Capital Solutions

ProfitShare Partners (PSP) provides alternative, short-term funding to qualifying small, medium, and micro-enterprises (SMMEs) to help them fulfil specific business opportunities. Our funding model is different from traditional bank lending and is structured around specific transactions, with PSP sharing in the profits generated from or relating to those transactions.

PSP is not:

• A bank or financial institution: PSP does not provide traditional banking services or operate as a bank. We offer an alternative funding mechanism designed to assist qualifying businesses that may not be able to access the traditional funding.
• A Financial Services Provider (FSP): PSP does not provide financial products, financial advice, or financial services regulated under financial services legislation.
• A credit provider: PSP does not provide traditional loans or credit facilities and does not provide funding in circumstances where the transaction would fall within the ambit of the National Credit Act.
• A venture capitalist: PSP does not take an equity investment in your business as part of its standard funding model. Instead, we partner with businesses on specific transactions and share in the profits generated from or relating to those transactions.

Many SMMEs struggle to access traditional funding, particularly where they are relatively new, lack a long trading history or do not meet the requirements of traditional lenders. ProfitShare Partners provides an alternative capital solution designed to help qualifying SMMEs take advantage of viable business opportunities.

ProfitShare Partners assists SMMEs in an effort to promote the spirit of entrepreneurship by enabling them to seize opportunities while empowering them to grow the South African economy. In summary, we provide short- or fixed-term funding to applicants who, in our view, have the requisite business acumen, opportunities and drive to grow their businesses in circumstances where they would not qualify for traditional funding, through the use of our innovative criteria, novel security and pioneering funding model.

We don’t invest in your business directly; instead, we partner with your business to help fulfil specific business opportunities. Consider ProfitShare Partners a funding collaborator whom you can approach not only in a time of need but, more specifically, to capitalise on your business opportunities, experience and knowledge. We are your business’s joint venture partner for the short term.

No. ProfitShare Partners funds a specific transaction rather than investing in your business. We fund the costs associated with fulfilling a specific Purchase Order and share in the profits generated from or relating to that transaction, subject to our eligibility requirements.

The minimum funding amount we generally consider is R250,000.00. This means that the costs associated with fulfilling the Purchase Order would generally need to be at least R250,000.00.

We will consider amounts of less than R250,000.00 at our discretion and where your business’s Annual Turnover exceeds R1,000,000.00 OR your business is able to satisfy us that its asset value, fairly valued, exceeds R1,000,000.00.

No. ProfitShare Partners does not provide loans and instead provides funding to your business. If your application is successful and you accept our quotation and terms, we fund the costs associated with fulfilling the Purchase Order, which may include paying your business’s suppliers directly.

If your business has a legitimate Purchase Order from a large, established corporate, State-Owned Enterprise (SOE) and/or government entity or municipality, we will consider providing funding to cover the costs of the Purchase Order on certain terms and conditions.

We generally do not fund high-performance-risk transactions, such as certain construction projects

No, ProfitShare Partners does not loan funds to the company. In the event that your application is successful and you agree to our quotation, terms and conditions, we will pay the costs payable to your suppliers.

No. ProfitShare Partners does not take controlling shares in your business. The control and day-to-day running of your business remain your responsibility and prerogative, subject to certain support we may provide.

This depends on the nature of the transaction and may include the following:

• The transaction must be acceptably profitable in relation to both the timeframes for repayment and the funding required;
• Appropriate mechanisms must be in place to ensure that the transaction can be properly monitored and managed;
• FICA and KYC requirements must be satisfied;
• The timeframes for repayment must be certain and acceptable;
• The party with whom your business is transacting must be reputable and able to meet the payment requirements of the transaction/s;
• Your business’s suppliers must be reputable and able to deliver in terms of your business’s requirements

An escrow or project account is a dedicated bank account opened in your business’s name with a large commercial bank and is used exclusively for the funded transaction. This bank account helps ensure that funds received and payments made in connection with the transaction can be properly managed and monitored. Where required, PSP will have agreed transactional rights in respect of the account.

We can provide support to help your business fulfil the requirements of the Purchase Order, deliver on time and receive payment. The nature of the support provided will depend on the requirements of the transaction.

ProfitShare Partners provides short-term funding. If the agreed funding term is exceeded, additional costs may apply. Any applicable costs will be clearly set out in your obligation-free quote