Capital
Capital Raising
Mettle manages the process of raising debt and/or equity finance from local and international banks, financial institutions and other investors. The minimum size for a capital raise is usually R30 million. Fees are typically a retainer coupled with a success component.
Asset Backed Securitisation Programs
Mettle raises, structures and places (listed/rated) debt in terms of South African Reserve Bank approved securitisation programs on a more favourable basis than balance sheet lending. The programs are suitable for clients with a well diversified, predictable pool of assets such as debtors. Debtors should be in excess of R100 million.
Mergers and Acquisitions
Mettle advises on the process of originating, structuring, negotiating and implementing business or share acquisitions/disposals, often associated with corporate restructuring. Minimum transaction sizes are in the order of R50 million. Fees are structured as a retainer coupled with a success component.
Lock Box Arrangements
Mettle provides this bespoke form of trade finance with no funds typically changing hands on day one. Lock box is a financial arrangement where an independent third-party regulates payment of the funds required between a buyer and seller. It enhances security by maintaining funds in an escrow account which are only released when all the terms of an agreement are met as overseen by the independent third-party. Lock box arrangements are suitable for businesses that are unable to source other forms of lending in the capital market due to a lack of track/credit record such as small to medium size enterprises (“SMMEs”) and new entities. The minimum transaction size is R1 million.
Working Capital Finance
Mettle assists clients with their short-term funding requirements. The types of funding are aligned with the size, client’s needs and available security. Funding varies from overdraft facilities, short to medium term loans, stock funding, invoice discounting to trade finance. Fees are determined as a percentage of capital raised.
Trade Finance
Mettle arranges flexible, convenient funding, which is independently secured from a select pool of trade financiers to fund inventory (incl. transport, taxes, etc.) for traders, importers and exporters. Minimum transaction size of $1 million.
Invoice Discounting
Mettle arranges invoice discounting aimed at accelerating cash flows, as a business will receive a portion of the proceeds from the customer invoice from the funder in advance of the customer making payment for the same invoice. It is mostly suitable for businesses such as SMMEs that are unable to source other traditional forms of lending in the capital markets. The minimum transaction size is R500 000.
Mezzanine Finance
Mettle originates, structures and privately places mezzanine finance where required individually or as sub-component of an overall funding solution. Minimum transaction size is R5 million.
Credit Enhancements
Mettle supports businesses, by assisting corporate clients with tailormade solutions from reputable insurers for risks including trade credit, buy and sell, political, expropriation, currency convertibility, breach of contract, warranty and indemnity, etc.
Mettle facilitates the use of independent stock monitoring, inspection and collateral management companies where required as added risk management measures, e.g. in procuring trade finance. Minimum transaction is $1 million.
Mettle assists clients in their foreign exchange risk management and support to ensure competitive rates and bespoke hedging solutions aligned with a businesses needs and risk parameters. Minimum transaction size is $100 000.