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7 Ways To Fund Your Start-Up Business

Acquiring capital is usually the first step – and most likely most challenging step – in starting a business. But don’t stress. This guide by Financial Advisor and Investment Specialist at Sanlam, Adéle Barnard, will help you find the ideal funding for your business.

1/ Bank Funding

If you’re starting a small business or start-up, you can approach your bank for a business loan. Visit your bank’s website to find out the requirements for the application.

2/ Crowdfunding (Angel Investing)

This is a relatively new way to finance your business idea. This platform offers you the opportunity to showcase your project or business idea to members of the public. If interested, they then pledge money towards your project. Note: The crowdfunders receive no compensation – they’re doing it out of the goodness of their hearts. After an initial contact fee (the money they give you), the interested members of the public charge no additional fees or commissions, as you then deal directly with your investors. Visit

READ MORE: 6 Free Business Apps That’ll Do Amazing Things For Your Start-Up

3/ Family and/or Friends Funding

As the age-old saying goes: “Don’t go into business with a friend or family member.” When those transactions turn sour, Christmas lunch might be awkward. But friends and fam who know you well and are familiar with your passions and strengths may be willing to support your business idea financially.

At the same time, it’s important to write everything down and communicate to ensure such a sensitive funding decision works for both parties. 

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4/ Small Enterprise Finance Agency (SEFA)

SEFA offers loans from R500 up to R5 million. To access funding via SEFA, you’ll need to meet a list of criteria. For example, the business must operate in South Africa and the business plan is vital for obtaining finance. 

5/ Venture Capital Finance

Businesses that have high growth potential can be considered for seed funding via private equity capital. Seed funders can assist with financing your business – but they then retain an equity stake in the company. Visit the South African Venture Capital Association to view the list of venture capital and private equity firms.

READ MORE: Beginners’ Budget Guide To Planning A Corporate Event

6/ Your own side-hustle 

Make a list of what you’re interested in and passionate about (interests, hobbies, skills) and use it as a driver to success. You’ll need energy and motivation to make your side hustle work. Keep your nine-to-five and save all additional money while working on your side-hustle. This will eventually allow you to turn your side hustle into a full-time hustle.

7/ Gig Economy 

From flexible hours to the ability to work from anywhere, the Gig Economy is becoming super attractive to more and more people. But what exactly is it? As the name suggests, it’s “gig” based and includes temporary and short-term engagements (think jobs such as freelancers, consultants, independent contractors and temporary contract workers). It’s the ideal way to save money and gain experience while working towards starting your own business. 

Go Hustle participates in various affiliate marketing programmes, which means we may get commissions on editorially chosen products purchased through our links to retailer sites.

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