In today’s dynamic business environment, entrepreneurs are at the forefront of reshaping industries. They challenge conventional norms, redefine traditional practices and drive forward innovation. Yet, to turn their groundbreaking ideas into reality, entrepreneurs often need financial support. This is where funding becomes pivotal, enabling businesses to scale their operations and make their mark on the world.
“But one misconception some business owners have is that debt is inherently bad for a business,” says Brent Geddes, CEO and Co-Founder of Geddes Capital, a specialist in secured business lending. “In reality, when used strategically, debt can leverage existing assets to access capital for growth, seize business opportunities, upgrade infrastructure, and enhance efficiency.”
A creative approach may be needed to secure funding but a solution is out there for any business with a growth story to tell.
Geddes has worked with a number of business across sectors such as supporting complex projects like property developments and boosting disruptive technology companies. “We have also helped businesses close to liquidation to turn things around positively,” Geddes notes.
“One project was already in liquidation, with a significant bond holder over the assets, leaving zero equity for stakeholders and a debt haircut. Through a unique restructuring, we managed to improve the exit for all parties and after finalising the lending structure, a facility was agreed upon and in time, a construction company was appointed and the project completed. This resulted in securing a sizeable offer and full coverage for creditors with substantial returns for equity holders. This example truly showcases the value of strategic debt partnerships in driving economic growth.”
The process of borrowing money can be perceived as daunting and time-consuming, however, Geddes ensures a streamlined process, prioritising clear communication and collaboration. “Customers often think that once they apply, the lenders do all the work. However, successful funding requires mutual effort and understanding,” Geddes explains.
“We work together to pave the way on a deal, and key to this process is providing the right FICA documents to draft the necessary legal agreements for a loan. With South Africa being grey listed by the FATF for over a year now, the list of FICA requirements has grown and this can cause some delays but is vitally important to getting a deal over the line.”
Entrepreneurs need access to the right funding to stay competitive. Geddes provides tailored financing solutions that empower businesses to remain ahead of the curve. “Offering longer payment terms to clients is one option we provide, or discounting invoices ensures immediate access to funds, allowing businesses to maintain operations seamlessly,” Geddes adds, listing some of the funding opportunities that exist for entrepreneurs to see a vision come to life.
It’s important to note the difference between unsecured and secured lending. The latter makes for a more risk free process for both the lender and business, and while unsecured lending seems like a good solution, it typically comes with onerous repayments and requirements where the business borrowing the funds doesn’t typically have the money for very long.
While there are risks inherent in lending Geddes remains committed to supporting South African businesses. “We view anybody who has taken the risk to start and run their own business as brave,” Geddes affirms. “We are passionate about assisting these everyday heroes in overcoming challenges and achieving success. We prioritise swift action and efficiency, ensuring that our clients receive the support they need without unnecessary delays.”
Funding is the lifeblood of businesses that challenge the status quo and Geddes strives for innovation with every application it sees. “We will always take the time to see if we can creatively structure a deal. It’s not an outright no from the start. We see if there is a way to make a deal happen, and if not, we try to refer an opportunity to another lender who can potentially help instead, ensuring businesses move forward while working towards an improved local economy,” Geddes concludes.
