Small Business Funding

Table of Contents

Small business funding in South Africa and Small business fundingaccess to sufficient cashflow is one of the most commonly stated reasons for small business failure, according to the entrepreneurs we speak to. As entrepreneurs ourselves, we understand the importance of having access to the small business funding and cashflow you need, when expenses need to be paid and clients are not paying on time.

Every entrepreneur’s path is unique, but one experience is shared by all: obtaining small business funding. Entrepreneurs and small businesses require cash to support their financial goals, whether it is to help cash flow or to support expenditures or to rise to the challenge of low sales or to expand for growth. As entrepreneurs ourselves, the team at Caban investments are very much aware of the challenges of securing sufficient business funding for business owners.

The good news? The availability of small business funding vary widely — loan amounts, repayments, interest rates etc allow you to get an option that coincides with your needs and helps push your small business forward.

So, how do you get funding to help you run your business? And what can you do as a small business owner to improve your chances? Let’s go over the fundamentals of small business funding so you can take the next step in your entrepreneurial journey.

What Are the Options for Small Businesses Funding?

Aside from personal funding sources (such as your own savings), there are two primary ways to fund your small business: equity and debt. Equity is the exchange of a portion of one’s ownership for money. Since the funds are “paid for” through the ownership terms, there is usually no obligation to repay them.


The other option is debt, typically in the form of a small business fund. Unlike equity, you are not required to give up any ownership of your company, but you are expected to meet the terms of the financial agreement.

According to the world bank, access to small business funding is crucial as small businesses are the largest employer world wide today.

What Do You Need To Get Small Business Funding?

Since businesses and Government organsiations are different in the way that they evaluate small business funding opportunities and award the requested funding, there is no one-size-fits-all formula for ensuring access to small business capital. Approval is ultimately determined by the funding provider’s trust in your ability to meet the contract’s repayment terms. Even so, there are steps you can take to raise the lender’s confidence in you and enhance your financing options.

Do I need a business plan for small business funding?

Some financiers demand that applicants register a business plan. Even if they don’t, having one prepared shows your organization, leadership, and readiness. It also sets the stage for the specific funds you’re requesting.

Check Your Credit Score
Your credit score is an unbiased way of summarising financial dependability and informs the conditions of funding you qualify for. Most finance companies will look at both your business and personal credit scores (the latter especially if you haven’t established your small business credit score).

Organize Your Accounts
Make sure your balance sheets, cash flow statements, income and loss statements, and any other operational documents are in good shape. Your financial statements and accounting records are typically reviewed by lenders. Any uncertainty in the information or disorganization may cause them to question your financial management.

Evaluate Your Online Presence
Your reputation is formed not only by your actions, but also by how others perceive those actions (especially in era of social media sharing). During the review process, many lenders conduct a due diligence check, which includes online reviews. Analyse common feedback platforms and respond to any concerns or potential issues.

Do Your Research
Not all funding sources are created equal; you must select the appropriate lender and product to fulfil your funding requirements. By applying for the right type offunding, you can save time filling out applications for funding that aren’t right for your company and increase your chances of approval.

Obtaining Small Business Funding in South Africa

Since there are so many role players in the small business funding industry, you must do your homework. Before signing any funding agreements, make sure you totally understand the terms of a contract. Read the contract carefully, and if you have any questions, ask for clarification.

Obtaining small business funding is a ongoing challenge in the business world. Do not perceive the need for funding as a sign of poor business or failure. It is an inherent aspect of doing business. It can mean the difference between keeping your business running during a slow period or closing your doors before you have a chance to be successful.

Some Of The Other Ways We Will Support You

Tailored Financial Solutions:
Acknowledging the diverse needs of small businesses, our approach is centered on crafting tailored financial solutions. An in-depth analysis of each business’s unique structure, growth objectives, and financial requisites forms the basis for formulating strategies aligned with the client’s specific circumstances. This client-centric approach ensures that financial advice is not only relevant but strategically positioned to address the intricacies of the business at hand.

Diversification of Funding Channels:
The South African financial landscape offers a spectrum of funding options, each with its own set of advantages and considerations. Our role as corporate finance advisors is to guide businesses through this diverse array, encompassing traditional banking instruments, government grants, private equity, and venture capital. By elucidating the nuances of each channel, we empower businesses to make informed decisions based on their strategic goals and risk tolerance.

Efficient Transactional Processes:
Acknowledging the time-sensitive nature of financial transactions, our operational efficiency is a hallmark of our service. Streamlining application processes for various funding channels, we aim to minimize bureaucratic obstacles, enabling businesses to expedite their financial endeavors. This efficiency is crucial in facilitating a smooth and expeditious journey toward securing the necessary capital.

Expert Corporate Finance Advisory:
Our team of seasoned corporate finance professionals brings a wealth of experience to the table, serving as strategic partners in our clients’ financial journeys. From structuring deals to negotiating terms with potential investors, our advisory services transcend traditional financial transactions, ensuring that businesses are equipped to make informed and strategic financial decisions throughout their growth trajectory.

