FAQ

Frequently Asked Questions
Frequently Asked Questions
Co-locating Partners

How is PSG & Associates related to TBP-NMB?

PSG & Associates is a national on-site partner of The Business Place Network.

Funding Facilitation

What is an off-take agreement?

An off-take agreement is an agreement between a producer of a resource and a buyer of a resource to purchase or sell portions of the producer’s future production.

What is an Escrow account and how does one go about opening and closing this type of account?

An Escrow Account is an account in which funds, held by a third-party on behalf of transacting parties, are accumulated for specific disbursements.

 

An escrow account can be opened at any one of the major commercial banks.

 

This is usually a temporary account, as it operates until the completion of a transaction process, which is implemented after all the conditions between the borrow and the lender are settled.

 

In terms of a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time.

What is a Cession of payment?

Financially strapped contractors often have to resort to funding contracts and the purchase of necessary materials by raising money or buying materials on the security of a cession of the right to receive payments from the Employer.

 

A cession is a transfer of rights from one person/entity to another.  The person/entity transferring the rights is known as the cedent (normally the lender) and the recipient (normally the borrower) as the cessionary.  Many forms of transfers of rights may exist.

 

The following is a list of some of the more common types of cessions that a financier would obtain from a borrowing customer as Security offered for debt:

 

  1. Cession of Life Policies
  2. Cession of Internal and External Investments
  3. Cession of Debtors (Book Debts)
  4. Cession of Shareholders Loans / Loan Accounts
  5. Cession of Fire Policy (only as collateral Security)
  6. Cession of Inheritance
  7. Cession of Shares
  8. Cession of Unit Trusts
  9. Cession of Rentals
  10. Cession in securitatem debiti – This is a Cession taken for Security purposes only and differs from a conventional Cession involving a once off – and complete transfer of rights from one party to another.

What is Purchase Order funding and who can apply for it?

Purchase order financing is a short-term commercial finance option that provides capital to pay suppliers upfront for verified purchase orders. Businesses avoid depleting cash reserves or declining an order because of cash flow challenges.

 

Entrepreneurs who have been awarded tenders/contracts, who have in their possession a valid award letter or Purchase Order (with a Purchase Order number that can be verified) may apply for Purchase Order funding.

 

Please note: The Business Place Network makes use of an external ecosystem of financiers, and as such there is no guarantee that funding would be awarded.

 

Purchase Order funding compliance documentation required are as follows:

PURCHASE ORDER/ CONTRACT/ TENDER FINANCE/INVOICE DISCOUNTING

  • Copy of appointment letter/Contract and/or Purchase Order
  • Copy of invoice/s to be discounted (Must be from government, government departments, municipalities, parastatals or established corporate companies)
  • Quotations/ Pro-Forma Invoices
  • Latest 6 months bank statements
  • Valid tax clearance certificate
  • Summary of CSD Registration (if registered)
  • Latest proof of business address(lease, Sars statement, etc)
  • Latest proof of address for the director/s
  • Latest certified id copy of director/s

What is the difference between Loans, Soft Loans, Grants and Purchase Order Funding?

  • Loans
    • A sum of money that is borrowed, that is expected to be paid back with interest.

 

  • Soft Loans
    • A Soft Loan is basically a loan on comparatively lenient terms and conditions as compared to other loans available in the market.
    • The repayment of a soft loan might also include interest holidays. This process of extending soft loans is also known as soft financing or concessional funding.

 

  • Grant Funding
    • Grants are non-repayable funds or products disbursed or gifted by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual.
    • If an entrepreneurs financial needs are immediate, this would NOT be the route to take, as the award of grant funding takes time, furthermore there is no guarantee.

 

  • Purchase Order Funding
    • Purchase Order Funding is a short-term commercial finance option that provides capital to pay suppliers upfront for verified purchase orders. Businesses avoid depleting cash reserves or declining an order because of cash flow challenges.

Can you please provide me with a list of all your funding partners?

TBP National Funding Facilitators have relationships with a host of financiers, with varying degrees of risk appetites. Including but not limited to the following:

  • All commercial banks;
  • Equity financiers;
  • Private/Angel Investors; and
  • Developing Funding Institutes (DFIs):
  • The Department of Trade and Industry (The DTI);
  • Industrial Development Corporation (IDC);
  • Etc

What is the turnaround time for funding applications?

Turnaround times only become active once all financial compliance documentation, as per the selected financier, had been received.

  • Purchase Order Finance: 15 working days from date of submission to financier.
  • Cross-border Transactions: 21 working days from date of submission to financier.
  • Other Finance Transactions: up to 21 working days from date of submission to financier.

Do clients pay to submit a funding application?

No payment is solicited for the submission of a funding application. TBP-NMB assists clients primarily in achieving financial documentation compliance.

However, the following types of transactions would require the solicitation of fee due to  advisory services conducted:

 

  • Cross-border transactions;
  • Deal structuring;
  • Extensive due diligence requirements by financier.

Does TBP-NMB take a percentage of one’s business if their funding application gets approved?

No equity is taken in a client’s business by means of Funding Facilitation. Interest on financed amounts are at the sole discretion of the financiers that finance an application.

 

A minor fee could be charged, depending on the complexity of applications for:

  • Due diligence;
  • Deal structuring; and
  • In the case of cross-border transactions.
Training/Workshops

Does your organisation issue certificates for your training courses offered?

Yes.

 

Upon successful completion of all our non-accredited training, a Certificate of Attendance and/or Certificate of Completion is awarded to our trainees.

 

Upon successful completion of any of our accredited training courses offered, an Accreditation Certificate is awarded to our trainees.

 

Any workshop sessions attended bear no certificates in any form at present.

What is your refund policy?

All charged for training bears a non-refundable booking fee.

 

On occasion, bookings are made of which are not attended on the day of the training. Often times, the value of the training is worth far more than the nominal booking fee. The non-refundable booking fee ensures that there is commitment by the trainee, as an empty seat on the day of the training is a wasted opportunity.

Why doesn’t TBP-NMB offer the accredited Micro-MBA Course?

TBP-NMB does offer the accredited Micro-MBA course. This however only takes place once a year.

 

There are much more stringent policies and procedures when it comes to the accredited Micro-MBA course. Furthermore, once the course has concluded, a 3 month period of mentoring and coaching begins, whereby the trainee visits our offices, engages with their facilitator to ensure that they are properly implementing what they have been taught on the course.

 

After the 3 month period of the mentoring and coaching had concluded, the trainee would then present their Portfolio of Evidence (PoE) to our national assessor.

 

Thereafter the trainee would be awarded their Accredited Certificate.

Is there a cost involved if you are interested in attending a workshop/training session? If yes, how much?

The Business Place

Are you a Government Department/Agency? If not, why is the NMB Municipality’s logo showcased on your branded items?

Who funds this initiative?

Does one pay to access the services your walk-in centre(s) offers?

What services does The Business Place offer?