What form of business is best?

One of the most important things you need to do is to decide what form of business your SME will be? There are many forms of businesss: from sole proprietorships, to partnerships, to CCs, to PTY LTDs. The most likely form for your small business will either be sole proprietorship or a close corporation.
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Public Enterprise Finance

Financing for development of infrastructure undertaken by State Owned Enterprises (SOEs) as regional or national initiatives.

Sector identification Airports; bulk water supply and distribution; education and health facilities; oil and gas exploration, including pipeline and refining; port facilities; power generation; rail transportation; roads; (tele) communication systems, transmission and distribution facilities; transportation; waste management infrastructure; urban transportation
Eligibility Minimum credit rating achieved as determined by DBN's credit rating model based on DBN's assessment of the SOE's financial standing, management capabilities, governance practices and current debt position
Financing options
  • Direct loans for infrastructure.
  • Subordinated debt/mezzanine financing.
  • Participation in syndication facility (co-funding).
  • Current minimum of N$ 3 million.
Security Determined on a project by project basis, taking into account the credit rating score and risks identified.
Repayment period Maximum 20 years (including grace period).
Interest rate
  • Determined on a project by project basis taking into account the cost of capital to DBN, an SOE's credit rating and risks identified.
  • In certain cases an interest rate rebate may be offered based on the quality of security offered.
  • Interest can be capitalised during the grace period.
Grace period Tailored to the construction and ramp up of the project.

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2010-09-05
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