Businesses that generally do not qualify for loans due to a lack of adequate collateral security can improve their access to finance through an arrangement with Khula Enterprise Finance Ltd.
Khula is a company created within the Department of Trade and Industry to facilitate lending by commercial banks to, small-, micro- and medium- enterprises (SMME).
Khula Enterprise Finance Ltd indemnifies commercial banks of losses incurred due to non-payment by SMMEs who borrowed funds from banks provided these clients were placed with the scheme.
Nedbank has signed a new indemnity agreement with Khula Enterprise Finance Ltd. The original agreement signed between Nedbank and Khula on 24 January 1997 allowed small businesses access to a maximum loan amount of R1m. This new Agreement allows access to funding on a matrix scale from R10 000 up to R3m.
This dramatically increases the scope of outreach for business opportunities across all sectors of the economy with specific focus in regions with low or little current economic activity favouring business opportunities for women.