Part 5 of 7 · Approval
What Funders Assess, and What Documents You Need
Five tests, and one of them matters more than the rest. Applications frequently describe what the money will be used for but never state what will repay it — which is the only question the credit committee genuinely cares about.
Part 5 of 771% through the guide
| Test | The question | What answers it |
|---|---|---|
| The gap | Do you understand your own working capital requirement? | A calculated cash conversion cycle, a rand requirement derived from it, and a cash flow forecast showing when the gap opens and closes |
| The source of repayment | What specific money repays this facility, and when? | Named invoices, a confirmed order, contracted revenue or a demonstrated trading pattern — not general optimism about growth |
| The counterparty | For receivables products: is your customer good for it? | Customer identity, payment history with them, ageing analysis, and the contract or order documentation |
| Trading evidence | Is this business viable and correctly run? | Financial statements, management accounts, bank statements that reconcile to turnover, and debtors and creditors ageings |
| Compliance and character | Can we lend to this entity at all? | CIPC documents, tax compliance status, VAT registration where applicable, director records, and existing debt disclosed upfront |
Section 12What documents do I need?
| Category | Documents | Notes |
|---|---|---|
| Entity | CIPC registration and company documents; MOI; shareholding structure; director identity documents; proof of business address | Cooperatives and trusts must show current registration and a resolution authorising the application |
| Compliance | SARS tax compliance status PIN; VAT registration where applicable; B-BBEE certificate or sworn affidavit; UIF and Compensation Fund registration | Tax compliance is the most common single cause of delay. Obtain it first and diarise renewal |
| Financial | Two to three years of annual financial statements; year-to-date management accounts; six to twelve months of business bank statements | Bank statements must reconcile to stated turnover. Mismatches between personal and business spending are a frequent rejection reason |
| Working capital detail | Debtors age analysis; creditors age analysis; stock listing; existing loan and facility schedule | The debtors ageing is the most closely read document in any receivables application |
| The specific deal | Purchase orders, contracts or tender award letters; invoices to be discounted; supplier quotations; customer details | For deal-linked funding this is the application. Everything else is supporting evidence |
| Forward view | Twelve-month cash flow forecast; the working capital calculation; use of funds; repayment source and timing | A monthly forecast showing the facility drawn and repaid is worth more than a business plan |
| Security | Asset register; valuations where relevant; details of security already pledged elsewhere | Disclose existing cessions. A debtors book already ceded cannot be ceded twice |
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