FREQUENTLY ASKED QUESTIONS
We have compiled a list of frequently asked questions for your convenience:
Does Funding Connection give funding or are you a funding agency?
We are a private consulting firm and help you to apply for funding. With our professional business plans and guidance, we increase your chances to raise funding dramatically.
Why do I need your help to apply on my behalf?
We assist existing and start-up companies to access grants and loans. We know exactly what the different funders want to see in your business plan and application.
South Africa offers over 70 different programmes for business, each of them with 20 pages of rules and regulations. We provide support to apply for funding, guidance with regards to specific requirements for each funding program, advice and assistance with the whole application process and filling in the application forms.
Where do you get our industry research from?
We have a qualified research team that specifically gets their research from credible sources in journal articles and databases.
Which funders do we generally deal with?
We use Government Institutions, commercial banks, Enterprise Development Funds and equity funds. We deal with the Department of Trade and Industry (DTI), the National Empowerment Fund (NEF), Industrial Development Corporation (IDC), KZN Growth Fund, Isivande Women's Fund, KFW Development Bank, Land Bank and Small Enterprise Finance Agency (SEFA). For more information on these agencies, please click here.
Does my company need to be registered?
Yes, if you are applying for funding your company needs to be registered. This is one of the requirement for the different financiers. We offer a company registration service and can assist you with registering your company correctly. Please click here for more information.
What is collateral?
Most financiers expect you to invest a portion of your own capital. They will usually finance up to 90%. You can use your assets used in the business as collateral.
Is It possible to get funding for sub-contracts?
Yes, however, you must have a signed agreement in place which clearly shows whether it is a cost-reimbursable sub-contract or a fixed price sub-contract. The contractual agreement must be for a minimum of 10 years and contain schedules for specified deliverable tasks or items; these are due dates by which particular tasks and/or products are to be completed, reviewed and approved by the contracting agency.
Why do I need to have a business plan?
If you're seeking finance for your business, you'll need to show banks and investors why they should invest in your business. Lenders and investors will only risk their time and money if they're confident that your business will be successful and profitable. A thorough and well-researched business plan:
Shows that you’re serious about your business,
Helps lenders and investors to understand the business idea, and
Shows your predicted profits and income streams.
A complete, thoughtful business plan is one of the most valuable tools in helping you reach your goals. It gives your business direction, defines your objectives, maps out strategies to achieve your goals and helps you to manage possible bumps in the road.
Am I guaranteed to receive funding?
We are not able to foresee that the funding institution will fund your venture. When processing your application they assess a number of factors from the business plan and financial forecast; is your business viable, the personal financial standing of all Directors, location etc.
It is impossible for us to guarantee their decision, but using our professional services will increase your chances to raise the funding dramatically.
Does Funding Connection assist with finding private investors?
We assist you by matching you to the grant and loan agencies who are available to your specific venture. Private Funding is done by you as you will have to introduce yourself and build a personal repute with the potential private investor. But we are able to draft a professional business plan and an investor pitch for you, to convince private investors.