Small business grants for entrepreneurship
Starting and growing a business without external help, is but a dream for a few. For some, their businesses may require a source of funding. Especially if you should require a location for your small business that results in high leasing costs. Or that you can’t afford to run your business understaffed and taking on most of the work on your own.
Well help is near as there are small business grants for entrepreneurs these may include.
Small business government grants and loans
The government is involved in small business development by providing funding to previously disadvantaged individuals. These can take the form of grants, loans and tenders.
- A government loan just like a loan from a financial institution, it’s given to an approved business that’s required to repay the loan. It usually has more lenient repayment schedules and interest rates.
- While a government grant, by comparison, doesn’t require repayment by the awarded business.
The South African Department of Trade and Industry (DTI) has a number of initiatives designed to improve business activity for previously disadvantaged individuals, women and youth.
There are various kinds of bank loans available for small businesses and finding out which kind is best suited to your needs is up to the individual entrepreneur. These may include.
- An Overdraft – is ideally suited to managing cash flow.
- A Business revolving credit – this is a line of credit available as and when it’s needed and repayments are typically fixed monthly instalments. The original limit is usually restored after a set percentage has been repaid.
- Medium-term loans – are ideally suited for capital expenses and repayable for a period of two to seven years, but can be longer. Interest and repayment tend to be linked to prime, how much collateral you have, and the value of the asset you need finance for.
- Business mortgage / Property finance – in the event you wish to buy or renovate property for your business or convert part of a residence into office space. This is the loan to investigate.
- Vehicle and asset finance – Whether it’s a vehicle or specialised equipment required. Talk to your bank about vehicle and asset finance to determine whether its terms are suited to your business.