# Swoop ZA
> business funding and savings
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## Pages
- [Overdraft calculator](https://swoopfunding.com/za/business-loan-calculator/overdraft-calculator/): Our business overdraft calculator can help you estimate the costs associated with using an overdraft facility for your business. Use it free here.
- [Business loan for marketing](https://swoopfunding.com/za/business-loans/marketing-loans/): A business marketing loan is a type of financing designed to help businesses fund advertising, branding, and promotional activities to attract customers.
- [Bad credit working capital loans](https://swoopfunding.com/za/business-loans/working-capital-loans/bad-credit-working-capital/): it’s still possible to get a working capital loan with bad credit, but you may have to put in more effort and be flexible on the terms. Read how, or apply here.
- [Material handling equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/material-handling-equipment-finance/): Material handling equipment is designed to move all kind of goods and materials from A to B, but this comes at a cost. Find out more, or sign up with Swoop today.
- [Crane equipment finance](https://swoopfunding.com/za/business-loans/asset-finance/crane-finance/): Crane finance is a specialized form of equipment financing, spreading the cost of expensive machinery over time. Read more or apply for crane finance here.
- [Supercar finance](https://swoopfunding.com/za/business-loans/asset-finance/supercar-finance/): They go fast, they look great and they cost far more than your typical daily driver. Read more about supercar finance, or arrange your exotic car finance here.
- [Invoice factoring vs. invoice discounting: What's the difference?](https://swoopfunding.com/za/business-loans/invoice-factoring/factoring-vs-discounting/): When businesses need to improve cash flow, two common solutions are invoice factoring and invoice discounting, but which is right for you? Find out here.
- [Car finance settlement calculator](https://swoopfunding.com/za/business-loan-calculator/car-finance-settlement-calculator/): Car finance settlement calculator Our free car finance settlement calculator can help you estimate your final outstanding payment to clear...
- [Car finance calculator](https://swoopfunding.com/za/business-loan-calculator/car-finance-calculator/): Car finance calculator Our free car finance calculator can help you estimate your monthly repayments when taking out finance. Repayments...
- [Currency converter](https://swoopfunding.com/za/business-loan-calculator/currency-converter/): Our free currency converter can help you stay on top of exchange rates, whether you're planning a vacation, making a purchase, or conducting business.
- [Solar equipment financing for businesses](https://swoopfunding.com/za/business-loans/asset-finance/solar-equipment-financing-for-businesses/): Solar equipment financing refers to business loans and leases that help organisations buy or rent the commercial solar equipment they need. Read more here.
- [Manufacturing equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/manufacturing-equipment-financing/): Manufacturing financing can be used to buy machinery for manufacturing businesses, or to borrow against the value of equipment they already own. Read more here.
- [Dental equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/dental-equipment-financing/): Dental equipment financing refers to business loans that help South African dental businesses get the equipment they need. Read more & apply with Swoop.
- [Construction equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/construction-equipment-financing/): Construction equipment: Diggers, bobcats, dump trucks, and more is used by industries as varied as construction, agriculture, and landscaping etc. Learn more.
- [Bobcat financing](https://swoopfunding.com/za/business-loans/asset-finance/bobcat-financing/): Bobcats are the versatile machines of choice for many South African businesses and these vehicles can come in all shapes and sizes. Learn more with Swoop.
- [Boat financing](https://swoopfunding.com/za/business-loans/asset-finance/boat-financing/): Boat loans function like auto loans – you borrow all or some of the cost of the boat and then you pay the principal back with interest. Read more here.
- [Bakery equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/bakery-equipment-financing/): Bakery equipment financing and leasing refers to specialist loans that help organisations buy the bakery equipment they need. Learn more here.
- [Audio visual equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/audio-visual-financing/): Audio visual equipment includes devices that deliver a visual or sound effect to your audience. Learn all about it and how to get financed with Swoop today.
- [Aircraft financing](https://swoopfunding.com/za/business-loans/asset-finance/aircraft-financing/): Aircraft financing is lending that can be used to buy aircraft, or to borrow against the value of an aircraft that you own. Read more here.
- [No doc business loan](https://swoopfunding.com/za/business-loans/no-doc-business-loan/): No document, or ’no-doc’ business loans are finance products designed to deliver funding with almost zero paperwork. Learn more here, or apply with Swoop.
- [Revenue based financing](https://swoopfunding.com/za/business-loans/revenue-based-financing/): Revenue-based financing, also known as ‘royalty financing’, uses the value of an organisation’s gross sales or profits to raise capital from lenders & investors
- [Price per square foot calculator](https://swoopfunding.com/za/business-loan-calculator/price-per-square-foot-calculator/): Our price per square foot calculator helps you determine the cost of a property, or a space, based on its size, whether you are renting, leasing or buying.
- [Internal rate of return calculator](https://swoopfunding.com/za/business-loan-calculator/internal-rate-of-return-calculator/): Our Internal Rate of Return (IRR) calculator helps you determine the profitability of investments or projects. Use it for free here to calculate your IRR.
- [Emergency business loans](https://swoopfunding.com/za/business-loans/emergency-business-loans/): What do you do when you need money now and don’t have time to wait for standard business loans? Emergency business loans may be your answer. Read more.
- [Term loans](https://swoopfunding.com/za/business-loans/term-loans/): Term loans for businesses can be fast and simple to get and may let you pay the money back over many years. Learn more here and apply with Swoop.
- [Compound annual growth rate calculator](https://swoopfunding.com/za/business-loan-calculator/compound-annual-growth-rate-calculator/): Our CAGR calculator (compound annual growth rate) helps you measure an investment's annual growth rate over a specified period. Use it for free here.
- [Refinance calculator](https://swoopfunding.com/za/business-loan-calculator/refinance-calculator/): Our loan refinance calculator helps you estimate the potential savings and costs associated with refinancing your existing loan. Use it free here.
- [Business loans with a cosigner](https://swoopfunding.com/za/business-loans/business-loans-with-cosigner/): Getting a business loan with poor credit, lack of collateral, or for a risky type of business can be difficult. Learn how a cosigner can help you here.
- [Commercial equity line of credit](https://swoopfunding.com/za/business-loans/commercial-equity-line-of-credit/): Did you know the equity in your property could be used as collateral to support a commercial equity line of credit? Learn more here, or apply with Swoop today.
- [BBBEE explained](https://swoopfunding.com/za/bbbee/): If your SME is looking to do business with the government or larger organisations, certification under BBBEE is an important step to remove barriers. Read more.
- [Same-day business loan](https://swoopfunding.com/za/business-loans/same-day-business-loans/): Same-day business loans are made to deliver funding within 24 hours of loan approval. Read more here, or apply for same day funding with Swoop today.
- [No collateral business loans](https://swoopfunding.com/za/business-loans/no-collateral-business-loans/): Lenders often demand collateral when small businesses apply for a loan. But what do you do if you don’t have enough collateral? Learn it all here.
- [Vending machine financing](https://swoopfunding.com/za/business-loans/asset-finance/vending-machine-finance/): Modern vending machines can cost anywhere from $3,000 to $5,000 per unit depending on their features. Save your working capital and finance one with Swoop.
- [Tractor trailer financing](https://swoopfunding.com/za/business-loans/asset-finance/tractor-trailer-finance/): It doesn’t matter whether you business is small or large, it rarely makes sense to pay for expensive commercial vehicles with cash. Learn more here.
- [Tractor financing](https://swoopfunding.com/za/business-loans/asset-finance/tractor-finance/): Tractor financing – also known as equipment financing – is a type of loan used to support the purchase of new or used tractors. Learn it all here.
- [Forklift financing](https://swoopfunding.com/za/business-loans/asset-finance/forklift-finance/): Forklifts are essential equipment for all types of business, but with prices ranging from R15,000 - R50,000, they don’t come cheap. Apply for finance today.
- [Business line of credit](https://swoopfunding.com/za/business-loans/business-line-of-credit/): Ideal for businesses that want maximum flexibility, a line of credit can give you all the funds you need when you need them. Read more here and apply here.
- [Excavator financing](https://swoopfunding.com/za/business-loans/asset-finance/excavator-finance/): Excavators can be some of the most flexible and useful heavy machinery you can get, but they are expensive. Read all about excavator financing and apply here.
- [Dump truck financing](https://swoopfunding.com/za/business-loans/asset-finance/dump-truck-finance/): Dump trucks can cost from a few thousand ZAR up to over R200,000, but as an all-purpose workhorse they’re pretty tough to beat. Apply for funding today.
- [Commercial fleet finance](https://swoopfunding.com/za/business-loans/asset-finance/commercial-fleet-finance/): Buying new business vehicles like trucks, vans and bulldozers aren't cheap. Fortunately, commercial fleet finance relieves the strain of these assets. Read more
- [Cash flow calculator](https://swoopfunding.com/za/business-loan-calculator/cash-flow-calculator/): Our cash flow calculator can be used to estimate the amount of money coming in and going out of a business over a specific period. Get started.
- [Purchase order financing](https://swoopfunding.com/za/business-loans/purchase-order-financing/): Purchase order financing can give you the funds to complete all your orders even if your regular borrowing facilities are overstretched. Learn more here.
- [Self-employed business loans](https://swoopfunding.com/za/business-loans/self-employed-loans/): Self-employed business loans can provide a vital safety net for freelancers, sole traders and independent contractors. Read more here.
- [No credit check business loans](https://swoopfunding.com/za/business-loans/no-credit-check-business-loans/): Securing a business loan can be a challenge for many organisations, but for business owners with bad credit, it can be very tough. Read more.
- [Seller financing](https://swoopfunding.com/za/business-loans/seller-financing/): Seller financing can be a win/win for both parties. Learn more about this popular route to buying the business you’ve always wanted here.
- [Equipment appraisals](https://swoopfunding.com/za/business-loans/asset-finance/equipment-appraisals/): Business equipment is more than just machinery. Here’s all you need to know about appraising its value, the process, and legal considerations. Read more.
- [Large business loans](https://swoopfunding.com/za/business-loans/large-business-loans/): Although large business loans are more difficult to secure, they can provide the financial heft to propel your business to the next level. Learn more here.
- [Easy business loans](https://swoopfunding.com/za/business-loans/easy-business-loans/): Faster, simpler, more flexible. Easy business loans are an ideal funding choice for business owners who want a loan quickly. Read more and apply today.
- [Cash flow loans](https://swoopfunding.com/za/business-loans/cash-flow-loans/): Cash flow can make or break any business, and poor cash flow is the biggest reason small businesses fail. Learn more about cash flow loans and apply here.
- [Invoice factoring](https://swoopfunding.com/za/business-loans/invoice-factoring/): Invoice factoring refers to selling unpaid invoices to a company that provides you with cash immediately. Learn more about this funding option, or apply here.
- [Invoice discounting](https://swoopfunding.com/za/business-loans/invoice-discounting/): Invoice discounting means borrowing against unpaid invoices that are owed to you. Learn all about this funding option and apply here with Swoop.
- [Accounts receivable financing](https://swoopfunding.com/za/business-loans/accounts-receivable-financing/): Accounts receivable financing means using your unpaid invoices as collateral to borrow cash. Learn all about accounts receivable financing and apply here.
- [Delayed draw term loan](https://swoopfunding.com/za/business-loans/delayed-draw-term-loan/): Delayed draw-term loans give access to a pool of funds as and when you need them, and you only pay interest on the borrowed funds you withdraw. Learn more here.
- [Amortisation calculator](https://swoopfunding.com/za/business-loan-calculator/amortisation-calculator/): An amortization calculator is a financial tool designed to assist businesses in understanding and planning the repayment of loans over time. Try it today.
- [Flexible finance](https://swoopfunding.com/za/business-loans/flexible-finance/): Flexible financing can put organisations in better control of their money, giving them options if anything change. Learn more or apply with Swoop today.
- [Commercial finance](https://swoopfunding.com/za/business-loans/commercial-finance/): If you run a business you may have heard the term ‘commercial financing’. But what does it mean, how does it work and is it right for your business? Read more.
- [R100,000 or less business loan](https://swoopfunding.com/za/business-loans/best-business-loans-100000-or-less/): If you are looking for a business loan up to R100,000 but aren't sure where to start, look no further. Read on to find out the best loans, or apply with Swoop.
- [Bad credit business loan](https://swoopfunding.com/za/business-loans/bad-credit-business-loans/): Even if you have bad credit, or if you’ve been turned down elsewhere, it may still be possible to secure the funding your business needs. Read more & apply here
- [Alastair Woods](https://swoopfunding.com/za/about-swoop/team/alastair-woods/): Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and...
- [Kerry Dwyer](https://swoopfunding.com/za/about-swoop/team/kerry-dwyer/): Kerry Dwyer Equity & Grants Funding Manager After graduating from Business and Economics in Trinity College Dublin, Kerry worked in...
- [Sam Tasker Grindley](https://swoopfunding.com/za/about-swoop/team/sam-tasker-grindley/): Sam Tasker-Grindley Head of Advisor Channel Sam is Swoop's Head of Advisor Customer Success supporting our accountants with every part...
- [Rhys Cunnah](https://swoopfunding.com/za/about-swoop/team/rhys-cunnah/): Rhys Cunnah Head of Growth With a extensive background in Commercial and Corporate Lending from the RBS group having worked...
- [Sam Horner](https://swoopfunding.com/za/about-swoop/team/sam-horner/): Sam Horner Head of Advisor Sales & Partnerships Sam is Head of Advisor Sales & Partnerships at Swoop and works...
- [Ian Hawkins](https://swoopfunding.com/za/about-swoop/team/ian-hawkins/): Ian Hawkins News & Investigations Editor Ian Hawkins has made films for BBC World, CNN and Handelsblatt. His career started...
- [Andrea Reynolds](https://swoopfunding.com/za/about-swoop/team/andrea-reynolds/): Andrea Reynolds CEO & Founder Before launching Swoop, Andrea started as an accountant with KPMG. Her career evolved with a...
- [Rent vs. buy calculator](https://swoopfunding.com/za/business-loan-calculator/rent-vs-buy-calculator/): The decision between renting and buying is a key financial choice. Use this handy calculator to find out what's best for you.
- [Apply for a business loan now](https://swoopfunding.com/za/business-loans/apply-now/): Needed business funding yesterday? Swoop can get you up to R250,00 in just 24 hours. Read more and apply today.
- [Sales tax calculator](https://swoopfunding.com/za/business-loan-calculator/sales-tax-calculator/): Our sales tax calculator can help you determine the the amount of sales tax that should be added to a purchase. Try our calculator today.
- [Lease calculator](https://swoopfunding.com/za/business-loan-calculator/asset-finance-calculator/lease-calculator/): Our lease calculator can help you make informed decisions about buying assets, and helping you understand the implications of your lease. Read more.
- [Inflation calculator](https://swoopfunding.com/za/business-loan-calculator/inflation-calculator/): Our inflation calculator helps you understand how the purchasing power of money changes over time due to inflation. Try our calculator here.
- [Mortgage overpayment calculator](https://swoopfunding.com/za/business-loan-calculator/mortgage-overpayment-calculator/): Overpaying on a mortgage offers benefits. Even modest, regular overpayments can yield substantial interest savings over time. Use our calculator here.
- [Percentage calculator](https://swoopfunding.com/za/business-loan-calculator/percentage-calculator/): This calculator is designed to help you quickly and easily calculate percentages. Use it here and ease your calculations.
- [Return on investment calculator](https://swoopfunding.com/za/business-loan-calculator/return-on-investment-calculator/): Return on investment calculator Return on Investment (ROI) is a financial metric used to evaluate the profitability or efficiency of...
- [Break even calculator](https://swoopfunding.com/za/business-loan-calculator/break-even-calculator/): Break even calculator Break-even refers to the point at which a business or project neither makes a profit nor incurs...
- [Business loans for women](https://swoopfunding.com/za/business-loans/loans-for-women/): Less than a third of South African SMEs are currently owned by women, and a lack of funding to female founders is named as a key reason. Read more here.
- [Short-term business loans](https://swoopfunding.com/za/business-loans/short-term-loans/): Short-term business loans are the fast and cost-effective way to support your working capital and keep your business running. Read more here.
- [Compound interest calculator](https://swoopfunding.com/za/business-loan-calculator/compound-interest-calculator/): Try our compound interest calculator to help determine how your money, will grow over time when it earns interest that is compounded. Read more here.
- [Depreciation calculator (straight-line method)](https://swoopfunding.com/za/business-loan-calculator/depreciation-calculator/): This calculator can be used to calculate the depreciation expense of an asset over its useful life using the straight-line method. Find out more here.
- [Acid test ratio calculator](https://swoopfunding.com/za/business-loan-calculator/acid-test-ratio-calculator/): Your acid test ratio is calculated by dividing the sum of cash, marketable securities, and accounts receivable by the total current liabilities of the company.
- [PayPal fee calculator](https://swoopfunding.com/za/business-loan-calculator/paypal-fee-calculator/): PayPal fee calculator PayPal fees can vary depending on factors like the transaction amount, currency, and type of transaction (e....
- [Business savings calculator](https://swoopfunding.com/za/business-loan-calculator/business-savings-calculator/): Business savings calculator A business savings calculator is a tool that allows you to estimate how much money your business...
- [WACC calculator (Weighted average cost of capital)](https://swoopfunding.com/za/business-loan-calculator/wacc-calculator/): WACC takes into account the cost of equity, which is the return expected by the company's shareholders, and the cost of debt, which includes interest.
- [Rate of return calculator](https://swoopfunding.com/za/business-loan-calculator/rate-of-return-calculator/): To calculate the rate of return, you'll need the initial investment value, the final investment value, and the time period over which the investment was held.
- [Construction invoice finance](https://swoopfunding.com/za/business-loans/invoice-finance/construction-invoice-finance/): Invoice finance for construction is a loan that allows construction businesses to get early payment of a percentage of the invoices they raise. Learn more here.
- [Recruitment invoice finance](https://swoopfunding.com/za/business-loans/invoice-finance/recruitment-invoice-finance/): Invoice finance for recruitment organisations are loans that allow recruiters early payment of a percentage of the invoices they raise. Read more here.
