About IDCOur minimum requirements
- A minimum loan size of R1 000 000; and
- Minimum equity amount is R5 million
Our minimum investment requirements
- Security, the form and nature of which will relate to your specific circumstances;
- Compliance with international environmental standards;
- Shareholders/owners are expected to make a significant contribution, generally 35% of total assets for going concerns and 45% - 50% for start-ups, depending on the industry norms and risk profile. We prefer our exposure not to exceed that of the owners of the business. However, the contribution of Historically Disadvantaged Individuals (HDIs) under specific circumstances may be lowered, in which case the IDC will be prepared to extend finance in excess of the owners’ contribution; and
- The project/business to exhibit economic merit in terms of profitability and sustainability.
Note: the IDC does not refinance assets, since our aim is to expand the industrial base.
In the case of take-overs and buy-ins by HDP partners we require:
- A signed 'Offer to Purchase' agreement between the seller and the buyer or a signed Letter of Undertaking from the seller indicating the buyer's preferred bidder status.
- Offer to purchase should be valid for at least 3 months and give the IDC an exclusivity period of at least 2 months.
- Detailed information on the partners, such as the group structure and business activities.
- An independent valuation (including underlying assumptions) of the target company.
- Details of IDC funding and the application thereof.
- Details of the contribution by the purchaser.
- A signed draft plan explaining involvement by the HDPs in the operational and/or executive management.
- Proof of limited scope of due diligence performed by HDPs on the seller's business.
- A business plan. Click here for more information on how to write a business plan.
- Latest audited financials, management accounts and financial projections for the target company.
- A covering letter with details of the finance required from the IDC.
In the case of expansions by existing businesses we require:
- Latest audited and actual financials (signed by the Finance Director, MD or CEO).
- Your updated business plan focusing on the proposed project/expansion. Click here for more information.
- A detailed description of the nature of expansion, its related costs and revenues.
In the case of small, medium and start-up businesses we require:
- A comprehensive business plan.
Who to contact
For more information on the Textiles and Clothing Strategic Business Unit, please click here to contact us or call us on 086 069 3888 or +2711 269-3131. Alternatively, email our call centre at callcentre@idc.co.za
