The SME market is comprised of 2.6 million businesses with immense potential to create jobs and contribute significantly to the economy, however, they can often struggle to find the funds they need to expand or to operate sustainably, even though they have businesses with immense potential. For entrepreneurs to seize growth opportunities, funding can unlock new avenues, ease cashflow and move a business forward.
While some start-ups may require private equity investment to fulfil their vision, for many businesses, debt funding is a great solution. Entrepreneurs can use debt to take on new business opportunities, or to fulfil orders, swap expensive debt for more cost-effective options, improve profitability, or for any number of exciting possibilities. Why sells shares in your company when you can instead borrow and get your company to a higher valuation?
“It’s essential to understand that debt is a vital tool for growing businesses when used correctly,” says Brent Geddes, CEO and Co-Founder of Geddes, a specialist in secured business lending.
Geddes recently partnered with Westbrooke Alternative Asset Management to boost funding lines for entrepreneurs and SMEs specifically. “It is an exciting time for Geddes, as we continue to empower South African entrepreneurs and businesses to succeed and thrive,” he adds.
“We see active applications from across South Africa. Industries such as Manufacturing, Services, Property, and Logistics are well-represented. Our commitment to inclusivity means we encourage entrepreneurs from all regions and sectors to apply for funding.”
Although FICA requirements can delay the process of funding when entrepreneurs don’t have their house in order. Geddes boasts an impressive five-day turnaround and welcomes applications from a wide spectrum of entrepreneurs and innovators. Whether you’re a seasoned entrepreneur or a first-time founder, Geddes is eager to support individuals and teams with innovative, impactful, and scalable ideas “We take an individual approach as to how debt can work best,” he adds, noting the brand’s passion for helping clients to grow successfully.
Geddes’ tailored approach, working closely with each client to structure funding to suit their unique needs has seen the firm assist businesses in all phases. “We have successfully funded businesses that were once in distress, or who have gone into business rescue, helping them turn their fortunes around. Our goal is to guide clients who are looking to grow in choosing the best funding route and strategy to secure their future success,” he adds.
Funding has the potential to turn things around and assist entrepreneurs who may lack financial understanding and neglect keeping up with financials and tax compliance, underestimating their indebtedness and obligations, and not reinvesting enough in their business growth.
Entrepreneur Month is a great reminder to review financial commitments and funding requirements, and to be prepared to apply for funding as soon as possible.
November can be a busy time for businesses seeking last-minute funding to leverage opportunities such as Black Friday and Christmas sales. December presents unique challenges, with companies paying bonuses and dealing with extended debtor payment cycles. “Not only can we provide funding during these periods but also structure repayments to allow for lower repayments during times when a business needs to navigate these leaner months.” he concludes.