- [ADR calculator](https://swoopfunding.com/za/business-loan-calculator/adr-calculator/): The ADR is a common metric in the hospitality industry and is used to assess the financial performance and revenue generation of a hotel. Try our calculator.
- [Loss ratio calculator](https://swoopfunding.com/za/business-loan-calculator/loss-ratio-calculator/): A loss ratio calculator is a tool used to determine the ratio between the losses incurred by an insurance company and the premiums it collects. Try it out.
- [Cost of equity calculator](https://swoopfunding.com/za/business-loan-calculator/cost-of-equity-calculator/): The cost of equity is a financial metric used to estimate the return required by investors to hold shares of a company's stock. Use our free calculator today.
- [Price to earnings calculator](https://swoopfunding.com/za/business-loan-calculator/price-to-earnings-calculator/): A price-to-earnings (P/E) ratio is a financial metric used to evaluate the relative value of a company's stock. Find out more.
- [EBITDA calculator](https://swoopfunding.com/za/business-loan-calculator/ebitda-calculator/): EBITDA gives an indication of a company's profitability before accounting for interest, taxes, and non-cash expenses. Try our free calculator.
- [Operating margin calculator](https://swoopfunding.com/za/business-loan-calculator/operating-margin-calculator/): The operating margin shows the profitability of a company's core operations and indicates the percentage of revenue after deducting expenses. Read more.
- [Pre money valuation calculator](https://swoopfunding.com/za/business-loan-calculator/pre-money-valuation-calculator/): A pre-money valuation is the estimated value of a company before it receives any external funding or investment. Learn more here.
- [Revenue calculator](https://swoopfunding.com/za/business-loan-calculator/revenue-calculator/): To calculate revenue, you need to know the unit price of the product or service and the number of units sold. Try our free revenue calculator here.
- [Net profit margin calculator](https://swoopfunding.com/za/business-loan-calculator/net-profit-margin-calculator/): The net profit margin is a profitability ratio that measures the percentage of revenue that results in net profit. Try out Swoop's handy calculator.
- [Solar energy installations](https://swoopfunding.com/za/business-loans/asset-finance/solar-energy-installations/): Solar financing Finance the purchase of solar energy to spread the cost over a period, reduce the strain on your...
- [Marginal cost calculator](https://swoopfunding.com/za/business-loan-calculator/marginal-cost-calculator/): By knowing marginal cost, a company can set prices that cover both variable costs and fixed costs. Read more and try our handy calculator.
- [Return on capital employed calculator](https://swoopfunding.com/za/business-loan-calculator/return-on-capital-employed-calculator/): ROCE is used as a performance metric by investors, analysts, and managers to assess a company's profitability and the efficiency. Read more.
- [APY calculator](https://swoopfunding.com/za/business-loan-calculator/apy-calculator/): Use our annual percentage yield (APY) calculator to determine the potential earnings or growth of an investment over a year. Try it today.
- [Start a business](https://swoopfunding.com/za/start-a-business/): In South Africa, if you’re a sole trader, a startup, or an SME, it’s likely that at some point , you’ll need extra funds to grow. Learn more here.
- [Basis point calculator](https://swoopfunding.com/za/business-loan-calculator/basis-point-calculator/): A basis point calculator is a tool used to calculate changes in percentage terms. A basis point represents one-hundredth of a percentage point. Try it here.
- [Price elasticity of demand calculator](https://swoopfunding.com/za/business-loan-calculator/price-elasticity-of-demand-calculator/): Price elasticity quantifies the level of responsiveness exhibited by customers towards changes in the prices of a product or service. Try our calculator here.
- [Business valuation calculator](https://swoopfunding.com/za/business-loan-calculator/business-valuation-calculator/): Looking to acquire a business, or sell a percentage of your own? Use this helpful business valuation calculator to get a rough idea of what a business is worth.
- [Restaurant equipment leasing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/restaurant-equipment-leasing/): Take the strain off cashflow – give your restaurant the equipment it needs with a low or no deposit restaurant equipment lease. Learn more here.
- [Medical equipment leasing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/medical-equipment-leasing/): Because medical equipment can be expensive, many medical providers choose to lease the machines and tools they need. Learn all about it here.
- [Commercial equipment leasing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/commercial-equipment-leasing/): Forget about paying with cash. A commercial lease can give you the machinery you need now without hurting cash flow. Read more or apply with Swoop.
- [Heavy equipment leasing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/heavy-equipment-leasing/): Forget about paying for equipment with cash. Pay over time with a flexible, low or no deposit lease to protect your capital & grow your business. Read more.
- [Technology equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/technology-equipment-financing/): Today, almost every South African business uses IT technology to shape the products and services they sell and operate their communications. Learn more here.
- [Medical equipment finance](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/medical-equipment-finance/): Healthcare is a huge industry in South Africa, but the equipment can be expensive, most medical providers choose to buy or lease the machines and tools.
- [Equipment finance brokers](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/equipment-finance-brokers/): Everybody knows there is strength in numbers, which is why it makes no sense for South African businesses seeking equipment finance to do. Read more.
- [Heavy equipment finance](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/heavy-equipment-finance/): For construction, industrial, and other heavy businesses, big is often better. Heavy equipment can get the job done when the lightweights can't. Read more.
- [Grant advance funding](https://swoopfunding.com/za/business-grants/grant-advance-funding/): By utilising grant advance funding, companies that adopt grant programs have the ability to obtain their eligible capital several months ahead of time.
- [Grant advance funding](https://swoopfunding.com/za/business-grants/grant-advance-funding/): By utilising grant advance funding, ZA companies that adopt grant programs have the ability to obtain their eligible capital several months ahead of time.
- [Startup equipment finance](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/startup-equipment-finance/): Startups are the lifeblood of the South African economy. However, many startups begin life with tight finances and buying equipment with cash may be impossible.
- [Industrial equipment finance](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/industrial-equipment-finance/): Technological transformation, economic opportunity and buyer trends are driving many South African organisations to expand, upgrade or replace their equipment.
- [Partner with us](https://swoopfunding.com/za/partner-with-us/): To provide our customers with the best services, we need to partner with the very best finance providers and service providers out there.
- [Acquire a business](https://swoopfunding.com/za/acquire-a-business/): Acquiring a business in the US can feel like a minefield, that's why we've broken it down into these guides so you have everything you need to scale & grow.
- [Business restructuring](https://swoopfunding.com/za/business-loans/business-restructuring/): Whether it’s due to post-pandemic struggles, Brexit effects, labour shortages, or even sky high energy bills, many UK SMEs will need to restructure in 2023.
- [Business refinancing and debt consolidation](https://swoopfunding.com/za/business-loans/business-refinancing-and-debt-consolidation/): Read here to find out if consolidating or refinancing your current business loans is right for you, and explore your options. Learn more here.
- [Mezzanine finance](https://swoopfunding.com/za/business-loans/mezzanine-finance/): Often associated with acquisitions and buyouts, mezzanine finance is a hybrid business loan that can be converted to equity. Read all you need to know here.
- [How to find angel investors](https://swoopfunding.com/za/equity-financing/how-to-find-angel-investors/): If you’re looking for investment in your business, whether you’re just starting out or planning to expand, an angel investor is one potential option to explore.
- [How to find angel investors](https://swoopfunding.com/za/equity-financing/how-to-find-angel-investors/): If you’re looking for investment in your business, whether you’re just starting out or planning to expand, an angel investor is one potential option to explore.
- [Quick business loans](https://swoopfunding.com/za/business-loans/quick-business-loans/): Need a quick business loan? We'll help you get funds in as little as 3 hours.
- [Quick business loans](https://swoopfunding.com/za/business-loans/quick-business-loans/): Not sure what quick business loans are, or how they work? Read on to find out about getting extra cash in your account within no time.
- [How to get investors for your business](https://swoopfunding.com/za/equity-financing/how-to-get-investors-for-your-business/): If you’re looking for funding to launch a startup or scale your business, you don’t have to go down the traditional route of getting a loan from your bank.
- [What is a commercial mortgage?](https://swoopfunding.com/za/commercial-mortgages/what-is-a-commercial-mortgage/): Commercial mortgages, or business mortgages, are usually used by business owners who want to buy property or land for commercial use. Read more about them here.
- [How to get a small business grant](https://swoopfunding.com/za/business-grants/how-to-get-a-small-business-grant/): A grant can help your business grow, develop & reach new markets. There are hundreds of business grants available for businesses, so here’s how you can get one.
- [Corporate tax calculator](https://swoopfunding.com/za/business-loan-calculator/corporate-tax-calculator/): Corporation tax calculator Use our handy corporation tax calculator to find out how much corporation tax your limited company will...
- [Editorial policy](https://swoopfunding.com/za/about-swoop/editorial-policy/): Swoop's goal is to make it easy for SMEs to understand the sometimes overwhelming world of business finance. Read about our editorial policy and guidelines here
- [Ciaran Burke](https://swoopfunding.com/za/about-swoop/team/ciaran-burke/): Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG...
- [How Swoop works](https://swoopfunding.com/za/about-swoop/how-swoop-works/): We work with our partners to offer simple and clear comparisons that allow customers to make choices on financial products and services.
- [In the press](https://swoopfunding.com/za/about-swoop/in-the-press/): It makes us even more committed to putting better solutions into your hands at lightning speed. By empowering businesses we can bring about real change
- [About Swoop](https://swoopfunding.com/za/about-swoop/): Here at Swoop, we like to think of ourselves as your virtual CFO. That’s why we’ve made joining and working with us as safe, simple and friendly as possible.
- [Business van finance](https://swoopfunding.com/za/business-loans/asset-finance/business-van-finance/): There are several ways to finance a work van, from HP, finance leasing, van refinance & more. Read on and learn all about your van finance options.
- [Business car finance](https://swoopfunding.com/za/business-loans/asset-finance/business-car-finance/): There are several business car finance options, from HP, finance leasing, EV, fleet finance & more. Read our handy guide to understand your company car options.
- [Swoop reviews](https://swoopfunding.com/za/about-swoop/reviews/): Swoop Funding reviews Since 2018 Swoop has helped thousands of SMEs, brokers, and advisors across the globe to find millions...
- [Asset finance calculator](https://swoopfunding.com/za/business-loan-calculator/asset-finance-calculator/): Looking to finance the purchase of business assets? Use this handy asset finance calculator to get an understanding of how much your loan might cost.
- [Business loans](https://swoopfunding.com/za/business-loans/): Business loans are often non-dilutive sources of funding, get free quotes from leading lenders and find the funding that is right for your business here.
- [Sectors](https://swoopfunding.com/za/sectors/): Business sectors Discover a funding solution for your business that meets the demands of your sector Business loans Whether you’re...
- [Contact us](https://swoopfunding.com/za/contact-us/): Our team of friendly advisors are on hand to help, whatever your query might be - over the phone, by email, and on our webchat.
- [Development finance calculator](https://swoopfunding.com/za/business-loan-calculator/development-finance-calculator/): South African development finance calculator Considering development finance? Use this simple calculator to understand how much you could borrow and...
- [Franchise loan calculator](https://swoopfunding.com/za/business-loan-calculator/franchise-loan-calculator/): This simple franchise loan calculator helps you understand the cost of your loan. See monthly interest & repayment amounts, as well as total interest & cost.
- [Franchise finance](https://swoopfunding.com/za/business-loans/franchise-finance/): Finance for new and existing South African franchisees with loans from R1k to R5m. Ready to grow your business? See how much you could borrow today.
- [Team](https://swoopfunding.com/za/about-swoop/team/): Meet the team Our most important investment is our people – the staff we choose and the customers we attract....
- [Achievements](https://swoopfunding.com/za/about-swoop/achievements/): It's hard to win recognition and trust in the financial sector, and this makes what we’ve already achieved worth talking about
- [Islamic business finance](https://swoopfunding.com/za/business-loans/islamic-business-finance/): Islamic business finance is governed by Shari’ah law and the tenet that money has no intrinsic value. Learn all about it here.
- [Advisor referral program](https://swoopfunding.com/za/advisors/referrals/): Refer accountants to Swoop & earn rewards Know other accountants who could benefit from Swoop for Advisors? Refer them to...
- [Development finance](https://swoopfunding.com/za/commercial-mortgages/development-finance/): Development finance is a term for loans used to fund commercial or residential development project. It is typically short-term (6-24 months). Learn more here.
- [Invoice finance](https://swoopfunding.com/za/business-loans/invoice-finance/): Invoice finance is a popular choice for many businesses. Instead of waiting weeks for payment, receive up to 95% of the invoice sum in just a day or two.
- [Asset finance](https://swoopfunding.com/za/business-loans/asset-finance/): Asset finance makes it easier to buy, use and benefit from big-ticket items such as vehicles, plant, & machinery without the need for a large upfront payment.
- [Merchant cash advance](https://swoopfunding.com/za/business-loans/merchant-cash-advance/): Merchant cash advances are fast, flexible, and scalable sources of funding & are a favourite for UK hospitality, retail, & leisure businesses.
- [Merchant cash advance](https://swoopfunding.com/za/business-loans/merchant-cash-advance/): Merchant cash advances are fast, flexible, and scalable sources of funding & are a favourite for South African hospitality, retail, & leisure businesses.
- [Revolving credit facility](https://swoopfunding.com/za/business-loans/revolving-credit-facility/): A revolving credit facility (rolling line of credit) allows your business to quickly withdraw money and repay when convenient.
- [Secured business loans](https://swoopfunding.com/za/business-loans/secured-business-loans/): A secured business loan gives you access to finance by offering up an asset such as property as security against the amount you borrow. Read more here.
- [Supply chain finance](https://swoopfunding.com/za/business-loans/supply-chain-finance/): Supply chain finance provides unsecured cash advances to the supplier(s) in a supply chain, which gets them paid early. Learn more here.
- [SaaS finance](https://swoopfunding.com/za/business-loans/saas-finance/): SaaS finance refers to financing options that are specifically designed to assist startup and scale-up efforts for South African SaaS businesses. Read more.
- [Unsecured business loans](https://swoopfunding.com/za/business-loans/unsecured-business-loans/): Unsecured business loans give small businesses the opportunity to quickly access finance, with loans up to R5m. See how your business could benefit. Learn more.
- [Small business loans](https://swoopfunding.com/za/business-loans/small-business-loans/): Small business loans are the smart, flexible, and low-cost way to finance business activities. Is your business eligible?
- [Working capital loans](https://swoopfunding.com/za/business-loans/working-capital-loans/): Working capital loans are short-term loans that help with day-to-day costs & are helpful for businesses whose income varies throughout the year. Read more here.
- [Subscribe to the newsletter](https://swoopfunding.com/za/newsletter/): Keep up to speed with relevant industry updates, news, partner offers and more across grants, finance and equity, carefully curated by #TeamSwoop.
- [Business loan calculator](https://swoopfunding.com/za/business-loan-calculator/): This simple business loan calculator helps you understand the cost of your loan. See monthly interest & repayment amounts, as well as total interest & cost.
- [Debt service coverage ratio (DSCR) calculator](https://swoopfunding.com/za/business-loan-calculator/debt-service-coverage-ratio-dscr-calculator/): Our simple debt service coverage ratio (DSCR) calculator will help you understand your businesses ability to pay back its short-term debt obligations in cash.
- [Management buyouts](https://swoopfunding.com/za/business-loans/management-buyout/): A management buyout, or MBO, involves the purchase of a business by its existing management team, usually with the help of a third party. Learn more here.
- [Semi-truck financing](https://swoopfunding.com/za/business-loans/semi-truck-financing/): Looking to purchase a new or used semi truck in South Africa? Let Swoop guide the application process to ensure you get the best deal. Get started.
- [Commercial mortgage calculator](https://swoopfunding.com/za/business-loan-calculator/commercial-mortgage-calculator/): Use our simple UK commercial mortgage calculator to understand monthly repayments (in pounds), as well as total interest charged and total amount payable.
- [Invoice finance calculator](https://swoopfunding.com/za/business-loan-calculator/invoice-finance-calculator/): Use our handy invoice finance calculator to get an understanding of how much you could release from invoices owed to you.
- [Merchant cash advance (MCA) calculator](https://swoopfunding.com/za/business-loan-calculator/merchant-cash-advance-calculator/): Understand your merchant cash advance repayments using our easy-to-use calculator. How much can your business afford?
- [Commercial mortgages & property finance](https://swoopfunding.com/za/commercial-mortgages/): Commercial mortgages explained You’re looking to purchase real estate for commercial use – let us help you access a range...
- [Business grants](https://swoopfunding.com/za/business-grants/): There are many small business grants available in South Africa, where do you start? Let us simplify the process - we’ll match your business to tailored grants.
- [Equity financing](https://swoopfunding.com/za/equity-financing/): Equity financing is when an investor injects capital into a business in return for shares (equity) and/or some control of the business. Are you investor ready?
- [Equipment leasing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/): Equipment leasing is much like a loan, however, the lender is the owner of the equipment and the business pays lease payments to the owner. Learn all here.
- [Equipment financing](https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/): Equipment financing allows your business to purchase expensive equipment or machinery by spreading the cost & reducing the strain on cashflow. Read more.
- [Swoop for Advisors](https://swoopfunding.com/za/advisors/): Swoop will work with you to discover the right funding solutions across debt, equity & grants, and easily make savings, making you indispensable to your clients
- [Asset-based lending](https://swoopfunding.com/za/business-loans/asset-finance/asset-based-lending/): Asset-based lending is a common way for businesses to improve their working capital if access to traditional financing is difficult. Learn more here.
- [Business credit scores](https://swoopfunding.com/za/business-credit-scores/): Get your free business credit score The deals you can get from lenders depend on your credit score: the better...
- [Swoop for Brokers](https://swoopfunding.com/za/brokers/): The digital platform for Brokers Smart tech for brokers. Advanced finance-matching and deal flow management. Register your interest What you...
- [Compare free business bank accounts](https://swoopfunding.com/za/business-bank-accounts/free/): Compare our up-to-date offers on free business bank accounts and ensure you're not one of the many businesses overpaying by up to £700. Check now.
- [Homepage](https://swoopfunding.com/za/): Simple and speedy access to business finance. Get matched with tailored funding across loans, equity, & grants, and cut business costs in one fell swoop.
