One of the biggest challenges that small and medium size businesses face is the initial boost in cash-flow that is required to launch.
Whether it’s for the expansion through the purchase of assets or for the final marketing and PR campaign that will take your company to the next level. Finding the right type of funding for your venture is critical for success.
Choosing the right type can at times be a very confusing and daunting task for an entrepreneur in a new sector. The good news is that there are many avenues that businesses can use in order to find funding through every different stage of the business life-cycle.
In the initial stages of the business it may be most feasible to use your own financial resources such as, money from a savings account or the accurate use of a personal credit card.
Equity funding is an umbrella term that refers to any means of financing your company in which you receive money in exchange for issuing shares of your stock. There are multiple methods for raising equity capital, but, depending on how you raise this money, you could be giving up anywhere from 1-100% of your business.
The National Empowerment Fund has a number of different avenues for the funding of different types of business in South Africa. With assistance and support for black entrepreneurs looking at startup ventures as well as assistance for black-owned enterprises with expansion capital.Download NEF Application Form
An already established and growing business may require funding for various reasons including operation capital and long-term growth. Acquiring this type of a loan will require the submission of several types of documents including financial information, business plans and future forecasts. Collateral in the form of fixed assets may be used to guarantee the loan. A bank that you have a long term relationship with is best suited for this type scenario as you are better suited to negotiate for additional banking products when required.