Royal Fields Finance (RFF) is a reputable BBBEE Level 2 empowered company that was established to ease liquidity problems faced by SME’s in South Africa. RFF provides debt funding to Small and Medium Enterprises (SMEs) that are unable to access bank or Development Finance Institution (DFI) capital.
They offer business development services in deserving circumstances.
Royal Fields Finance
Royal Fields Finance is a well-established and prominent private company founded in March 2009 to provide specialised short-term funding to SMEs and start-up ventures. Since its inception, the company has enabled clients to achieve measurable financial growth while simultaneously contributing to job creation and broader socio-economic development.
The company primarily targets SMEs that are unable to secure funding from banks and other traditional financial institutions due to limited trading history, insufficient collateral, or a lack of risk capital. In this context, Royal Fields Finance plays a critical role in bridging the funding gap within the SME sector. Furthermore, the company is 95% black-owned and maintains a Level 2 B-BBEE status in accordance with the Department of Trade, Industry and Competition (DTIC) codes, thereby reinforcing its commitment to inclusive economic participation.
In terms of its product offering, the company provides short-term loans ranging from R70,000 to R2.5 million, supporting businesses across a diverse range of sectors. Moreover, Royal Fields Finance differentiates itself through its ability to deliver funding within a rapid turnaround period of approximately 10 to 14 days. This efficiency ensures that SMEs can respond promptly to operational demands and emerging opportunities.
Importantly, by applying project finance principles, the company is able to extend funding well beyond the limitations typically imposed by an SME’s balance sheet. As a result, SMEs can undertake high-value transactions and capitalise on time-sensitive growth opportunities that would otherwise be inaccessible. In addition, short-term funding solutions are particularly effective in addressing immediate cash flow constraints, thereby enabling businesses to maintain operational continuity and financial stability.
The company ensures that the application process remains streamlined and easy to comply with. In addition, it provides targeted assistance to applicants during the preparation and compilation of their submissions, where required. Furthermore, the company offers limited business support services to strengthen the success and long-term sustainability of its SME clients.
Through a strong focus on passion and innovation, the company extends funding to start-up ventures. Moreover, unlike traditional funding institutions, Royal Fields Finance frequently provides up to 100% funding to SMEs without requiring any risk capital contribution. In this regard, the company has structured its information requirements to improve accessibility and compliance for SMEs. For instance, where an SME cannot provide management accounts or annual financial statements, the company relies on bank statements to assess financial performance.
Services
The company provides specialised short-term funding covering project specific finance, supply chain finance, bridging finance, invoice discounting and working capital.
Short term funding is especially suited to funding SMEs with low and intermittent cash flow. This funding also plays a great role in bridging the finance gap in economies where there is a lack of angel investors and venture capital.
The adoption of both specialised finance and project finance principles makes it possible for Royal Fields Finance to provide finance to SMEs at levels higher than balance sheet funding would normally permit. Their competitive advantage is quick turnaround time and solution driven approach.
1. Working Capital
This facility is provided to small businesses temporarily in need of cash. The borrower must demonstrate cash flow (i.e. tenders, contracts, etc) out of which the facility will be repaid. As a consequence, this facility will only be available to businesses that demonstrate determinable future cash flows to repay the facility.
2. Bridging Finance
This is a short-term loan (usually 1 – 6 months) intended to bridge the finance gap between transactions. The loan is especially useful where the borrower is expecting funds in the short term but requires intermediate funding.
3. Contract / Project Finance
This facility is intended for borrowers with public / private sector contracts to provide goods and/or services. The facility provides working capital that can be utilised to cover the cost associated with fulfilling the contract. A borrower MUST be in possession of a contract in order to access this funding.
4. Trade Finance
Royal Fields Finance can provide short-term funding for the importation of goods into South Africa. If required, they can also assist in mitigating the risk of importing these goods.
5. Asset Finance
Asset Finance products are intended to cover the following business needs:
- IT and office automation – e.g. computers, printers, servers
- Plant and machinery
- Delivery vehicles
- Office Furniture
Asset Finance is offered in several forms, with the primary objective of providing an affordable solution and preserving the cash flow of SMEs
Enterprise Development Programme
In line with global best practices, the Enterprise Development Programme is designed to assist SME businesses improve enterprise performance, achieve operational and financial self-sufficiency, grow and create value and jobs.
Criteria
The Programme targets high growth SMEs run by high impact entrepreneurs. The qualifying criteria include:
- The SME must be in business for at least 1 year, except for start-up innovation driven businesses;
- Annual turnover less than R60m;
- High growth businesses – potential to grow turnover by 20% annually;
- The business must be in one of the growth sectors – i.e. infrastructure development, manufacturing, telecommunications, tourism, clean and renewable energy, waste management and agribusiness;
- The business must have an ability to create at least 5 permanent jobs over 3 years;
- The business plan must demonstrate ability to achieve the following milestones:
- breakeven in 2 years and start generating profit;
- Projected turnover of at least R20m after 3 years, except lesser turnover in Agri and Tourism sectors.
- Owners/management must demonstrate:
- sound understanding of the both the business and the relevant industry;
- entrepreneurial flair and great vision.
The Programme offers the following services:
- Entrepreneurship course at the University of Witwatersrand;
- Business assessment and assistance with developing a growth strategy;
- Mentoring and coaching;
- Provision of networking opportunities;
- Assistance with financial planning and financial management;
- Assistance with regulatory and legal compliance;
- Links to strategic partners;
- Sector specific technical support including project management, quantity surveying and engineering services, etc;
- Funding.
RFF’s target market is small and medium enterprises with annual turnovers less than R60 million that require funding between R70 000.00 and R2,5 million.
Whilst they focus on funding SMEs playing in all sectors of the economy, their emphasis is on identifying high growth businesses in the strategic sectors of the economy. These include:
- Infrastructure;
- Manufacturing;
- Small scale farming;
- Renewable and clean energy; and
- Telecommunications.
At DTC we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.
Contact us for more information on funding through the Royal Fields Finance.