The following lending terms apply:
- Minimum direct loan amounts will be R13 000 and maximum R5m. Loans below R13 000 are provided via third party micro-financiers.
- No single investment will exceed the investment amount of R5 million.
- Maximum repayment term will be 5 years.
- Contract financing will be done for existing clients to assist with cash flow needs and long term sustainability, on 90 day repayment terms.
- Interest rates will be applied on a sliding scale, subject to change without prior notice as follows:
- The default lending structure is debt, but in certain instances the loan can be structured in the form of equity, or a combination of debt and equity.
Masisizane will not provide loans:
- to businesses without a demonstrable primary source of repayment; other than the liquidation of collateral;
- for purposes that may not be legal;
- for purposes that may be immoral;
- to tobacco, wine, or gambling businesses;
- to finance war, defense or military related activities;
- to businesses that do not create or retain jobs;
- to finance speculative operations or businesses;
- to professional firms;
- to finance residential real estate;
- to finance speculative (or investment) commercial real estate and /or loans to finance commercial real estate that is not or will not be owner occupied;
- to non creditworthy businesses or entrepreneurs;
- to applicants that are not current on their tax filings and that have not executed and complied with a repayment plan with the relevant tax authority for six months;
- to insiders;
- to operations that cannot demonstrate how the business and community will benefit from the use of the loan fund; and
- to businesses that relocate outside of Masisizane’s target market.