CEDA and BizCapital collaborate

CVCF identified BizCapital as an intermediary financial institution to enable equity capital to flow towards a major constraint of small business, which is cashflow for trading and working capital purposes.

The Fund has partnered with Reuben Morapedi as the promoter of BizCapital, a statement from CVCF says.

Having worked for a number of years in risk management, Morapedi recognised the working capital finance requirements in small and medium sized entities that characteristically struggle with cashflow.

He thus established BizCapital to provide products appropriate for servicing the working capital needs of small businesses.

The company offers flexible and innovative financing solutions through four key working capital products - invoice discounting, purchase order financing, debt factoring and inventory finance.

Invoice discounting and factoring are collectively known as invoice finance, suggesting that a business can present its invoice(s) to BizCapital (subsequent to due diligence and contractual arrangements) for immediate payment after successful delivery of goods or services to its clients. Purchase order and inventory finance are complementary to invoice finance, but specifically target business that periodically have to procure goods to service their clients, particularly in large quantities and amounts which are above their normal working capital requirements.

Through these offerings, BizCapital accords businesses a great opportunity to attain growth opportunities, which are otherwise beyond their reach without the financial support of this nature. BizCapital had been operating for three years when the growth of the company necessitated additional capital in order to meet the needs of its capital base, and thus, another investment by the CEDA Venture Capital Fund was transacted.