Starting a new business can be overwhelming if you’re not sure where to start. From doing research, developing a product or service and creating your business plan, to getting funding. Businesses need finance for a variety of different purposes. Your funding options will depend on the type of business you’re planning to start, and how much capital you need. Here are 5 funding options to consider for your start-up.

The National Youth Development Agency (NYDA) Business Funding

NYDA is a platform that raises funding for small enterprises in the country. They especially work with youth in South Africa. This grant program provides young entrepreneurs the opportunity to get financial and non-financial support for the development of their businesses. Part of the non-financial services they provide includes mentoring, co-operative development, business management, and consultancy services. You can start the process here.

Angel investors

Angel investors, also called private or informal investors are also good options for funding your business. They provide favourable and flexible funding terms, when compared to other lenders. You can connect with Angel investors here.

Crowdfunding

Crowdfunding is one of the newer and more modern ways of funding your business. This can be done through crowdfunding platforms such as GoFundMe where you can create a campaign, set a goal for how much money you want to raise in a specified time, and ask people to pledge certain amounts to your cause.

Bank loans

Most banks offer start-up capital/loans to entrepreneurs. Banks give out the loans at a specified interest rate that must be paid back according to the agreed rate. Visit your local branch to find out more about the requirements and how you can benefit from these opportunities. Just don’t forget to read the fine print, Choma. 

Small Enterprise Finance Agency (SEFA)

The Small Enterprise Finance Agency (SEFA) provides business loans to small and medium sized companies. You can visit SEFA to apply and get funding for your business. 

Getting funding isn’t an easy process but don’t give up. Some of the most successful entrepreneurs have failed in their first missions. What’s important is that you plan your business and finances carefully. Good luck!

If you or a friend need advice or help, you can contact me here on Ask Choma, send me a Facebook Message, a Twitter DM, or a WhatsApp Message (071 172 3657).