What is Alternative Business Funding and Who is it For? 

Many small businesses in South Africa have been experiencing extended economic uncertainty that lasts indefinitely and finding available funds for your business is not always so simple. You may want to consider alternative funding as an option!

The amount of capital available to businesses is shifting, and the status of the economy, especially during Covid times, might make getting a loan seem impossible. If you’re having trouble getting a bank loan or you’re unsure of your present options, you may be able to find alternatives to traditional loans. 

But what is alternative funding? Simply put, alternative funding is getting financing for your business outside of traditional bank loans, if you’ve been turned down for loans in the past due to poor credit, or are simply unsure of how much funding you really need for your business, below you can find a few alternative funding options that you may want to consider:

1. Invoice Finance

On the basis of outstanding invoices, invoice finance businesses would provide immediate cash to SMEs. They charge a nominal fee for debt collection, which enables them to provide cash to those SMEs right away.

2. Venture Capital

In this situation, affluent investors will offer and provide business owners with a large sum of money in exchange for a stake in the company and, most likely, some control.

3. Cash Advance

This is a simple, quick, hassle-free solution that is a viable substitute for regular bank loans. Cash advance businesses  will lend you working capital and deduct your repayments daily. As a result, you end up paying back in proportion to your income.

4. Crowdfunding

This option entails a large number of people investing tiny amounts in your company and is a relatively new means of generating funds via the internet. There are numerous crowd funding methods available and is a completely debt-free solution that is now highly popular.

Understandably, life happens, and for SMEs who can’t always rely on traditional loan options  – having fast and reliable alternative funding suppliers to turn to, like GroWise Capital, could be the make or break of their business’s survival. Whether it’s to expand their business, hire more staff, increase stock production or simply for maintenance – SME’s having access to alternative funding is essential to their growth. 

What We Offer At GroWise:

Business Cash Advance 

Simply put, a cash advance is a purchase of your company’s future income based on all your income streams, with customizable terms and either pre-determined or variable repayment amounts, so you can easily plan how you’ll utilize your funds.

Merchant Cash Advance

A purchase of future income with flexible repayments deducted directly from your merchant account.

Merchant Stock Advance

At GroWise Capital we also have a Merchant Stock Advance as an alternative funding option. It’s easy! We buy your stock, and sell it to you. Easy and flexible repayments to fit in with your business!

There are countless reasons to seek alternative business funding, and our goal at GroWise is simple, to get your business funded and growing… fast. 

Read more: How to Get Funding for Your Small Business 


Click here to have one of our team members contact you.

Click here to apply for funding for your business.

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