Spartan’s Bridging finance

What is Bridging Finance?

Our Bridging Finance is a solution that assists businesses with solving cash flow issues due to growth related challenges in their business. Bridging Finance is for either a once-off need or for regular use in your business – for 1 or 2 or 3 month terms. If your business is contract or project based – then our bridging finance is a match for you.

Why use Bridging Finance?

• Suitable mechanism to grow your business
• Structured finance solution aligned to your specific need
• Responsibility & confidence to take on contracts & projects

How Bridging Finance works

If you’re at a point where you need temporary cash flow assistance due to growth in your business – then Spartan’s Bridging Finance helps you cross this gap.

Typical Credit Criteria

• Only for cash flow need triggered by growth & not distress context
• Credit assessment of the business, ‘the jockeys’ and source of repayment & available collateral

Typical Transaction Terms

• Loan size minimum R1M and maximum R5M

When to use Bridging Finance

So you have secured a valuable deal [project or contract] and now need to get to work delivering it – but there are several new challenges mostly in the form of cashflow management… you need to pay your suppliers and staff for the next 2 months but only receive your payment from the new client after 90 days.

Typical reasons to use Bridging Finance:

• capacitate with resources, stock, suppliers, etc. to deliver on the contract or project
• once delivered you may need bridging finance due to the 30, 60 or even 90 day delayed payment from customers
• VAT for large transactions when you invoice now and wait for payment – in the interim you still have to pay the VAT to SARS
• between the sale of an asset (e.g. business, property, plant & equipment, etc.) and the collection of payment

Who we finance

Spartan is strictly focused on Small & Growing Businesses … this is who we finance. We’re 100% committed to only helping SMEs grow. It’s in our DNA. It’s in our processes. It’s in the way we engage.

We don’t serve survivalist, micro and lifestyle businesses – we believe we can make a greater impact by financing Small & Growing Businesses. Small & Growing Businesses are defined as commercially viable businesses that have significant potential and ambition for growth.

You will be considered for finance if:

• you are a small to mid-sized business
• more than 3 years old
• your annual turnover is R10 – R500 million

You will not be considered for finance if:

• you are a private individual
• you are a very large company, with more than 500 staff
• you are a public sector entity

Exceptions: we make regular exceptions for companies doing R5 – R10 million turnover per year – provided there is some current growth context happening [for example a contract, project or an expansion].