- [Complaints](https://swoopfunding.com/za/complaints/): If you’re not completely happy with our service, we’d like to hear about it — that way, we can do something to put it right.
- [Disclosure](https://swoopfunding.com/za/disclosure/): What we do and how we’ll work with you - our services, how we get paid, how we process your data, and what to do if you’d like to make a complaint.
- [Treating customers fairly](https://swoopfunding.com/za/treating-customers-fairly/): Treating customers fairly At Swoop, we are committed to offering our customers the highest possible standards of service. In doing...
- [Terms and conditions](https://swoopfunding.com/za/terms-and-conditions/): Terms and conditions, which include our Privacy Policy, govern the use of the broking service provided by Swoop Finance Limited to any business registered with us.
- [Privacy policy](https://swoopfunding.com/za/privacy-policy/): Privacy policy Swoop Finance (Pty) Ltd is registered in South Africa (company number 2023/820661/07) and has its Registered Office at...
- [Cookie Policy](https://swoopfunding.com/za/cookie-policy/): Swoop uses cookies to help us help you get the most out of Swoop's tools and webpages. You can view our cookies policy here.
- [Swoop's 10 steps to improving cash flow and working capital immediately](https://swoopfunding.com/za/swoops-10-steps-to-improving-cash-flow-and-working-capital-immediately/): Ever wonndered how to improve your cash flow and working capital immediately? We have the answers! Read our 10 Swoop steps to maximise your potential.
- [Careers](https://swoopfunding.com/za/about-swoop/careers/): We've achieved a huge amount in a short space of time. And that’s down to how we’ve paired great technology with great talent. Join us!
- [Grants](https://swoopfunding.com/za/grants/): There are so many grants available in the UK, where do you start? Let Swoop simplify the process - we’ll match your business to tailored grant options
---
## Posts
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## Blog
- [Making the business case for your RSVP this holiday season](https://swoopfunding.com/za/blog/networking-101): Events are a great way to make connections that will benefit your business - you just need to make sure you approach them properly
- [What documents do you need for your funding application? A business owner's guide](https://swoopfunding.com/za/business-loans/what-documents-do-you-need/): Making applications is quicker and less hassle when the information you need is already at hand Your business needs funding,...
- [How do small business loans work](https://swoopfunding.com/za/business-loans/how-do-small-business-loans-work/): A business loan is a type of financing designed to meet the financial needs of a business. Read all about how it works with Swoop.
- [How long does it take to get a business loan](https://swoopfunding.com/za/business-loans/how-long-does-it-take-to-get-a-business-loan/): A business loan can take anywhere from 24 hours to months to get, depending on various factors. Read all about how it works with Swoop.
- [How to convert money factor to interest rates](https://swoopfunding.com/za/support-for-small-businesses/how-to-convert-money-factor-to-interest-rates/): A money factor, also known as the lease factor or lease fee, is essentially the financing charge. Learn more about how it works in this guide.
- [What is a personal guarantee?](https://swoopfunding.com/za/support-for-small-businesses/what-is-a-personal-guarantee/): A personal guarantee is an extra layer of security for lenders which binds personal assets to the business’s obligations. Learn more about how it works here.
- [How to price a product](https://swoopfunding.com/za/support-for-small-businesses/how-to-price-a-product/): Product pricing is the process of setting a value for a product or service that your target market will pay. Read all about the process here.
- [What is a good profit margin?](https://swoopfunding.com/za/support-for-small-businesses/what-is-a-good-profit-margin/): Profit margin is a key financial metric that businesses use to measure the profitability of their products or services. Lean more and read all about it.
- [How to find investors for your business](https://swoopfunding.com/za/equity-financing/how-to-find-investors/): If you’re looking for funding to start or scale your business, you don’t have to go down the traditional route of getting a loan from your bank. Read more.
- [How to build your business credit](https://swoopfunding.com/za/support-for-small-businesses/how-to-build-your-business-credit/): Building a strong business credit profile is a good choice for all small business aiming for sustainability and growth. Read how to build it easily here.
- [Why did my credit score drop?](https://swoopfunding.com/za/business-credit-scores/why-did-my-credit-score-drop/): Let's unpack the reasons your credit score might drop and understand how these can be a game-changer in the financial landscape. Learn all about it here.
- [How to calculate the cost of debt](https://swoopfunding.com/za/blog/how-to-calculate-the-cost-of-debt/): The cost of debt refers to the overall cost that a company pays on borrowed money. Find out how to calculate the cost of debt, and the formula here.
- [Differences between a partnership and corporation](https://swoopfunding.com/za/blog/differences-between-a-partnership-and-corporation/): When launching a small business, one of the key legal and structural decisions owners face is whether to establish a partnership or corporation. Read more.
- [At the end of the financial year: are you ready for the year ahead?](https://swoopfunding.com/za/blog/ready-for-the-year-ahead/): Whether last year was your best year, yet, or you are amazed to have survived, a large part of what happens in the future is in your hands. Read more here.
- [Income statements: The full guide](https://swoopfunding.com/za/blog/income-statements-explained/): An income statement is one of the three main financial reports for your business. Find out all there is to know about income statements here, or get in touch.
- [What are assets, liabilities and equity?](https://swoopfunding.com/za/blog/what-are-assets-liabilities-and-equity/): Assets, liabilities and equity are three core elements of a balance sheet. Learn all you need to know about them here, alongside their uses.
- [How to get a startup loan](https://swoopfunding.com/za/business-loans/startup-loans/how-to-get-a-startup-loan/): Startup loans are a great way for a business to launch with a bang: they are offered at a competitive rate and often come with professional advice. Learn more.
- [GenAI: the tools and prompts your business needs](https://swoopfunding.com/za/blog/genai-tools-and-prompts/): GenAI tools are often free to try out and because the selling point is the natural language recognition, you don’t need any specialist knowledge. Read more.
- [Resolutions for 2024: Don’t do more - do what you do better](https://swoopfunding.com/za/blog/resolutions-for-2024/): Instead of giving you a list of things to feel guilty about, we’ve put together a list of habits that will help your business grow in the next year. Read more.
- [Debtor Days: All you need to know](https://swoopfunding.com/za/blog/debtor-days/): Cash flow is an indicators of whether a business is doing well or not. Pay attention to debtors day to ensure your company's health. Read more here.
- [Swoop Funding empowers South African businesses with official launch](https://swoopfunding.com/za/blog/swoop-funding-empowers-south-african-businesses/): Swoop Funding, the global powerhouse in business funding solutions, proudly announces its official launch in South Africa. Read more here.
- [Three strategies to hiring the A-team your startup deserves](https://swoopfunding.com/za/blog/hiring-an-a-team/): Putting together a good team could make a difference when looking for funding. What should you consider when assembling your own A-team? Read more here.
- [Are you one of the businesses threatened with closure because you cannot access funding?](https://swoopfunding.com/za/blog/is-your-businesses-threatened-with-closure/): One in ten businesses is said to fail because of funding problems. At Swoop, we’re doing what we can to turn this around. Learn more here.
- [How to promote your business](https://swoopfunding.com/za/blog/how-to-promote-your-business/): Promoting your business is important to ensure potential customers know what your business offers. Read our guide on how to promote your business here.
- [Nurturing your mental health: 9 ways to manage mental health as a business owner](https://swoopfunding.com/za/blog/mental-health-as-a-business-owner/): Running a business can be rewarding, but it also comes with its set of challenges that can take a toll on you. Read our guide on mental health here.
- [How to get investors to say “yes”](https://swoopfunding.com/za/equity-financing/how-to-get-investors-to-say-yes/): What does it take to get an investor to “yes”? Read our guide on how to win investors' trust and secure funding here.
- [How to download a bank statement](https://swoopfunding.com/za/blog/how-to-download-a-bank-statement-2/): If your business uses online banking, there might be times when you need to download a bank statement. Read all about the process in our guide.
- [How to download a bank statement](https://swoopfunding.com/za/blog/how-to-download-a-bank-statement/): If your business uses online banking, there might be times when you need to download a bank statement. Learn how to do it here.
- [Business models: Types, examples, and how to design one ](https://swoopfunding.com/za/blog/business-models-types-examples-and-how-to-design-one/): All businesses need a business model, no matter what industry they operate in. Read all about business models in our handy guide.
- [How to run a successful business](https://swoopfunding.com/za/blog/how-to-run-a-successful-business/): You hear the term ‘successful business’ a lot, but what does that mean? Find out here, and our top tips for running a successful business.
- [Small business bookkeeping: The complete guide](https://swoopfunding.com/za/blog/small-business-bookkeeping-the-complete-guide/): A business without bookkeeping is risking failure. Bookkeeping builds the financial records that are essential for success, provides order and more.
- [10 reasons why you need a business bank account](https://swoopfunding.com/za/business-bank-accounts/why-you-need-a-business-bank-account/): Read our guide here to discover all you need to know about opening or switching a business bank account, along with its benefits and costs.
- [Best business banking apps](https://swoopfunding.com/za/business-bank-accounts/best-business-banking-apps/): Modern business is a 24/7 experience, with many UK SMEs working round the clock, or needing access to their money any time of day. See our comparison here.
- [Soft asset finance: What you need to know](https://swoopfunding.com/za/business-loans/asset-finance/soft-asset-finance/): Soft assets refer to non-physical assets that hold significant value for businesses. Read about soft assets and how to finance them here.
- [How to get venture capital funding](https://swoopfunding.com/za/equity-financing/how-to-get-venture-capital-funding/): If you’re looking for funding to help launching your business or to help it expand, venture capital funding is option worth exploring. Read how here.
- [How to finance property development](https://swoopfunding.com/za/commercial-mortgages/how-to-finance-property-development/): If you want to invest in a property development project and don’t have much cash lying around, you’ll probably need to apply for property development finance.
- [Checklist for buying a business](https://swoopfunding.com/za/blog/checklist-for-buying-a-business/): Buying a business may have advantages over starting from scratch, such as existing operations, customers, and cash flow. Read all about it here.
- [How to calculate corporation tax](https://swoopfunding.com/za/blog/how-to-calculate-corporation-tax/): The main tax that a limited company must pay is corporation tax. Here, we cover everything you need to know about calculating how much you owe.
- [How to check your business credit score](https://swoopfunding.com/za/business-credit-scores/how-to-check-your-business-credit-score/): Your business credit score can show whether your company will get accepted for credit. Learn how to check your business credit score here.
- [How to pitch a business idea](https://swoopfunding.com/za/blog/how-to-pitch-a-business-idea/): Coming up with a business idea can be easy, but knowing how to pitch it is a different matter. Read our top 5 steps for a successful pitch here.
- [How to do a stocktake](https://swoopfunding.com/za/blog/how-to-do-a-stocktake/): Controlling your stock is important if you want to accurately measure performance. Here we cover all you need to know about stock take.
- [How to set up a cleaning business](https://swoopfunding.com/za/blog/how-to-set-up-a-cleaning-business/): Are you thinking about starting your own cleaning business? Here’s everything you need to know about the process of getting set up in our guide.
- [How to create a business PayPal account](https://swoopfunding.com/za/blog/how-to-create-a-business-paypal-account/): Setting up a business PayPal account can enable you to take payments for products and services without the need to pay for a pricey merchant account.
- [How to set up a courier business](https://swoopfunding.com/za/blog/how-to-set-up-a-courier-business/): If you’re considering starting your own courier business, it’s important to do some research first. Here’s a guide on how to increase your chances of success.
- [How to boost cash flow](https://swoopfunding.com/za/blog/how-to-boost-cash-flow/): Understanding simple steps you can take to boost cash flow is important for SMEs. This guide explains how to boost cash flow & keep your business running.
- [How to do a SWOT analysis](https://swoopfunding.com/za/blog/how-to-do-a-swot-analysis/): Any growing business needs a roadmap to help it work its way through the challenges and opportunities it’s likely to face. Find out how to SWOT here.
- [How to do a SWOT analysis](https://swoopfunding.com/za/blog/how-to-do-a-swot-analysis-2/): Any growing business needs a roadmap to help it work its way through challenges and opportunities. Find out how to do a SWOT analysis here.
- [How to set up an online business](https://swoopfunding.com/za/blog/how-to-set-up-an-online-business/): Setting up an online business can be a big decision. Here’s everything you need to know about setting up an online business.
- [How to file company accounts](https://swoopfunding.com/za/blog/how-to-file-company-accounts/): All companies are required to file their company accounts with Companies House each year. Read how to file your company accounts here in this handy guide.
- [How to file company accounts](https://swoopfunding.com/za/blog/how-to-file-company-accounts-2/): All companies are required to file their company accounts with Companies and Intellectual Property Commission each year. Read our handy guide here.
- [How to buy and open a franchise](https://swoopfunding.com/za/blog/how-to-buy-and-open-a-franchise-2/): If you're dreaming of setting up your own business, buying a franchise could be a good way to get started. Read how to get started and finance a franchise here.
- [How to calculate liquidity](https://swoopfunding.com/za/blog/how-to-calculate-liquidity/): Liquidity is an important term to understand if you run a business. This guide explains all there's to know about liquidity ratios & the different types.
- [How to manage cash flow](https://swoopfunding.com/za/blog/how-to-manage-cash-flow/): Managing your cash flow is an important part of running a business. If your business lacks the cash to pay for wages, bills and rent, it could fail.
- [How to sell a percentage of your business](https://swoopfunding.com/za/blog/how-to-sell-a-percentage-of-your-business/): There are many reasons why you might want to sell a percentage of your business, but it’s important to understand how to do it in the right way. Read on here.
- [How to sell a percentage of your business](https://swoopfunding.com/za/blog/how-to-sell-a-percentage-of-your-business-2/): There are several reasons why you might want to sell a part of your business, but it’s important to understand how to do it in the right way. Read on here.
- [How to pay off a cash advance](https://swoopfunding.com/za/blog/how-to-pay-off-a-cash-advance/): If you need cash fast, it is easy to be tempted to withdraw money on your credit card. This guide looks at how cash advances work and how to pay them off.
- [How to get an EORI number](https://swoopfunding.com/za/blog/how-to-get-an-eori-number/): If you’re thinking about growing your business internationally, it’s likely you’ll need an EORI number. Here’s everything you need to know about the process.
- [How to get a business mortgage](https://swoopfunding.com/za/commercial-mortgages/how-to-get-a-business-mortgage/): You might need a business mortgage, if you’re looking to buy a new building or release equity from an existing one. Read here how to.
- [How to create a marketing strategy for your business](https://swoopfunding.com/za/blog/how-to-create-a-marketing-strategy/): If you want to succeed the marketing world, it’s important to stay ahead of the game and understand how to appeal to your target market.
- [How to finance a new business](https://swoopfunding.com/za/blog/how-to-finance-a-new-business/): If you’re looking to grow your new business, it’s important to know how to finance it. Read here how to discover financing options, and apply with Swoop today.
- [How to calculate capital employed](https://swoopfunding.com/za/blog/how-to-calculate-capital-employed-2/): Capital employed is the amount of capital investment a business uses to operate. It can help indicate how a company is investing money. Read more here.
- [How to calculate market size](https://swoopfunding.com/za/blog/how-to-calculate-market-size/): If you're dreaming of starting a business or launching a product, doing your research and assessing how many potential customers you might attract is crucial.
- [How to forecast cash flow](https://swoopfunding.com/za/blog/how-to-forecast-cash-flow/): Knowing how to forecast cash flow is a crucial part of financial planning when you run a business. This guide explains all there's to know.
- [How to scale a business](https://swoopfunding.com/za/blog/how-to-scale-a-business/): If you want to grow your business, it’s important to understand how to do it effectively. Read our guide on how to effectively scale your business here.
- [How to build a property portfolio](https://swoopfunding.com/za/blog/how-to-build-a-property-portfolio/): Building a property portfolio can be a profitable investment, but only if it’s done right. Read the guide to funding and building your portfolio here.
- [How to start a buy-to-let business](https://swoopfunding.com/za/blog/how-to-start-a-buy-to-let-business/): Investing in buy-to-let property can be a lucrative business and it can create financial security. Read about funding options and apply today.
- [How to start a property management company](https://swoopfunding.com/za/blog/how-to-start-a-property-management-company/): If you’re dreaming of starting a property management company, it’s important to do your research and make sure you understand what it involves.
- [How to calculate EBITDA](https://swoopfunding.com/za/blog/how-to-calculate-ebitda/): There are several metrics businesses can use to calculate their financial health and performance. EBITDA is one of them. Read more here.
- [How to get a business loan with bad credit](https://swoopfunding.com/za/blog/how-to-get-a-business-loan-with-bad-credit/): Getting a business loan with bad credit can be hard, but it’s not impossible. This guide takes you through your options, and the process.
- [How to get a UTR number](https://swoopfunding.com/za/blog/how-to-get-a-utr-number/): When you file your self-assessment tax return, you will be asked to enter your UTR number. Find out what a UTR number is, and how to find yours here.
- [How to write an invoice](https://swoopfunding.com/za/blog/how-to-write-an-invoice/): Our guide explains how to write an invoice, when invoices are needed and how to send them. Read the guide and steps required here.
- [How to value a business](https://swoopfunding.com/za/blog/how-to-value-a-business/): If you’re planning to sell your business, make an acquisition or raise capital, it’s important to know your business' worth. Find out here.
- [How to set up a limited company](https://swoopfunding.com/za/blog/how-to-set-up-a-limited-company/): A limited company can be set up by just one person who will be the sole shareholder, or it can be set up by several shareholders. Read more here.
- [How to register and pay for corporation tax](https://swoopfunding.com/za/blog/how-to-register-and-pay-for-corporation-tax/): If you’re a limited company, you’ll need to pay corporation tax on your profits each year. This guide explains all you need to know about paying corporation tax
- [How to reclaim VAT](https://swoopfunding.com/za/blog/how-to-reclaim-vat/): Being VAT registered also means you can reclaim VAT on all goods and services your business buys, making them cheaper than if you weren’t VAT registered.
- [Finance lease vs. operating lease – what’s the difference?](https://swoopfunding.com/za/business-loans/asset-finance/finance-lease-vs-operating-lease): Finance and operating leases are two low-cost ways for a business to secure the major tools they need, but how do they differ? Find out which suits your needs.
