Opportunities for tender funding in South Africa in 2024 make it possible for businesses to fulfil lucrative tenders without having major capital reserves upfront.
This is a lifeline for SA’s small to medium companies, which offer exceptional skills and efficiency but lack the deep pockets of large, international competitors.
With tender funding, you can bid with confidence, knowing that your funding partner will help you complete the project timeously and to a high standard.
This improves your businesses reputation and experience, making it more likely that you will secure tenders in future.
What is tender funding?
Tender funding is when you use an official tender that your company has been awarded to secure funding for the project.
The funder or lender will cover the upfront costs and then get repaid from the proceeds of the job. It will also claim a small percentage of the tender profits as compensation.
How tender funding with BizFunding works
Once you have secured a tender, you can submit it to BizFunding to get funding. This type of funding works as a partnership.
BizFunding works closely with you throughout the project, covering costs and ensuring everything is completed on time.
We reclaim the costs we covered from the proceeds of the tender once the job is complete.
To apply for funding, simply fill in an online application and then send us the relevant documentation, including FICA documents. Funding is usually approved within 72 hours.
Why it makes sense for SMEs to bid for tenders
Government tenders are a guaranteed way to secure a lucrative project. Once awarded, it’s unlikely you’ll have to deal with a client that can’t pay its bill.
Tenders are a great way for SMEs to gain experience in their sector. With more experience, especially with government contracts, a business is more likely to get future tenders.
Many tenders involve multi-year contracts that could spell long-term, secure income for a small business.
That said, even a single, lucrative public sector contract could be the ticket to successful expansion and sustainability.
The issue of working capital for tender fulfilment
Many SA businesses lack the upfront capital to complete the work involved in fulfilling a tender.
The route between securing a tender, delivering on it and receiving payment can be a long and expensive one.
Various funding solutions make it possible for businesses to bridge the gap and bid on tenders without worrying about these costs.
Advantages of tender funding over other funding options
It’s possible to get a regular business loan from a bank to cover the costs of a tender. However, the advantages of tender funding make it a better option for SMEs.
No age limit. Even new businesses and start-ups can get tender funding.
Simple application. The process is easy and fast.
Limited documentation. There’s no need to submit business plans or financial statements.
No credit checks. This type of funding doesn’t involve credit checks.
Fast funding. Funding is usually approved within 72 hours.
Hands-on support. A dedicated agent guides you every step of the way to ensure the best outcome.
Requirements for tender funding in South Africa in 2024
Tender funding has helped businesses of all sizes secure official tenders without having to worry about the upfront costs of the project.
Qualifying for tender funding is simple. You must have proof of an official tender awarded to your business, your business must be registered and you must be fully tax compliant.
If you meet these requirements, you can start the application process online. We will contact you to request the necessary supporting documentation.
To learn more about tender funding in South Africa in 2024, call BizFunding on 012 001 0095 or apply for tender financing online.
