BUSINESS CAPITAL
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ABOUT BUSINESS CAPITAL

 

Want to know how to grow your small business? Come to Business Capital. Our mission is to help businesses growby overcoming the temporary hurdles of restricted cash flow. Our vision is to be a world-class empowerment organisation, setting high industry standards for other competitors by providing leading capital solutions to new and existing clients.

 

Our mission:

  • Generate steady and sustainable returns for our business partners. 

  • Provide the most comprehensive and personalised service to our business partners and clients. 

  • Exceed the expectations of our business partners and clients. 

  • Maintain a vibrant company that delivers high quality affordable solutions. 

 

Business Capital is a division of Eventfin, a world-class empowerment organisation providing leading capital solutions. We provide small business owners with cash advances, working capital loans or invoice discounts / factoring to help them grow their business.

 

Eventfin’s other division, Tender Capital, empowers SMMEs by providing working capital and support to fulfilgovernment and parastatal tenders.

 

Our quick turnaround time provides financial assistance, while the client remains in full control of the opportunity and running of the business.

Contact us

to find a suitable cash flow solution for your business.

Tel: 087 550 1953 / 012 004 0581

HOW BUSINESS CAPITAL WORKS

Business Capital aims to fast-track your business growth with a cash flow solution that will help you to achieve all your business goals. If your business is eligible, we offer cash flow solutions that are available in as little as 5 days.

 

It’s easy…you grow and we provide funding. Our repayment terms are flexible when business is down, you have the option to decrease your installment. 

CASH ADVANCE FOR RETAILERS

working capital loan (or merchant cash advance), allows small business owners with fixed (non-liquid assets) to finance your company’s short term operational needs, such as buying extra stock, hiring additional staff or purchasing equipment. The loan amount is based on your business’ average monthly turnover.

 

You’ll receive the cash advance in a lump sum, to your business’ bank account, in exchange for a percentage of future card (or EFT) transactions for a pre-agreed period. Each trading day, the pre-agreed percentage of sales will be deducted until your advance is fully paid off. When business is slow, you have the option to decrease your installments based directly on sales – this keeps payments flexible.

CASH ADVANCE FOR PROFESSIONAL SERVICES

 Professional services such as accountants, doctors and lawyers are often challenged when trying to grow their business by temporary cash flow problems that prevent them from expanding optimally. If you’re a professional(certified and belonging to a professional body) looking to expand your practice, you could qualify for a professional cash advance that is faster and easier than applying for a traditional loan.

 

If your business is over a year old and generates upward of a million Rand annually, you can apply for professional funding up to R 1 500 000. This cash advance is based on your future earnings, instead of using your assets as collateral, for the loan. A professional cash advance isn’t actually a loan – it’s the sale of future earnings at a discount. 

  • Buy new equipment

  • Marketing

  • Refurbish your practice

  • Payroll

  • And take advantage of other essential business opportunities

 

INVOICE FINANCING

 Just like a working capital loan, Invoice Discounting / Factoring helps solve your short-term cash flow problems with a cash advance.

 

Invoice Discounting / Factoring uses your unpaid accounts receivable as collateral for the loan. The loan amount is typically around 80% of all invoices less than 90 days old. This allows you instant access to funds that are outstanding on customer invoices where, for example, your customers work off a 60-day account.

 

FAQ

What is the risk of using Merchant Cash Advance (subs in Invoice Discounting/Professional Services etc.)?

The purpose of using a Merchant Cash Advance is to assist in growing your business. If you do not apply the advance towards your growth, the chances are you will put more stress on your cash flow.

What is the risk of not using a Cash Advance Service?

The saying goes “Cash is King” – cash strapped businesses cannot grow and without growth, death is imminent.

What can I use the money for?

You can use the capital any way you deem fit to benefit your business, for example: Stock – Renovate – Revamp – Refurbish – Payroll – Advertising – Expand – Repair – Emergencies – Equipment - Marketing.

What if I have a bad month and can't afford repayments?

The good thing is that should your business experience a slow month, you have the option to pay less. Your balance that we quoted up front, never gets higher.

Can I afford this solution?

We determine the amount we can offer you based on the average of your last 6 months card statements. We also use an Industry standard to determine the affordability of your repayments based on the type of business.

How quickly can I get cash?

Within approximately 5 working days after we received a fully completed application, as well as the required documents.

When do I start repayments?

Depending on your payment frequency, but after 3 days when using a daily frequency. On a weekly frequency, the following week. You have the option to specify the day of the week.

How easy is it to get approval for a Cash Advance?

It depends on the amount of your card sales and the average over the last 6 months. Over 80% of our applicants are approved, so this should be a smooth process.

How much do I qualify for?

We determine the amount we can offer you based on the average of your last 6 months card statements. Once you send us those statements, we can call you with a specific offer and we can get your advance started. It’s that easy!

Do you look at my personal credit history?

For most small businesses, your credit report is not affected and we have a business friendly scoring model that takes your business history into account, not your credit score.

How do I keep track of what I’ve paid?

We send you a monthly statement detailing how much you’ve paid for the previous month or months, and the outstanding balance on the advance. We are also working on an online interface where you can login and view your complete account at any time.

What kind of business are you willing to fund? What does it cost?

Restaurants Service Businesses e.g. Hairdressers, Spas, Nail Salons Retailers Convenience Stores Liquor Stores Butcheries Supermarkets Petrol Stations Delicatessens Auto Repair Shops

How much is the fee?

We understand that all businesses are unique. That’s why we require the last 6 consecutive months of your Debit/Credit card statements to generate a quote. Once received, I can give you a call within minutes with the amount we can get you and the exact cost to your business. You will then be in a position to make a decision on your business future.

How are my payments determined?

We simply receive an agreed upon percentage of your Card Sales until the advance has been paid. For example, if our daily percentage is 15% and you make a R1000 card sale, we get R150.00 from that sale. This simple process is repeated until the balance is paid….usually within 6 to 9 months.

Ok…how do I get started?

First thing is to provide me with the last 6 consecutive months of your Card statements. This requirement is to help us evaluate how much we can offer. Once we get the statements we will let you know exactly how much we can offer you and what the cost will be. Then we’ll set you up. Remember, we get the cash to you in approximately 5 business days, so the sooner you get me the statements the faster we get you the cash. Over 80% of our applicants are approved so this should be a smooth process.

What is the interest rate?

There is no interest rate on our product. It’s an advance, not a loan. We charge a one-time fixed fee. The way it works is, we give you an advance based on your card business and we charge a once off fee. The way you pay us back is, we take a small percentage of your daily transactions, until your balance with us is settled. For example, if we gave you R100k and were taking 15% of your Card transactions, every time a customer swipes their card for R1000, 15% (or R150 in that case) would come to us until your account is settled. The good thing is that should your business experience a slow month, you have the option to pay less. Your balance that we quoted up front never gets higher.

I have an existing Cash Advance with a competitor.

That’s great. You already know the benefits of the service. Usually I can increase the amount you’ve qualified for so I can get you more money. The rate we will offer you will very likely be lower as well. How large was your current advance? What is your payback amount? When did you receive your money? Who is it with? If you like my proposal, we can get the cash to you quickly. Do you have your last 6 months card statements?

I don’t need any money now.

The chances that I would call you on the exact day that you are looking to raise some extra capital is pretty slim. But when you do require extra capital, you would know who to call…Let me ask you this – if you had an extra R100,000 to put into your business, how would you spend it or what would you do to improve your business?