- [Operating leases explained: What are they? How do they work?](https://swoopfunding.com/za/business-loans/asset-finance/operating-lease/): Buying big-ticket items can create problems with cashflow. But not to worry. Operating lease is a way for businesses to secure the tools they need. Read more.
- [How to calculate profit](https://swoopfunding.com/za/blog/how-to-calculate-profit/): As a small business, it’s important to understand how to calculate profit to see how well your business is performing. Read all about it here.
- [How to get funding for a new business](https://swoopfunding.com/za/blog/how-to-get-funding-for-a-new-business-2/): Choosing the right kind of funding is important if you want to ensure your new business is set up for success. Read all about it here.
- [How to get a business loan](https://swoopfunding.com/za/blog/how-to-get-a-business-loan/): We look at everything there's to know about applying for a business loan. Read our step by step guide, or register with Swoop today to see funding options.
- [How to complete a VAT return](https://swoopfunding.com/za/blog/how-to-complete-a-vat-return/): If your business is VAT registered, you will need to complete and submit VAT returns to His Majesty’s Revenue and Customs (HMRC).
- [How to value a company](https://swoopfunding.com/za/acquire-a-business/how-to-value-a-company/): There’s no one way to value a company. Here are some of variables you might want to account for in your valuation process.
- [How to plan for buying a business](https://swoopfunding.com/za/acquire-a-business/how-to-plan-for-buying-a-business/): Buying a US business can be a complex task. In fact, many people never get past the stage of “just thinking about it”. Read the steps to buying a business here.
- [Finance leasing explained - what is it?](https://swoopfunding.com/za/business-loans/asset-finance/finance-lease/): A finance lease is an affordable way to finance expensive assets over time with a low deposit. How could your business benefit? Read more here.
- [How to use vendor financing to buy a business](https://swoopfunding.com/za/acquire-a-business/how-to-use-vendor-financing-to-buy-a-business/): Many US small business buyers need to assemble financing from a variety of sources to complete the acquisition. Read about using vendor financing here.
- [How to find a business to buy](https://swoopfunding.com/za/acquire-a-business/how-to-find-a-business-to-buy/): The first and arguably most important step to finding a US business for sale is to set your personal objectives. Find out where to buy a business and more here.
- [How to conduct due diligence for a business acquisition](https://swoopfunding.com/za/acquire-a-business/how-to-conduct-due-diligence-for-a-business-acquisition/): Due diligence means conducting a deep dive into the inner workings of a business, allowing you to identify its opportunities & risks for an acquisition.
- [How to find a business acquisition broker](https://swoopfunding.com/za/acquire-a-business/how-to-find-a-business-acquisition-broker/): Like any important professional relationship, finding a US business acquisition broker is partly about looking through listings and asking for referrals.
- [How to buy a business](https://swoopfunding.com/za/acquire-a-business/how-to-buy-a-business/): For the majority of buyers looking to purchase a business, the goal of financing is not only to acquire the business, but to grow it too. Read more here.
- [How to write a letter of intent (LOI) for business acquisition](https://swoopfunding.com/za/acquire-a-business/how-to-write-letter-of-intent-loi/): A letter of intent is important for a business as it signals the beginning of due diligence and negotiations that are necessary to complete an acquisition.
- [How to finance a business acquisition](https://swoopfunding.com/za/acquire-a-business/how-to-finance-a-business-acquisition/): When considering how to buy a business, the simplest way is to fund it out of your own savings or to access personal borrowing facilities. Read more here.
- [Match funding for grants explained – what is it?](https://swoopfunding.com/za/business-grants/match-funding/): Match funding for grants means that in order to receive a business grant, you will need to fund some of it yourself, often through a loan. Learn more.
- [Bridging finance explained - what is it?](https://swoopfunding.com/za/commercial-mortgages/bridging-finance/): Bridging finance is similar to a commercial mortgage and is used to purchase or raise capital secured against property or a land, but drawdown happens faster.
- [SEIS – the Seed Enterprise Investment Scheme explained](https://swoopfunding.com/za/equity-financing/seis-seed-enterprise-investment-scheme/): Own a new business? The Seed Enterprise Investment Scheme (SEIS) is designed to attract investors to UK businesses that are less than 2 years old. Find out more
- [How to refinance a business loan](https://swoopfunding.com/za/blog/how-to-refinance-a-business-loan/): Find out everything there's to know about refinancing a business loan and if it’s the right decision for your business. Read all about it here.
---
## Case studies
- [How to Secure Funding: Essential Tips](https://swoopfunding.com/za/case-studies/how-to-secure-funding-essential-tips/): https://www. youtube. com/watch? v=A5DtglPGhdg
- [Why South African SMEs choose Swoop Funding](https://swoopfunding.com/za/case-studies/why-south-african-smes-choose-swoop/): https://www. youtube. com/watch? v=HO_nTsKKD-0
- [Why Swoop](https://swoopfunding.com/za/case-studies/why-swoop-south-africa/): https://www. youtube. com/watch? v=UYyhWyr9aDc
- [Exploring funding options for South African SMEs](https://swoopfunding.com/za/case-studies/exploring-funding-options-for-south-african-smes/): https://www. youtube. com/watch? v=pbTJ65vmfa8
- [Even bankers are coming to Swoop for funding](https://swoopfunding.com/za/case-studies/bankers-coming-to-swoop/): Knowing that Swoop has an established business, Irfan saw an opportunity to use Swoop's marketplace of funders and put the platform to the test. Read more.
- [Growing the business of Growing Paper: how Swoop is helping a South African business get ready to hit the international market](https://swoopfunding.com/za/case-studies/growing-the-business-of-growing-paper/): Growing Paper is a South African company that produces handmade, biodegradable paper embedded with seeds. Read more here.
- [A different approach to care requires a different approach to funding](https://swoopfunding.com/za/case-studies/a-different-approach-to-care-requires-a-different-approach-to-funding/): Swoop is helping to make an exciting new care facility a reality in the Midlands. “Conventional care fails people who...
- [Swoop solves the funding problem for accounting firm](https://swoopfunding.com/za/case-studies/swoop-solves-the-funding-problem-for-accounting-firm/): Gravitate Accounting used to dread clients asking about funding. Now they see it as an opportunity to delight business owners...
- [Overcoming the barriers to buying out founders](https://swoopfunding.com/za/case-studies/overcoming-the-barriers-to-buying-out-founders/): Employee-owned businesses can boost engagement, motivation and well-being - but finding the funding isn’t always straightforward. There are a number...
- [Finding a new lender to put their faith in a growing care home business](https://swoopfunding.com/za/case-studies/finding-a-new-lender-to-put-their-faith-in-a-growing-care-home-business/): When the customer’s former lender left the healthcare market, finding a replacement proved challenging. Then Swoop stepped in. If your...
- [At your convenience: Swoop helps a business owner grow his portfolio of local stores](https://swoopfunding.com/za/case-studies/at-your-convenience-swoop-helps-a-business-owner-grow-his-portfolio-of-local-stores/): When the banks said “no”, Swoop took over a difficult case - and worked with the customer to find a...
- [Stopping a temporary setback from becoming a long-running problem](https://swoopfunding.com/za/case-studies/stopping-a-temporary-setback-from-becoming-a-long-running-problem/): Swoop helped customers secure a VAT loan for their business
- [Swoop’s “glass half full” approach enables pub chain to seize opportunity to boost profits](https://swoopfunding.com/za/case-studies/swoops-glass-half-full-approach-enables-pub-chain-to-seize-opportunity-to-boost-profits/): After Pitcher Pub Group’s existing bank declined the facility request, Swoop stepped in to offer an alternative.
- [Seeing a challenging property purchase through to the end](https://swoopfunding.com/za/case-studies/seeing-a-challenging-property-purchase-through-to-the-end/): With many other buyers falling at the hurdles on buying a Grade II listed holiday let complex, could Swoop close the deal for our customer?
- [Swoop helps vegan meal company sprout new growth](https://swoopfunding.com/za/case-studies/swoop-helps-vegan-meal-company-sprout-new-growth/): Vegan meal delivery service The Brook has found that their partnership with Swoop allows them to focus on what truly matters
- [How businesses are refinancing their CBILS loans as their circumstances change](https://swoopfunding.com/za/case-studies/how-businesses-are-refinancing-their-cbils-loans-as-their-circumstances-change/): CBILS products saved many businesses from failure but as circumstances change, many are finding that their old deals need revisiting
- [TFI helped Swoop land in Canada](https://swoopfunding.com/za/case-studies/tfi-covered-swoops-arrival-in-canada/): Read how Toronto Finance International (TFI) wrote about Swoop’s arrival in Canada.
- [Titian Consulting Casestudy](https://swoopfunding.com/za/case-studies/titian-consulting-casestudy/): As a small business owner, you need outside assistance with strategic planning; financial processes, cashflow management & forecasting, reporting & compliance.
- [AreaWealth Case Study](https://swoopfunding.com/za/case-studies/areawealth-case-study/): AreaWealth is a technology driven investment management platform that maximises efficiencies for advisers in managing their clients’ financial needs.
- [Presols case study](https://swoopfunding.com/za/case-studies/presols-case-study/): Find out how Swoop helped Presols access additional revenue needed to take their business to its next stage of growth.
- [Case Study: Concise Media](https://swoopfunding.com/za/case-studies/case-study-concise-media/): With Concise Media growing very quickly, the team wanted to ensure that they found a debt option that was right for the business.
- [Purple PR case study](https://swoopfunding.com/za/case-studies/purple-pr-case-study/):
- [Macacha case study](https://swoopfunding.com/za/case-studies/macacha-case-study/):
- [Nimble case study](https://swoopfunding.com/za/case-studies/nimble-case-study/):
- [The Story of Bookbarn International](https://swoopfunding.com/za/case-studies/the-story-of-bookbarn-international/): After an appearance on Dragons’ Den in 2017 failed to attract investment, William began looking for alternative financial backing to grow the business
- [Case Study: Holy Moly Dips](https://swoopfunding.com/za/case-studies/case-study-holy-moly-dips/): Holy Moly Dips needed funding and advice in order to design and make their product, bring it over from Mexico and get it into UK supermarkets
- [Case Study: Nimble Babies](https://swoopfunding.com/za/case-studies/case-study-nimble-babies/): Nimble Babies was founded by professional chemist Von Sy when his sister mentioned that his niece’s milk bottles had gone cloudy and she struggled to get them clean
---
## Business glossary
- [Proprietary limited company](https://swoopfunding.com/za/business-glossary/proprietary-limited-company/): Definition A proprietary limited company is a legal entity that operates as a separate entity from its shareholders and directors....
- [South African Institute of Chartered Accountants (SAICA)](https://swoopfunding.com/za/business-glossary/south-african-institute-of-chartered-accountants/): Definition The South African Institute of Chartered Accountants (SAICA) is a professional accounting body in South Africa that represents chartered...
- [SACU-EFTA FTA](https://swoopfunding.com/za/business-glossary/sacu-efta-fta/): Definition The SACU-EFTA FTA refers to the free trade agreement (FTA) between the Southern African Customs Union (SACU) and the...
- [Payment reference number (PRN)](https://swoopfunding.com/za/business-glossary/payment-reference-number/): Definition A payment reference number (PRN) is a unique identifier assigned to a specific payment transaction to facilitate accurate and...
- [Payments Association of South Africa](https://swoopfunding.com/za/business-glossary/payments-association-of-south-africa/): Definition The Payments Association of South Africa (PASA) is an organisation established to facilitate safe, efficient, and reliable payment systems...
- [Ransomware](https://swoopfunding.com/za/business-glossary/ransomware/): Definition Ransomware is a type of malware designed to encrypt files or lock down computer systems, with the intention of...
- [Malware](https://swoopfunding.com/za/business-glossary/malware/): Definition Malware, short for malicious software, refers to any software specifically designed to disrupt, damage, or gain unauthorised access to...
- [Challenger bank](https://swoopfunding.com/za/business-glossary/challenger-bank/): Definition A challenger bank is a relatively new type of financial institution that challenges the traditional banking model by offering...
- [Burn rate](https://swoopfunding.com/za/business-glossary/burn-rate/): Definition Burn rate in business finance refers to the rate at which a company is spending its available cash reserves...
- [Retained earnings](https://swoopfunding.com/za/business-glossary/retained-earnings/): Definition Retained earnings refer to the portion of a company's net income that is not distributed to shareholders as dividends...
- [Cash sweep](https://swoopfunding.com/za/business-glossary/cash-sweep/): Definition Cash sweep refers to the process by which excess funds in a bank account are automatically transferred into another...
- [Angel syndicate](https://swoopfunding.com/za/business-glossary/angel-syndicate/): Definition An angel syndicate is a group of individual angel investors who pool their resources and expertise to collectively invest...
- [Market segmentation](https://swoopfunding.com/za/business-glossary/market-segmentation/): Definition Market segmentation is a strategic approach used by businesses to divide a market into smaller, more manageable segments or...
- [Return on capital employed (ROCE)](https://swoopfunding.com/za/business-glossary/return-on-capital-employed/): Definition Return on capital employed (ROCE) is a financial metric used to evaluate the profitability and efficiency of a company's...
- [Exchange rate](https://swoopfunding.com/za/business-glossary/exchange-rate/): Definition An exchange rate refers to the value at which one currency can be exchanged for another.   What is...
- [Deferred income](https://swoopfunding.com/za/business-glossary/deferred-income/): Definition Deferred income is a liability recorded on a company's balance sheet that represents revenue received in advance of being...
- [Cross rate](https://swoopfunding.com/za/business-glossary/cross-rate/): Definition A cross rate refers to the exchange rate between two currencies, neither of which is the official currency of...
- [Compound interest](https://swoopfunding.com/za/business-glossary/compound-interest/): Definition Compound interest is a concept in finance that refers to the interest earned or charged on both the initial...
- [Capital expenditure](https://swoopfunding.com/za/business-glossary/capital-expenditure/): Definition Capital expenditure refers to the funds a company spends to buy, upgrade, or maintain physical assets with the intention...
- [Administrative expenses](https://swoopfunding.com/za/business-glossary/administrative-expenses/): Definition Administrative expenses refer to the costs incurred by a business in the day-to-day operations and management of its activities....
- [Accounting rate of return (ARR)](https://swoopfunding.com/za/business-glossary/accounting-rate-of-return/): Definition The accounting rate of return (ARR) is a financial metric used to evaluate the profitability of an investment project...
- [Absolute return](https://swoopfunding.com/za/business-glossary/absolute-return/): Definition Absolute return refers to the performance of an investment or portfolio relative to its initial value, without considering any...
- [The Basic Conditions of Job Act (BCEA)](https://swoopfunding.com/za/business-glossary/the-basic-conditions-of-job-act/): Definition The Basic Conditions of Employment Act (BCEA) is a key piece of labour legislation in South Africa that sets...
- [Southern African Customs Union (SACU) agreement](https://swoopfunding.com/za/business-glossary/southern-african-customs-union-agreement/): Definition The Southern African Customs Union (SACU) agreement is a regional trade arrangement established to promote economic cooperation and integration...
- [South African Reserve Bank (SARB)](https://swoopfunding.com/za/business-glossary/south-african-reserve-bank/): Definition The South African Reserve Bank (SARB) is the central bank of South Africa, and is implementing monetary policy, maintaining...
- [South African Revenue Service (SARS)](https://swoopfunding.com/za/business-glossary/south-african-revenue-service/): Definition The South African Revenue Service (SARS) is the national tax authority of South Africa responsible for collecting tax revenue...
- [South African depository receipts](https://swoopfunding.com/za/business-glossary/south-african-depository-receipts/): Definition South African Depository Receipts (SADRs) are financial instruments that allow investors outside of South Africa to indirectly invest in...
- [SAVI top 40](https://swoopfunding.com/za/business-glossary/savi-top-40/): Definition The SAVI Top 40, also known as the South African volatility index top 40, is an index that tracks...
- [Rand hedge](https://swoopfunding.com/za/business-glossary/rand-hedge/): Definition Rand hedge refers to an investment strategy used by investors in South Africa to reduce the effects of currency...
- [Prudential Authority (PA)](https://swoopfunding.com/za/business-glossary/prudential-authority/): Definition The Prudential Authority (PA) is a regulatory body in South Africa responsible for supervising and regulating banks, insurers, and...
- [Labour Relations Act (LRA)](https://swoopfunding.com/za/business-glossary/labour-relations-act/): Definition The Labour Relations Act (LRA) is a comprehensive piece of legislation in South Africa that governs labour relations and...
- [Johannesburg Stock Exchange (JSE)](https://swoopfunding.com/za/business-glossary/johannesburg-stock-exchange/): Definition The Johannesburg Stock Exchange (JSE) is the largest securities exchange in Africa, and serves as a platform for trading...
- [Johannesburg interbank acceptance rate (JIBAR)](https://swoopfunding.com/za/business-glossary/johannesburg-interbank-acceptance-rate/): Definition The Johannesburg interbank acceptance rate (JIBAR) is a benchmark interest rate used in South Africa's financial markets.   What...
- [Financial Sector Conduct Authority (FSCA)](https://swoopfunding.com/za/business-glossary/financial-sector-conduct-authority/): Definition The Financial Sector Conduct Authority (FSCA) is a regulatory organisation based in South Africa. Its primary role is to...
- [Broad-Based Black Economic Empowerment Act (BBBEE)](https://swoopfunding.com/za/business-glossary/broad-based-black-economic-empowerment-act/): Definition The Broad-Based Black Economic Empowerment Act is a South African law designed to resolve economic inequalities resulting from apartheid...
- [BRICS Exchange Alliance](https://swoopfunding.com/za/business-glossary/brics-exchange-alliance/): Definition The BRICS Exchange Alliance is an initiative aimed at fostering collaboration and cooperation among stock exchanges in the BRICS...
- [African Tax Administration Forum (ATAF)](https://swoopfunding.com/za/business-glossary/african-tax-administration-forum/): Definition The African Tax Administration Forum (ATAF) is an intergovernmental organisation established to promote cooperation, collaboration, and capacity building among...
