No loan hampers job creation

A Fin24 user says the fact that banks won’t lend to his self-employed wife is hampering  job creation. He writes:

My wife is self-employed, running a successful one-woman business for about four years with up to four part-time staff.

She requires finance to assist with the expansion of the business.

Since she is self-employed, no financial institution is willing to assist with a loan of up to R40 000 which is not an enormous sum of money in today’s environment.

She built her little business from scratch and would like to create more employment opportunities for her casual staff.

Without this financial assistance she will not be able to expand or provide extended employment opportunities for the casual staff.

What can she do?

Business development consultant Anton Ressel advises:

You have not mentioned the sector your wife operates in. However, since her funding requirement is rather small she could look at the National Empowerment Fund (NEF) or this great website with info about a number of financing and funding schemes.

Since the amount is not large she may also look at leveraging off your mortgage if you have one, or tapping the family network.

It will undoubtedly be cheaper than most financing available on a commercial basis.

In any event, she will need a business strategy outline showing how the R40k will unleash the potential of the business.

 - Fin24

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