what we offer
The Development Finance sub-unit manages ECDC’s business finance product offering and assists small to large enterprises gain access to finance.
Through both short-term and long-term product offers, ECDC has set itself apart as the financial service provider of choice for initiatives that bring a meaningful development impact to the Eastern Cape economy.
ECDC, through its Development Finance sub-unit, facilitates financial viability and sustainability of these initiatives through the provision of financial resources at highly competitive rates.
With an understanding of the historical lack of access of small to medium enterprises to finance, ECDC uses adequate management capacity and business viability as key lending criteria.
ECDC Access, the category name for short-term finance, offers products geared towards facilitating efficient cash flow management of clients’ businesses. “Access” denotes the Business Funding unit’s values of flexibility, convenience, efficiency and transparency:
NEXUS - Trade loan
WORKflow - Contractor loan
POWERplus - Small loan
ECDC Future, the category name for long-term finance, offers long-term debt finance vehicles. These include the TERMcap load and an equity finance vehicle, EQUItrader.
The long-term finance offering represents ECDC’s earnest quest for business sustainability, cutting edge innovation, freshness, and vision in the economy of the Eastern Cape.
Eligibility for finance
ECDC’s business finance products are best suited to finance applications that facilitate job creation and/or retention, economic empowerment, value addition to the economy, rural/township development and increased export income.
Any product that is a new greenfield initiative where expansion and rehabilitation will be the resultant benefit will be eligible for application to ECDC for finance.
Applicants will only be considered for loan finance if they have a clean credit record, or provide ECDC with written proof of arrangements made to clear any bad debt attributable to them and show clear financial viability.
Active involvement in the business enterprise, in the form of full time participation in the activities of the business by all or some of the applicants at any given point in time, is also a requirement.
ECDC’s “aftercare” service philosophy
ECDC’s aftercare philosophy aims to provide efficient client service for the entire duration of the contract term. Monthly account management and quarterly report-back visits will gauge the health of the business. In the event that the account manager raises concern about the viability of the business and the applicant’s ability to sustain repayments on the loan, business support is provided to assist as far as possible to turn the operation around favourably.
ECDC’s unique collateral policy
ECDC operates under different collateral policies to South African banks. Should 100% collateral be unavailable, the loan may still be granted and it will be attached as security, and any available collateral (albeit less than 100% of the loan value) will be attached as security to the extent that ECDC deems necessary.
Despite our policy that 100% collateral is not required as a prerequisite for loan finance, it is expected that a contribution, that significantly demonstrates the applicant’s total commitment to the idea, be made.
ECDC offers skills support
ECDC requires that clients display some expertise in the area of the proposed business idea, either on a technical or business level.
However, should the required skill level to drive the proposal forward not be available, ECDC offers the necessary training courses to improve skill levels, or provides access to an appropriate mentor within ECDC operations to glean expertise in the designated disciplines.