BudiMap is a Development Finance company that aims at empowering existing Small medium and micro enterprises with cash flow and funds to grow their business. This company is passionate about start-ups and seeks to help entrepreneurs to bring their business ideas into fruition by helping them access finance to kick start their businesses.
Our research has shown that a lot of people that have started or intend to start their business are not able to meet the criteria the traditional institutions use for finance. These are faced with insurmountable challenges to access the finance they need to venture into business or fulfil orders in their business. Though there are institutions that exist to help the entrepreneurs with funding, even the government mandated ones, they however use the same criteria which leaves a lot of them without and hence there is a huge gap.
For this reason, we needed to create an institution that will understand them, where they come from and where they want to go, what their potential and risk is and how to tailor financing and funding per the individual business not just off the shelf solutions. It is then that we then can begin to close the gap and empower small business to grow.
We understand that many Small business die because of cash flow problems and that these problems are the result of adverse credit terms which are dictated by larger businesses. The smaller one is, the less chances one has of negotiating good credit terms with your larger suppliers or your larger clients.
Though BudiMap will use some of the existing financial instruments and products that are already in the market in assisting the Small businesses and entrepreneurs, for example Invoice discounting, purchase order funding, Tender financing and term loans. It will it its criteria seek to ensure the criteria is tailored and is forward looking and hence will consider payment methods and terms that differ from the traditional institutions.
We also understand that in this market the risk can be high, however because we are able to get our checks and double checks done to mitigate the risk. We have partnered with government stake holder companies who have the mandate and the resources help us, companies like Small enterprise development agency (SEDA), Jozi SMME hub, and Small Enterprise Finance agency (SEFA).