Business Funding and Finance

Business Funding and Finance

There are a number of avenues to sources of available capital or business finance. Most Registered Credit Providers will insist on lenders meeting certain criteria. However, the variety of potential financiers and investors allow most people can gain access to the pool of capital that exists in South Africa. There are certain qualifying conditions that most of these will insist on:

  • South African citizenship
  • A clear business plan, directed towards profit generation
  • Direct involvement in the proposed scheme
  • Ventures must be located within national borders

business finance money in glassFurther stipulations will vary from one institution to the next, and will specify:

  • Security requirements
  • Credit ratings (finance possibilities do exist for those with negative ratings)
  • Repayment schedules, most require full recompense within 5 years, loan size often dictates the available options
  • The nature of your enterprise, innovators can avail from offerings that specifically target viable new ventures
  • Government programmes stipulate that businesses with an active presence of black shareholders and directors, should receive funding preference; the available options nullify this stipulation as an obstacle
  • Businesses with female involvement, at decision-making level are also given preferential treatment

The following are some of the options, which make finance acquisition a manageable hurdle for those determined to succeed. While most cater to SME opportunities, there are investors who will happily supply, nearly limitless, funding for the right project.

Business Partners Limited

They will invest in any profit driven enterprise except those engaged in agriculture and re-lending. Possible investment ranges from R250k up to R15m, and they will consider projects at all stages of development, including franchises. Offices are located in major centres, but contact is possible via e-mail and telephone.

Commercial Banks

All banks operating in South Africa have sizable loan departments willing to invest in SME’s. Anyone with credit issues should explore other options, there websites provide complete qualification criteria.

Khula Enterprise Finance

Anyone looking to get a new project underway, or buy into an existing concern should take a closer look at their options and criteria. Since they fall under the authority of the Department of Economic Development, they are under instruction to facilitate as many viable SMME opportunities as possible. They liaise between various types of credit providers and prospective lenders, and have different sectors, each focusing on a different aspect of SME development. Including:

Small Business Growth Trust Fund

This collaboration between Khula Enterprise and Fabvest Investments offer finance facilities, which cover the full spectrum, and is available to all parties who qualify. Their focus is black empowerment, which could necessitate the forming of new partnerships. Certain economically challenged provinces are on the preferred list.

Loan range is R10k to R3m

Contact Details

Tel: (011) 421 2939
Cell: 082 901 2813

Opportunities for Youth Funding in South Africa

Youth funding options vary from youth development programmes, grants, low interest loans to private business loans. The requirements for funding in South Africa for small business varies. NYDA, NEF, Imbewu, Omsobomvu Youth Fund, IDC, DTI, etc differs but the small business funding online process is simple.


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