- [Administrative non-compliance penalty](https://swoopfunding.com/za/business-glossary/administrative-non-compliance-penalty/): Definition Administrative non-compliance penalties refer to financial penalties or sanctions imposed on individuals or businesses by authorities or government agencies...
- [Gross income](https://swoopfunding.com/za/business-glossary/gross-income/): Definition Gross income refers to the total revenue generated by a company from its primary business activities before deducting any...
- [Earnings before tax (EBT)](https://swoopfunding.com/za/business-glossary/earnings-before-tax/): Definition Earnings before tax (EBT), also known as pre-tax income or profit before tax, is a financial metric used to...
- [Market validation](https://swoopfunding.com/za/business-glossary/market-validation/): Definition Market validation is a key process in business development and entrepreneurship aimed at confirming the potential and demand for...
- [Serviceable obtainable market (SOM)](https://swoopfunding.com/za/business-glossary/serviceable-obtainable-market/): Definition Serviceable obtainable market is a concept in business strategy and market analysis, which refers specifically to the portion of...
- [Serviceable available market (SAM)](https://swoopfunding.com/za/business-glossary/serviceable-addressable-market/): Definition A serviceable available market is a concept in business strategy and market analysis, closely related to total available market...
- [Total addressable market (TAM)](https://swoopfunding.com/za/business-glossary/total-addressable-market/): Definition A total addressable market is a concept in business strategy and market analysis. It refers to the overall revenue...
- [Credit union](https://swoopfunding.com/za/business-glossary/credit-union/): Definition A credit union is a financial cooperative owned and operated by its members, who are typically individuals with a...
- [Book-to-market ratio](https://swoopfunding.com/za/business-glossary/book-to-market-ratio/): Definition The book-to-market (B/M) ratio is a financial metric used to evaluate the relative valuation of a company's stock by...
- [Benefit-cost ratio (BCR)](https://swoopfunding.com/za/business-glossary/benefit-cost-ratio/): Definition The benefit-cost ratio (BCR) is a financial metric used to evaluate the profitability or viability of an investment or...
- [Bankruptcy](https://swoopfunding.com/za/business-glossary/bankruptcy/): Definition Bankruptcy is a legal process that individuals and businesses can use to obtain relief from overwhelming debt burdens when...
- [Artificial intelligence (AI)](https://swoopfunding.com/za/business-glossary/artificial-intelligence/): Definition Artificial intelligence (AI) refers to the simulation of human intelligence in machines, enabling them to perform tasks that typically...
- [Acceleration clause](https://swoopfunding.com/za/business-glossary/acceleration-clause/): Definition An acceleration clause allows the lender or creditor to demand immediate repayment of the entire outstanding balance or take...
- [Accelerated depreciation](https://swoopfunding.com/za/business-glossary/accelerated-depreciation/): Definition Accelerated depreciation is a method used in accounting to allocate the cost of a tangible asset over its useful...
- [Software as a service (SaaS)](https://swoopfunding.com/za/business-glossary/software-as-a-service/): Definition Software as a service (SaaS) is a cloud-based software distribution model in which applications are hosted by a third-party...
- [Small and medium enterprise (SME)](https://swoopfunding.com/za/business-glossary/small-and-medium-enterprise/): Definition Small and medium enterprise (SME) refers to businesses that typically have a relatively small number of employees and generate...
- [Service-level agreement (SLA)](https://swoopfunding.com/za/business-glossary/service-level-agreement/): Definition A service-level agreement (SLA) is a formal contract or agreement between a service provider and its customer that outlines...
- [Search engine optimisation (SEO)](https://swoopfunding.com/za/business-glossary/search-engine-optimisation/): Definition Search engine optimisation (SEO) is a digital marketing strategy aimed at improving a website's visibility and ranking on search...
- [Revenue](https://swoopfunding.com/za/business-glossary/revenue/): Definition Revenue refers to the total amount of money earned by a company from its normal business activities over a...
- [Quote](https://swoopfunding.com/za/business-glossary/quote/): Definition A quote serves as an official offer outlining the terms and conditions under which the seller is willing to...
- [Quarter to date (QTD)](https://swoopfunding.com/za/business-glossary/quarter-to-date/): Definition Quarter to date (QTD) refers to the period starting from the beginning of the current quarter up to the...
- [Quarter over quarter (QoQ)](https://swoopfunding.com/za/business-glossary/quarter-over-quarter/): Definition Quarter over quarter (QoQ) is a financial metric used to analyse changes in a company's performance or a particular...
- [Public relations (PR)](https://swoopfunding.com/za/business-glossary/public-relations/): Definition Public relations (PR) is the strategic practice of managing communication between an organisation and its various stakeholders, including the...
- [Platform as a service (PaaS)](https://swoopfunding.com/za/business-glossary/platform-as-a-service/): Definition Platform as a service (PaaS) is a cloud computing model that provides a platform allowing customers to develop, run,...
- [Pay per click (PPC)](https://swoopfunding.com/za/business-glossary/pay-per-click/): Definition Pay per click (PPC) is an online advertising model in which advertisers pay a fee each time their ad...
- [Pay as you earn (PAYE)](https://swoopfunding.com/za/business-glossary/pay-as-you-earn/): Definition Pay as you earn (PAYE) is a system of income tax withholding used by employers to deduct tax from...
- [On-demand computing (ODC)](https://swoopfunding.com/za/business-glossary/on-demand-computing/): Definition On-demand computing (ODC), also known as utility computing or pay-as-you-go computing, is a cloud computing model in which computing...
- [Net foreign income](https://swoopfunding.com/za/business-glossary/net-foreign-income/): Definition Net foreign income refers to the total income earned by a country's residents from foreign sources, minus the income...
- [Month to date (MTD)](https://swoopfunding.com/za/business-glossary/month-to-date/): Definition Month to date (MTD) is a financial metric used to track and analyse the performance of a particular measure...
- [Month over month (MoM)](https://swoopfunding.com/za/business-glossary/month-over-month/): Definition Month over month (MoM) is a financial metric used to compare the performance of a particular variable or indicator...
- [Monthly recurring revenue (MRR)](https://swoopfunding.com/za/business-glossary/monthly-recurring-revenue/): Definition Monthly recurring revenue (MRR) is a key metric used by businesses, particularly in subscription-based models, to measure the predictable...
- [Market value](https://swoopfunding.com/za/business-glossary/market-value/): Definition Market value, also known as fair market value, refers to the current price at which an asset, security, or...
- [Infrastructure as a service (IaaS)](https://swoopfunding.com/za/business-glossary/infrastructure-as-a-service/): Definition IaaS providers offer virtualised computing resources, including virtual machines (VMs) or containers, which enable clients to run applications and...
- [Human resources (HR)](https://swoopfunding.com/za/business-glossary/human-resources/): Definition Human resources (HR) refers to the department within an organisation responsible for managing and coordinating all aspects related to...
- [Gross national product](https://swoopfunding.com/za/business-glossary/gross-national-product/): Definition Gross national product (GNP) is a macroeconomic measure of the total value of all goods and services produced by...
- [Earnings per click (EPC)](https://swoopfunding.com/za/business-glossary/earnings-per-click/): Definition Earnings per click (EPC) is a metric used in online advertising to measure the effectiveness of an advertising campaign....
- [Debit](https://swoopfunding.com/za/business-glossary/debit/): Definition A debit refers to an entry made on the left side of an accounting ledger or financial statement, representing...
- [Customer relations management (CRM)](https://swoopfunding.com/za/business-glossary/customer-relations-management/): Definition Customer relationship management (CRM) is a strategic approach and technology-enabled process that businesses use to manage interactions and relationships...
- [Non-amortisation loan](https://swoopfunding.com/za/business-glossary/non-amortisation-loan/): Definition A non-amortising loan, also known as a bullet loan or interest-only loan, is a type of loan where the...
- [Green finance](https://swoopfunding.com/za/business-glossary/green-finance/): Definition Green finance refers to financial products, services, and investments that support environmentally sustainable projects, businesses, and initiatives. What is...
- [Prime rate](https://swoopfunding.com/za/business-glossary/prime-rate/): Definition In South Africa, the term "prime rate" refers to the interest rate that commercial banks charge their most creditworthy...
- [Cost per unit](https://swoopfunding.com/za/business-glossary/cost-per-unit/): Definition Cost per unit is a financial metric used to measure the average cost incurred by a company to produce...
- [Cost per lead (CPL)](https://swoopfunding.com/za/business-glossary/cost-per-lead/): Definition Cost per lead (CPL) is a marketing metric that measures the cost incurred by a company or marketer to...
- [Cost of goods sold](https://swoopfunding.com/za/business-glossary/cost-of-goods-sold/): Definition Cost of goods sold (COGS) is a key accounting metric that represents the direct costs incurred by a company...
- [Scrap value](https://swoopfunding.com/za/business-glossary/scrap-value/): Definition Scrap value is the estimated value of an asset's components or materials when the asset is no longer in...
- [Salvage value](https://swoopfunding.com/za/business-glossary/salvage-value/): Definition Salvage value, also known as residual value or scrap value, is the estimated monetary worth of an asset at...
- [Liquidation value](https://swoopfunding.com/za/business-glossary/liquidation-value/): Definition Liquidation value refers to the estimated cash value that an asset or a business would gain if it were...
- [Corporate social responsibility (CSR)](https://swoopfunding.com/za/business-glossary/corporate-social-responsibility/): Definition Corporate social responsibility (CSR) is a concept that refers to a company's voluntary commitment to operating ethically and responsibly,...
- [Conversion rate](https://swoopfunding.com/za/business-glossary/conversion-rate/): Definition Conversion rate measures the percentage of website visitors or users who take a desired action, often referred to as...
- [Click through rate (CTR)](https://swoopfunding.com/za/business-glossary/click-through-rate/): Definition Click through rate (CTR) is a metric used in online advertising and digital marketing to measure the effectiveness of...
- [Chief technology officer (CTO)](https://swoopfunding.com/za/business-glossary/chief-technology-officer/): Definition A chief technology officer (CTO) is a high-ranking executive within an organisation who is responsible for overseeing the development...
- [Chief security officer (CSO)](https://swoopfunding.com/za/business-glossary/chief-security-officer/): Definition A chief security officer (CSO) is a senior executive within an organisation responsible for developing and implementing strategies to...
- [Chief operating officer (COO)](https://swoopfunding.com/za/business-glossary/chief-operating-officer/): Definition A chief operating officer (COO) is a high-ranking executive within an organisation who is responsible for overseeing the day-to-day...
- [Chief marketing officer (CMO)](https://swoopfunding.com/za/business-glossary/chief-marketing-officer/): Definition A chief marketing officer (CMO) is a senior executive within an organisation who is responsible for overseeing and managing...
- [Chief information officer (CIO)](https://swoopfunding.com/za/business-glossary/chief-information-officer/): Definition A chief Information Officer (CIO) is a senior executive within an organisation who is responsible for the overall management...
- [Chief financial officer (CFO)](https://swoopfunding.com/za/business-glossary/chief-financial-officer/): Definition A chief financial officer (CFO) is a high-ranking executive within an organisation who is primarily responsible for managing the...
- [Chief executive officer (CEO)](https://swoopfunding.com/za/business-glossary/chief-executive-officer/): Definition A chief executive officer (CEO) is the highest-ranking executive within an organisation, responsible for overall leadership, strategic decision-making, and...
- [Chief data officer (CDO)](https://swoopfunding.com/za/business-glossary/chief-data-officer/): Definition A chief data officer (CDO) is a high-level executive within an organisation responsible for managing and leveraging data as...
- [Chief analytics officer (CAO)](https://swoopfunding.com/za/business-glossary/chief-analytics-officer/): Definition A chief analytics officer (CAO) is a senior executive within an organisation responsible for leading and overseeing the strategic...
- [Business-to-business (B2B)](https://swoopfunding.com/za/business-glossary/business-to-business/): Definition Business-to-business (B2B) refers to a type of commerce or transaction that occurs between two businesses rather than between a...
- [Application service provider (ASP)](https://swoopfunding.com/za/business-glossary/application-service-provider/): Definition An application service provider (ASP) is a business that delivers software applications or services over the internet or a...
- [Capital gains tax](https://swoopfunding.com/za/business-glossary/capital-gains-tax/): Definition Capital gains tax is a type of tax levied on the profit or gain realised from the sale or...
- [Preferential rates](https://swoopfunding.com/za/business-glossary/preferential-rates/): Definition Preferential rates refer to reduced or favourable tariff rates granted to certain goods when traded between countries that have...
- [Customs value](https://swoopfunding.com/za/business-glossary/customs-value/): Definition Customs value refers to the monetary worth of goods as assessed by customs authorities for the purpose of calculating...
- [Commodity code](https://swoopfunding.com/za/business-glossary/commodity-code/): Definition A commodity code is a standardised numerical code assigned to specific products or goods for international trade.   What...
- [Bounce rate](https://swoopfunding.com/za/business-glossary/bounce-rate/): Definition Bounce rate is a web analytics metric that measures the percentage of visitors who navigate away from a website...
- [Annual percentage yield (APY)](https://swoopfunding.com/za/business-glossary/annual-percentage-yield/): Definition Annual percentage yield (APY) is a financial metric used to represent the total return on an investment or deposit...
- [Net expenditure](https://swoopfunding.com/za/business-glossary/net-expenditure/): Definition Net expenditure refers to the total amount of money spent by an organisation after accounting for any offsetting revenues,...
- [Subcontractor](https://swoopfunding.com/za/business-glossary/subcontractor/): Definition A subcontractor is an individual or a company that is hired by a primary contractor to perform a specific...
- [Indirect cost](https://swoopfunding.com/za/business-glossary/indirect-cost/): Definition Indirect costs, commonly referred to as overhead costs, are expenses that are challenging to directly assign to a specific...
- [Direct cost ](https://swoopfunding.com/za/business-glossary/direct-cost/): Defintion Direct cost refers to expenses that can be specifically and easily linked to a particular product, project, or activity....
- [SIC code](https://swoopfunding.com/za/business-glossary/sic-code/): Definition A Standard Industrial Classification (SIC) code is a numerical code used to classify and categorise businesses based on their...
- [Sell rate  ](https://swoopfunding.com/za/business-glossary/sell-rate/): Definition Sell rate typically refers to the exchange rate at which a financial institution, such as a bank, sells foreign...
- [Buy rate  ](https://swoopfunding.com/za/business-glossary/buy-rate/): Definition The term "buy rate" typically refers to the interest rate at which a financial institution, such as a bank,...
- [Wall street](https://swoopfunding.com/za/business-glossary/wall-street/): A symbolic term referring to the financial district in New York City
- [Write down](https://swoopfunding.com/za/business-glossary/write-down/): Definition In business and finance, a "write down" refers to the accounting practice of reducing the book value of an...
- [Withdrawal](https://swoopfunding.com/za/business-glossary/withdrawal/): Definition A withdrawal refers to the act of removing funds from a business account or using business resources for personal...
- [Term loan](https://swoopfunding.com/za/business-glossary/term-loan/): Definition A term loan is a type of loan that provides a specific amount of capital to a business for...
- [Tax credit](https://swoopfunding.com/za/business-glossary/tax-credit/): Definition In a business context, a tax credit refers to a financial incentive provided by the government to encourage certain...
- [Stock](https://swoopfunding.com/za/business-glossary/stock/): Definition In business and finance, a stock refers to a type of financial instrument that represents ownership in a business...
- [Sales tax](https://swoopfunding.com/za/business-glossary/sales-tax/): Definition Sales tax is a consumption-based tax imposed by governments on the sale of goods and, in some cases, services....
- [Repayment](https://swoopfunding.com/za/business-glossary/repayment/): Definition Repayment refers to the process of returning borrowed funds or fulfilling a financial obligation according to the terms. What...
- [Quarterly report](https://swoopfunding.com/za/business-glossary/quarterly-report/): Definition A quarterly report is a financial document made by a publicly traded company every quarter, typically at the end...
- [Net asset value](https://swoopfunding.com/za/business-glossary/net-asset-value/): Definition Net asset value (NAV) is a financial metric that represents the per-share market value of a mutual fund, exchange-traded...
- [Negative equity](https://swoopfunding.com/za/business-glossary/negative-equity/): Definition Negative equity refers to a situation where the total liabilities of a company exceed its total assets, resulting in...
- [Money flow](https://swoopfunding.com/za/business-glossary/money-flow/): Definition Money flow in business generally refers to the movement or circulation of funds within a company. What is money...
- [Long-term liabilities](https://swoopfunding.com/za/business-glossary/long-term-liabilities/): Definition Long-term liabilities, also known as non-current liabilities, are financial obligations and debts that a company is expected to settle...
- [Leasehold](https://swoopfunding.com/za/business-glossary/leasehold/): Definition Leasehold in business refers to the rights held by a tenant or lessee to use and occupy a property...
- [Insider trading](https://swoopfunding.com/za/business-glossary/insider-trading/): Definition Insider trading in business refers to the illegal practice of buying or selling a company's securities (such as stocks,...
- [Import duty](https://swoopfunding.com/za/business-glossary/import-duty/): Definition Import duty is a tax imposed by a government on goods that are imported into a country. It is...
- [Greenwashing](https://swoopfunding.com/za/business-glossary/greenwashing/): Definition Greenwashing in business refers to the practice of misleadingly communicating a false or exaggerated impression of environmental responsibility, sustainability,...
- [Fixed cost](https://swoopfunding.com/za/business-glossary/fixed-cost/): Definition Fixed costs are expenses that remain constant within a certain range of production or sales volume over a specific...
- [First-year allowance (FYA)](https://swoopfunding.com/za/business-glossary/first-year-allowance/): Definition First-year allowance (FYA) refers to a tax incentive that allows businesses to deduct the full cost of qualifying capital...
- [Financial year](https://swoopfunding.com/za/business-glossary/financial-year/): Definition A financial year, also known as a fiscal year or accounting year, is a 12-month period that businesses use...
- [Exit strategy](https://swoopfunding.com/za/business-glossary/exit-strategy/): Definition An exit strategy in business refers to a planned approach by business owners or investors to sell or transfer...
