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clear turnaround plan over the next 12 to 24 months and
must have been in a healthy financial position before
Covid-19 started . The repayment term for this loan is
60 months,” explained Moodley. “There are a sizeable
number of small businesses in KwaZulu-Natal that have
the opportunity to access funding at competitive rates,
however, sustainability is key,” he adds.
Responsible Lending
The main difference between the IDC’s and other
financial institution’s approaches to funding is that the
corporation does not practice security-based lending,
but rather considers the viability of the business and
cash flows to service their loan repayments. The
corporation however takes security for loans disbursed
and is open to crowd funding with other financial
institutions as a way to share the risk on transactions.
are available to attend to enquiries or applications. “I
“Our first consideration is the economic merit of suggest clients make an appointment, come sit with
each business; meaning it has to be sustainable, us and pitch their business proposals,” said Moodley.
viable and profitable. In our application process, we
go through what we call an initial assessment to see During the Covid-19 lockdown, the IDC went through a
that the application meets all the basic criteria and realignment process to streamline its service to clients.
mandate of the IDC. Once that stage is passed, we go To reduce the number of touch points, the regional
into what we call a due diligence process which is a offices now handle funding proposals up to R15 million,
comprehensive assessment of the business including proposals over these amounts are immediately referred
management, technical, financial, and marketing to the relevant business unit at head office for further
capacity,” explains Moodley. processing. This process means that the client deals
with the relevant person from day one, significantly
The IDC is a responsible lender and looks at compliance reducing the turnaround time for applications.
in all areas such as taxation, labour, health and safety,
as well as environment. Of importance is ensuring that If a project does not meet the IDC mandate it can
all necessary documentation and returns – including be referred to a different funding institute. “Our
financial statements, tax certificates, labour returns, responsibility as a development finance institution is to
etc. are up to date. assist clients. If we can’t assist in line with our mandate,
we will pass clients on to other relevant DFIs. We are
“We always advise clients or entrepreneurs to be always there to ensure that the client gets the right
transparent with us as our due diligence process will information,” adds Moodley.
unpack any non-compliance,” advised Moodley. “Be
realistic, remember you are projecting turnover, so you “We have some sizeable applications currently in our
have to be able to quantify revenue streams and ensure pipeline in KwaZulu-Natal. I think that there is a positive
that these are achievable,” he adds outlook for the province. I remain positive that as
lockdown restrictions are eased, there will be a greater
The IDC has an online portal for applications. The KZN number of requests for more funding and we can get
regional office is open Monday to Friday and staff the economy going again,” concluded Moodley.

Full Name of Company: The Industrial CONTACT DETAILS
Development Corporation of South Africa Ltd (IDC) KwaZulu-Natal Durban Office:
Nature of Business: Development Finance Institution. Physical Address: Office 2101, 21st Floor,
Holding Company: Self-financing corporation owned The Embassy Building, 199 Anton Lembede Street,
by the South African Government Durban, 4001
Date Established: 1940 Postal Address: P.O. Box 2411, Durban, 4000
Tel: +27 (0)31 337 4455
VISION Website: www.idc.co.za
To be the primary driving force of commercially
sustainable industrial development and innovation for KwaZulu-Natal Pietermaritzburg Office:
the benefit of South Africa and the rest of Africa. Physical Address: 1st Floor, ABSA House, 15 Chatterton
KEY PERSONNEL Road, Pietermaritzburg
Regional Manager KZN: Pat Moodley Tel: +27 (0)33 328 2560
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