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Other Ways To Get Business Funding in SA
Every entrepreneur will need some form of financial support to get their business off the ground. Fortunately, there are several different options when it comes to financing a new business or expanding an existing one, from banks and government funding to alternative funders.
Increasingly, entrepreneurs are turning to alternative funding options like crowdfunding.
Crowdfunding is well suited for entrepreneurs as it allows them to raise capital in a way that does not load them with debt or force them to part with equity in the early stages. The crowdfunding model has evolved into three areas of financing for businesses, namely donations, peer-to-peer (debt) and equity-based transactions. The most widely used are equity, donation and rewards-based. Read the SME South Africa step-by-step guide to get people to invest in your crowdfunding campaign below 👇
Non-repayable Business Grants for SME Owners
Non-repayable business grants are a type of development funding offered by the South African government to support the growth of small and micro businesses. The advantage of these types of government grants is that you don’t have to return the money or pay interest on it.
There are two types of business grants – those that cover 100% of the financial need, and cost-sharing grants that only cover a portion of the required amount.
For business owners, it’s important to note that while you are not required to pay back non-repayable grants, it’s not free money. This is because there are typically stipulations about how the money can be used.
In this guide, we’ll list all the government’s non-repayable small business grants available. 👇
New This Week (07 November 2022)
Have you considered Purchase Order Funding?
Purchase ordering funding is also known as working capital finance. It is when a lender agrees to buy the raw materials or to source the goods on your behalf you so that you can complete your purchase order. The lender takes back their share of the profit when the customer pays you for the purchase order. The lender sees you as a business partner and requires you to pay a profit share of the purchase order deal. The lender (or funder) is the one who takes the responsibility of paying the suppliers and makes sure that the goods and services are delivered to the customer on time.
Lenders of purchase order funding do not require credit checks.
However, as part of the application criteria, many lenders may require that businesses have a track record of supplying goods and services.
Need Working Capital? For a Free Quote for Business Funding, visit SME South Africa.
Download SME South Africa’s ‘Female Entrepreneurship & Funding’ Case Studies and learn more about the funding journeys of local women entrepreneurs who are behind some of the country’s most Bankable, Scalable and Future-fit businesses.
What’s inside:
The strategies they used to secure funding.
The impact of business funding on their businesses’ growth.
How they navigated the challenges they faced during the application process.
Their advice for other female entrepreneurs.