This component comprises two sub-components: a pre- and post-dispatch working capital facility, and an industrial policy niche projects fund.
Pre- and post-dispatch working capital facility
Finance is offered to manufacturers at a preferential interest rate, with the aim of improving the competitiveness of an entity by lowering the cost of finance.
Pre-dispatch finance covers working capital requirements from receipt of an order to dispatch to customers. It can include production, raw material, and packaging and transportation costs.
The post-dispatch finance covers working capital requirements from the date of dispatch of the goods to the date the seller realises the proceeds of the sale. It can include performance bonds and performance guarantees.
The programme offers a working capital facility of up to R50m at a fixed interest rate of 4 percent.