Access to funding is perhaps the biggest obstacle that both new and experienced business owners face when starting and growing a business. This is of concern as we know access to sufficient funds at the right time can mean the difference between the survival and closure of a business.  

A lack of financing readiness is one of the biggest reasons business loan applications get rejected.  

Some of the challenges identified in the report, An Assessment of South Africa’s SME Landscape: Challenges, Opportunities, Risks & Next Steps’ 2018/2019 (SME Report) are insufficient operating history, inadequate cash flow, limited collateral and a bad credit score.  

Other reasons business owners fail the due diligence process are:

• Inconsistent cash flow

• Inconsistency in information provided.

• Inaccurate or outdated annual financial statements and management accounts provided.

Read more reasons why business owners get refused funding 

How Venture Capital Funding Works

VC deals typically start with an introduction to an investor and a pitch explaining the company’s purpose and why your business is worth investing in. 

Step 1: Connect with VCs through startup and VC events or other industry events. 

Step 2: Research the VC firm to determine if your business is in line with the types of businesses/sectors the VC invests in. 

Step 3: Entrepreneurs will also be asked to share their pitch deck. This is a presentation used to explain a startup idea to potential venture capital investors. 

Step 4: If your pitch is successful VCs will start discussing investment terms with the founder. A thorough due diligence will also be conducted on you and your business. To find out more about VC funding and the red flags investors will look for, read our article below

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How To Finance A Property Development Business

Property development involves a wide range of activities and processes from purchasing land to building and developing facilities and developing them to yield good sales or rental returns.

Financing Options:

• Banks offer property finance in the form of a loan to developers, owners, occupiers and investors.

• Specialist finance companies provide access to a construction development loan/facility to kick start, construct and complete a development project.

• Private investors such as angel investors, friends and family, crowdfunding platforms etc. may be able to fund your property development project.

• Co-investors, pool funds with co-investors who then get a share of the profits.

• Home equity refers to the portion of capital in your home loan that you have already paid off. It can be used to fund a second home loan on your investment property.

Need a Bridging Finance? For a Free Quote for Business Funding, visit SME South Africa. 

 +20 Business Funding Opportunities for Entrepreneurs in the Agricultural Sector

Find the right fund for your agriculture business. Choose from debt financing and venture capital to government grants & incentives and prizes.

Get a full list of agricultural funds for the following categories/businesses:

• Field crop farming

• Animal production

• Dairy farming

• Food & agricultural value chain

• Agro-processing

PLUS – Niche funds for Black and Women-owned agriculture businesses