Retail Facility  |  Proposed financing structure  |  Confidential Talk to us

store build made easier

A facility-based financing model for retail store-build and property teams.

Zero upfront cash outlay R500m facility Settled over 36 to 60 months

The proposal

zero upfront cash outlay for retailers

PEAK replaces per-project deposits with a pre-approved facility. We fund the build and invoice on completion. The Bank settles us, and the retailer pays the Bank over the term, with repayments qualifying as long term trade payables.

  1. R500m facility Pre-approved invoice discounting facility agreed with the Bank.
  2. 36 months availability Facility term, set against the retailer's medium-term pipeline of store builds.
  3. Zero deposit per project Today retailers typically pay a 60% deposit on every Purchase Order before the build starts.
  4. 36 to 60 months to settle The retailer settles each invoice over the term, paying the Bank directly. Today it is 30 days.

We fund the build. We invoice within 7 days of completion. The Bank settles us. The retailer pays the Bank.
Repayment terms will qualify as long term trade payables, and not as interest bearing debt.

Why now

built for the modern retail agenda

What we hear from retailers

  1. 1.
    Capital discipline & cash preservation.Boardrooms and property committees are demanding tighter working capital management and stricter hurdle rates on upfront capital outlays.Retail Treasury Priorities
  2. 2.
    Accelerating store refresh cycles.Competitive trading pressures require faster revamp and rollout velocity, but heavy upfront deposits choke deployment schedules.Store Development Dynamics
  3. 3.
    Trading margin and holding cost pressures.With operating margins under pressure, retailers cannot afford to trap liquidity in non-trading fixtures months before store opening.Commercial Operations
  4. 4.
    Footprint growth without balance sheet debt.Expanding physical store presence without increasing bank borrowing lines or compromising financial covenants.Strategic Finance

What PEAK does about it

  1. 1.
    Moves store capex from an upfront outlay to payment over the term.
  2. 2.
    Raises no bank debt on the retailer's balance sheet.
  3. 3.
    Gives the store pipeline 36 months of financing certainty.
  4. 4.
    Delivers each store fully costed and invoiced on completion, with maintenance built in.

Structured to solve real-world retail working capital, capex and balance-sheet constraints.

Today

retailers fund every project upfront today

The traditional per-project Purchase Order model.

  1. 1

    PO issued

    The retailer issues a Purchase Order for the individual project.

  2. 2

    60% deposit upfront

    The retailer pays up to 60% of project value at the outset, before the build begins.

  3. 3

    Final invoice

    The remaining 40% plus any Variation Orders, settled on completion within 30 days.

Effect on the retailer

  1. 1.
    Significant upfront cash outlay on every project, before any value is delivered.
  2. 2.
    No long-term certainty on project financing, so the pipeline stays uncertain.
  3. 3.
    Long-term capital projects funded upfront, so capital is used inefficiently.

The shift

from upfront outlay to payment over the term

Share of project value paid by the retailer, by point in time. Same store, same build, two very different cash profiles.

Current model

A Purchase Order per project. 60% deposit upfront, the remaining 40% plus Variation Orders on completion, settled in 30 days.

Nothing further owed
60%
40% + VOs
Kick-offCompletionMonths 1 to 60

100% paid before or at completion.

PEAK model

An RFQ per project with zero deposit. We fund and deliver the build, invoice within 7 days of completion, and the retailer pays the Bank over 36 to 60 months.

Equal payments to the Bank
0
0
Kick-offCompletionMonths 1 to 60

Zero upfront. Paid over the life of the asset.

Illustrative, not to scale. Principal shape only. Financing and bank costs are included in the invoice value.

Term calculator

choose the term. watch the shape change

36months
364860
2.8%
of project value per month, paid to the Bank
0%
paid by the retailer before the store opens
60%
deposit avoided on every Purchase Order
7 days
from completion to invoice
60%
Today's deposit PEAK: 36 equal payments to the Bank

The ochre bars show the share of project value paid each month under PEAK, against the 60% deposit retailers typically pay today before a single fixture is made. Principal shape only. Financing and bank costs are carried inside the invoice value and are not modelled here.

The model

a facility-based model

A pre-approved R500m funding facility that provides financing certainty, matches capital outlay with the life of each project and keeps bank debt off the retailer's balance sheet.

  1. Financing certainty

    A pre-approved R500m invoice discounting facility with a 36-month availability period, set against the retailer's medium-term pipeline of store builds. Funding is in place before each RFQ.