- [Entrepreneur](https://swoopfunding.com/za/business-glossary/entrepreneur/): Definition An entrepreneur is an individual who takes on the initiative and risk to start, develop, and manage a new...
- [Discount mortgage](https://swoopfunding.com/za/business-glossary/discount-mortgage/): Definition A discount mortgage is a type of mortgage where the interest rate is set at a certain percentage below...
- [Cost per click](https://swoopfunding.com/za/business-glossary/cost-per-click/): Definition Cost per click (CPC) is a digital advertising metric that represents the amount an advertiser pays each time a...
- [Copyright](https://swoopfunding.com/za/business-glossary/copyright/): Definition Copyright is a legal concept that grants exclusive rights to the creators of original works, allowing them to control...
- [Checking account](https://swoopfunding.com/za/business-glossary/checking-account/): Definition A checking account is a financial account held at a bank or credit union that is designed for everyday...
- [Capital expenses](https://swoopfunding.com/za/business-glossary/capital-expenses/): Definition Capital expenses, often referred to as capital expenditures, represent significant financial investments made by a business or an organisation...
- [Buy-to-let mortgage](https://swoopfunding.com/za/business-glossary/buy-to-let-mortgage/): Definition A buy-to-let mortgage is a financial product designed for individuals or investors who wish to purchase residential property for...
- [Business cycle](https://swoopfunding.com/za/business-glossary/business-cycle/): Definition A business cycle refers to the recurring pattern of expansion and contraction in economic activity that occurs over time....
- [Benchmark](https://swoopfunding.com/za/business-glossary/benchmark/): Definition A benchmark is a reference point or standard used for comparison and evaluation, serving as a measure against which...
- [Base rate](https://swoopfunding.com/za/business-glossary/base-rate/): Definition A base rate, in the context of finance and banking, refers to a benchmark interest rate that serves as...
- [Accounts receivable](https://swoopfunding.com/za/business-glossary/accounts-receivable/): Definition Accounts receivable refers to the outstanding amounts that a business is yet to collect from its customers or clients...
- [Accounting period](https://swoopfunding.com/za/business-glossary/accounting-period/): Definition An accounting period, also referred to as a fiscal period or financial period, is a defined span of time...
- [Discount rate](https://swoopfunding.com/za/business-glossary/discount-rate/): Definition A discount rate in business and finance refers to the interest rate used to determine the present value of...
- [Export](https://swoopfunding.com/za/business-glossary/export/): Definition Export refers to the process of selling goods or services produced in one country to customers or businesses located...
- [Competitive advantage](https://swoopfunding.com/za/business-glossary/competitive-advantage/): Definition A competitive advantage refers to a specific attribute or set of attributes that allows a business or organisation to...
- [Cash flow statement](https://swoopfunding.com/za/business-glossary/cash-flow-statement/): Definition A cash flow statement is a financial statement that provides a summary of how a company manages its cash...
- [Year to date](https://swoopfunding.com/za/business-glossary/year-to-date/): Definition Year to date (YTD) in business and finance refers to the period beginning from the first day of the...
- [Vision](https://swoopfunding.com/za/business-glossary/vision/): Definition A vision in business and finance refers to a forward-looking statement that expresses the long-term aspirations, goals, and aspirations...
- [Vertical integration](https://swoopfunding.com/za/business-glossary/vertical-integration/): Definition Vertical integration is a business strategy in which a company expands its operations across different stages of the same...
- [Variable cost](https://swoopfunding.com/za/business-glossary/variable-cost/): Definition Variable costs are expenses that vary in direct proportion to the level of production or business activity. What are...
- [Value-added tax (VAT)](https://swoopfunding.com/za/business-glossary/value-added-tax/): Definition Value-added tax (VAT) is a tax imposed at each stage of the production and distribution process. What is value-added...
- [Value proposition](https://swoopfunding.com/za/business-glossary/value-proposition/): Definition A value proposition is a clear statement that outlines the unique benefits and value that a product, service, or...
- [Value chain](https://swoopfunding.com/za/business-glossary/value-chain/): Definition A value chain is a concept in business that describes the series of activities and processes a company undertakes...
- [Unlimited liability](https://swoopfunding.com/za/business-glossary/unlimited-liability/): Definition Unlimited liability in business and finance refers to a legal and financial structure where the owners are personally responsible...
- [Turnover](https://swoopfunding.com/za/business-glossary/turnover/): Definition In business and finance, "turnover" encompasses both employee turnover and financial turnover. Both concepts are crucial for understanding and...
- [Triple bottom line](https://swoopfunding.com/za/business-glossary/triple-bottom-line/): Definition The triple bottom line is a framework that evaluates a company's performance and impact on three key dimensions: economic,...
- [Trademark](https://swoopfunding.com/za/business-glossary/trademark/): Definition A trademark is a legally protected symbol, name, word, phrase, logo, design, or combination of these elements that identifies...
- [Total debt to total assets ratio](https://swoopfunding.com/za/business-glossary/total-debt-to-total-assets-ratio/): Definition The total debt to total assets ratio is a financial metric used to evaluate the financial leverage of a...
- [Total shareholder return (TSR)](https://swoopfunding.com/za/business-glossary/total-shareholder-return/): Definition Total shareholder return (TSR) is a financial metric that measures the total return an investor receives from an investment...
- [The 4 p's](https://swoopfunding.com/za/business-glossary/the-4-ps/): Definition The 4 p's in business, also known as the marketing mix, are a set of fundamental elements that form...
- [Sole trader](https://swoopfunding.com/za/business-glossary/sole-trader/): Definition A sole trader is a type of business structure where an individual operates and owns a business independently. In...
- [Supply chain](https://swoopfunding.com/za/business-glossary/supply-chain/): Definition A supply chain is a network of organisations, individuals, activities, resources, and information involved in the creation, production, distribution,...
- [Startup](https://swoopfunding.com/za/business-glossary/startup-definition/): Definition A startup in business refers to a newly established company or organisation that is in the early stages of...
- [Stakeholder value](https://swoopfunding.com/za/business-glossary/stakeholder-value/): Definition Stakeholder value is a management principle that emphasises the importance of creating value not only for shareholders, but also...
- [Social responsibility](https://swoopfunding.com/za/business-glossary/social-responsibility/): Definition Social responsibility in business and finance refers to the ethical and moral obligations that organisations have towards society and...
- [Shareholder value](https://swoopfunding.com/za/business-glossary/shareholder-value/): Definition Shareholder value refers to the total worth of a company as determined by the market value of its outstanding...
- [Sector](https://swoopfunding.com/za/business-glossary/sector/): Definition In business and finance, a sector refers to a distinct category or grouping of companies, organisations, or industries that...
- [Scalability](https://swoopfunding.com/za/business-glossary/scalability/): Definition Scalability in business and finance refers to the ability of a company or financial model to handle increased demands,...
- [Revolving credit](https://swoopfunding.com/za/business-glossary/revolving-credit/): Definition Revolving credit refers to a type of credit arrangement that allows individuals or businesses to borrow money up to...
- [Return on invested capital (ROIC)](https://swoopfunding.com/za/business-glossary/return-on-invested-capital/): Definition Return on invested capital (ROIC) is a financial metric used to evaluate the efficiency and profitability of a company...
- [Return on equity (ROE)](https://swoopfunding.com/za/business-glossary/return-on-equity/): Definition Return on equity (ROE) is a key financial ratio that measures the profitability of a company in relation to...
- [Return on assets (ROA)](https://swoopfunding.com/za/business-glossary/return-on-assets/): Definition Return on assets (ROA) is a financial metric that measures a company's efficiency in generating profits from its total...
- [Residual value](https://swoopfunding.com/za/business-glossary/residual-value/): Definition Residual value, also known as salvage value or scrap value, is a financial term used in various contexts, particularly...
- [Research and development (R&D)](https://swoopfunding.com/za/business-glossary/research-and-development/): Definition Research and development (R&D) is a crucial component of business and innovation, encompassing activities aimed at creating and improving...
- [Refinancing](https://swoopfunding.com/za/business-glossary/refinancing/): Definition Refinancing in business and finance refers to the process of replacing or restructuring existing debt or financial instruments with...
- [Rate of return](https://swoopfunding.com/za/business-glossary/rate-of-return/): Definition The rate of return (RoR) is a financial metric used to evaluate the profitability or performance of an investment...
- [Quick ratio](https://swoopfunding.com/za/business-glossary/quick-ratio/): Definition The quick ratio, also known as the acid-test ratio, is a financial metric used to evaluate a company's short-term...
- [Quick assets](https://swoopfunding.com/za/business-glossary/quick-assets/): Definition Quick assets, also known as liquid assets or current liquid assets, refer to a company's most readily convertible and...
- [Quality of earnings](https://swoopfunding.com/za/business-glossary/quality-of-earnings/): Definition Quality of earnings is a term used in finance and accounting to assess the reliability and sustainability of a...
- [Quality control](https://swoopfunding.com/za/business-glossary/quality-control/): Definition Quality control (QC) is a systematic process implemented by businesses to ensure that products or services meet specified standards...
- [Pricing strategy](https://swoopfunding.com/za/business-glossary/pricing-strategy/): Definition Pricing strategy is a fundamental component of a business's overall marketing and financial strategy. What is a pricing strategy?...
- [Personal liability](https://swoopfunding.com/za/business-glossary/personal-liability/): Definition Personal liability in business and finance refers to the legal responsibility of an individual, often the owner or operator...
- [Profit](https://swoopfunding.com/za/business-glossary/profit/): Definition Profit, in a business context, is the financial gain or positive difference between total revenue and total expenses over...
- [Peer-to-peer lending (P2P)](https://swoopfunding.com/za/business-glossary/peer-to-peer-lending/): Definition Peer-to-peer lending is a decentralised form of lending that enables individuals or businesses to borrow money directly from other...
- [Patent](https://swoopfunding.com/za/business-glossary/patent/): Definition In business and finance, a patent is a legally granted property right that provides exclusive ownership and protection to...
- [Partnership](https://swoopfunding.com/za/business-glossary/partnership/): Definition A partnership in business and finance is a legal and economic arrangement where two or more individuals or entities...
- [Operational effectiveness](https://swoopfunding.com/za/business-glossary/operational-effectiveness/): Definition Operational effectiveness refers to the degree to which an organisation can execute its core activities and processes efficiently and...
- [Obligations](https://swoopfunding.com/za/business-glossary/obligations/): Definition Obligations in a business context refer to the legal, financial, and ethical responsibilities that a company or organisation has...
- [Overdraft](https://swoopfunding.com/za/business-glossary/overdraft/): Definition An overdraft is a financial arrangement provided by a bank or financial institution that allows an account holder to...
- [Outsourcing](https://swoopfunding.com/za/business-glossary/outsourcing/): Definition Outsourcing is a business practice in which a company contracts out certain tasks, functions, or processes to external third-party...
- [Organisational structure](https://swoopfunding.com/za/business-glossary/organisational-structure/): Definition Organisational structure in business and finance refers to the formal framework that outlines how an organisation is organised, including...
- [Operating margin](https://swoopfunding.com/za/business-glossary/operating-margin/): Defintion Operating margin is a financial metric that measures the profitability of a company's core operations. What is operating margin?...
- [Operating lease](https://swoopfunding.com/za/business-glossary/operating-lease/): Definition An operating lease is a type of lease agreement in which a lessee gains access to and uses an...
- [Operating costs](https://swoopfunding.com/za/business-glossary/operating-costs/): Definition Operating costs, often referred to as "operational expenses", are the ongoing expenses that a business incurs in order to...
- [Non-disclosure agreement (NDA)](https://swoopfunding.com/za/business-glossary/non-disclosure-agreement/): Definition A non-disclosure agreement (NDA) in business and finance is a legally binding contract used to protect sensitive information shared...
- [Non-current liabilities](https://swoopfunding.com/za/business-glossary/non-current-liabilities/): Definition Non-current liabilities, also known as long-term liabilities, are obligations or debts that a company expects to settle or fulfil...
- [Non-current assets](https://swoopfunding.com/za/business-glossary/non-current-assets/): Definition Non-current assets, also known as long-term assets or fixed assets, are a category of assets listed on a company's...
- [Net present value (NPV)](https://swoopfunding.com/za/business-glossary/net-present-value/): Definition Net present value (NPV) is a financial metric used to evaluate the profitability of an investment or project. What...
- [Net operating income (NOI)](https://swoopfunding.com/za/business-glossary/net-operating-income/): Definition Net operating income (NOI) is a key financial metric used in real estate investment and property management. What is...
- [Net loss](https://swoopfunding.com/za/business-glossary/net-loss/): Definition Net loss is a financial metric that represents the amount by which total expenses and costs exceed total revenues...
- [Mission](https://swoopfunding.com/za/business-glossary/mission/): Definition In business and finance, a mission statement is a concise declaration that outlines the fundamental purpose and reason for...
- [Marketing strategy](https://swoopfunding.com/za/business-glossary/marketing-strategy/): Definition A marketing strategy is a plan or approach that outlines how a company will promote, advertise, and sell its...
- [Market share](https://swoopfunding.com/za/business-glossary/market-share/): Definition Market share refers to the portion or percentage of total sales or revenue that a particular company or product...
- [Market leader](https://swoopfunding.com/za/business-glossary/market-leader/): Definition A market leader is a company or organisation that holds a dominant position within a particular industry or market...
- [Management buyout (MBO)](https://swoopfunding.com/za/business-glossary/management-buyout/): Definition A management buyout (MBO) is a transaction in which the existing management team of a company, often in collaboration...
- [Lean management](https://swoopfunding.com/za/business-glossary/lean-management/): Definition Lean management is a systematic approach to business management that focuses on creating value for the customer while minimising...
- [Limited company](https://swoopfunding.com/za/business-glossary/limited-company/): Definition A limited company is a type of business structure in which the owners' liability is limited to the amount...
- [Liquidity ratios](https://swoopfunding.com/za/business-glossary/liquidity-ratios/): Definition Liquidity ratios are financial metrics that measure a company's ability to meet its short-term financial obligations with its readily...
- [Liquidity coverage ratio (LCR)](https://swoopfunding.com/za/business-glossary/liquidity-coverage-ratio/): Definition The liquidity coverage ratio (LCR) is a financial metric used in the banking industry to assess a bank's short-term...
- [Limited liability](https://swoopfunding.com/za/business-glossary/limited-liability/): Definition Limited liability is a legal concept that protects the personal assets of business owners, shareholders, or members from the...
- [Life cycle](https://swoopfunding.com/za/business-glossary/life-cycle/): Definition In business and finance, a "life cycle" refers to the stages and phases that a product, business, or industry...
- [Liability](https://swoopfunding.com/za/business-glossary/liability/): Definition In business and finance, a liability refers to an obligation or debt that a company owes to external parties,...
- [Leverage ratio](https://swoopfunding.com/za/business-glossary/leverage-ratio/): Defintion A leverage ratio is a financial metric that assesses the extent to which a company relies on debt to...
- [Letter of intent (LOI)](https://swoopfunding.com/za/business-glossary/letter-of-intent/): Definition A letter of intent (LOI) in business and finance is a formal document that outlines the preliminary understanding between...
- [Letter of credit](https://swoopfunding.com/za/business-glossary/letter-of-credit/): Definition A letter of credit (LC) is a financial instrument commonly used in international trade transactions. It serves as a...
- [Law of supply](https://swoopfunding.com/za/business-glossary/law-of-supply/): Definition The law of supply is a fundamental principle in economics that describes the relationship between the price of a...
- [Law of demand](https://swoopfunding.com/za/business-glossary/law-of-demand/): Definition The law of demand is a fundamental principle in economics that describes the relationship between the price of a...
- [Just in time (JIT)](https://swoopfunding.com/za/business-glossary/just-in-time/): Definition "Just in time" (JIT) is a business and production strategy aimed at optimising efficiency and reducing waste in the...
- [Just in case (JIC)](https://swoopfunding.com/za/business-glossary/just-in-case/): Definition "Just in case" in the context of business and finance refers to a strategic approach where companies take precautionary...
- [Inventory turnover](https://swoopfunding.com/za/business-glossary/inventory-turnover/): Definition Inventory revenue is a financial metric used to evaluate how efficiently a company manages its inventory. It measures the...
- [Internal rate of return (IRR)](https://swoopfunding.com/za/business-glossary/internal-rate-of-return/): Definition The internal rate of return (IRR) is a financial metric used to evaluate the potential profitability of an investment...
- [Interest coverage ratio](https://swoopfunding.com/za/business-glossary/interest-coverage-ratio/): Definition The interest coverage ratio (ICR) is a financial metric used to assess a company's ability to meet its interest...
- [Income statement](https://swoopfunding.com/za/business-glossary/income-statement/): Definition An income statement, also known as a profit and loss statement (P&L), is a financial document that provides a...
- [Import](https://swoopfunding.com/za/business-glossary/import/): Definition Import refers to the act of bringing goods or services into a country from abroad for the purpose of...
- [Horizontal integration](https://swoopfunding.com/za/business-glossary/horizontal-integration/): Definition Horizontal integration is a business strategy in which a company expands its operations or acquires similar businesses at the...
- [Holding company](https://swoopfunding.com/za/business-glossary/holding-company/): Definition A holding company is a type of business entity that exists primarily to own and control other companies, either...
- [High street bank](https://swoopfunding.com/za/business-glossary/high-street-bank/): Definition A high street bank, also known as a retail bank or a commercial bank, is a financial institution that...
- [Guarantor](https://swoopfunding.com/za/business-glossary/guarantor/): Definition A guarantor is an individual or entity that agrees to take on the responsibility of fulfilling a financial obligation...
- [Gross profit](https://swoopfunding.com/za/business-glossary/gross-profit/): Definition Gross profit is a financial metric that represents the revenue a company earns from its core operations minus the...
- [Gross margin](https://swoopfunding.com/za/business-glossary/gross-margin/): Definition Gross margin, also known as gross profit margin, is a financial metric that measures the profitability of a company's...
- [General data protection regulation (GDPR)](https://swoopfunding.com/za/business-glossary/general-data-protection-regulation/): Definition The General Data Protection Regulation (GDPR) is a comprehensive data protection and privacy regulation enacted by the European Union...
