Mezzanine Finance a long-term finance product for established SMEs
SME Mezzanine Finance
A long-term finance product for established SMEs, offering more flexibility than bank financing in terms of collateralisation and repayment. Mezzanine Finance is typically self-liquidating and often contains an upside for the funder.
Our SME Mezzanine Finance is available from R1 Million to R5 Million.
Our Mezzanine Finance
Our Mezzanine Finance allows the costs of capital to be kept very low as it means that you don’t have to give up equity or give away your hard-won profits at the end of the project you are working on.
When you have the experience, capacity and ability – but not enough capital – Mezzanine Finance is a strategic, long-term solution enabling you to take on and complete numerous projects that result in real growth for your business.
The term Mezzanine Finance
Mezzanine is commonly seen as a generic term for financing that incorporates elements of debt and equity in a single investment. In developed countries it’s a sophisticated instrument that is part of a layered capital structure.
However, in emerging markets like South Africa, it is about filling a funding gap instead of filling a gap in the capital structure of the business.
Mezzanine Finance offered to SMEs in South Africa is typically not part of a layered capital structure – but filling a funding gap.
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].
Spartan (Owner)
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