Over the past few weeks, we’ve shared the stories of businesses like Plato Coffee, Ultimate Pet Care, Wanatu and Grit Space. Each one demonstrated how CCS finances productive assets that help South African businesses grow.

This guide focuses on the investment itself.

Whether you’re exploring the CCS 5Y Prime +3% Income Notes for the first time or completing your own due diligence, you’ll find answers to the questions investors ask most before investing. From how the monthly income is generated and what backs the Notes, to the subscription process, investor protections and how to invest, everything is brought together in one place.

This article is provided for informational and educational purposes and should be read alongside the registered prospectus, available on the CCS Asset Detail page on Mesh.

At a glance

• Floating-rate income of Prime +3% per annum

• Monthly coupon payments

• Minimum investment of R5,000

• Five-year investment term

• Backed by productive assets and equipment finance receivables

• Public offer under a CIPC-registered prospectus

• Available exclusively through Mesh

Section 1: The Investment

1. What are CCS 5Y Prime +3% Income Notes?

CCS Investment Platform 5Y Prime+3% Income Notes are floating-rate, asset-backed private credit instruments available to registered investors on Mesh.

Investor capital funds equipment finance transactions originated by Commercial Credit Solutions (CCS) for South African SMEs. The businesses using that equipment make monthly rental payments, which support the monthly interest coupon paid to Note holders. Capital is repaid in full at the five-year maturity date.

The Notes are issued under a CIPC-registered prospectus and offered publicly through Mesh. This means eligible members of the public can subscribe during the offer period and, once issued, trade the Notes on Mesh’s secondary market, subject to platform rules and the availability of buyers and sellers.

2. What is CCS Investment Platform?

CCS Investment Platform is the investment vehicle of Commercial Credit Solutions (CCS), a Pretoria-based specialist financier with more than eleven years’ experience in asset-backed lending to South African SMEs.

Rather than relying solely on traditional balance sheet lending, CCS finances productive assets that businesses use to generate revenue. Every transaction is secured against an identifiable asset, with repayments structured from the income that asset produces.

Across more than 500 transactions, CCS has maintained a historical default rate of approximately 0.25%.

See it in practice: Read the Plato Coffee story

3. What does Prime +3% mean?

The Notes pay a monthly floating-rate coupon equal to the South African prime lending rate plus 3% per annum.

Because the rate is floating, investor returns adjust whenever prime changes.

Following the SARB’s May 2026 Monetary Policy Committee decision, the current prime rate is 10.50%, giving the CCS Income Notes a current yield of 13.50% per annum.

The coupon resets on the first business day of each month.

4. How often are interest payments made?

Interest is paid monthly. Capital is repaid in full as a bullet repayment at maturity after five years.

5. What is the minimum investment?

The minimum investment is R5,000. There is no maximum investment amount.

Section 2: The Subscription Process

6. How does the subscription period work?

The public offer remains open until 3 October 2026, or until the target raise is reached, whichever comes first.

When you place a subscription order, your funds are committed and held in a regulated clearing account during the subscription period.

The Notes are issued after the offer closes, and interest begins accruing on the first business day of the month following the close of the subscription.

7. Does my investment earn interest during the subscription period?

No. Funds held during the subscription period do not earn interest.

Interest begins only from the defined commencement date set out in the prospectus.

8. Is there a benefit to subscribing early?

Yes. Subscriptions are processed on a first-come, first-served basis up to the maximum subscription amount.

If demand exceeds the available allocation, later orders may not be fulfilled in full. Subscribing early improves the likelihood of securing your allocation.

9. Can I cancel my subscription?

No. Once submitted, subscription orders are final and cannot be cancelled or amended. 

Investors should review the prospectus carefully before investing.

10. Is there liquidity before maturity?

After issuance, the Notes may be traded on Mesh’s secondary market. However, the market is unsupported, meaning liquidity depends on the availability of willing buyers and sellers.

The CCS Income Notes are designed as a five-year investment and should be assessed on that basis.

Section 3: Where the Income Comes From

11. Where does the income come from?

The monthly income is generated by CCS’s equipment finance portfolio.

Businesses lease productive assets such as coffee equipment, grooming trailers, vehicles and workspace infrastructure through CCS. Their monthly rental payments create the operational cash flow that supports investor coupons.

This is income generated by real businesses using productive assets—not by trading activity or market pricing.

12. Are the Notes backed by specific assets?

Yes. The Notes are secured by:

• The productive equipment financed by CCS.

• The contractual rental receivables generated by those assets.

Each transaction is:

• Secured against an identifiable productive asset.

• Underwritten to a loan-to-value ratio of approximately 75–85%.

• Structured so assets can be recovered and redeployed if required.

This is security over the equipment finance portfolio, not a general corporate obligation of CCS.

13. How does CCS decide which businesses to fund?

Every application follows a structured underwriting process.

CCS assesses repayment capacity, asset quality and recovery value before approving a transaction.

Rather than asking only what a company’s financial statements look like, CCS asks:

• What does the asset do?

• How does it generate income?

• What happens if the borrower cannot pay?

