Investmint – Connecting growing South African SMEs with investors
Investmint is a South African-based crowdfunding platform committed to accelerating the growth of the small-to-medium enterprise (SME) sector by connecting growing South African SMEs with investors seeking to expand their capital.
Currently, there is a huge demand for funding for small businesses in South Africa, and since Investmint’s inception, it has been responsible for facilitating over R50 million in financing across more than 850 projects.
In essence, Investmint is creating a thriving community where people that have, are able to help people that need it!
Who are the minds behind Investmint?
Investmint was started by Gareth Price in 2017 and the platform was officially launched in 2019.
Gareth is a Chartered Accountant and the CEO of the successful Cloud-based accounting firm, Cloudworx.
He also serves as CFO at BackaBuddy, a South African-based crowdfunding platform designed to help you create campaigns to raise funds for causes you are passionate about.
In 2021, he was joined by André Steenekamp.
André’s qualifications include an MBA with distinction and a Ph.D. in Business Administration.
He is a Financial Modeling and Valuation Analyst (FMVA) certified by the Corporate Finance Institute in the USA.
Through his immense knowledge of business, he has proven to be an invaluable member of the team.
The Investmint platform
The platform itself has a straightforward and user-friendly interface, which expedites the process of securing funding for businesses, and simplifies the task of browsing proposals and locating projects that investors want to fund.
Another unique function the platform offers is the referral program, which allows people with a strong network of business owners to turn their network into revenue.
Investmint ensures that all proposals on its platform consider the repayment history and quality of accounting of prospective borrowers before granting approval to list.
This practice adds credibility to the proposals approved on the platform and this safeguards Investmint, prospective buyers, and sellers.
Investmint’s two primary types of financing
Project Financing and Invoice Factoring are two distinct financing methods used by companies to meet their cash flow requirements.
With Project Financing, the loan seeker provides Investmint with a contract or purchase order for financing, which is made available on the platform for investors to provide the required capital.
Investors can use essential information such as the borrower’s repayment history and an ROI calculator to determine the project’s value and decide whether to fund it partially or entirely.
Once the investor commits to funding the project, the borrower receives the required funding, and the investor earns monthly interest on the amount they funded.
On the other hand, Invoice Factoring enables small businesses to obtain instant cash flow by selling their unpaid invoices to buyers at a discount, with buyers paying close to 85% of the invoice’s value to initiate the purchase.
The remaining 15% is paid once the invoice is settled, less a 4% fee split between the buyer and Investmint, providing buyers with up to a 2.49% return on investment while generating significant cash flow for the seller without impacting their credit score.
Borrower Success Story
One of Investmint’s most successful clients is an industry leader in the repair and refurbishment of refrigerated trucks.
Before they started at Investmint, they were growing their client base rapidly but struggled to keep up with business due to not being able to purchase materials and pay for labor on time.
This resulted in a yard full of work, but no projects being completed.
With the empowerment that Investmint provides them, they are able to accept and complete jobs without any cash flow concerns.
Cash requests are paid out within 2-3 days, which enables them to offer quicker turnaround times and grow their customer base even further.
Below is a Year-On-Year Revenue comparison that clearly shows the remarkable impact that Investmint has had on the growth of CFS bodies:
In Conclusion
Investmint plays a critical role in promoting the growth of the South African SME economy by supporting well-run small businesses with legitimate needs and providing exceptional opportunities to businesses and investors in the process.
At Investmint, they have a saying: Cultivate Local Growth!
Interested in investing or becoming a borrower? Click here to visit our platform!
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