You’ve got the idea for your business. A small-medium size business that has a personal feel to it. Great. Most businesses need certain equipment to operate – from furniture to computers. Aside from internally generated cash flow or credit lines, when looking to acquire equipment for your startup, you should investigate other ways to finance these acquisitions. For a small business like yours, financing the acquisition of equipment rather than using the business’ cash offers significant benefits and mitigates risk. Here are 10 reasons why you should consider equipment finance.
Starting out in 2011 as the first angel group in SA, AngelHub Ventures matured into an early stage Venture Capital firm in January 2014. They are passionate about early stage investments in (South) Africa. Depending on the stage of your business and the needs of your team, they provide support in a wide range of areas, varying from strategic advice to operational assistance, incl. legal, accounting and financial assistance from their trusted suppliers. They believe in building great businesses and they are in it for the long haul.
Funding your new business is no child’s play. There are a number of different options available to both brand new businesses as well as existing businesses that require additional funds to explore new markets, expand across borders or expand on their value proposition. But having so many different options and trying to understand all the terms and conditions attached to each option can be overwhelming. Here are three popular business finance options for you to consider.
As a business owner, you likely understand the difficulties and financial implications that come along with running a business. Apart from keeping your business afloat, you need to be smart about the ways in which you distribute your capital within your business operations. If you own a small retail business, there are ways that you can improve your deli with equipment financing. As you might know, there are many pieces of machinery used in the daily operations of a supermarket deli. So, if you would like to know how to give your retail business a boost, read on.
Bridgement is a FinTech company that offers simple finance to small businesses across South Africa, enabling them to expand their operations, take on bigger projects and bridge gaps in cash flow. Its first product to market has a record time of 2.5 hours from loan application to money landing in an SME’s account. The company is a part of the wave of tech solutions to age-old problems faced by small businesses, including the dreaded cash flow crisis.
Although the number of funders and funding options in South Africa is steadily increasing, SMEs still struggle to access the finance they need. Daniel Goldberg, CEO and co-founder of Bridgement explores why he started the innovative FinTech company, and how Bridgement is helping SMEs unlock access to invoice finance within a matter hours. In doing so, he also addresses what differentiates Bridgement from other lenders, and how SMEs can grow their businesses digitally.
Business Partners Limited (BUSINESS/PARTNERS) is the home of the entrepreneur. We’re a specialist risk finance company that provides customised financial solutions, sectoral knowledge, mentorship, business premises and other value added services for formal small and medium enterprises (SMEs) in South Africa and selected African countries, namely Kenya, Malawi, Namibia, Rwanda, Uganda and Zambia. We know that by investing in you, it will not only help with creating and building your own wealth, but also fuel the growth of the economy and the creation of jobs for many.
There are a number of instances when you may need to determine the market value of a business. Certainly, buying and selling a business is the most common reason. Estate planning, reorganization, or verification of your worth for lenders or investors are other reasons. Valuing a company is hardly a precise science and can vary depending on the type of business and the reason for coming up with a valuation. This article looks at some of the common methods used to determine the value of a business.
The vision of ECDC is to be an innovative leader in promoting sustainable economic growth and development of the Eastern Cape. Its mission is to promote sustainable socio-economic development in the Eastern Cape through focused provision of innovative enterprise development financial service, and leveraging of resources, strategic alliances, investment and partnerships.
During the process of securing funding, entrepreneurs and business owners are not always aware of the pros and cons associated with asking for too much or too little finance for their business, or whether they should consider debt or equity to fund their business. This is according to Gerrie van Biljon, Executive Director at Business Partners Limited (BUSINESS/PARTNERS), who says that entrepreneurs should be cautious of the amount of finance they apply for, as the wrong amount could jeopardise their business’ success.
If you've found a property you'd like buy to for your business, the next challenge is to apply for a bond. Here are some answers to frequently asked questions about finding finance for commercial property. These questions include: What is a commercial property? How can I prepare before I apply for a loan? Can I approach any bank for a loan? And more.
When you approach a potential financier to provide a loan for starting or expanding your business, it's best to be aware of some of the terminology that may be used and what they mean. This article provides you with a list of terms related to financing and finance that it would be helpful for you to know. While this list isn't the complete financing lexicon, it does point you in the right direction.
Access to finance is one of the biggest obstacles to the survival and growth of startup, small and medium businesses. Finfind has been specifically developed to address this challenge for this vital sector. Finfind is an innovative, online platform that automatically matches the seekers of business finance with appropriate funders from a comprehensive, up-to-date database of more than 450 SMME finance offerings from the public and private sector funders in South Africa.
Small to medium sized enterprises (SMEs) account for roughly 34% of South Africa’s GDP and provide employment to 60% of the labour force. With better access to funding, SMEs have the potential to reduce unemployment and develop unsaturated sectors of the economy. In this article, Daniel Goldberg, co-founder of Bridgement, a digital lender focused on providing credit facilities to SMEs, discusses how innovation in fintech can serve the growth of small businesses.
