{"id":69390,"date":"2024-04-02T13:20:59","date_gmt":"2024-04-02T11:20:59","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=69390"},"modified":"2026-01-23T17:47:19","modified_gmt":"2026-01-23T15:47:19","slug":"4-alternative-ways-to-secure-small-business-funding","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/4-alternative-ways-to-secure-small-business-funding\/","title":{"rendered":"4 alternative ways to secure small business funding"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/growth-customers\/getting-funding\/\" class=\"entry-header__link\">Getting funding<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\t4 alternative ways to secure small business funding\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2024-04-02T13:20:59+02:00\">April 2, 2024<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"4 alternative ways to secure small business funding\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/4-alternative-ways-to-secure-small-business-funding\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/charlottedanby\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/05\/Charlotte-350x350.jpg\" class=\"entry-author__image\" alt=\"\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/05\/Charlotte-350x350.jpg 350w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/05\/Charlotte-768x768.jpg 768w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/05\/Charlotte-810x810.jpg 810w, https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/05\/Charlotte.jpg 1200w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Charlotte Danby<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<p>How do South African small businesses secure alternative funding? <\/p>\n\n\n\n<p>South African owners are a brave and resilient group of people. Our country is particularly blessed with an enormous entrepreneurial spirit \u2013 sometimes driven by necessity, other times by personality, and often, by a bit of both.<\/p>\n\n\n\n<p>Owning and running one\u2019s own business is an increasingly popular choice of earning a livelihood. <\/p>\n\n\n\n<p>However, securing small business finance to start your own business is challenging at the best of times. Thanks to the COVID-19 pandemic, it\u2019s pretty tough out there.<\/p>\n\n\n\n<p>But that doesn\u2019t mean it\u2019s impossible. Ask most successful entrepreneurs how they did it, and they\u2019ll tell you that hard times often reveal great business opportunities.<\/p>\n\n\n\n<p>Spotting a gap in the market and coming up with a game-changing business idea is one half of the entrepreneurial journey. The next big step is putting your ideas into action \u2013 which needs money. This is the intimidating and frustrating part because most young people are not considered \u2018safe\u2019 bets by traditional banks.<\/p>\n\n\n\n<p>If you can\u2019t get a loan, don\u2019t have any savings, aren\u2019t related to anyone wealthy (and generous) and don\u2019t have a business network, <a href=\"https:\/\/www.sage.com\/en-za\/blog\/how-to-start-a-business-without-capital\/\">how do you get the start-up funding you need to get your business off the ground<\/a>?<\/p>\n\n\n\n<p>In this article we&#8217;ll explore:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#funding\">Small business funding doesn\u2019t need a bank<\/a><\/li>\n\n\n\n<li><a href=\"#crowdfunding\">Crowdfunding<\/a><\/li>\n\n\n\n<li><a href=\"#microfinance\">Microfinance<\/a><\/li>\n\n\n\n<li><a href=\"#negotiate\">Negotiate an advance from customers<\/a><\/li>\n\n\n\n<li><a href=\"#pitch\">Pitch your business at competitions<\/a><\/li>\n\n\n\n<li><a href=\"#final\">Final thoughts<\/a><\/li>\n<\/ul>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">How to pitch for investment as a small business<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Learn the tricks that help businesses make their first steps towards growth and lasting success<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-16a8950a-ecb7-484b-838c-118660255395\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1308\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2020\/10\/iStock-1131971586-1-1308x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2020\/10\/iStock-1131971586-1-1308x810.jpg 1308w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"funding\">Small business funding doesn\u2019t need a bank<\/h2>\n\n\n\n<p>As a young entrepreneur in search of finance, you have to think differently and keep on trying. <\/p>\n\n\n\n<p>In the words of Ludwick Marishane, who attempted a few business ideas while growing up in Limpopo and now, at the age of 30, is a global success thanks to his DryBath\u00ae Gel innovation: \u201cIn my view, a person only truly fails when they give up completely on themselves.\u201d <\/p>\n\n\n\n<p>So, don\u2019t give up on yourself!<\/p>\n\n\n\n<p>With grit, determination, and some creative, out-of-the-box thinking, you can fund your start-up or side hustle with a range of <a href=\"https:\/\/www.sage.com\/en-za\/blog\/alternative-funding-for-small-businesses\/\">alternative small business finance options<\/a>. <\/p>\n\n\n\n<p>Here are four suggestions:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"crowdfunding\">Crowdfunding<\/h2>\n\n\n\n<p>Crowdfunding is enabled by digital communities of like-minded people. Essentially, successful crowdfunding gives an entrepreneur small amounts of start-up funding from many interested individuals.<\/p>\n\n\n\n<p>Some crowdfunding sites are donation-based, meaning people donate money simply because they like your business idea and want to help fund it. There\u2019s no expectation of receiving anything in return.<\/p>\n\n\n\n<p>Other sites operate as equity platforms; investors will ask for shares in your business in return for their investments, making them shareholders. When your business begins to turn a profit, you\u2019ll have to pay them dividends.<\/p>\n\n\n\n<p>Of course, the success of any crowdfunding campaign depends on how well you pitch and promote your business idea online. <\/p>\n\n\n\n<p>Make sure you create a compelling page describing your business and its objectives. Also, be clear about the amount of money you hope to receive and how you plan to use it.<\/p>\n\n\n\n<p>There are loads of crowdfunding websites available,  for example <a href=\"https:\/\/jumpstarter.co.za\/\">Jump Starter<\/a>.