1. How do I finance my business?
Louis Nhlapo & Catherine Young

2. Meet Catherine Young | ‏@CatherineHYoung
Owner – Thinkroom Consulting
SME development across all industries and sectors
SME development strategies for corporate organisations
Background
Corporate companies: Shoprite, Chevron, Deloitte, Ariba
Twenty years experience in various positions held relating to supplier and small business development

3. Meet Louis Nhlapo | @Seda_thedti ‏
Programme Manager- EMPRETEC
Seda, agency of Department of Trade & Industry
Specialising in Small Enterprise Development
Seda has been in existence for 10 years
43 Branches nationally
My background
At Seda since inception
Previously experience in Franchising
Golfer & Off-road driving

4. Access to finance is viewed as one of the biggest constraints for any business, whether start-up or existing.

5. Potential sources of SME funding
Financial institutions:
Banks
Finance Houses
Small Business Loans Institutions
Venture Capital
Funding outside financial institutions:
Self-funding always best
Investors
Friends, family - and “fools”
Partners
Angel funds
Crowd-funding

6. Getting prepared for funding discussions
Keep track of what your business is doing
Keep calm about what needs to be done
Monitor how well you are getting things done
Improve your ability to do things right the first time

7. Bank requirements for SMEs asking for loans
Strong evidence of business viability going forward
Your own fund contribution (“skin in the game”)
Solid understanding of your own business plan
Viable cashflow and balance sheet; management capabilities; collateral offered; healthy business margins

8. Reasons why banks refuse loans
Startups are risky to finance
Inability of the startup to offer collateral
Un-bankable business plans
SME’s not competent enough
Lack of owner commitment
Inadequate information provided
Difficulty to determine the risk involved

9. Checklist for a presentation to bankers
Bank finance required (why, how much)
Current trading
History and background of the business
Contingencies and litigation
Share capital and articles
Profit projections
Key personnel
New projects
Business (nature, market, competitors)
Cash forecast
Management information and accounting
Borrowings
Accounting policies
Security
Trading results
Monitoring
Taxation