Introduction To Funding For Women’s Business
So what can be done to support female business owners in South Africa? The answer seems remarkably simple. . More specifically, it’s access to the right information that to make informed financial decisions.
We’ve put together this handy guide to help you understand how funding can be used to help your business
Challenges Affecting Female SMEs
There is nothing more satisfying than running your own business. But being your own boss does come with its own
· Access to finance and credit
· Cash flow management
· Access to support
· High startup failure rate
· Access to markets
· Skills shortage
Business funding exists to with some of these challenges. As an entrepreneur and business owner, you need to understand the unique challenges that face your business and determine can help you overcome them.
Clearing The Fog Around Business Finance
Financial literacy and easy access to information about business funding is key to solving many of the challenges facing your business. You need to know how to and have a working understanding of the of your business.
It’s also important to know that applying for business finance is . Most, if not all, businesses that have been operating for some time need capital in order to scale.
Funding For Women’s Business In South Africa
In the past, SMEs had to rely on to provide a range of financial services, but because of restrictions and tough requirements, actually walking away with the funding needed was difficult. Now there is a range of options for SMEs, each with their own pros and cons.
Some forms of finance like bootstrapping, angel investors, venture capitalists, crowdfunding and accelerator programs are only applicable to new businesses and startups.
For , funding options include , and . Funding intended for a specific purpose, such as a bridging loan or purchasing equipment, carry their own minimum requirements.
have proven a popular and more option for South African SMEs looking for to finance.
can be a for growing your business and it’s a lot more flexible than a small business loan.
A business credit facility works in the same way as a credit card, which can be a huge advantage for SMEs. It’s always there when you need it, which is great for peace of mind, and means you don’t have to withdraw from your personal funds when you need .
And the biggest advantage – you only need to apply once.
Using Your Funding
There is a common misconception that only new businesses require funding. The reality is that business funding can be applied for at in a business’s lifespan and can be used to meet many
· Expansion of your premises
· Hiring additional staff
· Equipment purchase
· Buying Inventory
· Managing Cash Flow
What you do with your business funding is ultimately up to you. As a business owner, it’s your job to ensure you and how to use it to achieve your , whether it’s growth, purchasing seasonal inventory or buying the equipment needed to scale.
As a business owner, you need to understand how your money . This includes your business debt.
It’s important to understand that there is a difference between and
does not influence your business growth. In fact, it does the opposite. Drawing on your credit card to cover day-to-day-expenses, luxury items or depreciating assets like a vehicle, counts as bad debt.
works for your business. Business funding that contributes to the of your business or ultimately your net worth can be considered good debt.