Are you one of the businesses threatened with closure because you cannot access funding?

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    Ian Hawkins

    Page written by Ian Hawkins. Last reviewed on March 28, 2024. Next review due March 1, 2025.

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      An astonishing one in ten businesses is said to fail because of funding problems. At Swoop, we’re doing what we can to turn this trend around.

      According to new research, one in ten businesses fails because they cannot get enough funding.

      With SMEs making up a huge proportion of South Africa’s businesses, supporting the economy and providing innovation, employment and opportunity across the country, it is no less than worrying that so many of them should be facing closure. 

      The question has to be: why are so many businesses struggling to get the funding they need to survive, let alone thrive?

      • Lack of experience: Many entrepreneurs do not have the experience or knowledge to put together a strong funding proposal.
      • Poor financial planning: Businesses need to be able to demonstrate that they have a clear plan for how they will use the funding and how they will generate a return on investment.
      • Economic downturn: During economic downturns, businesses are often more reluctant to invest in new ventures.
      • Failure to understand the funding market: too many business owners are going to their bank as a first and only option. 

      How can Swoop help your business?

      Swoop’s mission is to ensure that every business has access to the funding it needs to grow. While there will always be closures – the landscape changes, not every business idea is a good one and competitors will always try to take market share – Swoop is able to help on a number of fronts. 

      First, Swoop is able to find all the funding options available to businesses that sign up to the platform across a range of products. In borrowing alone, Swoop finds deals on products from company credit cards to commercial mortgages

      As well as loans, Swoop has a grant finder tool which identifies the grants for which your business may be eligible. This is money dedicated to helping your business carry out specific tasks for the benefit of your community and the wider economy. If you think you’re not eligible – check. You may be surprised.  

      Second, too many businesses find they are leaking money in fees for products they don’t use or need. For example, if you’re using your bank to carry out currency exchange, you could be paying too much: Swoop’s customers typically save around R7,000 per year by switching providers.

      If you’re paying too much for your bank account or energy, Swoop will help you compare deals to see if there are better options for you, and make it easy to switch. 

      Third, banks may say “no” for reasons that have nothing to do with the viability of your business. Through Swoop, you can get a second opinion. There are literally hundreds of lenders in the business finance space and they are all hungry for your business in a way that the banks are not. 

      Running a business doesn’t automatically mean that you become an expert in business funding, and that’s what Swoop is here for. If your idea of business funding is a traditional loan, you may be surprised by the wealth of innovative products now available, including things like merchant cash advance and revolving credit facilities. Many of these are not available from your bank, and Swoop makes it easy to find better deals that work for you. 

      And if you get stuck, you can always talk to one of our funding managers who will help you figure out the shortest route between you and the funding you need. 

      Check your account now to see how much you can borrow.

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      Written by

      Ian Hawkins

      Ian Hawkins is Head of Content at Swoop. As a freelance business journalist and filmmaker he has reported from Europe, Central and North America and Africa. His films and writing have appeared on BBC World, Reuters and CBS, and he has spoken at conferences on both sides of the Atlantic on subjects including data, cyber security, and entrepreneurialism.

      Swoop promise

      At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

      Find out more about Swoop’s editorial principles by reading our editorial policy.

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