Case Study: Helping an Order Finance Business Secure Institutional Wholesale Funding

Access to institutional capital remains one of the biggest barriers to growth for small and emerging finance businesses. While demand for SME finance is strong, funders require a high level of structure, financial discipline, and strategic clarity before approving wholesale funding.

This case study highlights how Funding Connection supported a small order finance business to successfully secure funding from the SEFDA Wholesale Fund, resulting in an approval twice the amount initially applied for.

Client Background

The client operates in the order finance sector, providing short-term funding to SMEs to fulfil confirmed purchase orders. As demand for their services increased, the business required wholesale funding to scale its lending capacity, improve cash flow stability, and strengthen its balance sheet.

Although the business had a proven operating model and growing demand, it lacked the institutional-grade documentation and financial structure required by wholesale funders.

The Challenge

The SEFDA Wholesale Fund has stringent requirements, particularly for financial intermediaries. The client faced several challenges:

• Translating an operational business into a funder-ready investment case

• Demonstrating risk management, governance, and portfolio performance

• Producing credible financial forecasts aligned to wholesale funding expectations

• Structuring the funding request in a way that reflected scalability and sustainability, rather than short-term capital needs

Without expert guidance, many businesses either apply for the wrong funding structure or significantly understate their true funding potential.

Our Strategic Approach

Funding Connection was engaged to provide end-to-end funding advisory and capital structuring support, ensuring the business was positioned to meet both SEFDA’s technical requirements and strategic funding objectives.

Our support included:

1. Institutional-Grade Business Plan Development

We developed a comprehensive business plan that clearly articulated the client’s value proposition, target market, credit assessment processes, and growth strategy. The plan was tailored specifically to SEFDA’s wholesale funding mandate and evaluation framework.

2. Advanced Financial Modelling and Forecasting

Our team prepared detailed financial forecasts, including income statements, cash flow projections, balance sheets, and funding utilisation models. Particular attention was given to portfolio performance, capital adequacy, and repayment capacity.

These forecasts demonstrated that the business could responsibly manage a larger funding facility than originally anticipated.

3. Capital Structuring and Funding Positioning

Rather than simply supporting a funding submission, we strategically positioned the business for scale. This included refining the funding amount, aligning it with realistic growth projections, and clearly presenting how additional capital would be deployed to generate sustainable returns.

4. SEFDA Submission Management and Advisory

We managed the full SEFDA submission process, ensuring alignment between the business narrative, financial data, and funder expectations. This reduced risk, improved clarity, and strengthened the overall credibility of the application.

The Outcome

The client was approved for double the amount initially applied for.

SEFDA’s assessment recognised the strength of the business case, the quality of financial modelling, and the scalability of the business model. The approval not only exceeded expectations but also positioned the client as a credible financial intermediary capable of managing institutional capital.

Business Impact

With the increased funding facility, the client was able to:

• Expand its order finance portfolio

• Support a greater number of SMEs

• Improve liquidity and operational stability

• Strengthen its long-term growth trajectory

More importantly, the business now has a funding structure that supports sustainable expansion rather than short-term cash flow pressure.

Key Lessons for Finance Businesses

This case demonstrates that successful wholesale funding is not only about eligibility—it is about presentation, structure, and strategy. Businesses that invest in professional funding advisory, institutional-grade documentation, and robust financial forecasting are far more likely to secure larger funding approvals and better long-term outcomes.

How Funding Connection Adds Value

At Funding Connection, we go beyond document preparation. We provide strategic funding advisory, helping businesses position themselves correctly, structure capital effectively, and engage funders with confidence.

If you are seeking wholesale funding or institutional capital, professional preparation can significantly change both the outcome and the funding amount. Contact us now: https://www.fundingconnection.co.za/contact