- [Gearing](https://swoopfunding.com/za/business-glossary/gearing/): Definition Gearing, in financial terms, refers to the proportion of a company's capital that is financed by debt compared to...
- [Free market](https://swoopfunding.com/za/business-glossary/free-market/): Definition A free market is an economic system characterised by voluntary exchange and competition in which individuals and businesses operate...
- [Franchise](https://swoopfunding.com/za/business-glossary/franchise/): Definition A franchise is a business arrangement in which one party, known as the franchisor, grants another party, known as...
- [Fixed asset](https://swoopfunding.com/za/business-glossary/fixed-asset/): Definition A fixed asset, also known as a tangible or non-current asset, refers to a long-term, physical asset held by...
- [First mover](https://swoopfunding.com/za/business-glossary/first-mover/): Definition A "first mover" refers to a company or entity that is the initial entrant into a new market or...
- [Equivalent annual cost (EAC)](https://swoopfunding.com/za/business-glossary/equivalent-annual-cost/): Definition Equivalent annual cost (EAC) is a financial metric used to compare the costs of different investment projects or assets...
- [Enterprise value](https://swoopfunding.com/za/business-glossary/enterprise-value/): Definition Enterprise value (EV) is a financial metric used to determine the total value of a company, taking into account...
- [EBITA](https://swoopfunding.com/za/business-glossary/ebita/): Definition EBITA stands for earnings before interest, taxes, and amortisation. It is a financial metric used to assess a company's...
- [Down payment](https://swoopfunding.com/za/business-glossary/down-payment/): Definition A down payment is an upfront, initial payment made by a buyer as part of a larger transaction, typically...
- [Debt ratio](https://swoopfunding.com/za/business-glossary/debt-ratio/): Definition The debt ratio, also known as the debt-to-equity ratio, is a financial metric used to assess the proportion of...
- [Current ratio](https://swoopfunding.com/za/business-glossary/current-ratio/): Definition The current ratio is a financial metric used to assess a company's short-term liquidity and its ability to cover...
- [Current liabilities](https://swoopfunding.com/za/business-glossary/current-liabilities/): Definition Current liabilities are financial obligations and debts that a company is expected to settle within one year or within...
- [Current assets](https://swoopfunding.com/za/business-glossary/current-assets/): Definition Current assets refer to a category of assets on a company's balance sheet that are expected to be converted...
- [Crowdfunding](https://swoopfunding.com/za/business-glossary/crowdfunding/): Definition Crowdfunding is a method of raising capital where a large number of individuals each contribute a relatively small amount...
- [Credit score](https://swoopfunding.com/za/business-glossary/credit-score/): Definition A credit score is a numerical representation of your creditworthiness, which is used by lenders to assess the likelihood...
- [Credit facility](https://swoopfunding.com/za/business-glossary/credit-facility/): Definition A credit facility is a financial arrangement between a lender and a borrower that provides the borrower with access...
- [Corporate tax](https://swoopfunding.com/za/business-glossary/corporate-tax/): Definition Corporate tax refers to a tax charged by governments on the profits earned by businesses, corporations, and other legal...
- [Comparative advantage](https://swoopfunding.com/za/business-glossary/comparative-advantage/): Definition Comparative advantage is an economic principle that describes the ability of a country, individual, or entity to produce a...
- [Cash advance](https://swoopfunding.com/za/business-glossary/cash-advance/): Definition A cash advance refers to a financial service provided by banks, credit card companies, and some other financial institutions....
- [Capital](https://swoopfunding.com/za/business-glossary/capital-explained/): Definition Capital refers to the financial resources, assets, or wealth owned or controlled by an individual, business, or entity. It...
- [Buyout](https://swoopfunding.com/za/business-glossary/buyout/): Definition A buyout refers to an individual, group of individuals, or another company purchasing a majority stake in the target...
- [Business-to-consumer (B2C)](https://swoopfunding.com/za/business-glossary/business-to-consumer/): Definition Business-to-consumer (B2C) refers to the type of commerce and business relationship in which companies sell products or provide services...
- [Business valuation](https://swoopfunding.com/za/business-glossary/business-valuation/): Definition Business valuation is the assessment of a company's economic worth, considering factors like assets, liabilities, cash flow, and market...
- [Business plan](https://swoopfunding.com/za/business-glossary/business-plan/): Definition A business plan is a document that outlines a company's goals, objectives, strategies, and operational plans. It serves as...
- [Business model](https://swoopfunding.com/za/business-glossary/business-model/): Definition A business model is a framework or plan that outlines how a company creates, delivers, and captures value. It...
- [Bridge loan](https://swoopfunding.com/za/business-glossary/bridge-loan/): Definition A bridge loan, also known as interim financing or a swing loan, is a short-term loan used to provide...
- [Break-even analysis](https://swoopfunding.com/za/business-glossary/break-even-analysis/): Definition Break-even analysis is a financial assessment tool used by businesses to determine the point at which total revenue equals...
- [Bank statement](https://swoopfunding.com/za/business-glossary/bank-statement/): Definition A bank statement is an official document provided by a financial institution, such as a bank or credit union,...
- [Average return](https://swoopfunding.com/za/business-glossary/average-return/): Definition Average return refers to the mean rate of gain or loss on an investment over a specified period of...
- [Asset-based lending](https://swoopfunding.com/za/business-glossary/asset-based-lending/): Definition Asset-based lending is a form of business financing where a company secures a loan or line of credit using...
- [Asset turnover ratio](https://swoopfunding.com/za/business-glossary/asset-turnover-ratio/): Definition The asset revenue ratio is a financial metric used to evaluate a company's efficiency in generating revenue from its...
- [Asset coverage ratio](https://swoopfunding.com/za/business-glossary/asset-coverage-ratio/): Definition The asset coverage ratio is a financial metric used to assess a company's ability to cover its debts and...
- [Asset](https://swoopfunding.com/za/business-glossary/asset/): Definition An asset is a resource with economic value that is owned or controlled by an individual, corporation, or entity,...
- [Annual report](https://swoopfunding.com/za/business-glossary/annual-report/): Definition An annual report is a document that provides a detailed overview of a company's financial performance, operations, and activities...
- [Angel investors](https://swoopfunding.com/za/business-glossary/angel-investors/): Definition An angel investor is an individual who provides capital to start-ups or small businesses in exchange for equity. What...
- [Advance payment](https://swoopfunding.com/za/business-glossary/advance-payment/): Definition An advance payment, also known as a prepayment, is a financial transaction in which a payer provides funds to...
- [Acid-test ratio](https://swoopfunding.com/za/business-glossary/acid-test-ratio/): Definition The acid-test ratio, also known as the quick ratio, is a financial metric used to evaluate a company's ability...
- [Accrued revenue](https://swoopfunding.com/za/business-glossary/accrued-revenue/): Definition Accrued revenue refers to revenue that a company has earned but has not yet received in cash. It represents...
- [Accrued liability](https://swoopfunding.com/za/business-glossary/accrued-liability/): Definition Accrued liability refers to an expense that a company has incurred but has not yet paid. It represents an...
- [Accrued interest](https://swoopfunding.com/za/business-glossary/accrued-interest/): Definition Accrued interest refers to the interest that has been earned but not yet received or paid. It's an interest...
- [Accounting equation](https://swoopfunding.com/za/business-glossary/accounting-equation/): Definition The accounting equation, also known as the balance sheet equation, is a concept in accounting that forms the basis...
- [Due diligence](https://swoopfunding.com/za/business-glossary/due-dilligence/): Definition Due diligence is a comprehensive and systematic investigation or research process conducted by individuals, organisations, or businesses to gather...
- [Zoning laws](https://swoopfunding.com/za/business-glossary/zoning-laws/): Definition Zoning laws are local regulations that dictate how land and property can be used within a specific area or...
- [Zero-sum game](https://swoopfunding.com/za/business-glossary/zero-sum-game/): Definition A zero-sum game is a situation in game theory and economics where one participant's gain or loss is exactly...
- [Zero-coupon bond](https://swoopfunding.com/za/business-glossary/zero-coupon-bond/): Definition A zero-coupon bond is a type of bond that does not pay periodic interest (coupon payments) to the bondholder....
- [Year-over-year (YOY)](https://swoopfunding.com/za/business-glossary/year-over-year-yoy/): Definition Year-over-year (YOY) is a financial metric used to compare a specific data point or performance measure in the current...
- [Working capital](https://swoopfunding.com/za/business-glossary/working-capital-2/): Definition Working capital refers to the capital that a company uses in its day-to-day trading operations. It is the difference...
- [Wealth management](https://swoopfunding.com/za/business-glossary/wealth-management/): Definition Wealth management refers to the professional service of managing an individual's or a family's financial resources and investments. What...
- [Warrant](https://swoopfunding.com/za/business-glossary/warrant/): Definition A warrant is a financial instrument that gives the holder the right, but not the obligation, to buy a...
- [Voluntary liquidation](https://swoopfunding.com/za/business-glossary/voluntary-liquidation/): Definition Voluntary liquidation, also known as voluntary winding-up, is a formal process by which a company chooses to bring its...
- [Volatility](https://swoopfunding.com/za/business-glossary/volatility/): Definition Volatility, in finance, refers to the degree of variation or fluctuation in the price of a financial instrument, such...
- [Venture capital](https://swoopfunding.com/za/business-glossary/venture-capital/): Definition Venture capital refers to a form of private equity investment that is provided to early-stage, high-potential companies with the...
- [Variable annuity](https://swoopfunding.com/za/business-glossary/variable-annuity/): Definition A variable annuity is a type of retirement investment product offered by insurance companies. What is variable annuity? Annual...
- [Value at risk (VaR)](https://swoopfunding.com/za/business-glossary/value-at-risk-var/): Definition Value at risk (VaR) is a statistical measure used in finance to estimate the potential loss that an investment...
- [Utility stocks](https://swoopfunding.com/za/business-glossary/utility-stocks/): Definition Utility stocks refer to shares of companies that provide essential services to the public, such as electricity, water, and...
- [Unsecured loan](https://swoopfunding.com/za/business-glossary/unsecured-loan/): Definition An unsecured loan is a type of loan that is not backed by collateral, such as a car or...
- [Unit trust](https://swoopfunding.com/za/business-glossary/unit-trust/): Definition A unit trust, also known as a mutual fund in some regions, is a collective investment scheme where investors...
- [Underwriting](https://swoopfunding.com/za/business-glossary/underwriting/): Definition Underwriting is a financial process commonly used in insurance and securities industries. It involves assessing and assuming risk on...
- [Treasury bonds](https://swoopfunding.com/za/business-glossary/treasury-bonds/): Definition A treasury bond, often referred to as a T-bond, is a type of debt security issued by a government,...
- [Trading platform](https://swoopfunding.com/za/business-glossary/trading-platform/): Definition A trading platform is a software or digital interface provided by financial institutions or brokers that allows investors and...
- [Time value of money (TVM)](https://swoopfunding.com/za/business-glossary/time-value-of-money-tvm/): Definition The time value of money (TVM) is a fundamental concept in finance that describes the idea that money available...
- [Technical analysis](https://swoopfunding.com/za/business-glossary/technical-analysis/): Definition Technical analysis is a method used in financial markets to evaluate and forecast the future price movements of securities,...
- [Target date fund](https://swoopfunding.com/za/business-glossary/target-date-fund/): Defintion A target date fund, also known as a lifecycle or retirement fund, is a type of investment fund that...
- [Stock split](https://swoopfunding.com/za/business-glossary/stock-split/): Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares. What...
- [Stock market](https://swoopfunding.com/za/business-glossary/stock-market/): Definition The stock market, also known as the equity market, is a financial marketplace where buying, selling, and issuance of...
- [Short selling](https://swoopfunding.com/za/business-glossary/short-selling/): Definition Short selling is a trading strategy used in financial markets where an investor, typically believing that the price of...
- [Securities and exchange commission (SEC)](https://swoopfunding.com/za/business-glossary/securities-and-exchange-commission-sec/): Definition The Securities and Exchange Commission (SEC) is a regulatory agency in the United States responsible for overseeing and enforcing...
- [Savings account](https://swoopfunding.com/za/business-glossary/savings-account/): Definition A savings account is a type of bank account designed for individuals to securely deposit and store their money...
- [Roth IRA](https://swoopfunding.com/za/business-glossary/roth-ira/): Definition A roth individual retirement account (IRA) is a type of retirement savings account that offers tax advantages to individuals...
- [Risk management](https://swoopfunding.com/za/business-glossary/risk-management/): Definition Risk management is the process of identifying, assessing, and mitigating potential risks or uncertainties that could impact an organisation's...
- [Revenue recognition](https://swoopfunding.com/za/business-glossary/revenue-recognition/): Definition Revenue recognition is an accounting principle that outlines the conditions under which a company can recognise revenue from the...
- [Return on investment (ROI)](https://swoopfunding.com/za/business-glossary/return-on-investment-roi/): Definition ROI stands for return on investment. It is a financial metric used to evaluate the profitability or efficiency of...
- [Real estate investment trust (REIT)](https://swoopfunding.com/za/business-glossary/real-estate-investment-trust-reit/): Definition A real estate investment trust (REIT) is a type of investment vehicle that allows individuals to invest in a...
- [Profit margin](https://swoopfunding.com/za/business-glossary/profit-margin/): Definition Profit margin is a financial metric that represents the percentage of revenue a company retains as profit after all...
- [Private equity](https://swoopfunding.com/za/business-glossary/private-equity/): Definition Private equity refers to a form of investment in which funds are used to acquire, invest in, or provide...
- [Principal](https://swoopfunding.com/za/business-glossary/principal/): Definition Principal refers to the original sum of money that is invested, borrowed, or lent. It is the initial amount...
- [Price-earnings ratio (P/E)](https://swoopfunding.com/za/business-glossary/price-earnings-ratio-p-e/): Defintion The price-earnings ratio (P/E ratio) is a financial metric used to evaluate the relative value of a company's stock...
- [Portfolio](https://swoopfunding.com/za/business-glossary/portfolio/): Definition A portfolio refers to a collection of financial assets, investments, or holdings owned by an individual, institution, or entity....
- [Over-the-counter (OTC)](https://swoopfunding.com/za/business-glossary/over-the-counter-otc/): Definition Over-the-Counter (OTC) refers to the decentralised market for trading financial instruments directly between parties, without a centralised exchange or...
- [Options](https://swoopfunding.com/za/business-glossary/options/): Defintion Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an...
- [Operating income](https://swoopfunding.com/za/business-glossary/operating-income/): Definition Operating income, also known as operating profit or operating earnings, is a key financial metric that represents the profit...
- [Open market operations](https://swoopfunding.com/za/business-glossary/open-market-operations/): Definition Open market operations (OMOs) are one of the tools used by central banks to influence and manage the money...
- [Offshore banking](https://swoopfunding.com/za/business-glossary/offshore-banking/): Definition Offshore banking refers to the practice of opening and maintaining bank accounts and financial assets in a foreign country,...
- [Notional value](https://swoopfunding.com/za/business-glossary/notional-value/): Definition Notional value, in financial terms, refers to the theoretical or nominal value of a financial instrument or contract. What...
- [Non-performing loan (NPL)](https://swoopfunding.com/za/business-glossary/non-performing-loan-npl/): Definition A non-performing loan (NPL) is a business loan that has stopped generating income for a lender because the borrower...
- [Nominal interest rate](https://swoopfunding.com/za/business-glossary/nominal-interest-rate/): Definition The nominal interest rate, often simply referred to as the "interest rate," is the percentage of interest charged or...
- [Net income](https://swoopfunding.com/za/business-glossary/net-income/): Definition Net income, often referred to as "profit" or "earnings," is a key financial metric that represents the amount of...
- [NASDAQ](https://swoopfunding.com/za/business-glossary/nasdaq/): Definition The NASDAQ, short for the National Association of Securities Dealers Automated Quotations, is an American stock exchange based in...
- [Mutual fund](https://swoopfunding.com/za/business-glossary/mutual-fund/): Definition A mutual fund is a type of investment vehicle that pools money from multiple investors to collectively invest in...
- [Money market](https://swoopfunding.com/za/business-glossary/money-market/): Definition A money market refers to the financial marketplace where short-term debt securities with high liquidity and low risk are...
- [Mergers and acquisitions (M&A)](https://swoopfunding.com/za/business-glossary/mergers-and-acquisitions-ma/): Definition Mergers and acquisitions (M&A) refer to the strategic business transactions involving the consolidation, combination, or transfer of ownership and...
- [Market capitalisation](https://swoopfunding.com/za/business-glossary/market-capitalisation/): Definition Market capitalisation, often abbreviated as "market cap," is a financial metric used to evaluate the size or value of...
- [Margin](https://swoopfunding.com/za/business-glossary/margin/): Definition Margin, in finance, refers to the borrowed funds that an investor uses to purchase securities, such as stocks or...
- [Long position](https://swoopfunding.com/za/business-glossary/long-position/): Definition A long position in finance refers to the situation where an investor or trader owns an asset with the...
- [Liquidity](https://swoopfunding.com/za/business-glossary/liquidity/): Definition Liquidity refers to the ease and speed at which an asset or investment can be converted into cash without...
- [Line of credit](https://swoopfunding.com/za/business-glossary/line-of-credit/): Definition A line of credit is a financial arrangement that allows an individual or a business to borrow a specific...
- [Limited liability company (LLC)](https://swoopfunding.com/za/business-glossary/limited-liability-company-llc/): Definition A limited liability company (LLC) is a type of business structure that combines elements of both a corporation and...
- [Leverage](https://swoopfunding.com/za/business-glossary/leverage/): Definition Leverage refers to the use of borrowed funds or debt to amplify the potential returns or risks of an...
- [Key performance indicator (KPI)](https://swoopfunding.com/za/business-glossary/kpi-key-performance-indicator/): Definition In the context of business and finance, a KPI, or key performance indicator, is a quantifiable metric used to...
- [Know your customer (KYC)](https://swoopfunding.com/za/business-glossary/know-your-customer-kyc/): Definition "Know your customer" (KYC) is a regulatory and due diligence process that financial institutions and businesses use to verify...
- [Kickback](https://swoopfunding.com/za/business-glossary/kickback/): Definition In business and commerce, a kickback refers to a form of bribery or unethical practice where someone, typically an...