That disciplined approach has contributed to CCS’s historical default rate of approximately 0.25%.

See it in practice: Read the Wanatu story

14. Does CCS invest alongside investors?

Yes. CCS contributes approximately 50% of the capital required for every underlying transaction using its own balance sheet.

The remaining funding is provided by investors through the CCS Income Notes.

CCS therefore shares the same underlying investment exposure as its investors.

See it in practice: Read the Grit Space story 

Section 4: Risk and Investor Protections

15. What is the historical default rate, and what does it cover?

The historical default rate across the CCS equipment financing book is approximately 0.25%. This is an achieved outcome across more than five hundred transactions and multiple economic cycles, including the post-COVID rate shock and the 2023 to 2024 prime rate peak. It is not a modelled projection.

For context, the South African Banking Association’s reported average non-performing loan ratio for SME lending across the major commercial banks sits materially higher.

16. What protections sit between a borrower default and my investment?

Investor protection is built through multiple structural safeguards that operate before and after any individual borrower experiences financial difficulty.

• Security over the underlying equipment: in a default, the asset can be recovered and redeployed through CCS’s established supplier and recovery networks.

• Loan-to-value limits of 75 to 85 %: the outstanding loan balance is calibrated against the recoverable value of the equipment at all times.

• Covenant mechanisms: these enable CCS to identify and engage with underperforming accounts before a formal default event occurs, allowing early restructuring where appropriate.

• Liquidity reserve: CCS maintains a dedicated liquidity reserve of at least R20 million to support monthly coupon payments to Note holders during periods of temporary borrower arrears. This means investor income can continue even while an individual account is being managed.

CCS has applied this active management approach in practice. When an underlying business has faced difficulty, CCS has engaged directly, restructured repayment terms where appropriate, and worked to preserve both the business and the investor’s income stream.

See it in practice: Read the Ultimate Pet Care story

17. What happens if the prime rate changes significantly during the term?

The floating-rate structure means the yield adjusts on the first business day of the next month, after a movement in the prime rate. In a rising rate environment, the investor’s return increases with each hike. In a falling rate environment, the return adjusts downward. Investors are not locked into a rate set at the time of entry for the full five-year term.

Following the SARB’s May 2026 hike, the current CPI forecast for 2026 is 4.4%. At 13.50% per annum, the real yield on the CCS Income Notes is in the region of 9% per annum. The SARB’s quarterly projection model signals further hikes as possible, which would increase the coupon if they occur.

18. Can I exit the investment before the five-year maturity date?

The CCS Income Notes are a five-year instrument with capital repaid at maturity. They are not designed as a liquid instrument. Secondary market trading on Mesh is possible subject to platform rules, investor eligibility requirements, and the availability of willing buyers and sellers. Liquidity is not guaranteed. Investors should assess this investment against their liquidity requirements before committing capital.

Section 5: Governance and Investing

19. How is the instrument governed?

CCS 5Y Prime+3% Income Notes are issued and administered on Mesh. Mesh Trade South Africa (Pty) Ltd is a licensed financial services provider (FSP 53710) and registered Crypto Asset Service Provider under the FSCA.

The instrument has a digital securities register on Mesh’s regulated infrastructure. Every coupon payment, rate reset following a prime rate change, and lifecycle event over the five-year term is administered through the Mesh platform. Investors have a real-time view of their holdings, income received, and instrument status through their Mesh account.

20. Is this a public offer or a private placement?

The CCS Income Notes are structured as a public offer under a CIPC-registered prospectus. This means the Notes are available to registered investors on Mesh without the investor eligibility restrictions that apply to private placements. The full prospectus, including all risk factors and terms, is available for download on the CCS 5Y Prime +3% Income Note Asset Detail page.

21. How do I invest?

To invest in CCS Income Notes on Mesh:

• Create and verify your Mesh account at www.mesh.trade

• Complete identity verification (FICA)

• Navigate to the CCS Income Notes on the Mesh marketplace

• Review the Asset Detail page and download the registered prospectus

• Confirm your investment amount (minimum R5,000) and complete the subscription

Once your investment is processed, your holdings are recorded on the Mesh digital securities register and visible in your Mesh account. Monthly interest payments are paid directly to your Mesh account on the scheduled payment date.

22. Where can I find full terms, risk factors, and the prospectus?

The registered prospectus, full instrument terms, and risk disclosures are available for download on the CCS Income Notes Asset Detail page on Mesh. This FAQ does not replace the prospectus. Investors should read the prospectus in full and seek independent financial advice where appropriate before investing.

Ready to learn more?

Over the past few weeks, we’ve shown how CCS has helped finance businesses across different industries through productive assets.

If you’re ready to take the next step, review the Investor Overview, download the registered prospectus and decide whether the CCS 5Y Prime +3% Income Notes are right for your portfolio.

Subscribe Now  |  Read Investor Overview

This article is provided for informational and educational purposes only and does not constitute financial advice or an offer to invest in any financial product. Investors should read the registered prospectus in full and consider obtaining independent financial advice before making an investment decision.