Survey after survey shows cash flow problems as one of the biggest challenges facing South African (and global) entrepreneurs.
Most aspiring entrepreneurs say that they don’t have the capital they need to start their businesses, and blossoming businesses face the same challenge. No capital equals no growth. The good news is that there are so many ways to access capital to help you grow, from unlocking cash flow in your business to finding the right financing solution.
From traditional banks to alternative financing solutions, there are also a range of different products available to suit your needs.
UNLOCKING CASH FLOW TO FUND YOURSELF
Bootstrap: This means to grow the business slowly, with lean business operations. The money comes from the work the business does, for example, when you bootstrap you may take preorders for your product, thereby using the funds generated from the orders to actually build and deliver the product itself.
Customer Deposits: If you are in need of easy-to-access short-term working capital, one of the easiest options to raise funds is by asking your customers to pay a deposit. The deposit also provides you with a safety net when customers don’t pay.
Supplier Finance: Supplier finance, simply put, means you get the stock you need now and only pay later, usually 30 days. This is a useful form of short term finance.