Let’s cut to the chase: The economy is in limbo, unemployment is at all-time high, particularly among the youth. Wealth is spread unevenly. These factors are causing immense strain amongst communities in South Africa. Regardless of the origins of this dilemma, we have to work at solving it and quickly, not merely chipping away at the edges. We have to tackle these issues in a practical and meaningful way. Although SME growth is core to economic development in South Africa, the access to finance for developing a business is one of the major obstacles SME’s face.
Offering comprehensive solutions for preferential procurement and enterprise development
- Asset based finance solutions between a black owned company and a financial institution.
- Black owned company must have a long-term contract with a blue chip company to provide goods / services that is produced by the asset.
- Standard Bank supports financing of assets based on contracts with relaxed surety requirements.
- IDC has a R4.5 billion youth fund also with relaxed surety requirements.
- Preferential Procurement, Supplier Development and Enterprise Development make up 44 points of BBBEE scorecard. Single biggest element in the BBBEE scorecard.
- Correctly structured, each R1 spent on goods/services from a 51% black owned company, will be recognized as R6 spent on the BBBEE scorecard.
- Supplier Development and Enterprise Development do not have to have a cashflow impact.
- Assets can be sold to these empowered companies which will also then qualify for Supplier Development or Enterprise Development.
- There are not enough black owned companies to collaborate with to increase your BBBEE level.
- We structure your Supplier Development and Enterprise development contributions such that it will add value to your business activities and processes.
- Training solutions using “Employment Tax Incentive” and Tax allowances for learnerships. Under certain conditions, you may even claim the full cost and be cashflow positive for the period.