it will be attached as security, and any available collateral (albeit less than 100% of the loan value) will be attached as security to the extent that ECDC deems necessary.

Despite our policy that 100% collateral is not required as a prerequisite for loan finance, it is expected a significant contribution is made by the applicant that demonstrates their total commitment to the idea.

ECDC offers you skills support…

ECDC requires that clients display some expertise in the area of the proposed business idea, either on a technical or business level. However, should you not have the required skill level to drive the proposal forward, you can be referred to ECDC’s Development Services Unit to undergo the necessary training courses to improve your skill level, or to be given access to an appropriate mentor within ECDC operations to glean expertise in the designated disciplines.

Active involvement in business required…

You will need to be actively involved in the underlying business enterprise. This will take the form of full time participation in the activities of the business by all or some of the applicants at any given point in time.

Clean credit record…

An applicant can only be considered for loan finance if they have a clean credit record, or provide ECDC with written proof of arrangements made to clear any bad debt attributable to them.

For more information contact:

Tel: 0860 ECDC FIN (share call)
Email: www.ecdc.co.za

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