Getting Business Finance in the past has always been difficult, however, over recent years the availability and creativity of Finance for Business has advanced favorably. BFSA has undertaken to source all the players in the Business Finance Industry and to make them available to you.
Our relationship and understanding of each Business Financier’s Financial product, focus and requirements help us help you find the right financial solution.
Securing Business Finance has always been a minefield. One that is underestimated in its complexity. Over recent years, business finance has become more readily available. Obtaining funding is not our only objective, Uncovering a financial package to suit the individual’s or company’s needs will be our primary goal.
Business Finance South Africa offers the collective knowledge of advisors regarded as experts in the South Africa’s business finance market. Our understanding of market demands for an investment solution specific to individual needs separates us from the pack. It enables us to offer a financial package that meets your unique requirements.
There are two main segments to New and Existing Business Finance: DEBT FINANCING & EQUITY FINANCING
Debt financing is raising finance to be paid back over a fixed period.
In essence, this is low risk/ high-security finance. The conservative ‘banker’ approach. It requires as much security and as little risk as possible. Usually, this type of funding is raised through a bank.
Commonly, with this financing, the financier has a hands-off approach to the borrower. No risk, no involvement, only a transaction.
In a no risk situation such as this, the funds are usually only available on full security supporting the loan value. Insufficient collateral frequently results in inadequate funding.
However The Khula Credit Indemnity Scheme, as an example, is available to entrepreneurs, be it for start-up capital, business asset purchases, buying equity in an existing operation, or working capital. They will undertake to provide approximately 70% of the collateral on your behalf should your business finance be approved in principle by the financial institutions.
Equity Financing is sharing ownership in exchange for finance to compensate for the risk element.
Mostly this includes an agreement to share ownership of the business but may include the option to repurchase that stock at market value when the opportunity arises. This partner not only provides the capital injection but also is available to provide guidance and mentoring should it be required, improving efficiency and profitability in the business.
The Business Finance South Africa undertaking to supply innovative, individual finance packages for each business is sourced from active equity financiers, ensuring that the new business is handed every opportunity for early success as possible.
Our financial experts and partners are available to lend their substantial expertise in any of the above areas:
Complete the inquiry form below, and one of our consultants will contact you to offer you advice which will benefit you and your business.