02
SDG Alignment
01
Investment Summary
SASB SECTOR
Financial Services
INVESTMENT DATE
December 2022
LOCATION
SASB INDUSTRY
Consumer Finance
IMPACT TARGET
Financial Inclusion
FUND SHAREHOLDING
51%
Head Office in Umhlanga, Natal
National
Custom Capital Finance at a glance
After successfully establishing Mercantile Bank's alternative lending division and subsequently selling their stake to the bank, the Du Toit brothers founded Custom Capital Finance (CCF) in 2018. CCF specializes in alternative lending solutions, specifically Rental Finance and Invoice Discounting.
Rental Finance primarily targets Small, Micro, and Medium Enterprises (SMMEs) that face challenges in obtaining financing from traditional banks. This alternative financing option allows SMMEs to acquire necessary equipment without requiring significant upfront capital. With an average rental term of 54 months, SMMEs benefit from improved cash flow and can navigate economic difficulties such as the impact of Covid-19, ensuring long-term sustainability for both the business and its employees.
In 2020, CCF expanded its offerings by acquiring an invoice discounting business, which provides short-term financing (30-90 days) against invoices from reputable blue-chip off-takers. With a reputation as one of South Africa's top teams in alternative lending origination and operational management, CCF currently ranks as the third-largest operator of its kind in the country.