Inspirational: Where to get small business funding

Funding Avenues for Small Businesses

Article adjusted from http://www.tourismupdate.co.za/
 

Starting a business is exciting and daunting at the same time - on the one hand, you have a dream, a vision, and a passion to spread your wings, and take over the world with your new business. And on the other hand, there are so many risks and financial issues like funding. In the current economic climate, funding a business is a real challenge, and in an effort to assist fellow entrepreneurs, we have put together a list of funding avenues which can be used in the tourism sector. Before applying for funding always ensure that you have well a thought out business plan, a sound cash flow forecast as well as the ability to show future profits.

You don't have to rob a bank to get some:)

 

11 Places to apply:

1. First National Bank

(https://www.fnb.co.za/business-banking/business-loan/businessLoan.html)

FNB Business offers up to R 400,000.00 in business loans with a possibility of not having to offer any security to active business account holders as well as insurance facilities.

This bank also offers tourism related funding in various industry categories:

Accommodation: hotels and conference venues, lodges, guest houses

Tours \ Holidays: Travel agents, tour operators & tour guides, attractions

Food: Catering & Restaurants


 

2. Absa Enterprise Development

(http://www.absa.co.za/Absacoza/Commercial/Your-needs/Alternative-finance)

Absa offers three alternative funding options to a standard business loan:

 

Absa Development Credit Fund (http://www.absa.co.za/Absacoza/Commercial/Your-needs/Alternative-finance/Absa-Development-Credit-Fund )

This non-traditional lending fund has been set up for business owners who would not normally be legible for funding because of a bad credit history.

Amount loaned can be between R 50,000.00 & R 3,000,000.00.

 

Absa SME Fund (http://www.absa.co.za/Absacoza/Commercial/Your-needs/Alternative-finance/Absa-SME-Fund)

This business loan has been set up for SMME’s which have been awarded a government tender or contract and who now need funding to complete this order.

 

Absa Women Empowerment Fund  (http://www.absa.co.za/Absacoza/Commercial/Your-needs/Alternative-finance/Absa-Women-Empowerment-Fund)

This funding alternative has been set up for black women owned businesses who might not meet the traditional lending criteria.

3. Standard Bank

(http://www.standardbank.co.za/standardbank/Business/Starting-a-business)

 

Standard Bank offers business loans for start-up companies. The loan amount is not specified and the loan is dependent on the company’s business plan and its ability to show profits amongst others.

 

4. Nedbank

(http://simplybiz.co.za/)

Nedbank offers a variety of traditional business lending options available for example, property and asset financing and working capital funding to name a few.

 

5. Ikwezi Tourism Facility

(http://www.ikwezifacility.co.za/)

This funding and support facility has been set up by TEP (Tourism Enterprise Partnership) and SEFA (Small Enterprise Finance Agency) in an effort to not only assist small business in the tourism sector with funding but to also provide continued support.

This facility is a R50 million revolving facility, ring-fenced by SEFA and managed by TEP offering loan amounts between R 10,000.00 and R 5,000,000.00.

 

6. SEFA ( Small Enterprise Finance Agency)

(http://www.sefa.org.za/Home.aspx)

SEFA’s mandate is to help establish and grow SMME’s in South Africa and they do this by offering loans of between R 50,000.00 and R 5,000,000.00 to small and medium sized businesses across all sectors of the economy.

 

7. NEF (National Empowerment Fund)

(http://www.nefcorp.co.za/)

The role of the NEF is to support broad-based black economic empowerment by developing emerging industrialists through funding and investment opportunities.This fund offers three funding products relating to SMME’s.

The iMbewu Fund (http://www.nefcorp.co.za/FundingbrSolutions/ProductsServices/iMbewuFund.aspx),  which is designed to support black entrepreneurs with starting up new businesses as well as to support existing enterprises with any capital required for growth.

The uMnotho Fund

(http://www.nefcorp.co.za/FundingbrSolutions/ProductsServices/uMnothoFund.aspx), which has five financing options available to improve access to BEE capital.

The Rural and Community Development Fund (http://www.nefcorp.co.za/FundingbrSolutions/ProductsServices/RuralCommunityDevelopmentFund.aspx) which was created to change social and economic conditions in the rural communities through enterprise development.

 

8. IDC (Industrial Development Corporation)

(http://www.idc.co.za/home/idc-products.html)

The IDC offers start-up capital funding as well as expansion funding for entrepreneurs and SMME’s to the amount of between R 1,000,000.00 and R 1,000,000,000.00. This fund service is available to a variety of sectors.

 

9. The National Lottery Distribution Trust Fund (NLDTF)

(https://www.westerncape.gov.za/general-publication/apply-funding-through-national-lotteries-commission-nlc)

 

The NLDTF offers funds to a variety of non-profit organisations and companies, public benefit trusts, municipalities, educational institutions and they have a committee set up specifically for arts, culture and national heritage.

 

10.     Department of Economic Development and Tourism (Western Cape Government)

(https://www.westerncape.gov.za/general-publication/enterprise-development-fund)

The Department of Economic Development and Tourism of the Western Cape Government has joined forces with NEP and established an Enterprise Development Fund which offers low-cost funding options to SMME’s to the value of between R 250,000.00 and R 75,000,000.00.

 

11.    National Youth Development Agency (NYDA)

(http://www.nyda.gov.za/grant/Pages/About-the-Grant-Programme.aspx)

In an effort to provide support to young entrepreneurs who are still starting out on their entrepreneurial journey, the NYDA has developed a Grant Programme which offers financial support to the value of between R 1,000.00 and R 100,000.00 as well as non-financial support in the form of mentorship and voucher programmes.


Hope this helps and if you know of more places to apply for funding, please share it in comments!

Tanya

Tanya is our practical, "go-getter" adventurer, mom. With an honours degree in Biokinetics, diploma in Business Marketing & Administration, and as a master analyser, she loves blogging about the nitty gritty, educational topics, and how to simplify life. She is an extroverted logical thinker and enjoys writing about products and services that solve problems and makes life more enjoyable. She is a scientist at heart with a love for life, travel, family, friends and universal principles. In her free time, Tanya works and reads books on spiritual and business growth, and thus created a career that will involve family life, problem-solving and travelling. She surrounds herself with geniuses who share her values, love for wisdom and life.

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