Franchise Finance is a specialist franchisee loan origination agency set up to address the exact needs of the franchise industry. The proprietors of Franchise Finance have a strong record of accomplishment in franchising rather than in banking. In other words, we are not bankers but franchise experts focused on funding, with a bias towards the use of sophisticated computerised processes. We help franchisees obtain finance by acting as a loan origination agency.
The Gauteng Enterprise Propeller (GEP) promotes, fosters, and develops small enterprises in Gauteng, thereby implementing the policy of the Gauteng Provincial Government for small enterprise development. The GEP provides a unique and tailored financial support services that propel SMME’s into the mainstream economy, revitalizes township economies and grows the key economic sectors. The GEP also provides business development support interventions that play a catalyst role in transforming small enterprises.
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. Here is a list of these funding opportunities.
GroFin provides investment finance and business support to growing businesses in Africa and the Middle East. Entrepreneurs and business owners looking to start or grow their businesses face many challenges, including finding a committed partner who can provide finance structured according to the needs of their business as well as value-added business support services and networks that improve their chances of success.
No matter what kind of business you have, there will probably come a time when you have to apply for a loan or overdraft to expand your business, buy equipment, or finance some other aspect of your operations. This is when having a good credit record becomes very important. Establishing and maintaining a good credit record takes time and can be challenging when times get tough (financially). Here's how to build and maintain a good credit record to obtain business funding.
One of the biggest pressure points for small businesses is making it through month-end. Often when salaries and bills are due, SMEs face a shortfall from slow-paying clients. Some large corporates and government entities ask their suppliers to give them as many as 120 days to settle their account, when standard payment terms are set between 30 and 60 days. SMEs, relying on a steady cash flow to maintain business operations, cannot survive on such long repayment terms. Here's how SME owners can survive late payments.
Money makes your business go. But don't try going to a bank to get it when you've just started in business. Banks normally make loans only to businesses with operating histories. This article will give you some alternatives, some strategies, and some things to think about as you go about finding the money to make your business work.
Owning a successful business is difficult. A small business needs business loans to cover cash flow gaps, add to the working capital or to grow the business. There are many ways that you can finance an upgrade for your business by applying for a small business loan. Knowing how to get finance is important for small business owners. Here are a few helpful tips on how you can receive funding to upgrade your small business.
Due to the socio-economic landscape of South Africa, obtaining business finance is one of the biggest challenges that entrepreneurs and SMEs face and, therefore, one that many find daunting. This articles goes through the various stages of applying and obtaining business finance for your business, which will make the process easy, and help you to be approved with little to no hassles.
There are several ways that you can raise the funds that will let you buy a business and become your own boss. Some of these examples will be less obvious than others. It is important that you find the option that will work best for you. Remember that you might need to be a little more creative than you think when it comes to raising finance. Ultimately though, if you have made the decision that you know is right for you, the process should be far less stressful. So, whether you are looking to finance a retail business or a farm, read on!
Whether you are planning on buying a car for personal use or if you need a new company car, the process of finding finance can be a daunting task. However, having a business vehicle is important for most businesses, especially those that specialise in transportation, whether you’re transporting goods or people. Getting finance for your business vehicle doesn’t have to be difficult. Here are some tips on how your business can receive business vehicle finance.
IDF Capital was established on 01 March 2008, to exploit the opportunity of profitably investing in the entrepreneurial SME landscape by providing appropriate financial and non-financial products and support to unlock value of the SME sector. IDF Capital aspires to be more than just another African business. It is our goal to become catalysts of economic growth across Africa by supporting people on their entrepreneurial journey.
The Industrial Development Corporation is a national development finance institution whose primary objectives are to contribute to the generation of balanced, sustainable economic growth in Africa, and to the economic empowerment of the South African population, thereby promoting the economic prosperity of all citizens. The IDC achieves this by promoting entrepreneurship through the building of competitive industries and enterprises based on sound business principles.
Invenfin is a strategic venture partner with a proven track record, owned and backed by the Remgro Group. We invest off our own balance sheet and do not manage third party funds. We are therefore not constrained by a limited time horizon and stringent exit objectives. We are long-term investors. We invest off our own balance sheet and are therefore not constrained by a limited time horizon and stringent exit objectives.
InvestorsNetwork.co.za is platform and meeting place for South African Entrepreneurs and Investors. The business provides both face-to-face networking meetings in Johannesburg, Cape Town, Durban, Bloemfontein and Port Elizabeth as well as on-line networking facilities. Founded by a group of South African Entrepreneurs frustrated with the lack of availability of such services in the country, the network has gone from strength to strength.
You may have heard of this form of financing, but aren’t sure what it is and if it’s an option for your business. The basis of debtor financing is that you use the debtor (normally an invoice) to raise capital against it. The major advantage is that you do not have to wait for your debtor to pay you. You raise funds against the invoice, so you have working capital to be used in the business.
