Getting To Grips With Small Business Financing

Whether you need money to buy stock or equipment, require working capital to employ more staff or to fund a contract, or are simply looking for assistance to bridge your cash flow gaps while you are building your business, if you can't secure the finance you need, it will have a huge impact on sustainability and growth of your business.

- Darlene Menzies

Research consistently shows that the access to finance is one of the primary necessities for business sustainability, and is vital for achieving business growth. In South Africa, while there is plenty of finance available for entrepreneurs of growing businesses, many still struggle to secure it.

If you are needing to raise finance for your business, it is best to start by getting to grips with the financing landscape. It is essential to do your homework and find out what finance options are available, which ones fit your needs and who the lenders are that provide these products. If you adopt this approach to seeking finance, you will save yourself hours of wasted time and a frustrating run-around, the disappointment of rejected applications, not to mention the risk of business failure.

SMME financing is not a one-size-fits-all solution. There are different types of lenders offering different types of finance products that are specifically tailored to address different financial needs, across a range of different business types, stages and sizes.

Different types of finance providers

Growing small and medium businesses have a number of different types of finance providers to approach to raise capital. These include banks, debtor financiers, trade financiers, niche lenders, merchant financiers, venture capital companies and private equity firms, as well as Government funding agencies and other development finance institutions.