Acquiring Business Partners Limited finance
- What are the main criteria for investment?
- What are the Business Partners Limited’s investment parameters?
- What is the requirement regarding own contribution?
- What security is required for the finance?
- What is the repayment period?
- What investment options does Business Partners Limited offer?
- How does an entrepreneur qualify for Business Partners Limited investment financing?
- How do you apply for finance?
- How long does it take from offering a business plan to getting an answer?
- What does Business Partners Limited charge for the finance offered?
- Business Partners Limited offers unique financing solutions for entrepreneurs. How does it structure these solutions?
- Does Business Partners Limited always become a shareholder in the company?
What are the main criteria for investment?
Potential investments are assessed on the viability of a business. Viability of a business comprises of two important elements: the business and the entrepreneur.
The business evaluation includes matters such as the product or service (market acceptability, market size, gearing of the business, ability to exist and grow, history, the stage of its development and medium- to long-term profit potential, technical aspects and the location).
In evaluating the entrepreneur aspects such the ability to run a successful business, integrity, drive, vision and appropriate experience, will be considered.
What are the investment parameters?
Business Partners Limited prefers financing options of more than R500 000 per application and will in exceptional cases finance more than R25 million. The current average value per financing transaction is R1.8 million. Property transactions up to R30 million and multi tenanted properties of up to R75 million may be considered.
What is the requirement regarding own contribution?
Although there is no minimum requirement regarding own contribution, the lack thereof places strain on the gearing of the business and thus effecting the viability of the project.
What security is required for the finance?
As a viability-based investment company, Business Partners Limited does not have the same security requirements that the commercial banks do. The level of security will have an influence on the kind of transaction which Business Partners Limited is able to offer, and also effects the overall pricing of the finance.
What is the repayment period?
Business Partners Limited, in consultation with the client, will establish a suitable repayment period during the initial investment negotiations. On average, the repayment period is five years. Property transactions up to ten years are considered. Business Partners Limited does not offer typical bridging finance over short periods of time.
What investment options does Business Partners Limited offer?
Business Partners Limited’s investments are structured using term loans, equity and shareholders’ loan accounts or any combination of these.
How does an entrepreneur qualify for Business Partners Limited investment financing?
All entrepreneurs with a viable or potentially-viable formal business will be considered for investment financing. Each application is considered on its merits and on the potential profitability of the enterprise. The skills, experience and industry knowledge of the entrepreneur (or entrepreneurs), as well as the market need for the business’s products or services, are two of the most important criteria considered when assessing an application for investment financing.
How do you apply for finance?
Business Partners Limited focuses on the viability of the business and thus needs information. A business plan will assist to understand the background and activities of the business, the funding requirement, the entrepreneurs involved, and where the business is heading.
A business plan framework is available on our website for your reference, but information in other formats is acceptable. Sufficient information is required for Business Partners Limited to make an informed decision.
Contact the nearest Business Partners Limited office and enjoy and interview with one of our consultants, who will guide the entrepreneur through the decision making process.
How long does it take from offering a business plan to getting an answer?
This depends on the comprehensiveness of the business plan, the complexity of the matter and the level of co-operation from the entrepreneurs.
What does Business Partners Limited charge for the finance offered?
The price of the funding is the result of the risk associated to the transaction. A better secured facility will have a more market related rates compared to transactions with a higher risk profile due to the inherit financial (security) risk as well as the business risk (the business and the entrepreneur). The approach is the higher the risk the expected higher return.
Business Partners Limited offers unique financing solutions for entrepreneurs. How does it structure these solutions?
The circumstances of each application differ and Business Partners and the applicant will evaluate possible financing solutions.
Does Business Partners Limited always become a shareholder in the company?
No. There is a range of financing products available where obtaining a shareholding is not done.
Where the risk is high, Business Partners Limited may want to be compensated for the risk by negotiating a minority shareholding in the business.