Custom Capital Finance (Pty) Ltd (Custom Capital) is a private company incorporated in South Africa and partner with Multiply Group Pty Ltd (Multiply) – a global investment company targeting proprietary transactions across the African Continent.

The core business of Custom Capital is to build performing and high-yielding asset portfolios with diversified risk exposure. These portfolios comprise of various asset types including but not limited to:

• Office automation;
• Telecommunication products;
• Security surveillance;
• Commercial vehicles;
• Medical equipment;
• Construction equipment;
• Point of sale equipment;
• Audio visual equipment;
• Computer and IT equipment
• Specialized equipment; and
• Other moveable equipment.

The portfolios are built utilizing rental agreements. These agreements have varying periods attached to them ranging from 24 to 60 months. Traditionally, corporations utilize this mechanism of acquiring equipment due to numerous advantages including conservation of working capital, better return on net assets, obsolescence hedge, flexibility, reduced debt exposure and tax advantages (i.e. off balance sheet financing).

Chris and Pierre Du Toit, who will collectively manage operations, both spent 10 years with Canon Office Automation prior to the launch of their own business in 2001 namely Custom Capital. It was there that they were both first exposed to the world of asset based lending and were directly involved in establishing financing lines with commercial banks and the day to day operations of asset based lending.

In 2011, Custom Capital entered into a transaction with Mercantile Bank Limited and over the next 5 years built a very successful portfolio in excess of R590 million. Chris and Pierre exited the business after Mercantile Bank exercised their call option for their equity.  After the expiration of the 1 year restraint, the intention is now to build a new business platform with the combined Multiply team and enter the market again.

WHY RENT

Traditionally, corporations utilize the Rental mechanism of acquiring equipment due to numerous Advantages:

• Conservation of working capital; don’t tie up cash on non-performing assets
• Cash Flow
• Affordability
• Better return on net assets
• Obsolescence hedge
• Flexibility
• Reduced debt exposure
• Tax advantages (i.e. off balance sheet financing).