This loan payment calculator allows you to calculate the figure of your loan repayments. The calculator is split into two sections. the first section looks at how to calculate your monthly repayments for your mortgage, home equity, or car loans. The second section looks at how to calculate the impact of extra payments in addition to your existing monthly payments.
Mzansi Golden Economy (MGE) is a strategy to reposition the cultural industries in South Africa. The MGE strategy opens up the arts, culture and heritage sector to effectively and comprehensively contribute to economic growth and job creation. The Minister of Arts and Culture has declared 2013 as the year of MGE. Some of the projects that DAC has initiated and is implementing are; Cultural Events, Sourcing Enterprise, Public Art, Touring Ventures, Art Bank, NACISA, Cultural Observatory, and Arts in Schools.
The National Development Agency (NDA) is an agency of government that reports to the National Assembly of the Republic of South Africa. The NDA is a public entity that was formed in 1999 as government’s response to the challenge of poverty and its causes in South Africa. The NDA, in discharging its mandate, has to empower and enhance the capacity of the civil society sector. This will ensure that the NDA helps to build more cohesive communities that are able to tackle poverty, unemployment, and inequality.
Established by the National Empowerment Fund Act No 105 of 1998 (NEF Act), the National Empowerment Fund (the NEF) is a driver and thought-leader in promoting and facilitating black economic participation by providing financial and non-financial support to black empowered businesses, and by promoting a culture of savings and investment among black people. The operations of the NEF are governed by the Public Finance Management Act No 1 of 1991 (PFMA).
Before you approach a bank or any other form of financier to fund your start-up or business expansion, you need to be sure that you've done your research and have confidence in your Business Plan. It's your responsibility to provide as much information as possible in your business plan, to show your idea's feasibility, your expertise and capability, as well as the security or collateral you are contributing. Here are some tips on creating a great business plan to use as the basis of your business pitch.
Sasfin Holdings Limited (“the Group” or “Sasfin”) is a bank-controlling company that listed on the JSE in 1987. Sasfin and its subsidiaries, notably Sasfin Bank Limited (the Bank), provide a comprehensive range of specialist financial products and services for Business and Wealth clients. This range of financial products and services focuses on the needs of entrepreneurs, corporates, institutions and high-net-worth individuals.
When asked, the majority of entrepreneurs will tell you that access to finance is their greatest challenge. Funders may target certain industries, types of business or even geographical areas. By knowing who and where these financiers are, you can approach the most appropriate organisation that meets your business's specific needs and goals. This document provides an overview of organisations that provide funding to the smallest micro businesses all the way through to medium-sized enterprises in South Africa.
The Small Enterprise Finance Agency (SOC) Ltd (sefa) is a merger of the South African Micro-Finance Apex Fund (samaf), Khula Enterprise Finance, and the Industrial Development Corporation’s (IDC) small business activities. sefa was launched in April 2012 as a fully-owned subsidiary of the Industrial Development Corporation (IDC). Its vision is to be the leading catalyst for the development of sustainable Survivalist, Micro, Small and Medium enterprises through the provision of finance.
In the gig economy, you can crowdsource almost anything. From formal crowdsourcing, which often involves droves of freelancers doing data, writing or design work, to informal crowdsourcing, which might involve someone asking for recommendations or information on Facebook, millions of people reach out to the other millions on a daily basis. And you can do the same if you need funding to get your new business idea off the ground. We’ve covered the basics of crowdfunding so you can decide if this is the right financial choice for your new business endeavor.
Starting costs, or business start-up costs, refer to the expenses entrepreneurs acquire when first starting up their businesses. What is included in your start-up costs as well as how much the costs actually are will depend on the type of business you would like to set up and the industry you want to enter. This start-up costs calculator will help you determine and outline the costs you will need to start your business.
The Support Programme for Industrial Innovation (SPII) is designed to promote technology development in South Africa’s industry, through the provision of financial assistance for the development of innovative products and/or processes. SPII is focussed specifically on the development phase, which begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced.
Finding the correct investors and pitching an idea is a valued business skill that can be developed and improved. Often entrepreneurs don’t possess the skills to pitch their business effectively and enthusiastically enough to potential investors, and thus don’t succeed in generating the necessary interest or funding. Here are ten tips to help you put your best foot forward.
With employment levels falling, now is as good a time as any to consider the option of starting a business, developing an existing one, taking on a government or private sector contract or embarking on a management buy-out or buy-in. But how does one go about finding finance? Essentially, there are four principal types of financing available to entrepreneurs when they're thinking of starting or expanding a business.
Crowdfunding is a way of raising capital in small amounts from a large group of people, using the Internet and social media. For an entrepreneur in need of finance, crowdfunding – also known as crowd source capital – has expanded the pool of investors from whom funds can be raised beyond the traditional lenders. If you're thinking about exploring crowdfunding as a funding option, here is some information to get you started.