FAQ

What does GroFin offer?

GroFin offers a combination of finance, expert business support and guidance to entrepreneurs with small and medium enterprises (SMEs). Our finance is customised to suit the unique circumstances of each client. At GroFin, you get more than finance - you are also given access to constant support to increase the likelihood of success. We manage this with you through a proven process that strengthens your plan by focusing on addressing the issues that potentially threaten your business’s ability to make a profit. We also provide support and guidance in rigorously planning and driving positive cash flow in your business. With the appropriate financing, a sound plan and our support in managing your cash flow, your business is in a position where profits increase and your business succeeds.

What kind of businesses does GroFin invest in?

GroFin serves entrepreneurs that own and manage their own business, regardless of the stage of development. This includes start-ups, expansions, outright purchases, management buy-outs, management buy-ins and franchises.

What are GroFin’s investment parameters?

GroFin invests up to US$ 1,5 million in appropriate businesses. Applications for finance below US$50,000 are not considered.

Which industry sectors does GroFin invest in?

GroFin invests in all commercial and manufacturing sectors

What investment options does GroFin offer?

GroFin’s investments are structured using term loans, equity and shareholders’ loan accounts or any combination of these.

Which industries does GroFin not invest in?

GroFin does not invest in primary agriculture or any businesses which do not comply with applicable environmental, legal and social requirements. For additional detail on our exclusion list, please contact your local GroFin office.

Does GroFin offer value adding services?

GroFin offers a network of in-house business experts which spans eight countries and multiple sectors. This pool of expertise is made available to our clients from inception, assisting them in a range of services. This includes evaluating the potential of a client’s business plan; monitoring the plan’s execution, marketing and HR guidance and continuous cash flow monitoring and analysis.

GroFin increases the ability of entrepreneurs to succeed in building successful businesses by combining financial assistance with expert business support and guidance for the duration of the relationship.

Why GroFin and not a bank?

Banks are failing to meet the needs of entrepreneurs and their businesses. They are inflexible; expect high levels of security for all their lending, and lack an understanding of their entrepreneurial customers.

Unlike banks, we are available when clients need us and we consider applications on the basis of the potential of the business and credibility of the entrepreneur, not collateral. Through a rigorous risk analysis process, we ensure that we really understand a business and its needs. By developing a long-term partnership with the entrepreneur, we grow to understand the business and support its goals. We not only provide businesses with a tailor-made finance solution, but also business expertise and guidance in assisting entrepreneurs to make a success of their business. People are the most important part of our business and we aim at delivering what each client needs.

We work in a friendly yet highly professional manner, always championing the needs of the business, as our clients come first.

How do you apply for finance?

You can apply on GroFin’s website or by arranging an appointment with a local GroFin office. To determine the potential of a business, we do require certain documents and information. As such, a business plan assists us in understanding the background and activities of the business, the funding requirements, the entrepreneurs involved, and the business’s future plans.

What is the requirement regarding the entrepreneur’s own contribution?

Although GroFin does not have a minimum requirement regarding contribution from our clients, a lack of own contribution places strain on the gearing of the business, which ultimately affects its ability to continue doing business in the long term.

What is the repayment period?

In partnership with the client, GroFin establishes a suitable repayment period during the initial investment negotiations. The maximum repayment period is seven years.

What are the main criteria for investment?

GroFin assesses its clients based on their potential in two critical elements: the ability of the entrepreneur to efficiently manage the business and the ability of the business to generate positive cash flow.

Our primary focus is the ability of the entrepreneur; therefore we have stringent selection criteria when it comes to selecting the entrepreneurs we support. GroFin looks for an entrepreneur with commitment, integrity, drive and vision, appropriate experience and sufficient skills.

Business potential is evaluated in terms of the product or service. We examine the market readiness for the product or service, the market size that the business wishes to enter as well as paying attention to the gearing of the business and its ability to grow over time. We also take the business’s history into account, along with the stage of its development and profit potential in the mid to long term, technical details and its location.

How does an entrepreneur qualify for GroFin’s value-added support?

GroFin supports all entrepreneurs. Therefore, any entrepreneur with a formal business that shows clear potential is eligible for our support. We consider each application based on its merits and its potential profitability. The ability, experience and market knowledge of the entrepreneur(s) is the most important factor we consider when assessing an application, followed by the market need for the product or service.

How long does it take from submitting a business plan to a decision taking place?

This depends on how comprehensive the business plan is, the business model and the level of co-operation from the entrepreneur. We strive to provide entrepreneurs with an in-principle decision to proceed further with the application within seven to 14 days after receipt of a full and complete application. Subsequent to this, we aim to provide a final decision to provide finance and expert business support and guidance to entrepreneurs within 30 days.

What collateral is required for GroFin’s finance?

GroFin believes in financing a business based on its future potential and therefore does not have the same collateral requirements that commercial banks do. That being said, the level of collateral has a direct impact on the kind of transaction that we are able to offer and also affects the overall pricing of the finance.

What does GroFin charge for the finance offered?

GroFin offers unique financing solutions for entrepreneurs. The price of the funding is structured in accordance with the overall risk of the transaction. A client with a lower risk profile will have access to lower rates compared to those with a higher risk profile. This is owing to the inherent financial risk as well as the business risk involved.

Does GroFin always become a shareholder in the company?

No. GroFin prefers not to take up shareholding in a business. There is a range of financing products available in which a shareholding is not obtained.

In a high-risk transaction, GroFin may request to be compensated for the risk by negotiating a minority shareholding in the business.

	Muscat-based Marine Limousine Services began operating in May 2008 by providing luxury taxi hire, wedding transportation services and guided tours to customers. As the success of the business grew, they wished to expand their offering across other cities in Oman. However, in order to securely grow the business without affecting its cash flow, they required a combination of finance and guidance in expanding to additional cities.

	Judging by the business’s success in Muscat, GroFin was confident that they would achieve the same positive results as the business grew. We therefore provided the finance to grow their fleet of vehicles from three to seven.

	We assisted the business in developing an effective finance and administration system and process to suit the expansion of the business. We also assisted the company in its marketing plan and helped them obtain new contracts with local hotels and travel agencies.

	Since partnering with GroFin, their sales have more than doubled and they have extended their services to Northern Oman and Dubai.

a winning formula

FAQ

Client success story