Business funding for South African entrepreneurs

Are you a budding entrepreneur wondering where you get capital to fund your business? Or is your business already existing and in need of capital injection? There are a great deal of institutions offering funding for entrepreneurs.

If you’re uncertain on which doors to knock on, why not start with these?

1. Business Partners Limited

Business Partners invests between R250 000 and R15 million in SMEs across all sectors, with the exception of farming, on-lending and non-profit organisations.

Investment financing is offered for businesses at all stages of development, including start-ups, expansions, outright purchases, management buy-outs, management buy-ins, franchises, tenders and contracts. The company also manages a number of specialist funds, which provide investment financing for defined-profile entrepreneurs.

Business Partners also has a range of support services for the entrepreneur. This includes property management consultants, mentors who are allocated according to the company’s needs and access to other expertise need to ensure the success of a business.

2. Commercial Banks

The commercial banks; ABSA, FNB, Nedbank and Standard Bank have specialist SME divisions, providing finance for qualifying entrepreneurs. Visit the banks’ websites to find out about their products and services, and their criteria to obtain finance.

3. Khula Enterprise Finance

Khula Department Finance Ltd is an agency of the Department of Trade and Industry established to facilitate access to finance for SMMEs. Khula provides assistance through various delivery channels, including commercial banks, retail financial intermediaries and micro credit outlets (MCOs).

Funds in partnership with Khula include:

  • Small Business Growth Trust Fund

This non-sector specific fund provides loans between R10 000 and R3million per portfolio entity with a repayment period not exceeding 5 years.

  • Izibulo SME Fund

The Izibulo SME Fund provides early-stage funding to SMEs and necessary infrastructural support and resources.

  • Identity Development Fund (IDF)

IDF is also a non-sector specific fund that aims to create  long-term growth from profitable portfolio investments in SMEs. It provides both debt and or equity funding (50%/50%). Repayment periods range between 3-5 years for start-up/early stage companies of R250 000 to R3million, emerging /MBO and expansion of R3million to R7.5million and R7.5million to R30million for community projects.

For more business-related advice, visit our Entrepreneurship page.