NURCHA is an innovative development finance company providing bridging finance and construction support services for Contractors.  We support the construction of low-income housing, infrastructure and community facilities (e.g. schools, clinics, hospitals, etc.). 

NURCHA provides bridging finance which is directly linked to the value of approved certificates.  Also known as Invoice Discounting or Certificate Lending the NURHCA Bridging Finance Product aims to assist Contractors with the necessary cash flow between the issue and payment of the monthly Payment Certificate.

In order to access the NURCHA Bridging Finance Product, Contractors will be required to undertake the following actions:

•  Complete company registration details and documents (CIPRO)
• ID documents of all Directors
• ID of spouses of Directors - if married in Community of Property
• Proof of Residence of Directors (Not older than 3 months)
• Proof of Residence of Company (Not older than 3 months)
• Recent financial statements
• Tax Clearance Certificate / Vat Registration

• Copies of the Contract / Letter of Appointment with the principal Employer
• Contract terms must still be valid
• Most recent Progress Certificate (if the project has already started)
• Confirmation that the necessary Performance Guarantees and other statutory requirements had been fulfilled

• Contractor must be willing to cede the Payment Certificates to NURCHA as security for the bridging finance
• NURCHA will assist the Contractor to open a new dedicated Project Bank Account at FNB, in the name of the Contractor, but with joint electronic signing powers

• Employer must be willing to acknowledge the Loan & Cession Agreement
• Employer must agree to pay the Certificates to the NURCHA nominated bank account.  All invoices and payments remain, however, in the name of the Contractor.
• NURCHA will assist with the engagement of the Employer, if required

• The Directors and Shareholders of the Company will be required to sign personal sureties for the loan.
• NURCHA may at its discretion request the Contractor to provide additional securities for a portion of the loan facility.

How does it work?

Upon approval and signing of the Bridging Finance Facility the Contractor will submit an instruction / request to the Employer to acknowledge the Loan & Cession Agreement, and to pay all future Certificates into the NURCHA nominated bank account of the Contractor.  Once the Employer has agreed, the facility will be active.  The arrangements with the Employer will remain in place for the duration of the project.  The Contractor will be allowed to cancel the facility if it does not require further assistance, but only if all outstanding loans have been settled.

The Contractor will be able to draw up to 90% of approved Certificates.  In the case of subsidy housing projects the maximum draw will be 80% of an approved Certificate.  Fees and interest will be based on the amount of the requested draw, the total project value and risk profile of the Borrower.  The following serves as a guideline - every project will be assessed individually and fees and interest rates will be agreed with the Contractor before signing of any agreements.

• Initiation Fee = between 1.7% and 2% (per annum) of the approved Loan Facility (plus VAT) - depending on the project value and duration
• Interest at Prime plus 1.9% - 5% per annum (depending on the Contractor's Risk Profile)

Upon receipx of funds from the Employer for the discounted Certificate, the capital, fees and interest will be settled and the balance of the Certificate will be fed into the project's cash flow.

Once the loan facility is approved all draw requests will be reviewed within 3 business days (after submission of a valid Payment Certificate) and if approved, processed for payment within 24 hours thereafter.  Balance payments (after receipx of payment from the Employer) will be processed within 2 business days.

Payment Undertakings to Suppliers

To assist the Contractor with the procurement of materials NURCHA will be able to issue Irrevocable Payment Undertakings to material suppliers.  These Undertakings will be subject to the Contractor achieving the required construction milestone, resulting in the certification of the milestone or materials for payment by the Employer.  NURCHA, the Contractor and the Supplier will enter into a Payment Agreement which will set out the conditions for ordering, delivery and payment of materials.  Payments to Suppliers will be made by NURCHA, as and when Payment Certificates are issued, using the Contractor's approved Bridging Finance Facility.

Enhanced Bridging Finance

In excepxional cases NURCHA will be willing to consider assisting the Contractor with bridging finance for site establishment and other interim expenses (i.e. prior to the issuing of a Certificate).  Additional considerations will include assessments of the total project risk, own contributions by the Contractor, and the amount of security the Contractor can provide for unsecured draw downs.