Historically speaking, entrepreneurs don’t typically have the quantity and quality of collateral needed to secure debt finance. It was this realisation that led Spartan to develop and deliver a solution that would help SMEs to grow their businesses, even though they didn’t always meet the criteria of more traditional lending institutions.
“We understand that many business owners don’t want to go the equity funding route, selling shares in their businesses in exchange for funding. Without the collateral needed to secure debt funding however, this is often the only route available to them,” says Spartan CEO, Kumaran Padayachee.
“We decided to approach things from a different angle. To service this sector, you need to be flexible. The same rules don’t apply as they do for corporates. To achieve this, we’ve assembled a team that really understands SMEs, their inner workings, the finance they need and the terms that will give them the best ROI for the funding they receive — after all, the point of funding is to help your business grow, so ultimately that’s what it needs to achieve.”
Spartan’s offers financing
At its core, Spartan finances small businesses (fast-growing companies with R5 million to R10 million annual turnovers) and medium businesses (R10 million to hundreds of million in annual turnover).
Related: Financing That Backs Entrepreneurs
Spartan finances specialised asset finance (tech, software, plant and machinery, office fit out and furniture); working capital finance (bridging finance, medium term loans); and growth finance (expansion, BEE deals, acquisitions).
Working capital in particular is a big portion of what Spartan assists its clients in. “This is project and growth-related finance, and many of the enquiries are for working capital, for which there is a huge need in the SME landscape.”
What finance suits your business?
As a debt funder, Spartan’s team carefully evaluates what the finance will be used for, and if the return is greater than the repayments — in other words, does finance make financial sense for the business?
“There are numerous ways that finance can be applied incorrectly by SMEs,” says Kumaran. “One of the first flags we look for is debtors age. If the industry norm is payment in 30 days, but a business is typically paid by its clients in 60 or 120 days, then we know there is something wrong with their internal processes.
Either the company is too shy to be assertive with clients, or it lacks the capacity or capability to invoice clients and collect cash. Either way, the result is a shortage of cash. Business owners in this situation apply for cash in order to be able to pay the bills, when they should be reviewing their business, pulling one or two levers, and improving their cash flows.”
Growing your business with alternative funding methods
On the other hand, there are many situations where working capital and bridging finance can help a business to grow beyond its own, organic abilities.
“A customer project or contract that requires a new product line or opening a new branch are both positive, expansionary situations. The problem is that there’s a lead time gap. You need to start the project, spend cash to hire people or purchase equipment, build internal capacity, deliver on the project and then the customer only pays you. Working capital and bridging finance allow the entrepreneur to do just that, and the company grows as a result.”
Bridging finance in particular is high risk and requires a large amount of flexibility, which is why more traditional funding institutions shy away from it. Spartan on the other hand offers revolving bridging loans to customers the team has worked with. “We understand this space, and our aim is to support the entrepreneurs within it,” Kumaran concludes.
Alternative finance solutions
Spartan is an Alternative Finance company that specialises in financing Small and Mid-sized businesses by providing: Growth Finance (structured finance for expansion); Specialised Asset Finance (equipment/machinery/technology/software/office fit-outs/energy/etc.) and Working Capital Finance (bridging finance & medium term loans).
Bridging Finance is available for one to three month terms and is ideal for contract or project-based businesses. It is a solution that assists businesses with solving cash flow issues due to growth-related challenges in their business and is either for a once-off need or for revolving business use.
Spartan is an Authorised Financial Services Provider 47631 and Registered Credit Provider NCRCP8669. e finance solutions.
Kulula Work Brings You The Cheapest Flights Of The Day For Your Business Travel
Time spent on the road for business can be a nightmare when you don’t have an efficient travel partner. But of course, you’re on a budget, so compromising comfort for cost is your best bet in a tight economic climate. Not necessarily.
Does the thought of a conference or out of town meeting conjure up images of dodgy motels, delayed flights and unexpected Uber trips, because your rental car booking was mixed up — again?
There’s an affordable solution to ensure you’re on time, every time, comfortable, refreshed, organized and stress-free when you seal that deal you travelled a few hundred kilometers to clinch.
Enter kulula work.“kulula.com was built on a culture of entrepreneurship and we know how important entrepreneurs are to economic growth,” says Dawn Weir, head of kulula work. “So, we want to be sure that there are as few obstacles as possible to building a business, especially as most new jobs in coming years will be in small businesses.”
Low-cost benefits for entrepreneurs and business executives
Growing your business means networking, meetings and time consuming periods away from your business. This is where efficiency and resourcefulness are key. A specialised corporate travel service, kulula work ensures that business people can travel to close deals, meet business partners or network without incurring excessive costs.
“Face-to-face meetings are proven to be far more beneficial than email conversations or teleconferences. While technology has a role, personalised face-time still beats other means of contact for business,” says Weir.
Travelling with kulula work guarantees the best fares of the day on kulula.com and British Airways (operated by Comair), and you don’t pay booking or flight change fees — only for the difference in fare and the airport taxes.
All-in-one services for business on the move
With kulula work, you’re also offered competitive car hire and accommodation options, assisting you with all your business travel requirements. The cost of convenience? Great savings and a reliable travel service, around the clock.
“Because running a competitive and efficient business is about managing your costs, kulula work offers support on invoicing and monthly reporting, as well as account management and access to a Corporate Reservations team,” adds Weir.“They’re also available after-hours if needed.”
Dedicated to you so you can focus on work (and play)
kulula work’s team of professionals features an agent dedicated to your account who assesses your business travel needs and sets up a corporate travel deal to meet your specific requirements.
