Frequently Asked Questions
Here are some frequently asked questions. If you have any further questions, please feel free to email us.
Why Londvolota?
Londvolota has a track record of identifying and growing small- and medium-sized black-owned enterprises.
The Londvolota model ensures access to finance; expert business support to grow your business; research and development; and innovation support based on tried and tested models, all within an enabling environment.
What kind of business does Londvolota support?
Londvolota supports business entities that operate in sectors of the economy that are aligned to the areas where GE has business interests, and can link a small business to opportunities in the GE supply chain. These businesses must align to GE’s strategic objectives.
We look for entrepreneurs or business owners that are committed to, and involved in, all aspects of their business with the relevant skills, knowledge, experience and proven track record.
We support businesses that are locally owned and managed with a proven (or projected) ability to generate ‘free’ cash flow i.e. enough cash flow to service all debt obligations while also generating wealth for the owners
What are the main investment criteria for Londvolota?
Londvolota are looking for businesses that meet the following criteria
- Annual turnover not exceeding R75 million per annum
- South African domiciled business
- A business which has at least 51% black ownership (as defined in the B-BBEE codes)
- Operational involvement of the entrepreneur
- Agreement of programme terms and conditions, including periodic audit of company operations
- Meets social and economic inclusion criteria
- Proven track record and clear business plan
- Be within the sectors identified
- Creates and sustains employment
- Aligns to GE’s supply chain opportunities and strategic objectives
What does Londvolota not support?
Londvolota will not support:
- Any entity that is In contravention of the laws of the country;
- Any business that is a micro enterprise and;
- Any business that does not meet the criteria of the basic assessment.
How much can be invested if I am successful?
Investments will typically range between R1 million and R20 million.
How much will be charged for the finance offered?
The cost of finance to your business will be determined by considering various aspects of your specific business case. This is a process that will be explained to you should your business qualify. We will ensure that you understand any costs up front. The cost of finance will reflect various factors such as your business’ risk profile, sector, current exposure to debt and asset base. The terms of the finance will be detailed in the offer that you receive should your application be successful.
What about collateral?
While collateral is important in determining the price, it is not viewed in the same way as traditional financial institutions. During the extensive due diligence process, the business and its financial structure is assessed and possible risk factors identified.
What is an SME?
We use the definition of an SME as described by the Department of Small Business Development (www.dsbd.gov.za).