Organisation : Industrial Development Corporation (IDC)
Facility Name : Apply For Automotive & Transport Equipment Funding
Country : South Africa
Website : https://www.idc.co.za/automotive-transport-equipment/
What is IDC Automotive & Transport Equipment Funding?
The IDC Automotive and Transport Equipment Strategic Business Unit (SBU) is focused on ensuring both domestic and global competitiveness in the downstream manufacturing of automotive, transport equipment and related components. It prioritises funding and support to automotive and transport equipment manufacturing entities that offer high developmental impact on return while playing a significant role in growing the country’s economy.
Related / Similar Facility : IDC Agro-Processing & Agriculture Funding
Through funding, industry and project development support to businesses involved in developing the automotive, rail, aerospace, and maritime industries, the SBU supports competitive local automotive and transportation sectors that manufacture or assemble a significant portion of automotive and transport equipment in South Africa for both the domestic and export markets.
What We Fund:
** Manufacture of motor vehicles, trailers & semi-trailers
** Manufacture of aircraft and spacecraft
** Manufacture of parts and accessories for motor vehicles and their engines
** Manufacture of motorcycles and bicycles
** Manufacture of rail locomotives and rolling stock
** Building and repairing of boats and ships
How To Apply For IDC Automotive & Transport Equipment Funding?
Application for funding should be in writing and should include an executive summary and a business plan.
Step 1 : Business Plan
Draw up a well-researched business plan, stating a compelling case for funding
Step 2 : Register Online
Applications can also be submitted at the IDC office
Step 3 : Upload Application
Upload your application with the relevant documents, certificates and business plan
Step 4 : Process Application
IDC will confirm that it has received your application. While processing we may ask you to supply extra information or documentation
Step 5 : Approval Status
IDC will give you feedback on the outcome of your application, in writing. If your application is successful, due diligence will be conducted on your business.
Step 6 : Loan Contract
Once the IDC has satisfied itself of your bona fides, you will be asked to sign a loan contract
Step 7 : Begin Funding
Apply Here : https://protected.idc.co.za/clientportal/Home/Index?ReturnUrl=%2Fclientportal%2F
FAQ On IDC Automotive & Transport Equipment Funding
Frequently Asked Questions FAQ On IDC Automotive & Transport Equipment Funding
Outcomes:
We envisage that through our funding and project development activities, we will have the following impact on the South African economy or will achieve the following outcomes:
Increased capacity in the assembly industry driving demand for local component manufacturers. Expand and extend existing industries in order to create and/or preserve jobs and drive sustainable economic growth. Enable the local industry to achieve its potential and become globally competitive.
Doing Business With The Unit:
While each proposal submitted to us for funding is considered on its individual merits, preference is given to Financing fixed assets and the fixed portion of growth in working capital requirements; and New or existing projects or businesses that have a significant developmental impact, for example, black industrialists, job creation, women owned businesses, youth owned businesses, localisation and increased foreign currency earnings.
Funding Criteria:
Our main funding requirements are:
** A minimum of R1-million;
** Security, the form and nature of which relates to your specific circumstances;
** Compliance with international and local environmental standards; and
** A reasonable financial contribution from the owners of the business along the following broad guidelines, although the circumstances of each business will be carefully evaluated to arrive at an acceptable contribution level:
** 33% of total assets for going concerns;
** 40% for start-ups, depending on industry norms and risk profile;
** We prefer that our exposure does not exceed that of the owners of the business;
** Contribution of historically disadvantaged persons under special circumstances may be lowered, in which case the IDC will be prepared to extend finance in excess of the owner’s contribution;
** The project or business must exhibit economic merit in terms of profitability and sustainability; and
** Risk sharing through co-funding (other parties such as banks or DFIs) is preferred.
For acquisitions, IDC BEE acquisition policy will apply. In the case of take-overs and buy-ins by historically disadvantaged partners, we require:
** A comprehensive business plan.
** 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.
** The Offer to Purchase should be valid for at least three months and give the IDC an exclusivity period of at least two 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 the involvement of historically disadvantaged persons in operational and/or executive management.
** Proof of limited scope of due diligence performed by historically disadvantaged persons on the seller’s business.
** The 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:
** A comprehensive business plan.
** Your latest audited and actual financials, signed by the finance director, MD or CEO.
** Your updated business plan, focusing on the proposed project/expansion; and
** 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.
** Latest management accounts and financial projections; and
** A covering letter with details of the finance required from the IDC.