Short Story

Government spends just over R600 Billion a year to procure services from businesses and enact its mandate. It is the biggest buyer of anything in South Africa. In line with understanding its power, it has made a conscious effort to try stimulate the growth of small businesses, by committing 30% of its total spend to small businesses. This means a total of R200 Billion of its spending is earmarked for emergent small businesses. 

The problem with this though, is that most small businesses do not have the capital to execute on the jobs and then receive payments 7 to 60 days after completing the job. This is a major contributing factor to delays in service delivery for the citizens of the country. 

Entrepreneurs who do get these contracts are forced to give up to 25% of the contract away to shark businesses that are their only option for financing.

On one side, how do you make the workings of government efficient and at the same time allow them to play a critical role in the development of small businesses?

We feel this is where a people owned funding mechanism comes in. You contribute to this campaign, we then use the proceeds to pay for the needs of entrepreneurs who have contracts with government (& the private sector) and they then pay us 6% of the value of their purchase orders once they receive their payment.

e.g. Tshepo just received a contract with Mpumalanga government to deliver 20000 pencils for R20 000.

The cost to manufacture these for him is R10 000. We, as the people, extend him this R10 000 and he agrees to pay us this back as well as 6% of the invoice value (R20 000 * 6% = R1200). He takes 3 weeks to manufacture & deliver these pencils. Mpumalanga agrees to pay him 30 days from Statement (or after delivery) so he pays us back R11 200 almost 60 days from the time we advanced the capital. He now has R8 800 in profit. He can now use this to finance his next purchase and request less from us. The ultimate objective is to allow entrepreneurs to become self reliant.

We have validated this model with a few small entrepreneurs and have developed relationships with certain municipalities to execute on this.

HOW IT WORKS:

  1. You contribute to this campaign (minimum R100; Maximum R1million).
  2. 10% of your contribution is deducted from the fund to cover administrative costs (around 6% is lost in banking fees when receiving, transferring and moving the capital around. The other 4% are running and administrative costs such as site visits for entrepreneur procurement as well as legal on-boarding).
  3. At the end of each month, your money is put to work as described in the example. We expect it to do 6 purchase orders with your money in a year (from disbursement to entrepreneur; to receiving payment back takes anywhere from 45 days to 60 days).
  4. We take 0,6% as service fee for management of the process (hence leaving you with 105,4% per rotation).
  5. At the end of 12 months from the time you contributed, we then pay you back your original capital as well as the facilitation fee. On six purchase orders per year we expect this to be 124%. Put another way, at the end of 12 months we expect to pay you R124 for every R100 you put in today. 
  6. The entire payment process will be managed by The People’s Fund and Audited by SnB Chartered Accountants & Auditors ( Practice Number 966205)

EXPECTED RETURN:

NB!! First & foremost, we need to declare that this does not constitute financial advise in anyway and that we have made our projections based on historical yields. Buying assets that will be run by a small business is risky and you should only commit money you are willing to lose.

We have made a table of expected returns.

 Contribution payback after 12 months Return
 R              100,00  R               124,00 24%
 R          1 000,00  R            1 240,00 24%
 R        10 000,00  R          12 400,00 24%
 R      100 000,00  R       124 000,00 24%
 R  1 000 000,00  R    1 240 000,00 24%

NB: There is a handling fee associated with the payment gateway you choose to use.

Direct Bank Transfer 0%

i-Pay Instant EFT 3%

Setl – It 3%

Payfast R3 + 5%

Scroll down & input the contribution amount you would like to put in below (minimum R100) and then click on contribute.

Purchase Order & Contract Financing

by The People's Fund

  • R10,000,000.00

    Funding Goal
  • R1,023,653.00

    Funds Raised
  • 282 Days to go
  • Target Goal

    Campaign End Method
Raised Percent :
10.24%
Minimum amount is R100 Maximum amount is R1000000
R
, South Africa

