Sizanani Advisory Services also provides assistance to SME clients who may need to make use of the Khula Credit Guarantee Scheme which is a guarantee provided by Khula Enterprise Finance Ltd (established in 1996 by the DTI) to banks for clients who lack or have inadequate collateral or security to give to the bank..

Khula does not give a loan or assist with the financing of the business directly, but covers a portion of the bank’s risk on behalf of the small business.

Qualifying Criteria

In order to qualify for assistance under the Khula Credit Guarantee Scheme, the following criteria require to be borne in mind –

• The applicant(s) must be a South African citizen (100% SA shareholding)
• The applicant(s) must be owner manager on full time basis of the business (no dual business interest)
• The business must be located within the borders of South Africa
• The business must be economically viable and have a profit motive
• The applicant(s) must have sufficient level of skills and experience directly related to the business
• A minimum of 10% own contribution, verifiable, is required
• A Khula indemnity fee will be payable before draw down of the loan and on the anniversary of the loan until settlement
• All available security needs to be offered to the bank
• The finance is to be structured in the 20%-80% ratio (20% being working capital including stock, 80% for the acquisition of fixed assets

General Requirements

• Comprehensive Business Plan
• Annual financial statements for the past three-years for existing businesses
• Management accounts from existing businesses
• Proof of own capital contribution by the client
• Projected Annual Financial Statements for one year comprising
  • Projected Balance Sheet
  • Projected Cash Flow
  • Projected Income Statement
• Close Corporation/Company registration documents
• Purchase and sale agreement together with the assets register
• Copies of the lease agreement to be negotiated
• Copies of any contracts secured/Letters of intent
• Quotations for all the items to be purchased
• Six months bank statement (for existing account)
• Personal Statement of assets and liabilities rom the client
• Comprehensive CV for the members
• Copy of Identity document front page