South African entrepreneurs looking to finance their business ventures through traditional lending routes will often be frustrated and discouraged. Application and approval processes usually undergo long delays and lenders expect applicants to provide good credit and collateral. Even with all this in line, small businesses aren't necessarily guaranteed loans. Banks in South Africa aren't generally open to risks, many of them having dealt with a number of small business owners who've neglected to repay their loans in the past.
To help small business owners secure financing, several nonprofits and commercial businesses offer smaller loans at higher interest rates to businesses that have a hard time raising collateral. For those who can come up with some form of collateral, governmental organizations like Khula, will guarantee a portion of the business' bank loan (but not lend directly to the business) as long as the entrepreneur provides collateral for the remaining portion.
Recently, angel investments and venture capital funds have become more viable options for business owners seeking financing. Angel investors step in at the beginning phase of business development, often providing seed capital (smaller funding amounts) for the business to operate and grow. Venture capitalists are more likely to invest money once the business is established, providing greater monetary amounts in return for shares in the business, and sometimes a role in the company, usually at the board level. After a period of three to seven years, venture capitalists usually sell their shares, either to the original owner, or to another investor. Angel investors and venture capitalists normally expect a 10 to 30 percent return on their investment.
R250,000 Req R250,000 Min
Premier Active is a fashionable, high-class, luxurious active wear brand for men and women.
R4,000,000 Req R500,000 Min
A Pharmaceutical and Medical Supplies company is looking for investor(s) to support the setting up of this very lucrative warehousing and distribution company in Swaziland.
R200,000 Req R5,000 Min
On 14 October 2017, we launched our Guinness World Record online for largest anthology published, and we need to print 1000 books for the physical book launch event
R6,000,000 Req R20,000 Min
2050 hectare Springbok breeding farm in the Northern Cape offering breeding ewes for sale and a share in profits from sale of their offspring. www.game-hunting.co.za
R700,000 Req R100,000 Min
Fully equipped indoor sports & cricket training centre. Fully equipped gym, SAS outdoor obstacle course with personal trainers and qualified cricket coaches.
R1,500,000 Req R500,000 Min
San Mu Home Flippers was established with the focus of providing a quality service in buying and selling homes. The question of whether buying & selling or buying & holding is the best real estate investment strategy doesn’t have one correct answer.