Getting funding for your business may seem like a scary task. Where do you start? How much do you need? How will you repay?
The good news is, it’s easier than you may think. But, before we get into the good stuff, let’s debunk some common small business funding myths.
- Venture capital is a growing opportunity for funding businesses
Actually, this isn’t the case. It’s still very rare, especially in the South African market. When most people say ‘venture capital’, they really mean outside investors.
- Traditional bank loans are the best option for funding a new business
Most traditional banks don’t fund startups & this is due to the ‘high risk’ involved. You would need some sort of self-acquired capital before you can approach a bank.
- Business plans will land you investors
A great business plan won’t automatically attract viable investors. You would still need to have a strong team in place to have made progress, and better yet; traction – for example, paying customers.
It should come as no surprise that one of the biggest challenges small businesses face is securing funds to grow their business and take on new opportunities.
But, luckily in 2022, there’s been an increase in funding choices for entrepreneurs. So let’s take a look at how you can access business funding.
Be intentional with the type of funding you need
Before you can secure funding, you need to know what you need the finances for. Is it to pay a bill? Update your business systems? Or pay salaries and wages? Once you’ve figured out the purpose of the funding, you’ll be able to answer an important question; is it short-term or long-term funding?
Determining the purpose of your funding will save you time during the application process. Knowing exactly what you’ll be using the funds for also helps you to manage your cash flow better.
Keep it local
When you keep things simple, you’re more likely to find a faster solution for your problem. The same goes for funding. Your South African business should be funded by a local funder who understands your specific economical needs.
This way, the regulations are all aligned and the currency is the same. South Africa boasts many organisations and alternative lenders whose core business is to drive SME growth.
Lulalend offers small businesses the opportunity to access up to R5 million in business funding and 60 days of cost-free capital – what businesses wouldn’t want to benefit from that?
Think outside the box
If you’ve tried bootstrapping, called upon all your friends & family, or maxed out your credit card, now is the time to think outside the box. Looking at alternative lenders is a great way to get the funds you need, and fast.
The beauty of alternative lending is that their application processes are not as long & paper-heavy as traditional banks. Another plus is that their main objective is assisting your business’s cash flow management. So if you need a quick turnaround, this is the way to go.
At Lulalend, we offer application outcomes and funds in your bank account within 24 hours.
Related: The SME Guide to Business Funding
While sourcing funds for your business from the right lender may seem like one of the hardest tasks of being a business owner, we know it’s also the most rewarding. That’s why Lulalend is committed to helping businesses access fast, hassle-free funding online so that you can get back.