Expansion When you’re talking about expansion, you’re generally referring to a long-term undertaking in your business. Therefore, more often than not, you should seek out a long-term finance solution. This is also a good time to examine whether debt consolidation is worth considering. If the company has debts, then applying for a loan that covers the cost of the expansion …
If you have a signed contract for a large order, but don’t have the finance to purchase the supplies or finance for the resources to complete the work, then contract finance is a good option. You can also consider this option if you are tendering for a large contract. In this case, you would approach the contract financier and if they agree to …
Sometimes a business has cash-flow problems even though it is doing extremely well. There are a number of valid business reasons why this could happen e.g. the business is unable to access cash because it has to wait for payment of large orders (sometimes for up to 90 days). It is at times like these that access to working capital …
Asset finance is the financial product designed specifically for businesses that need to purchase equipment and machinery. However, certain limits do apply. Usually, there is a minimum spend required i.e. you would need to spend at least R50 000. Given these restrictions, we will also discuss alternative ways of raising finance in your personal capacity. The amount of finance required for …
Buying a business Finance for buying an existing business is treated differently from finance to start a business. Unlike a start-up, if the business already exists, it is easy to check its past financial trading history and the future orders it has already secured, and this makes lenders more comfortable. If you are a previously disadvantaged South African citizen who …
We are going to discuss some of the common challenges that face small businesses when they first want to access finance. Your company is not registered If you haven’t registered your company, then it will be considered a Sole Proprietor company. This means that in terms of the law, all profits from the business accrue to you and that all business …
Lending money is risky business Lenders are in the business of making money by lending money to businesses and individuals. This means that they need to be very sure that they will be repaid the loan and interest from each lending transaction. The reality is that every time they loan money, they risk losing it. The future is unpredictable and …
When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your …
What does collateral mean? Collateral refers to assets that a borrower signs over to a lender to secure a loan. If the borrower stops making the promised loan payments, the lender can sell the assets to recover the money loaned. This means that, if you have ceded an asset to a lender as collateral for a loan, you CANNOT sell that …