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Financial Readiness
Government buyers need assurance that you have the capital to execute the project before payment (which can take 30 days).
1. Annual Financial Statements (AFS)
For tenders > R10m, you must verify your financial health.
- **Reviewed Statements**: Required for most mid-sized tenders.
- **Audited Statements**: Strictly required for large construction/infrastructure projects.
Ensure your accountant is registered with a professional body (SAICA/SAIPA).
⏱️ Time: 2-4 weeks💰 Cost: R5,000 - R20,000+
2. Letter of Good Standing (Bank)
A letter from your bank rating your account conduct (e.g., Code A, B, C). A "Code A" rating usually means you manage your account well and have funds available.
⏱️ Time: 2-5 days💰 Cost: Bank fees apply
3. Project Funding / Revolving Credit
Government pays *after* delivery. You need cash flow to buy materials.
- Apply for a revolving credit facility
- Consider invoice factoring if you have a valid purchase order
- Explore NEF or SEFA funding for larger government contracts
⏱️ Time: Application takes 1-3 months💰 Cost: Interest rates vary
Pro Tip
Always verify your documents are not expiring soon. Tenders are often disqualified for expired Tax Compliance or COIDA certificates.