Business Partners now in Beacon Bay
BUSINESS Partners, a specialist risk finance company, which has been in East London since 1981, have moved to new premises in Beacon Bay.
After operating in Selborne for the past 10 years they are now conveniently located off Bonza Bay Road at Cedar Square.
Area manager Patrick Schwartz said the new location meant they were more easily accessible to clients. “We like this area as it is a business node. We are surrounded by banks, the Border Kei Chamber of Business and Charteris & Barnes are also just across the road.
“With this new location we are raising the profile of our clients and we plan to forge even more relationships going forward,” Schwartz said.
In 1981 Business Partners started their East London operations under the name Small Business Development Corporation in a building on the corner of Oxford and Argyle streets. Shortly afterwards they were involved in redeveloping the Lock Street Gaol and moved their offices there.
Their next big development was Arcadia Park which has 34 000m² under roof and moved their offices into the business hub. They still have an office there today.
They were involved in a joint venture with Bax Kaplan Russell Incorporated and UWP Consulting in the development of Clevedon House in Selborne. This is also where their offices were located for the past 10 years.
Business Partners give out loans from between R500 000 to R50 million.
The specialist risk finance company provides customised financial solutions, sectoral knowledge, mentorship, business premises and other added-value services for formal small and medium enterprises (SMEs).
Deals are assessed relative to the risk, with the cost of finance based on the security value in relation to the total funding advanced.
This means that Business Partners will offer the finance at a prime linked rate and will also negotiate an incentive for taking the additional risk, like a share in the business. This will be linked to the potential appreciated value of the property over a period of time. Clients are entitled buy back their shares once the loan is paid off.
“We place a lot of emphasis on entrepreneurs. We help facilitate loans for them by looking into their previous experience to determine if they have the business knowledge, what their financial contribution is and the viability of the business.”
Business Partners has 26 branches throughout South Africa. They also have five branches in southern African countries.
The East London branch operates from Port Alfred to Kokstad, with a lot of deals coming out of Mthatha. They have facilitated loans for a variety of business ventures across the province, including brick manufacturing, petrol stations, student accommodation, an abattoir, as well as a clothing and embroidery company.
Schwartz said: “Job creation is very important in South Africa. It’s rewarding to be able to help entrepreneurs realise their dreams and create new jobs for people.”
Kula Investment Group executive chairman Mkululi Pakade has worked with Business Partners on a number of ventures.
“We have enjoyed working with them especially when banks say no and they say yes.”
“That yes, comes with a price,” he said jokingly.
“But the benefits are there. Times are changing. If we want to create new jobs we must start to think about creating new industries especially in rural areas.
“At our Ncera Macadamia farm we have ordinary people in East London working and competing at an international level. So no one can come tell me there is no potential in our market.
“The temptation is to think the real economy is around urban areas. But that’s not true. All of us are beneficiaries of what happens at a rural level. We need to change our thinking and we must do something new for the country and create new jobs,” Pakade said.
Business Partners East Fund regional general manager Byron Jeacocks said the East London branch is consistently “punching above their weight”.
“They have maintained 2 500 jobs in the Eastern Cape and their year on year portfolio growth continues to grow.
“Over the last three years they have approved over 48 deals, paying out over R136m for loans. Of these a third went to female entrepreneurs and half to Africans.”
“I’m very proud of everything they do. They have a great relationship with their intermediaries and clients.
“They are passionate about SMEs and that passion is reflected in their results. I’m really happy about the impact they are having on the entire province especially since I was born in the Eastern Cape.
“It’s really good to be part of a sector that is one of the biggest job creators in East London and the world,” Jeacocks said.
Business Partners has around R75m to give out for business loans in the Eastern Cape this year.
Schwartz said: “We are open for business, we have the money and are here to provide an excellent service – bring us the deals.”
Contact Details
Address: Leadwood House, Cedar Square, Bonza Bay Road, Beacon Bay, East London, 5241
Tel: 043 721 1525
E-mail: pschwartz@businesspartners.co.za
Website: businesspartners.co.za