Effective Cashflow Support for Business Growth

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The Source Growth Fund (SGF) provides effective cash flow support, spot factoring (invoice discounting), to clients in South Africa. SGF is ready to meet your short-term financing needs.

Founded in 2020, The Source Growth Fund comes with the knowledge and experience gained over 5 years while running the Master License for an International Factoring Company.

Why SGF -  The Ultimate Professional License

Imagine earning an excellent above-average return on your capital, with minimal marketing, and a work schedule that you control – all accomplished in a business-to-business environment.

Source Growth Fund offers a unique license model in a TRILLION DOLLAR INDUSTRY. SGF teaches licensees how to be successful because as the Master License holder of an International Firm, we gained extensive experience in the industry.

As a successful licensee of The Source Growth Fund, you will enjoy not only significant financial benefits, but also a quality lifestyle with none of the pressures or limitations associated with a conventional 9-5 job.

Key advantages include:

No staff to hire, fire, or manage
No storefront to own, lease, or maintain
No Inventory or stock to purchase
No extensive travel because SGF Licensees do business locally
Business-to-Business, professional environment with regular business hours of operations
Flexibility to relocate for part of the year or permanently and continue doing business
The Source Growth Fund provides specialty finance services for expanding companies. SGF licensees focus on ‘purchasing receivables’ in order to accelerate their clients’ cash flow which, in turn, facilitates more rapid growth for our clients. To receive a detailed overview of The Source Growth Fund please complete our License Information Request Form.

The Marketplace

The invoice discounting marketplace is part of the factoring ‘financial service’ family. The market continues to grow at a healthy rate, especially at the lower end of the sales volume scale, i.e. the unique Source Growth Fund market niche. We have enjoyed great success working with smaller emerging companies. Our client profile shows that these companies have sales in the range of R 2 mil to about R 50 million per annum and have been in business, in some cases, for as little as 5 or 6 months, and usually not much more than 4 years.

Invoice Discounting is a mature financial service, here in South Africa and worldwide

According to the Factoring Year Book, (published by BCR Publishing of Bromley, Kent, England) and Factors Chain International, invoice discounting and factoring have shown a dramatic increase in volume over the past five years. On a worldwide basis, invoices that were subject to discounting or factoring were measured in trillions of dollars, with over 2,000 companies worldwide engaged in this type of business in over 70 countries.

For a detailed overview please complete our, License Information Request Form.

Who is a Typical SGF Licensee?

There is no single description for SGF licensees. Similarly, there is not one single background or profession that typifies SGF licensee. SGF licensees come from very diverse backgrounds.

The following is a partial list of what licensees did before SGF:
  • Business Broker
  • Engineer
  • Insurance Executive
  • CFO
  • Business Consultant
  • Telecom Sales
  • Accountant
  • Bank Executive
  • Attorney
  • And Others
Some SGF licensees continue to operate in a business or professional environment in addition to running their SGF License. Others have chosen ‘semi-retirement’ and golf as the framework for their business setting.

Here are some varied skill sets that make individuals outstanding licensees:

  • You deal effectively with people and they see you as service -oriented.
  • You are a strong, above-average communicator.
  • You can capably evaluate information and make a decision on your findings.
  • You have a genuine desire to help others successfully meet their business goals.
  • You are proactive, creative and appreciate new challenges.
    You understand that effort today leads to success tomorrow.
  • You have a strong business background as well as a demonstrated business aptitude.
  • You have the financial resources to meet start-up and working capital needs

If you see yourself as an individual possessing these traits, then we invite you to complete our License Information Request Form for further information and the opportunity to share your background with us.

Our Training

We strive to ensure that all SGF licensees receive high quality training through self-study, formal training, field training and the SGF coaching program to ensure their ability to succeed.

Training is the essence of a good startup, and SGF endeavors to have licensees operational in the shortest time possible.
Initial training is 6 days and is broken down into 3 two-day Modules as detailed below. Additionally, SGF provides ongoing coaching and training for the entire term of the license.

The initial module begins with the licensee conducting a self-directed study session based on the SGF Operations Manual, and under the guidance of senior SGF executives.

Once Module 1 has been successfully completed, licensees attend a 2-day Formal Training session in Pretoria. This is Module 2 and focuses on SGF background, transaction methodology, risk management, marketing, credit analysis, and much more.

