South Africa’s four major banks offer various development and funding opportunities for new and developing businesses.
Absa offers a number of funding and support opportunities for small to medium enterprises (SMEs). These include:
- Enterprise and supplier development
Absa Enterprise Development Centres located countrywide support businesses from the ground up. For a complete list of these centres visit this link and click on the “Enterprise & Supplier Development” icon.
Support ranges from help with business plans to computer access.
The Procurement Portal, an online platform, connects SMEs to corporate and government buyers. Registration and interaction take place on an independent website. Suppliers of all sizes, industries and profiles can register their business on the portal.
- The Absa SME Fund
SMEs that are 100% black owned and have been awarded a government tender or contract are eligible for an Absa SME Fund loan of between R5 000 and R3 million.
For a full list of qualifying criteria and an application form, visit this link.
To apply, take the completed application form and supporting documentation (listed on the form) to any Absa branch.
- The Absa Development Credit Fund
New SMEs that do not qualify for conventional business loans can apply for Absa Development Credit Fund loans of between R50 000 and R3 million.
Qualifying criteria include that the main shareholder in the business (more than 66%) is involved in the day-to-day operation of the business, that you have a well-researched business plan and that the business’s main account is held with Absa.
For a full list of qualifying criteria and the application form, visit this link. To apply, take the completed application form and supporting documentation (listed on the form) to any Absa branch.
The Nedbank Enterprise Development Programme
Nedbank offers growing businesses flexible financial solutions and business strategy mentorship.
Joining the programme includes access to a number of resources including flexible lending; customised credit facilities to suit your industry; business mentorship and training and networking opportunities.
Black-owned businesses that meet specific criteria in either their start-up phase (less than two years) or development phase (older than two years) qualify.
Standard Bank Enterprise Development
Through its Enterprise Development partnership with SMEs, Standard Bank provides access to markets, buying opportunities, capital and business development.
The development solution is offered primarily to BEE companies that have gained access to earning opportunities from corporates or the public sector. Standard Bank follows an “unusual” enterprise development approach: A business must contact the bank after selecting a supplier. The bank will then provide financial assistance to the supplier to help it meet its obligations.
Businesses that are either 51% black-owned or 30% black-women owned and companies that want to sell equity to become more BEE viable can apply.
The Vumela Enterprise Development Fund (FNB)
The Vumela Enterprise Development Fund was launched by FNB together with Edge Growth to fill the gaps in the SME funding and support landscape.
The fund offers BEE capital, growth finance and intensive business development support to SMEs that show potential, but that cannot get funding through traditional channels.
Early-stage, post-revenue expanding businesses (in other words, businesses already generating revenue) with high growth potential qualify if they are too large for microfinance; do not meet traditional credit criteria and are viewed as too early-stage by potential funders.
Vumela funds businesses in many sectors but does not fund agriculture (cultivation, growing and harvesting of commodities or raising of livestock), mining, property or businesses in the “sin” industries (like alcohol or gambling).
You will find the online application form here. A detailed business plan and financial history is required when applying.
- Visit the Vumela page or call 010 001 3715.