GOVERNMENT FUNDING

be carefully run with the right controls so you’ll be able to repay the loan. They will want to see a cash-flow plan. Some of the types of bank financing to consider: An overdraft linked to your account – This gives you immediate access to extra funds when your bank balance hits zero, and you usually only pay interest on what you use, Linstrom says. “It’s ideal for temporary financial issues, unexpected expenses or emergency costs.”

Debtor finance – This provides working capital for a growing business. The bank buys approved trade debtor invoices, with a certain portion (generally 85%) paid at time of purchase.

Asset finance – This allows you to buy movable assets and capital equipment, such as office furniture or machinery. A business loan – This is more a medium- to long-term facility that allows you to borrow up to five years from most banks, Deva says. “The Business Booster Loan offered by FNB is unique in that we start looking at providing additional finance for your business once you have six months’ turnover.”

The government supports previouslydisadvantaged South Africans to grow new businesses, boost the economy and provide employment. It has schemes – each with its own qualification requirements. The Department of Trade and Industry has a range of programmes providing funds. This is from the Film Incentive Programme (for making movies) to the Aquaculture Development and Enhancement Programme (for fishfarming). More general options are available, such as the Black Business Supplier Development Programme (for black-owned small enterprises) or Isivande Women’s Fund (to advance women’s economic empowerment). See www.thedtic.gov.za Government funding grants are available for businesses that qualify. They don’t have to be repaid, but you’ll need to account for every cent spent. This involves a lot of paperwork. An example is the Black Business Supplier Development Programme, a grant to black-owned small businesses. See www.dsbd.gov.za.