DURBAN - At some point, every small business will require some form of credit which will be instrumental in enabling it to grow to the next level.
Valentine Jingura, Head of Pricing at FNB Business, said that without knowing and understanding the different forms of loans or funding mechanisms available, SMEs won’t be able to fully leverage credit to scale-up their businesses.
"Certain loans are suited for specific uses depending on the nature of the business and its requirements," said Jingura, as he unpacks different forms of loans:
Alternate funding options
Entrepreneurs often mistakenly assume that credit from banks is suitable for all their needs. In some instances your own equity, loans from private investors, family and friends, government funding and grants from Corporate Enterprise and Supplier Development Programmes (ESD) may be more suitable for early stage funding.