Shedding Light On Hoi P’loy’s Funding Journey
Small and medium-sized enterprises (SMEs) form the backbone of South Africa's economy, playing a vital role in driving innovation, employment, economic growth and creating positive social impact. Access to funding is a critical factor that determines the growth and sustainability of SMEs. However, SMEs are largely underserved by capital markets in emerging market territories. At Creative Growth Capital, we recognise the immense value that SMEs bring to South Africa's economic landscape - we are committed to addressing the funding gap by providing tailor-made funding solutions to SMEs and building partnerships with the people behind them.
Hoi P’loy’s tight-knit team.
In this blog post, we ‘shed light’ on Hoi P’loy’s¹ experience of applying for funding from Creative Growth Capital.
Measured from the start of 2023 until the 9th of May 2023², the average South African had experienced nearly 35 full days without electricity - that’s nearly 30% of the year. For many South African businesses, this means 30% fewer productive hours, 30% less income and likely at least 30% less in the bank each month to pay their loyal staff and keep their business running. One of the businesses that we have helped overcome this challenge is Hoi P’loy, which turned to alternate sources of energy, in particular, solar power, to keep its operations running productively.
For large enterprises, the upfront capital required to install solar panels, or other alternative energy solutions, is likely an insignificant portion of their annual budget, or their banks would be willing to lend a helping hand. The same can’t be said for SMEs, who don’t enjoy this privilege and typically struggle to secure suitable funding from traditional financiers.
When Hoi P’loy considered the financing of solar panels for its business, Guy van der Walt, one of the business owners, noted his experience in working with traditional financiers:
“One of the biggest barriers was the admin and hoop jumping we expected from traditional finance sources. We often felt we had bent over backwards to prove our worthiness of a loan to people who didn’t understand our business and, quite frankly, didn’t care.”
Hoi P’loy ultimately looked to Creative Growth Capital for a solution that took into consideration the particular needs of the business, didn’t come with overly burdensome terms and was supported by an efficient investment process.
Per Guy from Hoi P’loy, the experience differed markedly between Creative Growth Capital and traditional financiers:
“After communicating our apprehension around these aspects, Creative Growth Capital listened carefully and structured their proposal in such a way that there was minimal effort required on our part. Creative Growth Capital engaged with us meaningfully, took the time to understand our circumstances thoroughly, and ultimately addressed all of our concerns.
As with every investment opportunity, we took time to fully appreciate Hoi P’loy’s journey, to understand where the team are striving to take the business in the future and to identify how we can support them in a personalised manner on this growth trajectory. We offered Hoi P’loy a suitable funding solution that enabled them to eliminate power outages and focus on running a thriving South African business.
Creative Growth Capital is dedicated to bridging the funding gap for SMEs in South Africa. Through our innovative funding solutions, personalised approach and commitment to building partnerships, we aim to empower businesses to reach their full potential.
We invite you to take a step towards advancing your business’s growth by applying for funding with Creative Growth Capital. Together, let's unlock the true potential of your business and embark on a journey of high impact and success. Apply here.
¹AdornThemes (n.d.). Hoi P’loy | Vintage Inspired Lighting Store Cape Town. [online] Hoi P’loy. Available at: https://hoiploy.com/.
²BusinessTechSA (2023). South Africa just hit a bleak load-shedding milestone. [online] Businesstech.co.za. Available at: https://businesstech.co.za/news/energy/686709/south-africa-just-passed-a-bleak-load-shedding-milestone/.