Spartan

Spartan was founded in 1981 by CEO and co-founder Kumaan Padayachee and is based in Johannesburg.

With more than 40 years in financing, they have a wealth of experience to offer owners of small and medium-sized businesses who are looking for finance.

What makes Spartan different

• They're passionate about building South Africa up, by backing entrepreneurs who are serious about their businesses.
• They only deal with SMEs (small to medium-sized enterprises).
• They’re independent.
• Their tailored approach makes them special and an alternative to traditional banks. Their processes are focused on entrepreneurs.

They operate in a vision and value-led space and they encourage contributions from like-minded individuals. They believe in empowering you and themselves to achieve more.

The culture at Spartan-building a thriving South Africa

• Their style makes them successful at backing entrepreneurs.
• They’re honest, disciplined, and genuinely interested in every detail of your business.
• They believe in teamwork and collaboration.
• Their approach is flexible and they’re goal orientated.
• They’ll empower your personal growth through ongoing education that’s not only academic in nature.
• Because they’re in the business of finance, they’ll apply themselves to structuring a deal for your business.

About Kumaan Padayachee, the CEO

He has a BCom Acc from Rhodes University and a Masters in Entrepreneurship from MIT in the USA. He has been Certified as an Expert in SME Finance through the Frankfurt School of Finance and Management in Germany.

His experience includes having financed SMEs for the last 22 years. He's a Fellow of the Aspen Global Leadership Network and he's a member of EO (Entrepreneur’s Organisation). He’s a co-host on 2 television shows on Business Day TV, ‘SME Funding’ and ‘Big Small Business Show'.

Spartan’s Fintech tools explained

Spartan knows that you expect quick results and engagement that suits you and that you may not enjoy paperwork. Therefore they incorporate user-friendly technology into every aspect of their business. They believe your business will thrive with their innovative approach, and they were early adopters and pioneers of software finance.

Bridging finance by Spartan

• 1-3 month terms for contracts or projects
• Qualify in under a minute
• Apply online in under 12 minutes

Do you know what bridging finance is?

Spartan bridging finance is a product that helps business owners solve cash flow challenges caused by growth in the business. It’s for a one-time expense or regular use in the business for 1,2 or 3-month terms. If your business is based on contracts or projects, then this is a good solution to use.

Regarding transaction terms, Spartan's bridging finance offers loan sizes ranging from a minimum of R1 million to a maximum of R25 million. This flexibility enables businesses to access the funds needed to meet their unique financial obligations. For example, if a company has secured a valuable contract or project but faces challenges in managing cash flow, such as covering payments to suppliers and staff while awaiting client payment for several months, Bridging Finance can effectively bridge this gap.

There are various scenarios where bridging finance proves advantageous. It empowers businesses to obtain the necessary resources, stock, and supplier support to successfully fulfil contractual obligations or complete projects.

Additionally, bridging finance can cover the period when customers delay payment for 30, 60, or even 90 days after delivery. It can also assist in managing Value Added Tax (VAT) for significant transactions, allowing businesses to meet their VAT obligations to SARS while awaiting payment. Furthermore, Bridging Finance serves as a valuable tool in situations where there is a time gap between the sale of an asset (e.g., business, property, plant, or equipment) and receiving payment.

Why would you choose bridging finance?

• It’s an appropriate process to help expand your business.
• It’s a tailored finance solution, structured to suit your unique need.
• You’ll have the control and assurance to handle projects and contracts.

How Spartan’s bridging finance works

When you’ve reached the point that you need temporary help with cash flow because of your business growth, then they can assist you to fill this need.

Common credit criteria

• They’ll do a credit assessment of your business, available collateral, and sources of payment.
• It’s only for cash flow needs caused by the growth of the business, not by distress.

Common transaction terms

They do loans of a minimum of R1 million and a maximum of R25 million.

When Spartan bridging finance might be used

If you’ve secured a lucrative deal and need to deliver your end, but find you face new, different challenges because of cash flow issues like having to pay staff and supplies but only being paid by your new customer after 3 months.

Why you might use it

• To build capacities like acquiring new stock etc to deliver on the new project or contract.
• Because of the delayed payment of 30,60, or 90 days from clients
• VAT on large contracts needs to be paid now, even if you’re waiting for your invoices to be paid.
• After the sale of assets, eg property or equipment, and before collecting payment, you might need bridging finance.

Spartan’s minimum criteria for finance

• The minimum finance amount is R1 million, going up to R25 million, or even higher.
• Your business is an SME (small to medium-sized business) and has operated for more than 3 years.
• Your annual turnover is more than R10 million. Or
• You have an annual turnover from R5 million - R10 million, so long as there is growth context- eg acquisition, project, or contract.
• They may have some form of collateral.

Exclusions; who they won't finance

• Start-ups
• Micro or lifestyle businesses