For that work-life balance you’re after, kulula work offers an extra 20kg free baggage allowance for travellers with musical instruments and sporting equipment. Because entrepreneurs need a healthy combination of work and play, on the road to success.
The following is exclusively available when your next business trip is booked via kulula work:
- Best fares of the day on kulula.com and British Airways (operated by Comair)
- Flexible flight changes (only the difference in fare & taxes will apply)
- No booking fees
- Competitive car hire rates with Europcar and Avis
- Great hotel rates with Protea Hotels and City Lodge Hotel Group
- Invoicing and reporting
- Account management
- Access to our qualified Corporate Reservations team. *
* Legal stuff applies
Contact kulula work on:
- Tel: +27 (0)11 285 3050
- Email: email@example.com
- Visit: www.kulula.com/work
Reimagine The Use Of Technology
The phenomenon of ‘big data’ is rapidly catching up with the world of tax.
Enter The 2018 Entrepreneur Of The Year® Competition To Win Prizes Over R2 Million
The Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS aims to honour, benefit and uplift South African SMEs. Now in its 30th year, the competition celebrates excellence in entrepreneurship, serving as an inspiration to others to succeed in the world of business.
Amid the current political optimism, entrepreneurs should be especially inspired by the continued commitment to SME support which emerged as a consistent theme in both the 2018 State of the Nation Address and the National Budget Speech.
This is according to Christo Botes, spokesperson for the 2018 Entrepreneur of the Year® competition sponsored by Sanlam and BUSINESS/PARTNERS, who believes that this continued focus evidences Government’s recognition of the vital role played by entrepreneurs in enabling economic growth.
Continued celebration of excellence in entrepreneurship
Speaking in light of the launch of the 2018 competition in Johannesburg today, Botes says that this long-deserved recognition of the SME sector only further validates the competition’s unwavering commitment to celebrating excellence in entrepreneurship and fostering future economic growth.
“Now in our 30th year, this renowned competition continues to pay homage to the fearless South African entrepreneurs who dedicate themselves to their enterprises and businesses: driving growth, combatting unemployment and contributing towards the country’s economic development.”
“It is therefore wonderful to see the public sector taking the required steps to improving the environment in which these entrepreneurs operate in order to promote further growth in the sector.”
Botes, who is also executive director at Business Partners Limited (BUSINESS/PARTNERS) has been involved in the competition since its inception in 1988, “Looking back over the last 30 years, this competition has evolved from an internal competition that recognized BUSINESS/PARTNERS’ clients only, to a nation-wide search for outstanding South African-based entrepreneurs, with Sanlam as our valued partner.”
Rewards for successful local business owners
He says that the competition continues to reward successful local business owners for the valuable contributions they make to grow their local communities and economies, and aims to inspire others to do the same. “As our 30th- anniversary year, we’re hoping to see even more entrepreneurs enter.
The competition is open to all South African-based businesses and prizes are awarded for the following categories: Overall Entrepreneur of the Year®, Emerging Business Entrepreneur of the Year®, Small Business Entrepreneur of the Year®, Medium Business Entrepreneur of the Year®, Job Creator of the Year and Innovator of the Year,” says Botes.
Botes adds that this year, the 2018 competition will also recognize a South African entrepreneur for a Lifetime Achievement award.
“The purpose of this specially nominated award is to recognize an entrepreneur who has made a significant contribution to the South Africa economy and has grown their business from start-up to large-scale, perhaps even multi-national corporation. We want to reward the individuals who have dedicated their lives to building our economy and inspiring others to do the same.”
What the winners can expect
The 2018 Entrepreneur of the Year® competition, sponsored by Sanlam and BUSINESS/PARTNERS, offers prizes valued at over R 2 million, which includes cash prizes of R 70 000 for each main category winner, and R200 000 for the overall winner.
Competition winners will also receive valuable mentorship support, networking opportunities and national media exposure.
Botes says that in celebrating 30 years of searching for entrepreneurial talent in all sectors of the economy, the competition remains fiercely committed to its cause in 2018.
What the judges are looking for?
“The judges are looking for entrepreneurs that have succeeded against the odds, either by carving out a niche market for their product or service offering, or by succeeding in a very competitive environment. Perseverance and endurance, innovation and agility are some of the qualities we look for in the entrepreneur.”
Botes adds that there are also a number of quantitative competition measures, such as turnover growth, profitability, owners’ equity growth, positive cash flows and job creation that play a part in the competition’s judging process.
Entrepreneurs are encouraged to enter the competition and can do so by downloading the entry form online at www.eoy.co.za. They can also interact with fellow entrepreneurs, past winners and entrants on the competition’s social media platforms www.twitter.com/@EOY_SA and www.facebook.com/EOY.SA. The closing date for the competition is 31 May 2018.
Start-up Industry Specific4 months ago
How Do I Start A Transport Or Logistics Business?
Snapshots8 years ago
Habari Media: Adrian Hewlett
Snapshots9 months ago
27 Of The Richest People In South Africa
Types of Businesses to Start8 months ago
11 Uniquely South African Business Ideas
Entrepreneur Profiles4 months ago
10 SA Entrepreneurs Who Built Their Businesses From Nothing
Types of Businesses to Start5 months ago
10 Business Ideas Ready To Launch!
Lessons Learnt2 years ago
6 Of The Most Profitable Small Businesses In South Africa
Support for Women Entrepreneurs8 months ago
10 Successful SA Women Entrepreneurs’ Top Advice On Balancing Work And Family