GroFin is seeking applications from SMEs and entrepreneurs. They are an award-winning organisation with more than 16 years’ experience. It started in 1999 and has 14 offices across Africa and the Middle East.
GroFin has partnerships with experienced organisations like SGB Fund. To date, GroFin has undertaken 825 client deals and provided business support to over 7,000 entrepreneurs with a success rate of over 80%.
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Major Challenges Faced By Entrepreneurs
The three major challenges entrepreneurs face are:
- Lack of an enabling supportive environment for business
- Few access to business support that helps a business grow
- Lack of financing base on the business need.
GroFin Finance & Support provides finance and business support to entrepreneurs and solves the challenges of entrepreneurs and business owners. The organisation understand the SME environment and has a proven track record of helping businesses and entrepreneurs start and grow their businesses.
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What Does GroFin Offer
They offer a combination of finance, expert business support, and guidance to entrepreneurs and business owners. The finance is customised to suit the unique circumstances of each entrepreneur or business owner.
Hence, with GroFin, you get more than finance. Experts are available to you to increase your chances of success. The experts manage issues that potentially threaten your business’s ability to succeed. Also, guidance and support are provided to ensure your business drives positive cash flow.
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GroFin Investment Criteria
They invest in small and growing businesses that have the ability to scale, be sustainable and create a positive impact in the community where it operates.
Therefore, businesses which fulfill the following criteria are considered:
Geography
GroFin finance support businesses that operate where they have an operational office. GroFin has operational offices in South Africa, Zambia, Ghana, Nigeria, Ivory Coast, Senegal, Uganda, Kenya, Tanzania, Rwanda, Egypt, Oman, Iraq, and Jordan. This enables GroFin to offer regular value-adding business support. Applications from businesses that operate in other countries cannot be considered.
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Sectors Of Focus
The business must operate in one of the investment focus sectors of Education, Healthcare, Agri-processing, Manufacturing, Energy, Water/Sanitation and labor-intensive businesses. Other sectors can be considered on a case-by-case basis.
They consider businesses in all sectors except those activities that have significant potential negative social and environmental impacts.
GroFin does not invest in financial intermediation businesses or non-profits such as NGOs, and community groups.
Business Profile
Typically, GroFin invests in businesses with these maturity profiles:
- Early-stage (1-3 years) Start-ups are considered when they are backed by an entrepreneur with significant experience, track record and material financial commitment to the venture.
- Early maturity (3-6 years)
- Mature (>6 years)
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Investment Size And Duration
GroFin invests between US$ 100K – US$ 1.5 M in the business, preferably as self-liquidating debt. Typically, the investment last between 3-8 years. The loan repayment term must be aligned with the purpose of the loan.
Entrepreneur Profile
Most times, the survival of a business is dependent on the entrepreneur behind the business. GroFin understands this and insists the entrepreneur should have significant own investment in the business. Also, the entrepreneur must have the ability to manage every aspect of the business.
Additionally, the entrepreneur must be willing to work with GroFin as a value-adding financier. Finally, they must have growth ambition and demonstrate integrity and professionalism in their dealings.
Collateral requirements
Though GroFin has no minimum requirement, however, they expect entrepreneurs to (partly) secure the loan if collateral is available. The quality and value of collateral do play an important part in the overall risk assessment. Personal guarantees of the entrepreneur(s) are required.
Social Impact
The business must have a measurable impact in terms of:
- The number of jobs supported and sustained
- Female ownership
- Female employment and semi-/unskilled labour
- Providing indirect job opportunities (e.g. training, skills development)
- Environmental services (water, waste, energy, ecotourism)
Business support
GroFin lookout for entrepreneurs who are receptive to receiving advice and implementing recommendations especially in the area of formalisation of their business.
How To Apply To GroFin
To apply, go online to their website, follow the step by step process to see if you qualify for financing. The checklist and application form is visible on the platform after an applicant completes step 4 (Pre-Assessment Questionnaire) of the application process.
What You Can Use GroFin Financing For
You can use the finance for a variety of business-related purposes:
- Invest in property or asset related to your business
- Buy a business or franchise
- Grow your business or new product line
- Start a business.
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