The People's Fund

4 Campaigns | 0 Loved campaigns

See full bio

Name Donate Amount Date
Anonymous R800.00 October 16, 2019
Lusanda Maitin R200.00 October 07, 2019
Shanaud Pentasaib R6,500.00 October 02, 2019
Zacharia Mamabolo R309.00 October 01, 2019
Ndumiso Silindza R515.00 September 29, 2019
Lusanda Maitin R200.00 September 27, 2019
Julian Mangaba R50,000.00 September 19, 2019
Lusanda Maitin R206.00 September 11, 2019
Anonymous R10,000.00 September 10, 2019
Malope Mampholo R10,000.00 September 08, 2019
Anonymous R2,600.00 September 05, 2019
Lusanda Maitin R100.00 August 28, 2019
Lusanda MAITIN R150.00 August 20, 2019
Anonymous R200.00 August 18, 2019
Malope Mampholo R10,000.00 August 16, 2019
Anonymous R100.00 August 15, 2019
Lusanda MAITIN R150.00 August 15, 2019
Anonymous R100.00 August 15, 2019
Odirile Mekwa R2,000.00 August 13, 2019
Anonymous R250.00 August 13, 2019
The People's Stokvel R153,900.00 August 12, 2019
Lusanda MAITIN R100.00 August 12, 2019
Belinda Stapelberg R1,000.00 August 12, 2019
The Peoples Stokvel R101,600.00 August 06, 2019
Anonymous R500.00 August 01, 2019
Anonymous R1,000.00 July 31, 2019
Thabiso Ndlovu R1,030.00 July 25, 2019
Brian Moepi R103.00 July 18, 2019
Anonymous R154.50 July 16, 2019
Malope Mampholo R10,000.00 July 12, 2019
Thabiso Wessie R5,000.00 July 05, 2019
Lesley Mbele R500.00 July 03, 2019
Tshegofatso Kgobokoe R103.00 June 27, 2019
Anonymous R100.00 June 26, 2019
Brandon Allen R1,000.00 May 23, 2019
Rebecca Kekana R35,000.00 May 15, 2019
Thandeka Shabane R1,000.00 May 04, 2019
Anonymous R103.00 April 29, 2019
Zanele Tyali R10,000.00 April 26, 2019
Nadia van Zyl R100.00 April 25, 2019
Vuyolwethu Nobula R300.00 April 21, 2019
Anonymous R515.00 April 18, 2019
Anonymous R25,000.00 April 17, 2019
Tebogo Mokumo R500.00 April 16, 2019
The People's Stokvel R44,000.00 April 16, 2019
Nqoba Earl Ndlovu R100.00 April 15, 2019
Gerhard De Jager R20,600.00 April 12, 2019
Keodiretse Segabutle R3,090.00 April 12, 2019
Lesley Matjele R500.00 April 11, 2019
Jenny Tanesse R1,030.00 March 26, 2019
Innocent Tshabalala R200.00 March 23, 2019
Shalati Setshedi R2,000.00 March 21, 2019
The People's Stokvel R34,300.00 March 19, 2019
Antoinette Nageng R200.00 March 07, 2019
Sean Smith R206.00 March 06, 2019
Bukelwa Hornsby R100.00 March 04, 2019
Jeanette Kganare R103.00 February 28, 2019
Khanya Ndebele R200.00 February 27, 2019
Lorretta Tshuka R203.00 February 26, 2019
Anonymous R200.00 February 26, 2019
Modise Tsasanyane R100.00 February 22, 2019
Tshegofatso Lekgetho R100.00 February 21, 2019
Siyabulela Molwana R103.00 February 20, 2019
Anonymous R2,500.00 February 20, 2019
Miranda magagula R154.50 February 18, 2019
Bongani Mashaba R2,000.00 February 18, 2019
The People's Stokvel R55,000.00 February 16, 2019
luyanda jafta R103.00 February 15, 2019
Lesley Matjele R500.00 February 05, 2019
Khomotjo Manyashi R100.00 February 05, 2019
Keodiretse Segabutle R3,000.00 February 01, 2019
Katlego Moepi R200.00 January 30, 2019
Njabulo Nkosinathi Emmanuel Africander R309.00 January 27, 2019
Charles Cracknell R2,160.00 January 26, 2019
More Anthony Mogapi R1,000.00 January 25, 2019
Phikolomzi Mbuqe R1,000.00 January 23, 2019
Vanessa Matsile R200.00 January 23, 2019
