Start-Up Business Funding In South Africa

Start-Up Business Funding In South Africa

If you start a new business, chances are that you will need funding to get your business off the ground. There are many different options available to you at one of these is to make use of the Small Enterprise Finance Agency (SOC).

The Small Enterprise Finance Agency was established in 2012. As a result of the merging of South African Micro Apex Fund and Khula Enterprise Finance Ltd. The goal of the SOC is to allow for the survival and growth of small in businesses in South Africa, and to contribute towards poverty alleviation and job creation. The multiple offices around the country and to different products are available to entrepreneurs.

Direct and products are loans that are provided directly to small and medium enterprises in South Africa. Operating profit sectors of the economy. The minimum loan amount is R50,000 and the maximum loan amount is R5 million. You can download an application form online and also read all the terms and conditions as well as the application criteria.

Structured loans are also available and the loan can be taken over a period of five years. To be eligible for structured loan you have to be a South African citizen and completed all the loan documentation. You also have to have written proposals or business plans that meet the requirements of the loan application criteria. In some cases you need to provide credit references.

Then there are a variety of wholesale lending products available and this is specifically targeted at small and medium businesses that falls within a specific funding gap. Micro-enterprises can get loans of between R500, while small enterprises and those between R50,000 and R1 million. Medium enterprises can get loans between R1 million and R5 million.

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