Bridging Loan

A short-term loan that is provided to an enterprise to finance working capital needs (i.e. stock and/or operating overheads).

This facility is only provided to businesses that have secured firm contracts (orders) from their clients. It is only applicable in business to business transactions.

This type of financing allows an enterprise to meet current obligations by providing immediate cash flow.

Duration of the Loan:

The loans are short-term (up to 1 year) and may be backed by some form of collateral such as sureties, cessions, etc.


The following industries are excluded:

  • Tobacco, liquor, gambling, sex trade
  • Armaments
  • Speculative real estate
  • Leveraged buy-out funds:
    • Hedging
    • Borrowings
    • Ventures inconsistent with the mandate of sefa
    • Loans to partners, the fund managers, their employees and affiliates, except for members of FSCs
  • Any business involved in illegal trade
  • Any business whose trade or operations may prejudice the reputation and good standing of sefa
  • Any political organisation
  • People under debt review
  • Any business having directors ( or equivalent ) who are un-rehabilitated insolvents individuals
  • Technically insolvent businesses and individuals


Clients applying for financial assistance from sefa must fulfill the following requirements:

  • South African citizens with valid South African Identity Documents or legal entities controlled by South African Citizens with valid South African Identity Documents or permanent residents who hold a valid RSA ID document;
  • Be legally constituted including sole traders with a fixed physical address;
  • Must have the necessary contractual capacity;
  • The controlling interest of the enterprise for an applicant which is a juristic person (51% of the issued ordinary share capital) must be held by South African citizens with valid South African Identity Documents or a South African Registered legal entity itself controlled by South African citizens with valid South African Identity Documents;
  • All business operations, including but not limited to projects, programs or enterprises, must be operated within South Africa;
  • The enterprise must be compliant with generally accepted corporate governance practices appropriate to the client’s legal status;
  • Have completed official loan application forms;
  • Have a written proposal or business plan that meets the requirements of sefa’s loan application criteria;
  • Have provided all initial and supporting documentation for application in a professional manner;
  • Demonstrate the character and ability to repay the loan;
  • May incur debt in terms of relevant legislation;
  • Have provided personal and / or credit references;
  • Be owner manager;
  • A trust that has within the trust deed the power to borrow money and pledge assets as security and to give surety for borrowing.


  • Applicants approach sefa’s nearest regional office for the initial basic assessment
  • Regional office issue and assess application forms from qualifying applicants
  • Due diligence is performed by sefa and application submitted to Committee for a decision
  • The Committee decision is then communicated to the applicant and in case of approved facilities, the client enters into a contractual obligation with sefa
  • Funds are then transferred to successful clients and post investment monitoring and/or mentorship support is provided (where applicable)