Finance and Banking

Banking and Funding For Small Busines

 Banking and Funding For Small Busines.

Whether you’re an entrepreneur with a great idea just starting out, or have been running a small business for years; banking is simply the backbone of your business — the support you need to survive, succeed and grow.

Running a small business certainly has its challenges but managing your everyday banking needs shouldn't be one of them. Here we highlight some of the best small business banking products on offer.

Small Business Banker — brought to you by Absa, offers you all the usual things you’d expect from a bank such as a business debit card, cheque book, online banking and a range of savings and borrowing services.

Whether you’re an entrepreneur with a great idea just starting out, or have been running a small business for years; banking is the backbone of your business — the support you need to survive, succeed and grow.

However, you’ll also have direct communication with a Small Business Banker who is dedicated to helping you grow your business. The Small Business package also combines an Absa Small Business Current Account with expert advice, seminars, networking opportunities, business software and training courses.

Standard Bank has also produced a package to assist entrepreneurs who are planning to start a business or wish to expand their current operations. The package provides the necessary information and guidance to enable you to apply for finance and draw up a business plan.

Their package consists of business of your own booklet; business plan and loan application booklet as well as Cash Flow Analysis software and a user manual. 

The Business of "your Own booklet" offers valuable information regarding the planning, start-up, running and expansion of a small business.

It guides you through the various aspects which need to be addressed in the business plan, and provides useful information on legal aspects, realistic targeting, management techniques, basic lending criteria, types of finance; franchising and merchandising.

With Small Business Money Manager — by Nedbank, business owners can track their finances and manage their cash flow. Small Business Money Manager analyses your bank statements and then presents the business owner with an overview of their finances in a simple and user-friendly format.

Money Manager allows you to:

  • sort and view transactions;
  • track income and expenditure,
  • manage your cash flow with the cash flow tool,
  • customise budgets and create graphs.
  • It also helps to create personalised financial records and calculate your loan repayment, allowing you to see what you would save if you were to pay a little extra each month and also explains how to secure a loan to start or grow your existing business.

    Absa also offers aspiring black entrepreneurs, who may not qualify for a normal bank credit, a loan through its Small and Medium Enterprise Fund or Khula Guarantee Loan. 

    Khula is the small business financial agency of government that is located within the Department of Trade and Industry (DTI). Its sole responsibility is to offer small businesses, which don’t have assets for collateral, a credit guarantee scheme.

    The scheme is an indemnity to banks in the event that the business fails to repay the loan. At least 50%, up to 90%, of the bank loan can be indemnified under the Khula scheme. The maximum amount that can be loaned under the scheme is R3 million.

    In order to qualify for Khula loan, you will need to contribute at least 10% of the amount you would want to borrow to your business. This contribution can either be cash or equipment that will be used in the business.

    Applications can be made through any commercial bank or financial institutions participating in the programme but applicants must meet the criteria, which differs slightly from bank to bank.