SABBEX

Finance Options

Finance Options

In order to finance your business endeavours or to set up a new exporting business you can make use of external financing and/or support. This type of financing can be provided by government or private companies. Government support can be provided in the form of an incentive, fund or program to support your investment in your (future) company and business processes.
Private support is offered by investment companies or loan suppliers.

Both government and private companies can provide entrepreneurs and exporters with information about financing options in exporting their product. Incentives, funding, programs and loans are developed for those who want to start, improve or expand their business processes in terms of exporting.

Government Support

The South African government created incentive programs and funds for those who would like to start a business, expand or improve their businesses or start exporting. When starting or while doing business you should consider these options. ww.dti.gov.za

Export incentives:
The Small Enterprise Development Agency (SEDA) offers information on financing small businesses through the Industrial Development Corporation (IDC). The IDC provides matching funding to entrepreneurs who intend to establish or take over businesses.

Visit: www.dti.gov.za/thedti/seda2.htm

National Empowerment Fund (NEF)
Promotes and facilitates black economic equality and transformation. Its mandate and mission is to be the catalyst of Broad-bases Black Economic Empowerment (BB-BEE) Visit: www.nefcorp.co.za

- NEF's Imbewu Fund
Promotes the creation of new businesses and the provision of expansion capital to early stage businesses. Aims to cultivate a culture of entrepreneurship by offering debt, quasi-equity and equity finance of up to R20m. The fund compromises: Finance; Entrepreneurship, Procurement, Franchise Rural & Community Development Projects.

- NEF's Corporate Fund
Improves access to BEE capital and has three financial products on offer - Acquisition, Projects and Expansion. The fund provides capital to black owned and managed enterprises, black entrepreneurs who are buying equity shares in established white owned enterprises, project finance and BEE businesses that are or wish to be listed on the JSE. Funding ranges from R5m to R100m.

City of Cape Town Initiatives

The Business Support Voucher Programme Offers support services for start-ups or survivalist businesses. Visit: www.thebusinessplace.co.za

Private Companies

Enterprise Solutions
For businesses with low equity and/or collateral bases that require financing to start up or expand their businesses, individuals or management teams that want to buy an existing business, either in whole or in part, particularly BEE transactions. Financing options: Funding R500,00 to R5m for start-ups and expansion funding, funding from R1m to R20m for acquisitions, MBO's and MBI's. Visit: www.fnb.co.za/downloads/forms/FES.pdf.

Masisizane Women Enterprise Fund
Aimed at enterprises owned by women of all ages (above 18 years) in peri-urban and rural areas (but not limited therein) which are economically viable. The loans range from R100,00 - to R5m with a maximum repayment period of 5 years. Visit: www.oldmutual.co.za/aboutus/transformation/masisizane.aspx.

Micro Financing

If a company is looking for a quick and very small funding needs. Good for immediate funding but interest rates can be extremely high.

Landelike Ontwikkelings Maatskapy
Target group: Micro finance for rural development. Loan amount: R500 to R50,000. Contact: Tel: 021 863 500 or tdewet@casidra.co.za

New Business Finance
Target group: Any existing viable small and medium business. Start-up businesses are considered on merit. Loan amount: R1,000 to R250,000. Call 021 671 6263 or asanda@nbf.co.za

Angel Investors
A term used for private, wealthy individuals that generally invest in young start-up companies, angel investments are sometimes made in exchange for equity or could be in the form of a loan.

Quickberry
Assist all types of businessmen and commercial enterprises to find investors. Visit: www.quickberry.co.za or contact: 021 531 0156

South Africa Investment Network
An online platform that connects entrepreneurs seeking business funding with angel investors looking for investment opportunities. Visit: www.investmentnetwork.co.za

Here Be Dragons
Supplies early stage companies with necessary financing, but also provides the managerial and strategic support to assist in the growth of businesses. Visit: www.hbd.com or contact 021 970 1056.

Incubators

A facility from which various support services are provided to small start-up companies at special rates. The support services usually include physical infrastructure such as bandwidth and office space, but can also include mentoring or referral services.