Personal Finance

The total cost of the office premises will determine whether personal finance can be an option.  If, for example, you run a small business in the health industry and wish to purchase office space in a medical building, it might be a good option.  If, however, the amount of capital required is really large, your personal financial situation will dictate whether this is an option to explore.  For example, if you have wealthy family members or friends – you could approach them with the idea of co-funding the purchase.

For small amounts you can also consider extending the bond on your home loan.  This requires a new application to the bank and you would be expected to prove that you can pay the increased premiums.  If your business has a solid track record and your personal bank account reflects regular monthly salary payments, you stand a much better chance of the loan being approved.  Irregular payments to you from your business (rather than a salary) make lenders really concerned and significantly lessen your chances of raising finance.

Access Bonds are really useful as this enables you to use amounts that you have already paid back into the loan account.  If your current home mortgage is not an Access bond, see whether the bank will convert it for you. With an access bond, you are able to withdraw the amount of the capital loan that you have already paid off without having to ask the bank for permission to do so.  Note, if you have only paid of the interest, then you will not be able to withdraw money.

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DSBD
SEFA
USAID
BLSA
SASME
Finfind provides its services free of charge to businesses seeking finance. Our primary purpose is to link SMEs with all the relevant finance providers and finance products that match their funding needs. As a matching service, we are not required to be a registered finance provider as we do not loan money directly.