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.
R6,000,000 Req R300,000 Min
Face2face is a smart business and dating social media app that shows everyone and everything around you live on the map 24/7.
R800,000 Req R50,000 Min
Proven Burger Bar concept looking to purchase premises and start franchising.
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.
R25,000 Req R10,000 Min
Don't you like the idea of flowers that will never wilt? I know I do! I want to create South Africa's FIRST flower company that makes and sells Felt flower bouquets.
R3,000,000 Req R5,000 Min
In 7 years we have created our brand name of Spill Doctor which has become known as the go to company when you need to store and distribute flammable and hazardous material.
R2,000,000 Req R2,000,000 Min
This is a TV & entertainment game known as "Sports TV Game Show''. It will interface by riding on GSM mobile network and will generate a yearly revenue income of $1.8BN