Unlocking Capital for Underserved Vehicle Dealerships
Luvium provides a scalable floor plan finance solution for underserved vehicle dealerships in rural and underserved regions.
- Expected Returns
- ~9.7%
- Target Dealerships
- 57
- Jobs Created
- 500+
Each square is one target dealership.
Why Choose Luvium
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Strong Financial Returns
Target returns of JIBAR + 3% with robust risk management and asset-backed security.
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Financial Inclusion
Empowering underserved dealerships with access to capital they need to grow and thrive.
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Market Opportunity
Tap into South Africa's R20 billion used vehicle market with significant growth potential.
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Risk Mitigation
Comprehensive asset control, insurance coverage, and proven risk management frameworks.
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Economic Development
Creating 500+ jobs and driving economic growth in underserved communities across South Africa.
About Luvium Capital
Building bridges between capital and opportunity in South Africa's vehicle dealership sector.
Our Story
Luvium Capital was founded on the principle that every viable business deserves access to growth capital. We recognized a critical gap in the South African market: thousands of vehicle dealerships in rural and underserved areas unable to access the floor plan financing they need to thrive.
Our innovative approach combines institutional-grade risk management with a deep understanding of local market dynamics, enabling us to serve dealerships that traditional lenders overlook.
Today, we're proud to be driving financial inclusion while delivering attractive risk-adjusted returns to our investors.
Our Mission
To democratize access to floor plan financing for underserved vehicle dealerships, creating sustainable economic opportunities and delivering consistent returns to our investors.
Our Vision
A South Africa where every legitimate vehicle dealer has access to the capital they need to grow their business and serve their communities.
Years Experience
Combined industry expertise in finance and automotive sectors
Capital Deployed
Supporting growth across multiple dealerships
Commitment
To ethical investing and sustainable impact
Our Solution
A comprehensive floor plan financing solution tailored for underserved vehicle dealerships
The Challenge
South Africa's used vehicle market is valued at over R20 billion annually, yet thousands of legitimate dealerships in rural and underserved areas lack access to floor plan financing. Traditional lenders focus on established urban dealers, leaving a significant market segment without the capital needed to stock inventory and grow their businesses.
This creates a lose-lose situation: dealerships cannot reach their potential, communities lack access to quality vehicles, and investors miss out on attractive risk-adjusted returns in an underserved market.
How It Works
Fund
Luvium provides R3.5M in floor plan financing to qualified dealerships, enabling them to purchase and stock quality used vehicles.
Grow
Dealerships use the capital to expand their inventory, increase sales, and grow their businesses while serving their communities.
Repay
As vehicles are sold, dealerships repay the financing with interest, generating consistent returns for investors.
Target Dealership Characteristics
- Established track record (2+ years operating)
- Located in underserved or rural regions
- Minimum monthly sales of R500,000
- Strong community reputation and relationships
- Demonstrated financial management capabilities
- Commitment to compliance and transparency
Floor plan illustrator
Move the sliders to see how the figures on this page add up. Start values match the page: 57 target dealerships, R3.5M per dealership and ~9.7% expected returns.
Illustrative arithmetic only. It assumes the full amount is in use for a year, and it is not a forecast, a guarantee or an offer.
- Capital deployed
- R199.5M
- Indicative annual interest
- R19.4M
Lit squares are dealerships financed, out of 57 targeted.
Impact & ESG
Investing with purpose - delivering returns while creating meaningful social impact
Public Investment Corporation (PIC) Alignment
Our investment thesis aligns closely with the PIC's mandate to promote economic development, job creation, and broad-based black economic empowerment (B-BBEE) in South Africa.
Economic Development
Supporting growth in underserved regions and communities
Job Creation
Enabling 500+ sustainable employment opportunities
Financial Inclusion
Bridging the finance gap for underserved businesses
Impact Indicators
Jobs Created
Sustainable employment across underserved communities
Target Dealerships
Independent dealers we aim to finance
Used Vehicle Market
Annual market value in South Africa
Financing Per Dealership
Floor plan finance for each qualified dealership
Risk Management
Protecting investor capital through disciplined origination, control of collateral and ongoing monitoring.
Asset control
Every advance is tied to a specific vehicle, so the security behind each rand is identified and controlled.
Dealer vetting
Dealers are assessed on sales history, inventory turnover and market location before a line is opened.
Stock monitoring
Stock audits and ageing alerts help us spot slow-moving inventory early.
Insurance coverage
Insurance is part of the risk framework, protecting the financed stock.
Repayment on sale
As each vehicle is sold, the financing is repaid with interest, keeping exposure tied to stock that is actually on the floor.
Clear reporting
Regular statements and portfolio reporting give investors a clear view of exposure and performance.
Common questions
What secures each advance?
Each advance is secured against the specific vehicle it finances. The dealer's inventory forms the security for the credit line.
How do dealers qualify?
Target dealerships have an established track record (2+ years operating), are located in underserved or rural regions, have minimum monthly sales of R500,000, a strong community reputation, demonstrated financial management capabilities and a commitment to compliance and transparency.
How large is a facility?
Luvium provides R3.5M in floor plan financing to qualified dealerships.
How do investors see the documents?
Investment documents and portfolio reporting are shared with approved investors on request. Use the Dashboard section to ask for access.
Investor Dashboard
Investment documents and portfolio reporting are shared with approved investors and partners. Access is by request, and we confirm who is asking before anything is shared.
- Request access
Investment Overview
Opportunity summary, structure and target returns.
- Request access
Risk Framework
Controls, dealer criteria and the monitoring approach.
- Request access
Portfolio Reporting
Regular statements and performance reporting.
Contact
Whether you are an investor, a funding partner or a dealer, we would like to hear from you.
- Office
- 456 Cypress, Cnr Vale and Cypress Avenue
Bryanston, 2021
South Africa - Funding partners
- See the partnerships page for funders, insurers, data providers and dealer networks.