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.
R5,000,000 Req R500,000 Min
The magic of flight has always captured the imagination of mankind. Model aviation not only supports the advancement of aviation, but brings the magic home and makes it affordable for millions of enthusiasts to own a piece of aviation history.
R5,000,000 Req R250,000 Min
Equity in the business. First of a kind that covers the camping and boating market. The investment will go towards the prototype which is modern "fully electrical". We will partner with equipment suppliers to access the global. Please see the video
R50,000 Req R5,000 Min
Future Tutor is a mobile app that links tutors to students. Tutors sign up, create a profile and publish themselves on the app. Students can contact tutors to set up extra lessons by email or call.
R1,250,000 Req R1,000,000 Min
I am looking to raise short-term working capital using a paid-off property (valued at R 3.6 million) as collateral. A legal contract will be signed to ensure there is no risk to the lender, as the property will be sold in the next 12-18 months.
R500,000 Req R50,000 Min
I have learnt so many skills through the years and so the dream was born to learn others, my hobby can become a big business and make a difference in other people. I never give up or left anything, so I will not stop till my dream is running.
R700,000 Req R200,000 Min
Enerjoy Training Academy provided training to Enerjoy Care Services since 2009. It is now registered as a separate business providing specialised carer, family and wellness training to both Enerjoy Care Services and the general public.