There are certain misconceptions around funding available from the Department of Trade and Industry (DTI), as well as the other non-traditional or developmental finance institutions (DFIs).
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Firstly, it’s important to know that funding is available but may take upward of 12 months to obtain.
Success in accessing these funds revolves around which institution and specific fund you approach, how and when you apply and whether your business, and the activities you wish to fund, fits within the funders’ mandates.
Furthermore 99% of grant funds require that:
- Applicants apply before investing and/or
- Applicants are rebated their investment and funds are not disbursed before the investment or expenditure and/or
- Applicants prove they have access to matched funding.
Start-Up Funds (less than 1 year of track record)
Funding for start-ups usually requires the business owner or team to have experience in the field, have a secured market and may require corporate or institutional partners.
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Existing & Established Businesses
Typically, existing and established businesses have at least 1 to 2 years of track record (including up to date financials and tax clearance certificates) and the eligibility varies between the funds.
The below funds are applicable to existing and established businesses:
* Funded by the DTI, but managed by other institutions.
** The BBBEE Codes of Good Practice definition of “black”: A South African citizen that is African, Coloured, Indian or Chinese prior to 1994.
Related:The Ultimate Guide To New Business Funding