Funding for business in South Africa

Funding for businesses can be a helpline for many business owners in South Africa. 

Funding can help you when you want to expand your business. 

But what many businesses don't realise is that funding is not any different from applying for a business loan from a bank or financial institution.

In South Africa, many banks require a letter when someone who's self-employed or owns a business applies for a loan. This letter must be written by a bookkeeper or an accountant and serves as confirmation that the borrower can afford to pay the loan back.

For the accountant or bookkeeper to provide the letter, they must've prepared the financial documents of the borrower. The accountant's letter of confirmation is not a stand-alone document that can be presented to the bank., it must be submitted with supporting documents. 

These supporting documents are the balance sheet, income statement, and cash flow statement. 

If a business owner never had a bookkeeper but has been making money consistently, the bank still needs those documents for them to consider the application.

Many small business owners in South Africa do not even consider the services of a bookkeeper until they need to borrow money from the bank. By then, their books are in a complete mess, and untangling the mess will require time, effort, and money. It is not a quick fix or a process that can be rushed.

In this video, I talk about the letter and the process of preparing the books of a business ready for an application for funding.