Table of Contents

1. Funding

There are different types of funding that can be obtained in South Africa.


1.1 Self-funding

You can use your own funds that you have saved up.  This could be in the form of cash from your savings account or even from the additional funds that you might have in your bond.

1.2 Angel Investors

These types of funders provide cash based on the merits of the business. The Angel Investor may provide funding for a share in the business and may also provide business mentoring, more customers, etc to grow the business.  They may also request for management control in the business as well.

Angel Investment Network

Angel Hub Ventures

2. Bank Finance

Bank financing refers to a business borrowing money from a bank. Most banks in South Africa has some form of bank financing for businesses.  Banks can offer various types of access to cash such as:


This facility can be arranged on the Business Bank Account or even your private bank account.  Cash can be accessed quite easily. Generally, the bank would request some sort of guarantee if the business does not have any assets.  

Debtor Finance

This facility allows the business to borrow money for its working capital needs. Typically, the business would need to be making a certain amount of turnover, have a strong balance sheet, good suppliers (creditors), good customers (debtors) that are continuously buying from the business or contracts are in place, and a good accounting system that demonstrates excellent financial controls.

Asset Finance

The business may require assets that would generate more income for the business such as manufacturing equipment or to simply conduct its business such as office furniture. Banks would generally have specific financing packages for this type of asset finance.

Standard Bank

First National Bank

Capitec Bank


3. Debt Financing

Debt Financing is where a business borrows money from either a Bank or other financial institutions. Some of the other financial institutions are specifically geared for business borrowing. For example, Spartan specifically finances SMEs.

4. Private Equity

Private equity funders lend money to SMEs to large businesses which may include investments into a private company or buying a company and selling it after a few years.

Private equities consist of funders or investors putting their money together and then make investments into other businesses. 

Private equity funders typically would want ownership in the business and probably sharing in the profits too. This type of funder is looking for aggressive growth and may also require that the business be restructured according to their terms.

5. Venture Captial

Venture capital is a type of private equity funding where the business is fairly new or is a start up business. These types of business are generally launching innovative products or services that would have a high demand.  The venture capitalist would then offer funds to grow the business and/or even assist with the product development.

Businesses that have unique ideas or innovations typically try to access venture capital.

6. Government Funding

The Government has various funding agencies.

The Department of Trade, Industry and Competition (Incentives Guide)

Government Investment Incentives information​

7. Development Financing Institutions

Small Enterprise Finance Agency (SEFA)

Established in 2012, the Small Enterprise Finance Agency (SEFA) helps start-ups and small businesses. They will either fund grants or loans or help entrepreneurs access funding from other sources.

National Empowerment Fund (NEF)

If you are directly involved in your business and need funding between R250 000 and R75 million, the National Empowerment Fund (NEF) may be able to help.

Industrial Development Corporation (IDC)

IDC is a national development finance institution set up to promote economic growth and industrial development.

8. Finfind Online Platform

Finfind is an innovative, online platform that automatically matches the seekers of business finance with appropriate funders from a comprehensive, up-to-date database of more than 600 SMME finance offerings from the public and private sector funders in South Africa.

Website: Finfind

9. Business Partners (SBDC)