Business Partners Presentation 25.02.2021

BKCOB Networking
Evening

25 February 2021

A presentation by Noluvo Nela

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01 WHO ARE
WE?
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WHO ARE WE?

• We are a specialist risk finance company that provides
customised financial solutions, sector knowledge, mentorship,
business premises and other value-added services for formal
small and medium enterprises (SMEs) in sub-Saharan Africa.

• We are passionate about funding, supporting and mentoring
entrepreneurs, or as we like to call them, the square pegs in
round holes.

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A LITTLE BIT ABOUT US

• Established in 1981 as the SBDC
• Public unlisted company with asset base of over R3 billion
• Shareholders: diverse and include many listed companies
• National office network comprising 19 branch offices
• Funded: use mostly own funds, limited borrowings
• Expanded into Africa (6 countries)*

*Kenya, Malawi, Namibia, Rwanda, Uganda & Zambia

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SOME OF OUR MILESTONES

R17,27 billion

Finance invested

653 801

Job opportunities

77 486

Business transactions

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OUR CORE ACTIVITIES

Financing

Property finance Business Mentorship
and Partners

management

Fund
management

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02 WHERE WE
INVEST
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WHERE WE INVEST

• Business Financing

– Acquisitions
– Expansion Finance
– Asset Based Financing
– Equity Finance

• Commercial Property Finance (CPF)

– Owner Occupied Properties (> 100% finance)

• Business & Property Financing: R 500 000 - R 50 million

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VIABILITY BASED FUNDING

• Focus on business: • Entrepreneurial ability:

– Business risk evaluation – Relevant experience:
– Business nature, stage technical skills,
– Gearing of business management skills
– Profit potential/history
– Growth potential – Track record
– Profile
– Integrity

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03 BUSINESS
MODEL
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BUSINESS MODEL

• Investment terms and return required will depend on:

– Own contribution by entrepreneur
– Surety of entrepreneur
– Securities available by business and/or entrepreneur

• Returns are obtained from the following:

– Term loan and/or shareholders loan

• Interest rate
• Fee
• Shareholding: minority

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PROPERTY FINANCE

• Up to 100% funding

• Main criteria:

– Owner occupied (>50% of property )
– Established and profitable business
– Afford loan installments

• Competitive interest rate

• Negotiate shareholding in property holding company

• Sell back shares over period of loan

– Exit strategy discussed at beginning
– Fixed monthly rentals
– No dividends

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Purchase Price OWNER OCCUPIED
PROPERTIES

Costs
Risk Portion

Secured Portion

PROPERTY FINANCE WITH
EQUITY PARTICIPATION

• Partners as per equity contribution
• Value added
• Project leaders and administrators handle the ground work

meaning the investors can be hands off
• Property maintenance can be done and managed by

Business partners
• Seen as a joint venture

PROPERTY FINANCE WITH
EQUITY PARTICIPATION

• Generally occurs for multi tenanted properties
• Basically the investor has money but is short of a portion and

Business Partners puts that portion as a partner/investor and
can be bought out later on

04 WHAT
MAKES US
DIFFERENT?

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TECHNICAL ASSISTANCE
FUND

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TECHNICAL ASSISTANCE
PROGRAMME FOR SME’S

Criteria

• In 2017 BUSINESS/PARTNERS partnered together with the Swiss State
Secretariat for Economic Affairs (SECO)

• Funding for:

– General TA (maximise efficiencies such as software systems)
– Specialist TA (ISO Certification / HACCP compliance)
– Industry sector TA support (rages from manufacturing to restaurants)
– Turnaround Management
– Training of employees

• New & existing Business Partners clients
• 0% Interest
• Capped to 30% of the original finance deal

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WHAT MAKES US
DIFFERENT?

• The approach • Funding flexibility

– Positively looking for – Seek financing methods
finance opportunities that make sense

– The desire to make funding • Prepared to take risk
available
– Want to be rewarded for it
• Personal contact

– It is all about relationships

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QUESTIONS?

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CONTACT DETAILS

BUSINESS PARTNERS - 043 721 1525
SIMPIWE BOOI (INVESTMENT OFFICER) – 067 023 8008

NOLUVO NELA (AREA MANAGER) - 079 188 5010

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THANK YOU

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