  2. Matched to project life

    Each store is invoiced on completion and settled by the retailer over 36 to 60 months. Payment tracks the life of the asset instead of the build programme.

  3. Off balance sheet

    The Bank buys PEAK's approved invoices. The retailer raises no debt facility of its own, so no bank debt is incurred on the retailer's balance sheet.*

* Structured as an off-balance-sheet transaction. Accounting treatment to be confirmed with the retailer's finance and audit teams.

How it works: three phases.

Phase 1

Facility setup

  1. 1.
    PEAK and the retailer establish a pre-approved R500m invoice discounting facility with the Bank.
  2. 2.
    A 36-month availability period gives guaranteed financing against a medium-term pipeline of projects.
  3. 3.
    Structured as an off-balance-sheet transaction, so the retailer incurs no bank debt on balance sheet.

Phase 2

Project delivery

  1. 1.
    RFQ issued per project. Zero deposit, against 60% today.
  2. 2.
    We fund and deliver the build to specification and programme.
  3. 3.
    Invoice raised within 7 days of completion, covering all project costs including financing and bank costs.

Phase 3

Discounting and settlement

  1. 1.
    PEAK presents the invoice to the Bank.
  2. 2.
    The Bank approves the invoice and settles it with PEAK.
  3. 3.
    The retailer settles the invoice over 36 to 60 months, against 30 days today, paying the Bank directly.

Effect on the retailer: no bank debt incurred, financing certainty for the pipeline of projects, a long-term repayment plan and liquidity support.

The structure

one facility, three parties

Step A is signed once. Steps B to E repeat for every store in the pipeline. Select a step to trace it.

R500m facility over 36 months, agreed by PEAK, Retailer and the Bank. PEAK Powered by Impact Retailer Client partner The Bank Funding partner A B C D E
  1. APEAK, the retailer and the Bank agree a R500m invoice discounting facility over 3 years, set against the pipeline of store upgrades. The Bank takes retailer risk and payment terms.
  2. BThe retailer issues an RFQ per store and mandates Impact. The store is built to specification and programme with zero deposit.
  3. CHandover, sign-off and variations closed. The retailer is invoiced within 7 days, all costs included, and approves the invoice.
  4. DPEAK presents the invoice to the Bank, which validates it and settles PEAK against the facility. No contractual payment remains between the retailer and Impact.
  5. EThe retailer settles the invoice over 36 to 60 months, paying the Bank directly against the pre-agreed repayment plan. Payments will not constitute interest bearing debt rather trade liabilities.

One store, start to finish

six steps from rfq to final payment

  1. 1
    RFQ issuedRetailer mandates Impact. Zero deposit.
  2. 2
    BuildWe fund and deliver to specification and programme.
  3. 3
    HandoverSign-off complete, variations closed.
  4. 4
    InvoiceRaised within 7 days, approved by the retailer. All costs included.
  5. 5
    Bank settles PEAKThe Bank validates and settles the invoice against the facility.
  6. 6
    Retailer pays the BankOver 36 to 60 months, against the pre-agreed plan, directly to the Bank.

After the retailer approves the invoice, no contractual payment flows between the retailer and Impact. The retailer's only payments are to the Bank.

Side by side

every row moves in the retailer's favour

Current model PEAK model
Deposit 60% upfront per PO Zero deposit
Funding source Retailer cash on balance sheet Pre-approved facility that discounts invoices
Invoicing Balance plus Variation Orders on final invoice Invoiced within 7 days of completion, all costs included
Settlement Direct payment to Impact within 30 days The retailer settles over 36 to 60 months, directly to the Bank
Maintenance Contracted separately Built into the agreement*
Balance sheet impact Capex, incurred upfront No debt facilities raised on the retailer's balance sheet. Facility structured so as not to constitute interest bearing debt.
* Invoices spread over term, all costs included

* Maintenance is subject to requirements. Structured as an off-balance-sheet transaction; accounting treatment to be confirmed with the retailer's finance and audit teams.

Net effect

nothing leaves the retailer before the store opens

Upfront capital outlay Payment over the term — Long term trade payable
  1. 1.
    R500m pre-approved facility, no deposit per PO and payment terms of 36 to 60 months.
  2. 2.
    The retailer settles each invoice over 36 to 60 months, paying the Bank directly.
  3. 3.
    We fund the build and invoice within 7 days of completion. No upfront costs to the retailer.
  4. 4.
    Maintenance is built into the agreement.

