SEFA
- Flexible repayment period
- Designed for financial stability
- Repayment up to 12 months
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- SEFA bridging finance product
- SEFA contact details
[Accessed July 25, 2023]
About SEFA
The Small Enterprise Finance Agency (sefa) is a South African agency that provides financial products and services to qualifying small, medium, and micro-enterprises (SMMEs) and cooperatives in various sectors.
It was established in 2012 through the merger of three agencies, and its mandate is to foster the establishment, development, and growth of SMMEs and cooperatives to contribute to poverty alleviation, job creation, and economic growth.
Sefa provides access to finance efficiently and sustainably by providing loans and credit facilities, credit guarantees, supporting financial intermediaries, creating strategic partnerships, and developing innovative financial products.
Sefa: A development finance institution with a national presence
Sefa operates as a development finance institution with a national presence, and its values include acting with speed and urgency, passion for development, integrity, transparency, and innovation.
The agency has several partners that are integral to its role in clients' businesses, including government departments, development banks, and industry associations. Sefa also works with subsidiaries, associates, and intermediaries to invest in companies and contribute to their growth.
Access to finance for SMMEs and cooperatives: How sefa is making a difference
Sefa is a development finance institution that provides financial products and services to SMMEs and cooperatives in various sectors to foster their establishment, development, and growth, contributing to poverty alleviation, job creation, and economic expansion.
The agency provides access to finance through various means acting with speed and urgency, passion for development, integrity, transparency, and innovation.
Sefa partners with government departments, development banks, and industry associations, and works with subsidiaries, associates, and intermediaries to invest in companies and contribute to their growth.
SEFA Services
Sefa's bridging loan product offers short-term financial solutions to businesses that require immediate cash flow to maintain their financial stability. It’s mainly intended for business-to-business transactions and is most appropriate for enterprises that have contracts with other businesses.
The product provides businesses with the means to meet their obligations in the short term, such as purchasing stock or covering operating overheads, before receiving payment from their customers.
Flexible repayment terms for sefa's bridging loan product
The bridging loan product offers considerable flexibility in terms of repayment period, as the repayment schedule is tied to the duration of a contract for up to 12 months. This characteristic allows businesses to have the necessary time to produce revenue and settle the loan.
Eligibility criteria for sefa's bridging loan product
To qualify for the bridging loan product, you must have a legal business entity, which could be a sole proprietorship, partnership, cooperative, non-profit organisation, close corporation, or private or public company.
Furthermore, your business must be under the complete control (100%) of a South African citizen with a valid South African identity document, and all operations financed through the loan must be conducted within the boundaries of the country.
Eligibility and qualification criteria for sefa's bridging loan product
To qualify for the bridging loan, the proposed project must demonstrate the potential to achieve a certain level of developmental impact, which is aligned with sefa's Corporate Plan. Such impact may include promoting economic empowerment and creating employment opportunities.
Moreover, your business must have the potential to sustain itself and be commercially viable, with a strong ability to repay the loan. In the case of direct lending, your project should have at least 51% ownership by black individuals or entities to meet the eligibility criteria.
Sefa’s bridging loan: A valuable solution for short-term financial assistance in South Africa
Sefa's bridging loan product provides a valuable solution for businesses that require short-term financial assistance. With its immediate cash flow, flexible repayment terms, and eligibility criteria that promote job creation and economic empowerment, Sefa is supporting the growth and success of South African businesses.
SEFA – Bridging Finance
- Loan Type Bridging Finance
- Repayment 12 months
Benefits of SEFA
- Immediate cash flow for business stability.
- Designed for business-to-business transactions.
- Flexible repayment tied to contract duration.
- Eligibility for legal South African business entities.
- Developmental impact and viability criteria apply.
- Support for short-term financial needs in South Africa.
Guidelines for sefa’s bridging loan application: Key requirements and information needed]
The Small Enterprise Finance Agency (sefa) has the following guidelines for businesses seeking access to funding.
The guidelines contain a comprehensive summary of the business, including the phase of the business (whether it is in the start-up, expansion or acquisition stage), the business's history and background, the industry in which it operates, its shareholding structure, the products or services it offers, and the intended market.
The guidelines also stipulate that information must be provided regarding revenue, profitability, and other significant matters, such as the number of new and existing jobs that will be created and the acquisition of new/existing contracts or letters of intent.
Additional requirements for bridging loan applications
Other requirements include company information, contact person, shareholder information, company structure, business operations, products and services, market (industry) analysis, target market, marketing strategy, and sales strategy.
In the case of existing businesses, further information is needed on current contracts/orders being fulfilled, including remaining periods and/or volumes of these contracts/orders, as well as details about significant customers and any non-contract-based work undertaken each month during the previous twelve months.
The guidelines also require information on the competitive environment, such as a list of key competitors, competitor analysis, the competitive edge of the business, the method relied upon to make sales, and barriers to entry.
The location of the business is also important, with details required on the suitability, access to suppliers and customers, compliance to applicable legislation, proof of title or existing/proposed lease agreement, offer to purchase or sale agreement, regulatory approvals obtained or at least applied for, and availability of bulk services such as water and electricity.
Finally, information on the external environment, including political, economic, social, and technological trends that will impact the business, is required.
Exclusions for client relationships and facilities by sefa
The guidelines list out the exclusions or situations in which sefa will not engage in client
relationships or provide facilities. These exclusions include;
- Real estate investments made with the intention of making a speculative profit.
- Trading and/or hedging activities that involve a high degree of risk.
- Political groups or organisations.
- Trade in firearms and ammunition.
- Charitable organisations that do not aim to generate profits.
- Purchasing businesses that are losing money and are unlikely to become financially sustainable.
- Entities that could harm sefa's reputation.
- Individuals and organisations that have been listed as delinquent.
- People who are undergoing debt review.
- Companies undergoing business rescue or liquidation.
- Entities that violate relevant laws or regulations, or contravene tax, accounting, environmental laws, and other regulatory requirements.
Furthermore, sefa will not engage in lending that does not have a positive impact on development or ventures that are not aligned with its mandate.
The guidelines also forbid entities that participate in labour involving minors and/or labour-brokerage activities. Finally, entities, where a sefa employee or board member (including immediate family members) has a financial interest, are excluded from the client relationship.
SEFA Contact
Physical Address
- 11 Bylsbridge Blvd, Doringkloof Centurion 0157 South Africa
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Opening Hours
- Monday 08:00 – 17:00
- Tuesday 08:00 – 17:00
- Wednesday 08:00 – 17:00
- Thursday 08:00 – 17:00
- Friday 08:00 – 17:00
- Saturday – Closed
- Sunday – Closed