A Different Perspective: What do Lenders want? | #eBizEntrepreneur | Robynne Erwin

So far in our Podcast series with Finfind, we’ve spoken about the entrepreneur, from having a good idea, to types of investments to make, everything has been from the perspective of a budding business person.

Today however we take a new look at the process of funding SME’s, this time from the perspective of the lender. Different lenders have different criteria, from banks to government agencies or even private investors, all these lenders have different motivations aswell as requirements before they loan their cash to you.

We discuss these ideas and more below.

Government agencies that can help with funding (in South Africa)

SEFA – To foster the establishment, survival and growth of SMMEs and Co-operatives, and thereby contributing towards poverty alleviation and job creation. They also aim to assist with funding for people who can failed to find finance elsewhere

IDC – Their mandate is to contribute to the creation of balanced, sustainable economic growth in South Africa and on the rest of the continent. They promote entrepreneurship through the building of competitive industries and enterprises based on sound business principles

TIA – TIA supports the State in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations.

NEF – NEF’s role is to support Broad-Based Black Economic Empowerment (BB-BEE). These include a focus on preferential procurement, broadening the reach of black equity ownership, transformation in management and staff and preventing the dilution of black shareholding. Promoting and facilitating black economic participation through the provision of financial and non-financial support to black owned and managed businesses, as well as by promoting a culture of savings and investment among black people.

NYDA – South Africa has a large population of youth, those between the ages 14-35 represent 42% of the total population.  Poverty, inequality and joblessness, poor health, etc, impact significantly on the youth. NYDA assists in promoting the development of sustainable livelihoods, reducing poverty, inequality and prioritising the development of policies which create an enabling environment for youth development.