There are over 30 registered banks in South Africa through which you can source startup capital. In addition, the government and some private and public enterprises can give you assistance in accessing finance. Each of the above will have their own rules, processes and procedures, central to which, in most cases, will be a proper business plan to convince the lending institution that your business idea is viable.

So what is available to the startup enterprise or entrepreneur seeking expansion capital?

The government gives various incentives and grants to stimulate business growth and development such as export incentives, preferential trade agreements, skills development help, and grants for research and development.  The government's financial assistance comes primarily in the form of Khula Enterprise Finance Limited, the government's small business promotion programme. Khula does not give loans to small businesses directly, but small business can make use of the many Khula products through banks and loan providers called Retail Finance Intermediaries or RFIs.

Khula looks after the under-banked sector with loans from R1 000 to R200 000. These loans are primarily aimed at enterprises needing finance for start-up or expansion without full surety. Although applicants need less security, they must still be profitable. This money is loaned at a higher interest rate than available from banks, and the payment periods are much shorter.

Khula provides:

• the Khula Equity Fund – risk capital for SMEs
• the Thuso Mentorship Programme – help in preparing business plans and post-loan support, and
• the Khula Credit Guarantee Fund – helping businesses with no recourse to bank financing due to lack of collateral.

For more information about the Khula services and products, go to www.khula.org.za or phone 0800 11 88 15.

Other direct links to financing are:

Access to Finance for SMMEs: National Institutions
Access to Finance for SMMEs: Eastern Cape
Access to Finance for SMMEs: Free State
Access to Finance for SMMEs: Gauteng
Access to Finance for SMMEs: Kwazulu-Natal
Access to Finance for SMMEs: Limpopo Province
Access to Finance for SMMEs: Mpumalanga
Access to Finance for SMMEs: Northern Cape
Access to Finance for SMMEs: Western Cape
Donors and Funding Agencies
Financing the business
GTZ
Incentive Schemes - Small Business Development
International business partners
Khula Enterprise Finance Ltd
Microfinancing and microlending
NORAD matchmaking program
Venture capital and equity funding
Department of Trade and Industry