Following Module 2 is the third element – Field Training. Here a senior SGF executive will visit your location for a 2-day program to assist you in creating an active Lead Source Referral Group. The cost of training is included in the license fee, with the exception of the Pretoria portion where the licensee is responsible for travel, lodging, and living expenses.

To receive a detailed overview of The Source Growth Fund, please complete our, License Information Request Form.

Frequently asked Questions

1. What traits do I need to be successful in the business?

a. This is a people business, so it is crucial that you be comfortable to communicate with people at all levels.
b. Secondly this is financial business, so business knowledge is required. Having owned a small business is a certain benefit. Being a corporate executive with small business interaction is also beneficial. People with experience in banking, lending, accounting, business consultants and financial advisors do well in this business.

2. What are the risks in this business?

There is always a degree risk when there is reward. The success lies in how the risk is managed. The risk management process we use at SGF has been trialed and tested and has been refined over years of doing business. The SGF system relies on detailed due diligence before we enter into any transaction. This process enables us to work in a controlled environment when managing the risk.

3. What happens if a customer doesn’t pay?

Although this is the exception rather than the rule, it does happen from time to time. Before we undertake any transaction we always complete the appropriate due diligence. We operate on a recourse basis with our clients and it always stays the responsibility of the client to take care of the payment. This will happen either by re-purchase of the unpaid invoice or through an exchange mechanism that we have developed. Either way licensees will always earn their discount.

4. Where do I get my clients?

Most of our clients come from referrals. We establish lead sources and these would typically be accounts, business bankers, business brokers and happy clients. This is covered during the training and we also work with you in the area of your business to establish these lead sources.

5. How about repeat business?

Our clients stay anything from 6 months to 2 years.

6. How much money do I need to get started in this business, and what will it be used for??

We encourage all licensees to start in a ‘modest’ way as this is a business where you benefit from learning as you go. We recommend around R1-2 million initial working capital over and above the license fee. You will then add to this as your comfort, experience, and client levels grow. You will need a telephone and a computer to get started. You will need to put petrol in your car to visit clients as they DO NOT come to you – this facilitates a home-based business environment. Your other cash flow requirements will be a limited amount that you choose to invest in marketing – probably a maximum of R2 000 -R10 000 to get started.

7. How quickly can I get started?

Once you make the decision to go forward, you will sign the license agreement and pay your license fee. Approximately one week later you will receive your Operations Manual. This is a very comprehensive set of manuals covering the A to Z of SGF and our operations. As part of your self-directed training we require that you study, review and absorb some of this material. Formal Training at our Training Center is scheduled on a monthly basis, and then following that a senior SGF executive comes to your location for Field Training to visit possible referral sources. At the end of that training period, you are ‘open for business’.

Total time from signing the agreement to being ‘open’ is in the range of 4-8 weeks.”

8. How do you assist me?

From a ‘getting started’ point of view, there is the training and marketing assistance that we have already discussed. However, it is important to remember that training never ends. We provide a personalized coaching program, transaction guidance and review, to name just a few areas. We strive to provide whatever assistance you need to make your license successful.

9. Do I get a territory?

We do not award licenses in territories since for every R3 mil you have available to purchase invoices, you are looking at 2-3 clients. It also means that you can do business anywhere and the country and thus move anywhere and take your business along.

10. Are there regular meetings or other forms of interaction for licensees?

We maintain contact via corporate telephone, emails, and newsletters. Our Licensee Conference is designed to broaden industry and company knowledge and give licensees the opportunity to meet and network with other SGF licensees, as well as the SGF management team.

11. What do you mean by sense of community?

This is a license that thrives on interaction between licensees and the licensor. Just because you happen to be a lone licensee in a particular area, you should not think of yourself as operating in a vacuum. You, in fact, are part of a team that is interested in you, your ideas, your suggestions, and your needs.

12. OK, what do I do next?

We invite you to complete our Personal Data Questionnaire form as that would help us to evaluate a potential fit. Should you have any questions or concerns about the Personal Data Questionnaire form or its contents, email me at licensee@interfacefinancial.com. After receipt, review, and acceptance of your information, we will provide you with our Disclosure Document.
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