The country is relying on SME’s to create jobs, 11 million jobs by 2030 to be precise. Depending on where you get your stats, SME’s contribute between 20%-42% to the country’s GDP. 70% to 80% of small businesses close within the first year of operation. Thereafter, only about half of the survivors will last for the next five years, many small business failures are due to lack of funding or cash flow difficulties.
Gurus in this space advise to borrow cash, only if it’s essential, and this move should be preceded by cash flow planning and forecasting. What is the opportunity you are chasing and what’s the return? If returns exceed the cost of credit, that’s good for the business. Use your own money as far as possible. If that’s running out, and you’re onto a good thing, see if family and friends can’t help before going the formal route.
Sources of funding
Alternative sources of funding
We have provided a few options available both in the traditional and alternative space when in search of funding either for starting your business or to bridge a gap in your cash flow. Every source of funding has tailored packages for what you have and what you need. Ultimately, you, as the business owner, have to make the decision on which to choose, depending on what you can afford and what suits your budget and cash flow plans. Our team at Iridium are here to help you navigate this journey. Get in touch with us if you’d like to chat further about your business and its cash flow needs.