Nurcha is an innovative construction finance company that supports the national programme to house all South Africans in sustainable human settlements. Nurcha provides bridging finance to contractors and developers involved in the construction of SUBSIDY and AFFORDABLE HOUSING, COMMUNITY FACILITIES and INFRASTRUCTURE.

Nurcha is a section 21 company (not for gain) and is funded by the South African Government in partnership with the Soros Foundation, various overseas donors and other commercial lenders.

The Nurcha Advantage

If you are a contractor or developer involved in housing, community facilities or infrastructure, you can take on your next contract with confidence knowing that Nurcha can provide you with the bridging finance necessary to ensure that your project will be successful and profitable.

If required by you, Nurcha will help you assess the contractual and financial viability of your project, organise the necessary guarantees (where applicable) and loans and provide all the support you need to professionally manage your project. Nurcha is not linked to the employer or the consulting team.

We act only in your best interests. Our success depends entirely on your success and we will do everything necessary to ensure the satisfactory completion of your project.

The relationship between you and Nurcha will be based on mutual respect and common interest.

Important Basic Requirement

To qualify for a bridging finance loan you must have been awarded a viable contract from a recognised employer in the public or private sector.

Intermediary Managed or Direct Finance

Nurcha is an organisation that is regarded as the partner of choice for those seeking innovative construction financing solutions. We are specifically geared to provide construction finance for contractors or developers who cannot easily access finance from the conventional financial institutions.

Each contractor or developer has unique needs and levels of experience. Some require a more closely managed approach than others. Nurcha will assess the needs of each applicant and structure the loan accordingly.

Intermediary Managed Finance

Emerging contractors with little or no project management experience, and who require a high level of support, are funded and managed through a system of financial intermediaries.

These are independent specialists who are under contract to Nurcha. They have extensive knowledge of the construction industry and supplier network, and have sound relationships with all role-players involved in the delivery of subsidy housing, infrastructure and community facilities. They provide a range of construction support services to suit the contractor and are required to manage the programme as stipulated by Nurcha.

Direct Finance

If you are a more established contractor or developer and do not require the close management by an intermediary, then you will need:

• a minimum of 3 years experience in the construction industry
• audited company financial statements and/or management accounts
• to provide tangible security

You will be financed directly by Nurcha and can benefit from the experience and professional advice available from our programme managers. If you have these credentials, simply contact Nurcha direct and we will gladly assist you.

Which services does Nurcha provide?

Nurcha has financing programmes for both emerging (using an intermediary) and established contractors. In both cases, bridging finance is made available to cover the period between issue and payment of a certificate. Interim advances are made for site establishment and wages. The maximum loan value is calculated from the programme/cash flow agreed between you and Nurcha or the intermediary.

Construction support services – the following assistance is provided as required by the intermediary throughout the life of the contact:

• Letters of intent
• Site establishment assistance
• Programming and scheduling
• Assistance with sub-contractor appointment
• Construction management assistance
• Contract administration
• Assistance with material supplier accounts
• Financial administration
• Problem solving

Documentation that must accompany your application

• Letter of appointment/contract between yourself and the employer
• Company registration certificate
• Copies of company directors/members SA identity documents
• Bank account details
• Cash flow forecast/cost breakdown per house
• Approved engineer designed foundation (if applicable)
• Professional Indemnity cover for engineer
• Company VAT registration certificate
• Company Tax clearance certificate
• Signed land availability agreement (if applicable)
• House plans
• Contract specifications
• Geo-technical subsidy approval (if applicable)
• Township registration and surveyor general plan
• NHBRC project enrolment (if applicable)

Essential working agreements

Once you have qualified for financial assistance, you will have to enter into the following agreements:

• Loan Agreement – this describes all the conditions of the loan.
• Construction Support Services Agreement – This sets out the support services that you are to receive – only if intermediary managed.

How to qualify for Nurcha’s services?

To qualify for a bridging finance loan you must have been awarded a viable contract for a subsidy housing project of not less than 100 houses or sites.

Nurcha or the intermediary will then conduct an extensive evaluation process to establish whether you qualify for assistance.

The qualifying criteria are based on the profitability and viability of the contract, and your capability to meet the contractual requirements. Your credit record will not necessarily prevent you from accessing the services offered by Nurcha and our intermediaries.

This evaluation process helps you to gain a better understanding of the viability of the project and also protects you from potential failure by highlighting any hidden obstacles.

Costs and management fees

Typical costs that you would incur include:

• Interest – Interest is charged at a rate that fluctuates with Prime. It is charged from the time the money is advanced to you (when the certificate is issued) to when it is repaid (when the certificate is paid).
• Construction Support Services – These services will be set out in the Services Agreement. The fee will vary depending on how much support you require – only if intermediary managed.
• Nurcha loan administration fee
• Nurcha raising fee – only for direct finance.