SIOC Community Development Trust (SIOC-CDT) Growth Fund

Funding Partnership to promote you in the Sishen Iron Ore Supply chain.

Welcome to the Sishen Iron Ore Community Development Growth Fund

This is an enterprise development partnership between SIOC-CDT and ProfitShare Partners to provide Purchase Order Funding as financial support to enterprises from our beneficiary communities.

SIOC-CDT will be covering the fees by ProfitShare partners to extend debt financing on flexible terms to selected, eligible enterprises that do not fit the traditional underwriting criteria of “general commercial banking requirements”.

The Growth Fund will focus on supporting enterprises operating in support of the Sishen Iron Ore Mine supply chain and who are situated within the SIOC-CDT beneficiary community areas, which are:

  • Ga-Segonyana
  • Joe Morolong
  • Gamagara
  • Tsantsabane
  • Thabazimbi

SIOC-CDT aims to support hundreds of early-stage businesses and to stimulate the creation of at least 1,000 net permanent jobs by offering funding support with Zero capital fees.


Minimum Amount

R 250,000


Maximum Amount

R 2,000,000


Term of Funding

PO period of < 120 days


Turnaround Time

  • 7 days from application to payout.
  • Existing SMMEs payout – 24 hours.

Pre-Qualification Criteria

  • Must be a registered company with CIPC.
  • Must have a purchase order or contract with SIOC-CDT/Sishen Iron Ore Mine or a large corporate or business.

  • Funding required must be short term i.e. 30, 60, 90 or 120 days. No purchase orders or contracts over 120 days are funded.


Surety
  • No security required.
  • Principal signs guarantor as a moral obligation to the deal.
  • Secondary bank account in the clients name is set up (Escrow account).

Why choose us

Easily Accessible
Credible
Supportive Team

FAQ’s

More information to help you

WHO AND WHAT IS PROFITSHARE PARTNERS?

To explain what ProfitShare Partners is, it is necessary to first explain what ProfitShare Partners is not.
 
ProfitShare Partners is NOT:
 
  • A Bank or Financial Institution. We offer an alternative funding mechanism which is able to assist clients even in circumstances where Banks and Financial Institutions cannot finance.
  • A Financial Services Provider (FSP). 
  • A Credit Provider. We do not lend in circumstances where the transaction would fall into the ambit of the National Credit Act.
  • A Venture Capitalist. Our model is best described as a hybrid between venture capital and private equity. We, however, do not wish to be involved in the shareholding structure of our clients’ business. Our funding model is designed to give SMEs a boost. We share in the profit and assist our clients in achieving financial sustainability to the point where they are either in a position to qualify for traditional finance or they no longer require finance.

WHAT DOES PROFITSHARE PARTNERS DO?

Our founders noticed a deficiency in the market. Recent trends have shown that banks and/or financial institutions generally provide finance and/or credit to those who do not necessarily need it. The provisions and restrictions of the National Credit Act (NCA) mean that Small to Medium Enterprises (SMEs) often do not qualify for a facility because they have not been in existence for long enough to meet certain criteria – irrespective of the profitability of the business, the experience of the persons in control of the business, or the opportunities that may be presented to a start-up or SME.

ProfitShare Partners assists small, medium, and micro-enterprises 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 short, we provide short-term, 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 by using our innovative criteria, novel security and pioneering funding model.

Through our funding solutions, we may not be investing in your business but we are investing in you. Consider ProfitShare Partners a funding collaborator whom you can approach not only in a time of need but more specifically to capitalise on your opportunities, experience and knowledge. We are your joint venture partner for the short-term.

IS PROFITSHARE PARTNERS INVESTING IN MY COMPANY?

No. ProfitShare Partners invests in a specific transaction and not your company. We will fund the costs of your deliverables directly to your supplier/s and profit share on that specific transaction only.

WHAT AMOUNTS ARE PROFITSHARE PARTNERS WILLING TO COMMIT TO MY BUSINESS?

The minimum amount is R250,000.00. This means your costs to complete the Purchase Order must exceed R250,000.00 (Two Hundred and Fifty Thousand Rand).

We will only consider amounts for less than R250,000.00 at our discretion and in the event that your Annual Turnover exceeds R1,000,000.00 (One Million Rand) OR if you are able to satisfy us that your net asset value, fairly valued, exceeds R 1, 000,000.00.

DOES PROFITSHARE PARTNERS CHARGE INTEREST?

We do not charge interest for a standard transaction. ProfitShare Partners is not a Bank, Financial Institution or Credit Provider.

We become your joint venture partner for a particular transaction (or transactions) for a share in the guaranteed profits of the transaction. We charge a deal management fee and recover legal costs that will be detailed in an obligation-free quote.

In the event that you breach any terms of the Agreement which may be entered into with us, we charge default interest at a rate equivalent to the Prime Lending rate plus 5% over and above our share of the profit. We may also charge interest on such percentage of the profit as agreed but yet unpaid.

WHAT TYPE OF TRANSACTION DOES PROFITSHARE PARTNERS FUND?

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

We do not partner on high performance-based contracts such as construction.

DOES PROFITSHARE PARTNERS LOAN THE FUNDS TO MY COMPANY?

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.

DOES PROFITSHARE PARTNERS TAKE CONTROLLING SHARES OF MY COMPANY?

No, ProfitShare Partners does not take controlling shares of your company. The control and day-to-day running of your company remains your responsibility and prerogative, subject to certain ‘Oversight’ and/or ‘Step-in’ Rights which we may elect to invoke. The extent of these rights will be fully detailed in the contract that will be presented to you once you have accepted our quotation. These rights can only be invoked in the event that you breach one or more of the provisions of your agreement with us.

WHAT ARE THE REQUIREMENTS FOR PROFITSHARE PARTNERS EQUITY CONTRIBUTION ?

  • The transaction must be acceptably profitable in relation to both the time-frames for repayment and the funding required;
  • We must be satisfied that sufficient mechanisms can be put in place so that we cannot be circumvented;
  • The time-frames for repayment must be certain and acceptable;
  • The party with whom you are transacting must be reputable and able to meet the payment requirements of the transaction/s;
  • Your suppliers must be reputable and able to deliver in terms of your requirements;
  • We have to be satisfied with the nature and amount of security you are able to furnish.

WHAT NATURE AND FORM OF SECURITY DOES PROFITSHARE PARTNERS REQUIRE?

  • Personal surety by the persons in control of the applicant and, if such persons are married in Community of Property, surety by their spouses. This surety is required to be joint and several, together with the applicant and determined with reference to the capital outlaid by us, our administrative costs and the profit share agreed to;
  • A cession and pledge of the proceeds of the venture by the applicant to us;
  • The opening of an escrow account (a separate bank account in the name of your company);
  • In exceptional  circumstances, we may require a covering notarial bond or a mortgage bond.

WHAT IS AN ESCROW ACCOUNT?

An escrow account is a transaction account that is opened with a large commercial bank in your company’s name, however, we hold the administration rights of the account.

WILL PROFITSHARE PARTNERS HELP ME WITH PROCUREMENT / HELP ME WITH PURCHASE ORDER FULFILMENT?

Yes, we will help you in fulfilling the conditions of the purchase order in order to get paid timeously and deliver according to the requirements of the order. We can also project manage the process. This is subject to the requirements of ProfitShare Partners.

ARE THERE ANY PENALTIES?

ProfitShare Partners is a short-term equity partner. If the term agreed upon is exceeded, penalty charges will apply. Penalty fees will be recorded on the obligation-free quote.

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