NEW ENTREPRENEUR SUPPORT FUND BY CASIDRAUkuyila
Casidra is excited to announce a new Entrepreneur Support Fund to address the niche market of bridging contract finance between R5000 and R100 000 within the Small, Medium and Micro Enterprises’ (SMME) sector. This is the provision of low cost contract finance which aims to increase the capacity of small and micro businesses to access market opportunities which previously would have been out of their reach.
The growth and development of SMMEs are critical to address the high levels of unemployment in South Africa. However, the challenges faced by SMMEs are numerous and unless addressed, the unemployment challenge will be exacerbated.
Numerous experts, researchers and academics have identified ‘access to finance’ as a challenge faced by most SMMEs. In addition, recent research conducted by and through various national (South African) and international organisations and agencies has ratified this opinion and consistently identified and highlighted the market failure in terms of financial assistance to SMMEs in South Africa and abroad.
A segment of access to finance, namely contract financing, which is critical to the survival and growth of small and micro businesses, is in an even more dire state. Despite the numerous contract finance products on offer, both from the public and private sectors, as well as the stringent conditions and range of funding are not suited to small and micro businesses.
Casidra’s Entrepreneur Support Fund for SMMEs is modelled on lower interest loan rates, diminished red tape practices and with a more developmental approach, as opposed to being managed on purely commercial principles.
The following BENEFITS are available to SMMEs when accessing the Fund:
- Financial capacity to deliver on contractual obligations – sufficient funds will be available to do the work;
- Reliability and consistency – the availability of funding will increase the probability of work being delivered on time; and
- Integrity and good image – The Fund will enable SMMEs to build working relations (good reputations) with private sector buyers and will consequently be able to access more market opportunities.
Casidra is a registered credit provider of the National Credit Regulator and will use the simplified criterion for the disbursement of funds. To be considered for assistance, applicants must be based in the Western Cape and have been awarded a tender/contract. The full loan amount is due and payable once the tender/contract is completed and the borrower has received notification of the payments. Casidra will be fully responsible for the managing of the Entrepreneur Support Fund and will conduct all due diligence processes.
For more information, contact Casidra’s Senior Project Manager, Leon Faro, at Tel: 021 863-5000, firstname.lastname@example.org or visit www.casidra.co.za for criterion and relevant information.