How to Access Financing
There is always money available for every circumstance. The first challenge tends to be knowing where you should look based on your unique circumstances. Each source of finance will have different requirements and may serve different sectors of the economy or different groups of people.
Here are some steps you should follow
- Firstly, know how much money you need. All organizations have limits on the amount they can give to any one business. If you need more than they can give you, you should probably look into other options.
- Know whether you qualify for youth funding. Many youth programmes provide funding for business owned (or majority owned) by age groups 18 – 35 or 18 – 30 years.
- Define your industry. Are you in tourism, environmental business, manufacturing, etc? Some funds are targeted at specific industries so you will know the ones that you can and cannot apply for.
- Decide on your contribution to the business. Almost any organization that will give you money for business will require you to make a contribution as well. This is a safety measure so that you also stand to lose something and so you will not abandon the business if things are tough.
- Choose the type of funding you want and what you are willing to give up or risk to get it. Do you want equity? (You will have to give someone shares). Do you want to take a loan? (You will have to give some form of security like your house, land or savings.). Do you want a donation? (You will have to meet high planning standards and face a lot of competition. Everybody wants free money.)
- Local or Export? Some funds are specifically directed at developing export capacity. Do you plan to export? If so, you may qualify.
- Can you afford a reimbursement arrangement? Some agencies will give you a lot, but they will only give it to you as a refund after you have spent your own money (or your bank’s money).
Click here to view our database of development related institutions that you can consider in your search for financing.
You can also contact us in the mean time for assistance to narrow your search. We may be able to point you in the right direction quickly once we’ve understood your situation.
Tel: (758) 484-3511