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How much finance do I need?

 

The amount you will need to start a new business should never be an estimate, but should be arrived at through a structured process, as lenders will require a thorough analysis of your expected expenses before they will consider a loan. 

This means you should determine the loan amount by drawing up detailed projected financial statements, as explained in our business plan guide.

Where do I source my required finance?

 

 Sanlam does not provide start-up finance, but we do recommend that you carefully consider the various source of starting capital, as some are better than others due to the interest rates, risk and potential problems you may run into.

We suggest you approach your search for financing in this order:

 

• own cash/funding – always best, and the most instant

• loan from a bank – will require a business plan, and possibly a risk-free cash contribution

• business partner – might require you to relinquish shareholding

• venture capitalists – high risk will require a high return

• loan from 3rd party (individual, family) – your last resort, and one not to be taken lightly as this could sour relationships forever. 

 

In all cases, speak to your financial adviser or contact Business Partners for help with financing.