Ntsako Gift Chauke R1,000.00 January 17, 2019
Mzuzukile Soni R300.00 January 16, 2019
The People's Stokvel R114,000.00 January 14, 2019
Winston Owen R200.00 January 11, 2019
Gloria Khumalo R100.00 January 04, 2019
Viktor Kozlovszky R44,000.00 January 03, 2019
Siyabonga Kubeka R103.00 January 02, 2019
Morrison Mzwandile Nxele R2,000.00 January 02, 2019
Thabo Maloka R1,000.00 January 01, 2019
Lesley Matjele R309.00 December 30, 2018
HOSEA Sibanda R1,030.00 December 30, 2018
Tabisa Gcingca R1,000.00 December 13, 2018
Lucas Mogashoa R1,000.00 December 12, 2018
Lesego Dibocho R200.00 November 30, 2018
Tshepo Shikwane R100.00 November 30, 2018
Lesley Matjele R100.00 November 30, 2018
Yolisa Jafta R100.00 November 30, 2018
Naweed Khan R200.00 November 30, 2018
JP Horne R1,050.00 November 30, 2018
Lindiswa Soko R100.00 November 28, 2018
Thabo Mashegoane R10,000.00 November 27, 2018
Jane Walls Hurwitz R3,000.00 November 26, 2018
Winston Owen R100.00 November 24, 2018
Tracy CRICHTON R1,000.00 November 23, 2018
Tracy CRICHTON R1,030.00 November 21, 2018
Phindile Chirwa R200.00 November 12, 2018
Bambithuba Investment R5,000.00 November 09, 2018
Lesley Matjele R515.00 November 06, 2018
kgomotso makhubela R206.00 October 27, 2018
luyanda jafta R1,500.00 October 22, 2018
The People's Stokvel R120,029.00 October 22, 2018
Thamsanqa Malo R100.00 October 18, 2018
Lesweu Rampa R100.00 October 15, 2018
Nhlanhla Nyamathe R1,030.00 October 14, 2018
Shanaud Pentasaib R5,000.00 September 28, 2018
Lesoko Matete Bernard Serote R1,030.00 September 28, 2018
Lesley Mbele R515.00 September 28, 2018
Molate Lucky Matlou R1,339.00 September 27, 2018
Siphesihle Skosana R500.00 September 26, 2018
Sibonelo Mbongwe R430.00 September 25, 2018
kgomotso makhubela R1,030.00 September 24, 2018
Naweed Khan R5,000.00 September 22, 2018
XOLILE MTHEMBU R27,000.00 September 11, 2018
XOLILE MTHEMBU R3,090.00 September 11, 2018
Bongani Mashaba R1,000.00 September 03, 2018
Buti Sekhalanga R1,000.00 August 25, 2018
Yolanda Ndhlovu R100.00 August 20, 2018
MaSetshedi Setshedi R2,678.00 August 19, 2018
Molifi Kamoi R100.00 August 19, 2018
Julian Mangaba R10,000.00 August 14, 2018
Timothy Musto R103.00 August 14, 2018
Timothy Musto R103.00 August 14, 2018
Thembeka Ngobese R2,060.00 August 12, 2018
Pat Mncadi R2,000.00 August 10, 2018
Zinhle Mthombothi R2,000.00 August 10, 2018
Lindokuhle Mthombothi R6,000.00 August 07, 2018
Charles Cracknell R240.00 August 07, 2018
Bernice Manaka R200.00 August 06, 2018
Pallo Marumo R240.00 August 05, 2018
Joan Laine R2,000.00 August 05, 2018
Nhlanhla Magubane R1,000.00 August 03, 2018
Thembisile Nonyane R150.00 August 02, 2018
Moore Malesela R500.00 July 28, 2018
The People's Fund R21,000.00 July 27, 2018
Charles Cracknell R1,080.00 July 27, 2018
The People's Stokvel R62,200.00 July 27, 2018
Zinhle Mthombothi R5,000.00 July 25, 2018
Mandisa Skhosana R500.00 July 23, 2018
Qiniso Ndlovu R500.00 July 17, 2018
David Mongwe R500.00 July 17, 2018
David Mongwe R2,500.00 July 16, 2018
Lesedi Rantao R1,000.00 July 16, 2018
Mawethu Bheme R502.00 July 15, 2018
The People's Fund R10,000.00 July 14, 2018
Lefera Tsholo R100.00 July 11, 2018
Andy Hadfield R1,000.00 July 11, 2018

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