What is the difference between a grant and a loan?
Our fees are dependent on the type of service we are rendering.
Advisory work is billed either as a fixed fee, retainer or hourly.
Capital raising is charged based on a risk sharing model – this means that both we (Uzenzele) and the Client (you) share the risk, with us taking the lion’s share of the risk. A “commitment fee” is payable to start the application process (this will cover ~ 10% – 50% of the time we spend on the project) and a “capital raise fee” (calculated as a percentage of the funding amount) is paid upon successful capital raising.
We do not work at 100% risk under any circumstances.
What type of funding does Uzenzele raise?
We are a specialist firm that focuses on capital raising, since 2010 and we’ve raised over R2 billion for business owners (ranging from R10 million to R1 billion). This means that when we work with a Client our ultimate goal is always raising the funding needed.
We understand the funding landscape intricately and know what different funders are looking for in an application. Our business cases/plans are designed to appeal to a specific funder, increasing the chances of success, while ensuring your interests are secured.
Our focus is not only on “ticking all the boxes” to get an approval, but ensuring that once approved, the funding can be drawn down and implemented in a project that will achieve its purpose and have longevity.
We also understand how to structure applications so that you don’t leave money on the table.
We focus on the details of the business viability and spend immense time on ensuring the sustainability thereof, the time we take to prepare, submit and facilitate an application runs into thousands of professional hours. Our focus is not only on “ticking all the boxes” to get an approval, but ensuring that once approved, the funding can be drawn down and implemented in a project that will achieve its purpose and have longevity.
It is because of our dedication to our client’s success in the long term (and not only is acquiring an approval letter) that all the projects we have raised funding for are operational and growing, and why our success rate with funders is ~ 96%.
Why should I use Uzenzele to help me raise funding?
Grants, loans (incl. mezzanine) and equity.
We raise funding for different requirements, including for working capital and capital expenditure needs to finance contracts, growth, expansion, replacement of equipment and other requirements.
We do not assist with venture capital or angel investors.
What is the difference between a grant and a loan?
A grant is funding awarded to a business that is not repayable. A loan is funding awarded to a business that must be repaid to the funding institution on agreed upon terms (including interest and time period).
Are grants only available for majority black-owned companies?
No. There are many grants available in South Africa. Most do not require any black (as per the B-BBEE codes) shareholding. Almost all grants do require that an applicant is BEE compliant, i.e. that you have a valid B-BBEE certificate. Depending on the grant and its specific criteria, the B-BBEE level required will be different.
How long does it take to raise funding?
There are various factors that determine how long it takes to raise funding. These include:
- The type of funding being sought
- The readiness of the business/project to raise funding
- The type of funder being approached
- The complexity of the project and/or funding type
Some funding can be raised as quickly as 2 weeks, while other funding could take 12-24 months to raise (or longer).
We look at each project individually to determine which funder and type of funding is appropriate. Based on our analysis, we are able to provide our clients with an indicative timeline.
Is Uzenzele a funder?
No, we facilitate funding. This means we help businesses to raise capital from funding institutions. We do not fund business ourselves.
Can Uzenzele help me raise funding for my project?
We would need to know more about your business – fill in our enquiry form and we’ll get back to you (redirect to enquiry form).
My project is a startup, is there funding available?
Depending on the type of project, the entity structure and your industry, there may be funding available. Most of the grants in the market are available to start-ups and existing businesses – provided they meet the minimum eligibility criteria. Most loan providers, on the other hand, do not fund startups as they require trading history (track record) before considering an application. To know if we can assist your business fill in our enquiry form and we’ll get back to you (redirect to enquiry form).
How do I know if I am ready for funding?
The best way to know if you are ready for funding is to engage with us to undertake an analysis of your business/project. This is vital to ensure that when you finally do prepare your funding application you are ready to do so.- this will increase your chances of success by at least 50%.
What is a bankable plan?
A “bankable plan” refers to a business plan or project proposal that is sufficiently detailed, well-structured, evidence based, and convincing, indicating that it is a viable investment opportunity and has a high likelihood of success.
It essentially means that financial institutions or investors consider the plan strong enough to justify the provision of funding or investment.
Do I have to pay back a grant?
No. A grant is funding that is not repayable. However, a grant has conditions and if they are not met, the funder can cancel the grant or demand it be paid back.
In some instances, grants might be converted into other funding instruments such as equity or a loan.
What interest rate do funders charge?
The interest rate charged by lenders varies significantly. Factors that contribute to the interest rate include the risk profile of the borrower, the funding institution, the type of funding, any special criteria that might be relevant.
Funding could be as low as interest free or as high as 25% per annum.
Importantly, while government funding institutions do have some funding at preferential rates, most of their funding is prime linked and having black/youth/woman ownership does not automatically mean a lower interest rate will apply.
Is Uzenzele a business incubator?
No, we are a professional services company.
Is Uzenzele a government institution?
No, we are a private company and are not affiliated with government institutions.
I need less than R10 million, why can’t Uzenzele help me?
Due to the type of advisory and services we provide, the fees associated with raising less than R10 million are typically not justifiable for business owners and the revenue we earn from raising less than R10 million is not sufficient to cover our costs.
Because we focus on the details of the business viability and spend immense time on ensuring the sustainability thereof, the time we take to prepare, submit and facilitate an application runs into thousands of professional hours. Our focus is not only on “ticking all the boxes” to get an approval, but ensuring that once approved, the funding can be drawn down and implemented in a project that will achieve its purpose and have longevity.
It is because of our dedication to our client’s success in the long term (and not only is acquiring an approval letter) that all the projects we have raised funding for are operational and growing, and why our success rate with funders is ~ 96%
I am not based in South Africa, can Uzenzele help me?
Yes. We can help businesses from anywhere in the world prepare bankable and financeable business cases. If you would like to discuss how we can help you, please contact us (redirect to contact page)
Can Uzenzele help raise funding for non-profit entities?
No, we only raise funding for “for-profit” businesses. The reason for this is that the type of funding institutions we deal with focus their funding on “for-profit” businesses.
Does Uzenzele guarantee success?
As there are so many factors that impact the success of a capital raising process, we cannot guarantee that a capital raise will be successful. However, as we work on a risk-sharing basis, we only take on projects that we believe will be successful. What we do guarantee is the quality of our work.
Am I involved in the capital raising process?
Your involvement in every stage of the project and process is critical. We are specialists at raising capital, you are the specialist of your specific business. We rely on you to provide us with the industry specific information needed to prepare bankable applications. We will always guide you to ensure the information is what we need to prepare a quality, bankable, application.