The government wants to grow the base of small businesses and, in particular, make sure that the demographics of business owners reflects the demographics of the country. It has therefore set up government lending agencies to enable entrepreneurs to access finance.
However, like banks and other lending agencies, the government lending agencies have to be self-sustaining, so their processes are very similar (they also require a lot of documents) as they need to ensure that the money they lend you will be repaid. Should they decide to approve a loan, they may also assign a business mentor to work with you and this will form part of the loan agreement.
Working capital finance options are available from the Industrial Development Corporation (IDC), National Empowerment Fund (NEF) and the Small Enterprise Development Agency (SEFA). Many of the funds target specific industry sectors or are linked to increased competitiveness and so on. In the Next Steps (below) select the Summary of Government Funds option to see whether your business needs match the government lending requirements.
The Procurement Finance product is aimed at assisting black-owned, small businesses that have been awarded tenders or contracts by public and private sector entities. The product’s main objective is to ensure that qualifying SMMEs have the capacity to carry out their contracts.
Finfind provides its services free of charge to businesses seeking finance. Our primary purpose is to link SMEs with all the relevant finance providers and finance products that match their funding needs. As a matching service we are not required to be a registered finance provider as we do not loan money directly.