Magale Financials

THE PROCESS

STEP ONE:

1. Copies of the following need to be emailed to us:

Letter of appointment
Project implementation plan and cash flow

Magale will validate and verify the contract and letter of appointment.

Due to the nature of these projects, we will follow a series of meetings to be able to make a funding proposal.

On acceptance of our proposal and successful verification/validation of your P.O., we will request the following FICA documentation:

Original or certified CK Document (CK1 for a CC/14.3 for a (Pty) Ltd)
Certified copies of all directors’ ID’s
Original Tax Clearance Certificate
or certified copies of all directors’ proof of residence
Original or certified copies of the business address
ID copy and contact detail of next of kin not living with one of the directors
Proof of business bank account
Signed resolution giving one director authority to sign documents with Magale
BEE Certificate

mportant: ALL CERTIFICATION NOT TO BE OLDER THAN 3 MONTHS.

STEP TWO :

1. Signing of agreements and opening of regulated bank account.

2. Bank account detail will be changed with the Contract Issuer on the Central Supplier Database (CSD) or on the HSS or BAS system, where applicable.

3. Suppliers will be vetted and prices can be negotiated on your behalf.

4. Once the change of bank detail has been verified, payments will be processed as agreed.

Benefits

We provide cash flow planning, process management, mentorship, advice and project assistance
Magale becomes the paymaster on your project, focused on project liquidity
Determine production and payment milestones
Assisting with payment certificates
Building your reputation as a successful supplier to government and/or parastatals by increasing your rating
Access to our vast network of reputable suppliers in a wide variety of speciality fields
More favourable prices and payment terms will be negotiated with suppliers due to our bargaining power
We carry the entire financial risk
Access to our team of experts, at no further expense
Rapid expansion of your business – without financial constraint

FAQ's

What construction projects does Magale development fund?

We specialise in fully subsidised low cost housing contracts as issued by the Department of Human Settlements. Magale will also review funding applications for other construction projects, awarded by Government Departments, Parastatals (e.g. Eskom) and Multi-national private companies, where our client is the appointed contract holder or turnkey developer.

How does Magale's development funding model work?

Together we review the project cash flow, project implementation plan and your supplier list. Based on this information we create a funding solution that will suit your project.

Does the approved capital amount get paid in to my bank account?

No, Magale becomes the paymaster on the project and all expenses are agreed upon as part of the approved cash flow. The rule of thumb is that working capital is only available to pay for material and labour that will result in a signed off milestone. We do not spend capital on asset purchases or head office costs.

What interest will Magale development charge?

We do not charge an interest rate. We make working capital available at a pre-agreed fee as stipulated in our obligation free proposal.

How do I manage my overheads during the project?

As part of the agreed cash flow, we agree and approve your monthly costs related to the project.

What does Magale development not fund?

Partial projects
Projects already started
Subcontractors
Repairs
Refurbishments
Renovations
Asset finance

Constructions