Beyond the build

peak funds a store that is built properly and kept working

  1. Build.

    We fund and deliver the store to specification and programme. What gets designed is what gets delivered.

  2. Manage.

    Maintenance is built into the PEAK agreement. We keep every store working, so brand standards hold across the network without separate maintenance contracts.

  3. Evolve.

    When fittings reach end of life, strip-outs run as structured deconstruction. Fittings are routed to reuse, repurposing and recycling. Scoped into the RFQ when required.

Controls that protect the retailer

Approval stays with the retailer at every step.

  1. 1.

    The retailer approves every invoice

    Nothing goes to the Bank until handover is signed off, variations are closed and the retailer has approved the invoice.

  2. 2.

    Pre-agreed repayment plan

    Each invoice carries a repayment term agreed with the retailer upfront, between 36 and 60 months.

  3. 3.

    Fully inclusive pricing

    One invoice per store covers all project costs, including financing and bank costs. No separate finance charges.

  4. 4.

    Bank validation

    The Bank validates each invoice before settling PEAK against the facility.

  5. 5.

    Facility certainty

    A 36-month availability period against the agreed pipeline, so funding is in place before each RFQ is issued.

  6. 6.

    Payments direct to the Bank

    Once the retailer approves an invoice, no contractual payment remains between the retailer and Impact.

Why Impact

your retail build partner

We build it.
We install it.
We keep it working.

Build. Manage. Evolve.

  1. 1.
    Built properlyWhat gets designed is what gets delivered. On time, to specification.
  2. 2.
    Works at scaleOne store or a national rollout, done consistently. In-house manufacturing and experienced installation teams.
  3. 3.
    Easy to work withSingle-point communication. Clear, structured and accountable. No chasing. No confusion.
  4. 4.
    Stays involvedWe don't walk away after installation. Retail Detail, our connected platform, supports store performance long after opening.

Next steps

a phased path from agreement to rollout

  1. 01Agree the principleThe retailer confirms appetite for the facility-based model and shares the indicative pipeline of store builds.
  2. 02Structure the facilityTerm sheet with the Bank: agreed facility limit, 36-month availability, repayment terms of 36 to 60 months. Retailer finance confirms the accounting treatment.
    Facility will not fall under interest bearing debt.
  3. 03PilotFirst store delivered under PEAK: RFQ, zero deposit, invoice within 7 days, settlement through the Bank.
  4. 04Roll outPEAK becomes the standard financing route for the retailer's store builds.

What we need from the retailer: a view of the store-build pipeline for the next 36 months, and a working session with retailer finance and procurement.

we make it possible

plan. deploy. sustain.

Arrange a working session

Ahmed Desai

Phone+27 82 768 0007
Emailahmed@impactdisplay.co.za
Office+27 31 579 1224
Webimpactdisplay.co.za
Address69 North Coast Road, Briardene, Durban, 4001

Appendix

reference

Key terms
Invoice (receivable) discounting
The Bank purchases an approved invoice from PEAK at a discount and collects the invoice value from the retailer over the agreed term.
Facility and availability period
The pre-approved limit under which invoices can be discounted, typically available for 36 months from signing.
Pre-agreed repayment plan
The schedule of 36 to 60 months on which the retailer pays the Bank for each invoice, agreed before the invoice is discounted.
RFQ
Request for quotation, issued by the retailer for each store build. Under PEAK it carries no deposit.
Variation Order (VO)
An agreed change to project scope or cost, closed at handover and included in the single invoice.
Off balance sheet
The structure is designed so that the retailer raises no bank debt facility of its own. Final accounting treatment to be confirmed by the retailer's finance and audit teams.
Retail industry context & references
  1. 1.Capital allocation in multi-unit retail: store refurbishment and rollout cycles typically account for 12%–18% of annual capital expenditure, placing heavy demands on operating cash flows.
  2. 2.Working capital optimisation: conventional 50%–60% upfront deposit requirements lock commercial liquidity into work-in-progress fixtures months before trading commencement.
  3. 3.Off-balance-sheet trade credit: facility-backed structured receivables allow retailers to classify long-term fitout liabilities as trade payables rather than interest-bearing financial debt, preserving debt covenants.
  4. 4.Fleet consistency & lifecycle deconstruction: structured turnkey models integrate planned maintenance and end-of-life deconstruction, ensuring uniform brand standards across national footprints.

Framework based on standard commercial retail development and trade financing structures.