Funding Solutions  

Merchant West provides structured funding solutions that enable customers to implement projects without upfront capital constraints, while ensuring affordability and alignment with operational cash flow. 

Funding parameters:  

• Project sizes ranging from approximately R40k to R65m
• Finance terms of up to 7 years
• Flexible structures including Instalment Sale Agreements (ISA) and Rent-to-Own
• Risk-based pricing aligned to customer credit profile
• Credit turnaround times of 3–5 working days

Funding approach:  

• Early engagement to structure viable funding solutions
• Detailed assessment of technical, financial, and operational information
• Credit decisions based on:
  • Financial performance and liquidity
  • Ownership structure and guarantees
  • Management experience and trading history
  • Sector and operational risk

Outcome for customers:  

• Removes upfront capital barriers
• Aligns repayments with energy savings and operational benefits
• Enables faster project implementation
• Improves overall project feasibility and approval rates

Payment Solutions (Project Payment Structure)  

The payment structure is designed to manage cash flow efficiently throughout the installation phase, ensuring that suppliers and installers are supported without reliance on costly short-term funding. 

How the structure works: 

• Stage 1 – Equipment Payment:

  Payment is made for equipment supplied, based on the bill of materials, once delivery to site is confirmed and acknowledged by the customer. 

• Stage 2 – Installation & Professional Fees:

  Payment is released upon project completion, subject to submission of compliance and handover documentation (including CoC and warranties). 

Key benefits: 

• Reduces reliance on high-cost bridging finance solutions
• Aligns payments with verified project milestones
• Supports installer cash flow during the build phase

Key considerations: 

• Payments are dependent on approved end-user funding
• The customer remains responsible for repayment of funds
• Installer performance risk remains between the customer and installer

Why It Matters  

The integration of structured payment and funding solutions within the sales process strengthens deal certainty and execution capability. 

• Improves affordability for customers
• Reduces working capital pressure across the value chain
• Enhances speed and certainty of project completion
• Increases likelihood of successful deal closure

Projects supported by structured financing solutions are significantly more likely to proceed to implementation. 

Learn more  

Email: debtors@herholdts.co.za

Email: brendanB@merchantwest.co.za