Frequently asked questions (FAQs)

Why GroFin and not a bank?

Banks are failing to meet the needs of entrepreneurs and their businesses. They are inflexible, expect high levels of
security for all their lending, and lack empathy for, or understanding of their entrepreneurial customers.

Unlike banks, we are available when clients need us and we consider applications on the basis of the potential of the
business and credibility of the entrepreneur, not collateral. Through a rigorous risk analysis process, we ensure that
we really understand a business and its needs. By developing a long-term partnership with the entrepreneur, we grow
to understand the business and support its goals. We not only provide businesses with a tailor-made finance solution,
but also business expertise and guidance in assisting entrepreneurs to make a success of their business. People are
the most important part of our business and we aim at delivering what each client needs.
We work in a friendly yet highly professional manner, always championing the needs of the business, as our clients
come first.

What does GroFin offer?

GroFin offers a combination of finance, expert business support and guidance to entrepreneurs with small and
medium enterprises (SMEs). Our finance is customised to suit the unique circumstances of each client. At GroFin,
you get more than finance - you are also given access to expertise to increase the likelihood of success. We manage
this with you through a proven process that strengthens your plan by focusing on addressing the issues that
potentially threaten your businesss ability to make a profit. We also provide support and guidance in rigorously
planning and driving positive cash flow in your business. With the appropriate financing, a sound plan and our support
in managing your cash flow, your business is in a position where profits increase and your business succeeds.

Which industry sectors does GroFin invest in?

GroFin invests in all commercial and manufacturing sectors.

Which industries does GroFin not invest in?

GroFin does not invest in primary agriculture or any businesses which do not comply with applicable environmental,
legal and social requirements. For additional detail on our exclusion list, please contact your local GroFin office.

What kind of businesses does GroFin invest in?

GroFin serves entrepreneurs that own and manage their own business, regardless of the stage of development. This
includes start-ups, expansions, outright purchases, management buy-outs, management buy-ins and franchises.
Generally, we support businesses where gross assets are under US$3 million, turnover does not exceed US$5 million
and there are less than 100 employees.

Does GroFin offer value adding services?

GroFin offers a network of in-house business experts which spans eight countries and multiple sectors. This pool of
expertise is made available to our clients from inception, assisting them in a range of services. This includes
evaluating the potential of a clients business plan; monitoring the plans execution, marketing and HR guidance and
continuous cash flow monitoring and analysis.

GroFin increases the ability of entrepreneurs to succeed in building successful businesses by combining financial
assistance with expert business support and guidance for the duration of the relationship.

What are the main criteria for investment?

GroFin assesses its clients based on their potential in two critical elements: the ability of the entrepreneur to efficiently
manage the business and the ability of the business to make a profit in the long term.
Our primary focus is the ability of the entrepreneur; therefore we have stringent selection criteria when it comes to
selecting the entrepreneurs we support. GroFin looks for an entrepreneur with commitment, integrity, drive and vision,
appropriate experience and sufficient skills.
Business potential is evaluated in terms of the product or service. We examine the market acceptability of the product
or service, the market size that the business wishes to enter as well as paying attention to the gearing of the business
and its ability to grow over time. We also take the businesss history into account, along with the stage of its
development and profit potential in the mid to long term, technical details and its location.

What are GroFins investment parameters?

GroFin invests up to US$ 1 million in appropriate businesses. Applications for finance below US$50,000 are not
considered.

What is the requirement regarding the entrepreneurs own contribution?

Although GroFin does not have a minimum requirement regarding contribution from our clients, a lack of own
contribution places strain on the gearing of the business, which ultimately affects its ability to continue doing business
in the long term.

What collateral is required for GroFins finance?

GroFin believes in financing a business based on its future potential and therefore does not have the same collateral
requirements that commercial banks do. That being said, the level of collateral has a direct impact on the kind of
transaction that we are able to offer and also affects the overall pricing of the finance.

What is the repayment period?

In partnership with the client, GroFin establishes a suitable repayment period during the initial investment
negotiations. The maximum repayment period is seven years.

What investment options does GroFin offer?

GroFins investments are structured using term loans, equity and shareholders loan accounts or any combination of
these.

How does an entrepreneur qualify for GroFins value-added support?

GroFin supports all entrepreneurs. Therefore, any entrepreneur with a formal business that shows clear potential is
eligible for our support. We consider each application based on its merits and its potential profitability. The ability,
experience and market knowledge of the entrepreneur(s) is the most important factor we consider when assessing an
application, followed by the market need for the product or service.

How do you apply for finance?

You can apply on GroFins website or by arranging an appointment with a local GroFin office. To determine the
potential of a business we do require certain documents and information. As such a business plan assists us in
understanding the background and activities of the business, the funding requirements, the entrepreneurs involved,
and the businesss future plans.

How long does it take from submitting a business plan to a decision taking place?
This depends on how comprehensive the business plan is, the complexity of the matter and business model and the
level of co-operation from the entrepreneur.
We strive to provide entrepreneurs with an in-principle decision to proceed further with the application within seven to
14 days after receipt of a full and complete application. Subsequent to this, we aim to provide a final decision to
provide finance and expert business support and guidance to entrepreneurs within 30 days.

What does GroFin charge for the finance offered?

GroFin offers unique financing solutions for entrepreneurs. The price of the funding is structured in accordance with
the overall risk of the transaction. A client with a lower risk profile will have access to lower rates compared to those
with a higher risk profile. This is owing to the inherent financial risk as well as the business risk involved.

Does GroFin always become a shareholder in the company?

No. GroFin prefers not to take up shareholding in a business. There is a range of financing products available in
which a shareholding is not obtained.
In a high-risk transaction, GroFin may request to be compensated for the risk by negotiating a minority shareholding
in the business.