Money Matters
For your convenience, we have made a list of ideas and agencies that deal with the issue of that much needed capital to start up your business.
Every business venture requires some form of financial support in order to grow. Most entrepreneurs are disheartened by the difficulty involved in procuring the right financing in order to kick start their business. What is really needed is appropriate information on where and how to go about finding the money.
There are various agencies in South Africa whose sole aim is to help further the development of young businesses by providing them with financial assistance. Applying for a business loan from other institutions – such as banks – is always an option, but be aware of the high interest rates that may accompany it.
For your convenience, we have made a list of ideas and agencies that deal with the issue of that much needed capital to start up your business.
Private Loans
You could seek private loans from friends or family members who too believe in your vision. On the one hand, it could be the quickest interest free solution to your problem. On the other hand, this could prove to be a limiting option, as the money they are able to lend could be far less then what you need. Also, there is always a risk of souring family relations or your friendships when there is money involved.
Bank Loans
Bank loans may be the answer to attaining capital but are limited by the security, which will be in the form of property or any other fixed assets you are able to offer against the loan. The Absa small business toolbox, a service that provides credit to those who have insufficient security to qualify for a business loan is one way around this problem. It also offers a support programme that assists your company with more than just financing but also solutions on how one is able to manage, expand and protect your business in the future. Business loans can also be done through FNB, Standard Bank and any other banks.
Contact:
ABSA help desk: 0860 04 03 02
Standard Bank: 0860 123 000
FNB : 0861 40 40 40
NYDA
The National Youth Development Agency not only provides young entrepreneurs with the necessary skills to start and run a business, but it also finances business ventures will which provide jobs, generate income and which they think have the potential to succeed.
Tel (call centre): 08600 96884
Fax: 086 606 6563
Khula Enterprise Finance
Khula was established in 1996 and facilitates access to various organisations that provide financial assistance for small and medium enterprises (SMEs). If you are unsure of which organisations to approach, Khula can direct you to the best possible institutions.
Tel (toll free): 0800 118815
Email: helpline@khula.org.za
Industrial Development Corporation
The IDC is a national development finance institution which was established in 1994 to promote economic growth in South Africa. If you’d like to contact the corporation,
Tel (call centre): 0860 693 888
Email: callcentre@idc.co.za
SEDA
The Small Enterprise Development Agency was development by the Department of Trade and Industry (DTI) in order to assist SMEs. The agency can assist with business ideas and access to finance.
Tel: 0860 103703
Email: info@seda.org.za
There are many other agencies and organisations that can assist in the development of your business. You have to make sure that you do enough research on what they are able to offer, and be very wary of loaning money from institutions that are not registered, or don’t necessarily cater to the needs of a small business.
