If you are thinking of starting up your own business, it is likely that you will need money. There are several types of funding available. However, be warned that finding finance for a new venture can be extremely difficult.
When you set out to find funding opportunities for your business, it’s important to remember that some sources of finance will be appropriate for some but not for others. If you’re thinking of setting up an interior design business, for example, your funding needs will be very different from those of a high-tech entrepreneur seeking funding for the development of a new software programme.
The benefits of small business funding from a bank:
- Buying fixed assets, for example property or equipment
- Refurbishments and alterations
- Buying a new business
- The loan period is not fixed but is determined by your monthly repayments, which include interest and capital
- The minimum loan amount is R50 000 and there is no maximum, depending on what you can afford
- The account can be linked to our electronic self-service banking channels
There’s a pervasive myth that there’s no funding available for businesses. This is not the case – if you meet the criteria there’s government grants available for your business.
The South African government is well aware of the importance of developing the economy, creating employment and attracting foreign investment. To make these goals a reality, there are grants and assistance programmes available from the government and associated organisations that can get your business off the ground and expanding.
Unlike a loan, a grant is an award of money that is non-repayable – meaning there is no obligation by the receiving parties to repay the money received.