As a small business owner in South Africa aiming to propel your business to greater heights, securing funding is often the key to success. Whether you’re looking to expand operations, invest in new equipment, or bolster working capital, finding the right lender is crucial.
How does the funding process work?
Funding is a catalyst for business growth, and getting started with an application is the first step in helping your SME thrive. Any business lending journey commences with an application process. Here’s a step-by-step guide to streamline your funding application:
5-step guide to applying for funding
Start your application process
Most lenders in South Africa have a pretty straightforward application process, it shouldn’t take longer than 5 minutes from start to finish. An application will typically cover a bunch of questions about you as the business owner, and then about the business itself. Questions can include: What is the funding for? How much funding do you need? What’s your annual turnover? Do you have a secured asset? It’s important that you have all important documents and personal and business details on hand to make the application journey as smooth as possible.
Compare offers from multiple lenders
You should never settle for one application from one lender. It’s always a good idea to compare offers from multiple business lenders, so you can make an informed decision based on your financial needs. Lenders will use all the details you’ve provided to determine what offers they should give you. Offers are presented in an easy-to-understand format, allowing you to compare options effortlessly. Just be careful to not apply at too many places, as too many enquiries can affect your credit score negatively.
Choose your preferred lender
Make sure to explore all your options and fully understand all the costs, interest rates and terms involved in that particular loan type. Most lenders will give you offers for different loan types depending on your needs, this could include anything from an unsecured loan and merchant cash advance to invoice factoring finance and purchase order funding. Select your preferred lender or rely on recommendations based on your application.
Finalise and accept offer with confidence
After identifying a suitable lender, engage with them directly to finalise the details and terms of your finance agreement. Upon satisfaction, accept the offer, and funds will be deposited into your account. You can always revisit the platform to explore alternative options.
Find offers best suited to your growing business
Business finance should never be seen as something you only pursue when your business is struggling. It’s a mechanism that can boost your business growth continually. That’s why once you have used it once to achieve certain business goals, it’s always a good idea to constantly check for new offers as your business utilises the financing to expand. A more established business often gains access to less expensive finance options.
Why is it a good idea to compare business loan offers?
Different lenders offer varying terms and interest rates. Comparing offers ensures you choose the most cost-effective solution for your business.
Each lender has unique offerings. Comparing options allows you to find a solution that aligns with your specific business needs.
Transparent decision making
By comparing offers, you gain transparency into the terms and conditions, making informed decisions about the best financing option for your business.
We have developed a comprehensive guide that highlights a few more things to consider when trying to get finance, including comparing marketplace platforms vs direct from lenders; costs of funding and types of funding.
View FundingHub’s website →