Promoting Financial Literacy:
In addition to facilitating financial transactions, we recognize the importance of enhancing our clients’ financial literacy. Workshops and educational resources are integral components of our service, equipping entrepreneurs with the knowledge and skills necessary to navigate the complexities of financial management effectively. This commitment to education contributes to the long-term financial resilience of the businesses we serve.

Community Integration:
Recognizing the collaborative nature of corporate finance, we actively foster community integration among our clients. Networking opportunities and collaborative initiatives create an environment where businesses can share experiences, insights, and potential opportunities. This interconnectedness contributes to the creation of a supportive ecosystem where businesses not only thrive individually but also collectively contribute to the growth of the South African business landscape.

To find out more about how we can support you to get the small business funding you need, fill out your details below and one of our constants will be in touch. 

Contact us

Please contact us through the contact form below for support in sourcing the right type of small business funding for your business

caban.png
Block I, Georgian Place, 18 South Road, Kelvin , Sandton, South Africa.
Email : [email protected]

LONDON, CAPE TOWN AND JOHANNESBURG

We are based in Cape Town and Johannesburg and have a presence in London.

About Us

Caban Investments is an Impact Venture Capital firm, operating across Sub Saharan Africa.
We work with seed, early, and growth stage businesses with the intention to positively impact the environment.
Part of the Caban Group of Companies

Specialist Services

Contact Info

Address:

Block I, Georgian Place, 18 South Road, Kelvin , Sandton, South Africa.

Phone:

+27 81 855 0714

Email:

[email protected]

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© Copyright 2024 - Caban Investments

Matthew Musgrove

Matthew Musgrove

Matthew is an entrepreneur and business Advisor with a passion for change management and social empowerment. With a background in business accounting and advisory, as well clinical research project management, he strives to find strategic and sustainable solutions to business problems.

Olu

OLUWASEUN ADEWUYI

Oluwaseun Adewuyi who is the Group Chief Finance Officer (CFO) at Caban, is a Certified Chartered Accountant, with Fellowship status at both the ACCA as well as the Institute of Public Finance and Accountancy, a UK Based industry body with a specific focus on the management of charities, not-for-profit organisations and NGOs.. Oluwaseun comes with strong business acumen and 20+ years of progressive experience in finance and operations management within well-reputed and high growth organisations Including Next Plc and Royal Mail. He has been heavily involved in impact investment across Sub-Saharan Africa and has been instrumental in the creation of a series of community schools in West Africa. Throughout his career, he oversaw a broad range of operations, including Business Strategy and Business Reorganisation, summarising the organisation’s financial status, and coordinating the preparation of tactical plans, financial forecasts, and budgets. Adept at developing and implementing effective internal control framework to maintain sound financial accountability.

tim scholtz

TIM SCHOLTZ

Tim Scholtz, who's is the Chief Operating Officer (COO) at Caban Investments, is experienced in implementing corporate governance guidelines, formulating risk management structures, process and cost optimization. Tim has a strong corporate background, having worked as COO at the South African Tourism board, was COO at the Nelson Mandela foundation and as a internal audit manager at Arthur Anderson earlier in his career.

Ben Botes

BEN BOTES

Ben Botes is Entrepreneur, VC, co-Founder, Author and Academic with a strong social conscience. Ben Involved with early stage and growth firms for the past 20 years and has been Co-founder of 9 separate businesses across Africa. Ben has directly and indirectly been involved in impact investment and the support of charities and non profits for the last 30 years. Ben is a regular speaker at the African Investment Conference in London and has been featured in Wall Street for Europe, The Guardian Small Business, BBC, the Mail and Guardian in the UK and BizCommunity, Channel 3 TV, Investors Weekly, The Cape Times, Radio 702 with John Robbie and Good Hope FM in South Africa

Dave Romero

DAVE ROMERO

Dave Romero is a venture capitalist and entrepreneur with a passion for making an impact. A qualified Professional Accountant, Dave has been a director in multiple financial institutions and was once the youngest Chairman on the JSE, in addition to being listed as one of Business Times’ Top 100 companies and the 40th fastest-growing company in South Africa. Dave is a core founder of the Caban Group, which aims to provide a comprehensive service offering to small businesses in return for equity. With a passion for nurturing entrepreneurs, Dave can often be found outside of the boardroom – offering advice, creating innovative funding solutions and building communities through sustainable practices.

ruben

Dr RUBEN RICHARDS

Dr Ruben Richards is a truly inspirational South African leader. Through his peace-building seminars for criminal gangs, Dr Ruben has facilitated the longest ceasefire in the history of gang warfare on the Cape Flats. In addition to being Chairman & Founder of the non-profit Ruben Richards Foundation, Dr Ruben is an ordained cleric, company director, non-executive Chairman of Visual International Limited and was once the Deputy Director-General of the now-disbanded Scorpions.