<\/p>\n\n\n\n<p><strong>Read more: <a href=\"https:\/\/www.sage.com\/en-za\/blog\/alternative-funding-for-small-businesses\/\" target=\"_blank\" rel=\"noreferrer noopener\">How alternative funders enable SME success<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"microfinance\">Microfinance<\/h2>\n\n\n\n<p>Microfinance, also known as microcredit, is a type of banking service. <\/p>\n\n\n\n<p>It provides low-income and unemployed people with small business finance in the form of small, safe, and ethically managed loans.<\/p>\n\n\n\n<p>Microfinance is a more inclusive form of traditional bank loans. It acknowledges the growing number of South Africa\u2019s necessity-driven entrepreneurs who cannot access standard financial services or support. <\/p>\n\n\n\n<p>That said, if you do consider this route for your business, remember that you are still taking out a loan and that you will need to pay it back with interest.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Sage Business Cloud Payroll<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Pay your people with confidence, even if you&#8217;ve never run payroll before.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-za\/sage-business-cloud\/payroll\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-622\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>See how easy it is<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-627472163_super-1064x810.jpg\" class=\"single-cta__image\" alt=\"Florist\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-627472163_super-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"negotiate\">Negotiate an advance from customers<\/h2>\n\n\n\n<p>Now this is an interesting approach that can be negotiated in a few different ways.<\/p>\n\n\n\n<p>Of course, having even one customer implies that your start-up is up and running to some degree. So, let\u2019s say that you\u2019ve already enjoyed some repeat business from a few customers, which means they like what you have to offer. <\/p>\n\n\n\n<p>If you\u2019ve used the sales to build personal engagement with these customers and feel like there\u2019s a positive rapport, send them an email asking them for an advance to help you take the business further.<\/p>\n\n\n\n<p>You should offer your customers something in return for any advance, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a percentage discount on future transactions<\/li>\n\n\n\n<li>free shipping<\/li>\n\n\n\n<li>shares in the business<\/li>\n<\/ul>\n\n\n\n<p>It\u2019s best not to do this on your own, though. Ask someone to check your email before you send it. That person could be a trusted ex-teacher, a previous colleague, or even your old boss.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"pitch\">Pitch your business at competitions<\/h2>\n\n\n\n<p>This might sound a little scary, but let\u2019s be honest, if you\u2019re an emerging entrepreneur, then you\u2019re already braver than most!<\/p>\n\n\n\n<p>Entering a business start-up competition is a great way to pitch your idea and promote it to a network of potential investors. <\/p>\n\n\n\n<p>Not only could you secure the small business funding you need, but you\u2019ll also get important feedback from business people who\u2019ve been there and done it. <\/p>\n\n\n\n<p>What\u2019s more, you\u2019ll gain access to a network of fellow entrepreneurs, possible mentors, and, hopefully, keen investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final\">Final thoughts<\/h2>\n\n\n\n<p>These are just four alternative start-up funding suggestions that could be just what you need to get your business off the ground and flying.<\/p>\n\n\n\n<p>It\u2019s important to remember that success doesn\u2019t happen overnight. It takes time, perseverance, and hard work.<\/p>\n\n\n\n<p>A crucial part of the journey is building relationships with people who could play an integral role in your business\u2019s growth. They might not invest in your business or buy from you immediately, but one connection leads to another.<\/p>\n\n\n\n<p>So, put yourself out there and sharpen up your sales skills by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>entering a competition<\/li>\n\n\n\n<li>joining a crowdfunding platform<\/li>\n\n\n\n<li>applying for microfinance<\/li>\n\n\n\n<li>or strategically engaging with your existing customers. <\/li>\n<\/ul>\n\n\n\n<p>Times are tough right now, but they are also full of hope and entrepreneurial opportunities.<\/p>\n\n\n\n<p><em>Editor\u2019s note: This article was first published in February 2022 and has been updated for relevance.<\/em><\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover four alternative ways South African small business owners can secure the funding they need to grow their businesses.<\/p>\n","protected":false},"author":1239,"featured_media":69242,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[37],"tags":[186,190],"business_type":[2],"lilypad":[],"context":[],"industry":[],"persona":[16],"imagine_tag":[351,85,86],"coauthors":[441],"class_list":["post-69390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-getting-funding","tag-entrepreneurship","tag-funding","business_type-small-business"],"sage_meta":{"region":"en-za","author_name":"Charlotte Danby","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2021\/10\/CL_ACG_ZA_SMA_ART_TOFU_BossItGV.jpg","imagine_tags":{"351":"Getting financial help","85":"Small business","86":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/1239"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=69390"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69390\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/69242"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=69390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=69390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=69390"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=69390"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=69390"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=69390"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=69390"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=69390"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=69390"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=69390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}