There are a lot of solutions to the lack collateral issue: 1) the assets purchased using the financing obtained can serve as security. 2) another person or business can stand in as surety (should you be unable to pay they will be liable to pay) 3) seek financing...

I was once like youMadimetja: “security means collateral which is an asset you would forfeit should you be unable to repay the loan granted. The funder/lender will take ownership of the collateral and may decide to keep or sell it to recover the money lent. Collateral...

Mademetja: “bank statements and financial projections will essentially give an indication of whether the business will be able to repay the funding that will be provided. Cash flow projections  are forward looking and we all know that we cannot predict the future...

Funders are also in the business making money (or a profit) and they make it through interest (and fees) charged on the money lent. Funders use bank statements to assess affordability and ability of the business to repay the loan (including the interest). Through the...

Madimetja: “I must say, you may be putting together a business plan because you need funding however first and foremost it is for yourself, it is for your business” Sipho: “alright, alright I hear you. I will consult you when I put it together, I have also enrolled...

The process of putting a business plan together affords an entrepreneur with having direction (setting goals), thinking about their business holistically, setting out and evaluating the business model (how the business will make money) and assessing whether the...

Sipho:” I hear you Madimetsa, but is a business plan still relevant at this day and age?” Madimetja: well…. absolutely, if you fail to plan you plan to fail and besides the bank requires a business plan and without one forget about receiving a cent from them. Sipho:...

A business plan must be prepared by the entrepreneur themselves because it’s their responsibility, they are the decision maker, it needs to reflect their goals and business model. The entrepreneur may seek assistance on certain areas; however, they need to be...

Sipho went ahead and identified a credible accountant: Madimetja. He also came across Growth Accelerator Masterclasses ad on social media and enrolled (and paid) for all 5 of them. He set up a meeting and met with Madimetja. Sipho: “Hi Madimetja, thank you for meeting...

It is commendable that Sipho wants to do things above board and realised the importance of empowering himself with money management (financial management and accounting) skills in order to achieve his goals and grow the business.Sipho should however guard against...