- [Keynesian economics](https://swoopfunding.com/za/business-glossary/keynesian-economics/): Definition Keynesian economics is an economic theory and approach to macroeconomics that was developed by the British economist John Maynard...
- [Keiretsu](https://swoopfunding.com/za/business-glossary/keiretsu/): Definition A Keiretsu is a business term originating in Japan that refers to a group of interconnected companies or enterprises...
- [Junk bond](https://swoopfunding.com/za/business-glossary/junk-bond/): Definition A junk bond, also known as a high-yield bond, is a type of corporate bond that is considered to...
- [Joint venture](https://swoopfunding.com/za/business-glossary/joint-venture/): Definition A joint venture, in the context of business and commerce, is a strategic partnership between two or more companies...
- [Joint account](https://swoopfunding.com/za/business-glossary/joint-account/): Definition A joint account is a financial account, such as a bank account or investment account, that is owned and...
- [Job costing](https://swoopfunding.com/za/business-glossary/job-costing/): Definition Job costing is a cost accounting method used by businesses to track and allocate the costs associated with producing...
- [J-curve effect](https://swoopfunding.com/za/business-glossary/j-curve-effect/): Definition The J-curve effect is an economic and financial concept that describes the short-term negative impact of a devaluation or...
- [IPO underwriter](https://swoopfunding.com/za/business-glossary/ipo-underwriter/): Definition An IPO (initial public offering) underwriter is a financial institution or investment bank that plays a pivotal role in...
- [Investor risk profile](https://swoopfunding.com/za/business-glossary/investor-risk-profile/): Definition An investor risk profile, also known as a risk tolerance assessment, is an evaluation of an individual's willingness and...
- [Investment horizon](https://swoopfunding.com/za/business-glossary/investment-horizon/): Definition An investment horizon refers to the length of time an investor expects to hold an investment or the duration...
- [Intrinsic value](https://swoopfunding.com/za/business-glossary/intrinsic-value/): Definition In finance and investing, intrinsic value refers to the actual or inherent worth of an asset or investment, independent...
- [Interest rate](https://swoopfunding.com/za/business-glossary/interest-rate/): Definition 'Interest rate' refers to the cost of borrowing money or the return earned on an investment, typically expressed as...
- [Initial public offering (IPO)](https://swoopfunding.com/za/business-glossary/initial-public-offering-ipo/): Definition An IPO, or initial public offering, is a significant financial event that marks the first time a private company...
- [Inflation](https://swoopfunding.com/za/business-glossary/inflation/): Definition Inflation refers to the sustained increase in the general price level of goods and services within an economy over...
- [Holding period](https://swoopfunding.com/za/business-glossary/holding-period/): Definition The holding period refers to the length of time an investor owns a particular investment or asset. It is...
- [High-frequency trading (HFT)](https://swoopfunding.com/za/business-glossary/high-frequency-trading-hft/): Definition High-frequency trading (HFT) is a form of algorithmic trading that involves the use of powerful computers and complex algorithms...
- [Hedge fund](https://swoopfunding.com/za/business-glossary/hedge-fund/): Definition A hedge fund is a type of investment fund that pools capital from accredited or high-net-worth investors to invest...
- [Growth stocks](https://swoopfunding.com/za/business-glossary/growth-stocks/): Definition Growth stocks are shares of companies that are expected to experience above-average increases in revenue, earnings, and overall profitability...
- [Gross domestic product (GDP)](https://swoopfunding.com/za/business-glossary/gross-domestic-product-gdp/): Definition Gross domestic product (GDP) is a fundamental economic indicator that measures the total value of all goods and services...
- [Government bond](https://swoopfunding.com/za/business-glossary/government-bond/): Definition A government bond, often referred to as a "sovereign bond," is a debt security issued by a government to...
- [Goodwill](https://swoopfunding.com/za/business-glossary/goodwill/): Definition Goodwill, in business and accounting, refers to the intangible asset that represents the value of a company's reputation, brand...
- [Going concern](https://swoopfunding.com/za/business-glossary/going-concern/): Definition A going concern, in accounting and business terms, refers to a company's ability to continue its operations and meet...
- [Fundamental analysis](https://swoopfunding.com/za/business-glossary/fundamental-analysis/): Definition Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, such as stocks, bonds,...
- [Forward contract](https://swoopfunding.com/za/business-glossary/forward-contract/): Definition A forward contract is a financial agreement between two parties to buy or sell a specific asset, such as...
- [Fixed income](https://swoopfunding.com/za/business-glossary/fixed-income/): Definition Fixed income, in financial terms, refers to an investment category characterised by regular and predictable payments of interest or...
- [Fiscal year](https://swoopfunding.com/za/business-glossary/fiscal-year/): Definition A fiscal year, often abbreviated as "FY," is a 12-month period that a company or organisation uses for financial...
- [Financial statement](https://swoopfunding.com/za/business-glossary/financial-statement/): Definition A financial statement is a formal record of a company's financial activities and position. It provides a snapshot of...
- [Exponential moving average (EMA)](https://swoopfunding.com/za/business-glossary/exponential-moving-average-ema/): Definition An exponential moving average (EMA) is a widely used technical analysis tool in the field of finance. It's a...
- [Expense ratio](https://swoopfunding.com/za/business-glossary/expense-ratio/): Defintion An expense ratio, in financial terms, refers to the percentage of a mutual fund or an exchange-traded fund's (ETF)...
- [Exchange-traded fund (ETF)](https://swoopfunding.com/za/business-glossary/exchange-traded-fund-etf/): Definition An exchange-traded fund (ETF) is a type of investment fund that is traded on stock exchanges, similar to individual...
- [Equity](https://swoopfunding.com/za/business-glossary/equity/): Definition Equity, in financial terms, refers to the ownership interest or residual value that remains in a company after deducting...
- [Earnings per share (EPS)](https://swoopfunding.com/za/business-glossary/earnings-per-share-eps/): Definition Earnings per share (EPS) is a financial metric that calculates the portion of a company's profit allocated to each...
- [Dividend](https://swoopfunding.com/za/business-glossary/dividend/): Definition A dividend is a payment made by a company to its shareholders out of its earnings or profits. It...
- [Diversification](https://swoopfunding.com/za/business-glossary/diversification/): Definition Diversification is a fundamental principle in finance that involves spreading investments across a variety of different assets or sectors...
- [Derivative](https://swoopfunding.com/za/business-glossary/derivative/): Definition A derivative is a financial instrument whose value is derived from an underlying asset or set of assets. The...
- [Depreciation](https://swoopfunding.com/za/business-glossary/depreciation/): Definition Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. It is...
- [Debt-to-equity ratio](https://swoopfunding.com/za/business-glossary/debt-to-equity-ratio/): Definition The debt-to-equity ratio is a financial metric used to assess the proportion of a company's debt relative to its...
- [Credit rating](https://swoopfunding.com/za/business-glossary/credit-rating/): Definition A credit rating is an evaluation of the creditworthiness of an individual, company, or government entity. What is credit...
- [Cost of capital](https://swoopfunding.com/za/business-glossary/cost-of-capital/): Definition Cost of capital refers to the total cost a company incurs in order to raise funds for its operations...
- [Collateral](https://swoopfunding.com/za/business-glossary/collateral/): Definition Collateral refers to assets or property that a borrower pledges to a lender as a security for a loan....
- [Cash flow](https://swoopfunding.com/za/business-glossary/cash-flow/): Definition Cash flow refers to the movement of money into and out of a business or individual's financial accounts over...
- [Capital gains](https://swoopfunding.com/za/business-glossary/capital-gains/): Definition Capital gains refer to the profits or returns earned from the sale or disposition of a capital asset. A...
- [Bull market](https://swoopfunding.com/za/business-glossary/bull-market/): Definition A bull market refers to a financial market, such as the stock market, in which prices of assets, particularly...
- [Broker](https://swoopfunding.com/za/business-glossary/broker/): Definition A finance broker is a professional who acts as an intermediary between individuals or businesses seeking financial products or...
- [Bonds](https://swoopfunding.com/za/business-glossary/bonds/): Definition Bonds are debt securities issued by governments, municipalities, corporations, and other entities to raise capital. When an investor buys...
- [Bear market](https://swoopfunding.com/za/business-glossary/bear-market/): Definition A bear market refers to a prolonged period of declining prices and pessimism in a financial market, typically characterised...
- [Balance sheet](https://swoopfunding.com/za/business-glossary/balance-sheet/): Definition A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific...
- [Asset allocation](https://swoopfunding.com/za/business-glossary/asset-allocation/): Definition Asset allocation refers to the strategic distribution of an investment portfolio across different types of assets, such as stocks,...
- [Annual percentage rate (APR)](https://swoopfunding.com/za/business-glossary/annual-percentage-rate-apr/): Definition The annual percentage rate (APR) is a standardised way of expressing the overall cost of borrowing, including both the...
- [Amortisation](https://swoopfunding.com/za/business-glossary/amortisation/): Defintion Amortisation refers to the process of gradually reducing or paying off a debt, such as a loan or a...
- [Accrual accounting](https://swoopfunding.com/za/business-glossary/accrual-accounting/): Definition Accrual accounting is a method of financial reporting where revenues and expenses are recorded when they are earned or...
- [Accounts payable](https://swoopfunding.com/za/business-glossary/accounts-payable/): Definition Accounts payable refers to the amount of money a business owes to its creditors or suppliers for goods and...
---
## Knowledge hub
- [Convertible loan note (CLN)](https://swoopfunding.com/za/knowledge-hub/convertible-loan-note-cln/): Been offered a loan from an investor under a convertible loan note (CLN) agreement? Is it the right choice for your business? Here's how they work.
- [Advanced Subscription Agreement (ASA)](https://swoopfunding.com/za/knowledge-hub/advanced-subscription-agreement-asa/): An Advanced Subscription Agreement (ASA) is an equity instrument where investors 'pre-pay' for shares in a company. Find out more here.
- [Bridging loan](https://swoopfunding.com/za/knowledge-hub/bridging-loan/): Thinking of getting a bridging loan for your business? Find out if this short-term finance option is right for you on the Swoop Knowledge Hub.
- [Working capital loan](https://swoopfunding.com/za/knowledge-hub/working-capital-loan/): Could a working capital loan be right for your business? Find out more about your options on the Swoop Knowledge Hub.
- [Family offices](https://swoopfunding.com/za/knowledge-hub/family-office/): Family offices are private advisory firms set up by affluent families (or individuals) to manage their wealth, investments & trusts. Find out more.
- [Business cash advance (revenue loan)](https://swoopfunding.com/za/knowledge-hub/business-cash-advance/): Is a business cash advance the right lending option for your business? Find out more on the Swoop Knowledge Hub.
- [Trade finance](https://swoopfunding.com/za/knowledge-hub/trade-finance/): Is your business worried about the risks involved in trading abroad? Explore your trade finance options on the Swoop Knowledge Hub, or apply with Swoop today.
- [Debt financing](https://swoopfunding.com/za/knowledge-hub/debt-financing/): Thinking of using debt financing to raise capital for your business? Find out what your options are with the Swoop Knowledge Hub.
- [Government funding](https://swoopfunding.com/za/knowledge-hub/government-funding/): Looking for grant funding for your business? Find out what your options are & who the biggest grant funders are from the Swoop Knowledge Hub.
- [Mezzanine finance](https://swoopfunding.com/za/knowledge-hub/mezzanine-finance/): Thinking of using mezzanine financing for your next large business project? Find out if it's right for you from the Swoop Knowledge Hub.
- [Direct lending](https://swoopfunding.com/za/knowledge-hub/direct-lending/): How does a direct lending fund work? Find out more about your options and whether it would work for your business on the Swoop Knowledge Hub.
- [Initial public offering (IPO)](https://swoopfunding.com/za/knowledge-hub/initial-public-offering-ipo/): Selling shares in your business to the public for the first time - It's a big step. Find out more about IPOs on the Swoop Knowledge Hub.
- [Equity crowdfunding](https://swoopfunding.com/za/knowledge-hub/equity-crowdfunding/):
- [Venture capital](https://swoopfunding.com/za/knowledge-hub/venture-capital/):
- [Business angels](https://swoopfunding.com/za/knowledge-hub/business-angels/):
- [Equity finance](https://swoopfunding.com/za/knowledge-hub/equity-finance/): Find out more about equity finance and the options available to your business on the here on the Swoop Knowledge Hub.
- [Customer handles own collections (CHOCs)](https://swoopfunding.com/za/knowledge-hub/chocs-customer-handles-own-collections/):
- [Confidential invoice factoring](https://swoopfunding.com/za/knowledge-hub/confidential-invoice-factoring/):
- [Confidential invoice finance](https://swoopfunding.com/za/knowledge-hub/confidential-invoice-finance/):
- [Selective invoice discounting](https://swoopfunding.com/za/knowledge-hub/selective-invoice-discounting/):
- [Invoice finance](https://swoopfunding.com/za/knowledge-hub/invoice-finance/): Unpaid invoices piling up? Find out if invoice finance would work for your business from the Swoop Knowledge Hub.
- [Asset finance](https://swoopfunding.com/za/knowledge-hub/asset-finance/): Need new equipment for your business? Learn more about your asset finance options with the Swoop Knowledge Hub.
- [Trade finance loan](https://swoopfunding.com/za/knowledge-hub/trade-finance-loan/): If you’re a wholesaler, distributor or importer, a trade finance loan can give you the cash you need to buy...
- [Supplier finance](https://swoopfunding.com/za/knowledge-hub/supplier-finance/):
- [Purchase order (PO) finance](https://swoopfunding.com/za/knowledge-hub/purchase-order-finance-po-finance/):
- [Line of credit (non-revolving)](https://swoopfunding.com/za/knowledge-hub/line-of-credit-non-revolving/): A line of credit is like a business loan that's ready to go. Find out more about your options from the Swoop Knowledge Hub.
- [Revolving credit facility (line of credit)](https://swoopfunding.com/za/knowledge-hub/revolving-credit-line-facility/): Thinking of setting up a rolling credit line between you and your lender? Find out how they work from the Swoop Knowledge Hub.
- [Working capital finance](https://swoopfunding.com/za/knowledge-hub/working-capital-finance/): Do you know the working capital ratio of your business? Find out how to calculate it, and how to bridge the gap on the Swoop Knowledge Hub.
- [Selective invoice financing](https://swoopfunding.com/za/knowledge-hub/asset-based-lending/):
- [Asset refinance](https://swoopfunding.com/za/knowledge-hub/asset-refinance/): Asset refinance is a way to can unlock cash from items your business already owns, securing a loan against property, machinery, equipment, or vehicles.
- [Startup loan](https://swoopfunding.com/za/knowledge-hub/startup-loan/): A startup loan is a business loan designed to help new businesses launch and grow. It is one type of...
- [Peer-to-peer lending (P2P)](https://swoopfunding.com/za/knowledge-hub/peer-to-peer-lending/): Peer-to-peer lending (P2P) is a type of business loan by a large number of private investors to your business, usually through an online platform.
---
## Sectors
- [Self-employed loans with no proof of income](https://swoopfunding.com/za/sectors/self-employed-loans-with-no-proof-of-income/): Self-employed workers often require business financing and are often asked for proof of income. See how to apply for funding without this here.
- [Self-employed loans with bad credit](https://swoopfunding.com/za/sectors/self-employed-loans-with-bad-credit/): There are millions self-employed workers in the South Africa, and many of them will require extra funding to support their business at some point in time.
- [Inventory financing](https://swoopfunding.com/za/sectors/inventory-financing/): Inventory finance can take the pain out of stocking up and protect your working capital. Buy now. Let future sales cover the cost. Learn more here.
- [Self-employed](https://swoopfunding.com/za/sectors/self-employed/): Like most businesses, there are times when the self-employed need a loan. But what kind of loans are available, and what do you need to get them? Learn more.
- [Convenience stores](https://swoopfunding.com/za/sectors/convenience-stores/): Convenience store financing is funding to help start, buy, expand or operate a convenience store. Learn all about the options available here.
- [Food trucks](https://swoopfunding.com/za/sectors/food-trucks/): Securing funding for your food truck is key to success. Read on to find out more about food truck finance and how it can help your business grow.
- [Restaurant loans](https://swoopfunding.com/za/sectors/restaurant-loans/): Finance can be secured for restaurants, cafes, take-away outlets, sandwich bars, coffee shops and more. Read all you need to know about funding options here.
- [Car garage](https://swoopfunding.com/za/sectors/car-garage/): Don’t put your purchase or expansion plans on hold because of poor cashflow – use a car garage mortgage to grow and get your business on the road. Learn more.
- [Vineyard finance](https://swoopfunding.com/za/sectors/vineyard-finance-2/): From commercial mortgages to startup loans and working capital finance, vineyard loans are available to solve every grower’s need. Learn more here.
- [Brewery finance](https://swoopfunding.com/za/sectors/brewery-finance/): From commercial mortgages to working capital finance, brewery loans are available to solve every brewer’s need. Learn all about your options here.
- [Cow & livestock finance](https://swoopfunding.com/za/sectors/cow-livestock-finance/): Cow and livestock finance are loans that farmers can use to pay for the tools and products they need to raise live animals. Learn more here.
- [Guest house finance](https://swoopfunding.com/za/sectors/guest-house-finance/): This funding can be used to refinance a current guest house loan, renovation, buy/build a new guest house, or cover seasonal quiet spots. Learn more.
- [Crop finance](https://swoopfunding.com/za/sectors/crop-finance/): Crop finance are loans that farmers can use to pay for the tools and products they need to farm their land. Learn more here.
- [Bus and coach finance](https://swoopfunding.com/za/sectors/bus-and-coach-finance/): As passenger numbers grow, so bus and coach operators must be up to date with their vehicle line-ups. Read all about your funding options and apply here.
- [Business loans for bed and breakfasts](https://swoopfunding.com/za/sectors/business-loans-for-bed-and-breakfasts/): B&B funding can be used to refinance a current B&B loan, renovation, buy an existing B&B, build a new bed and breakfast, or cover quiet spots. Learn more.
- [Hotel funding](https://swoopfunding.com/za/sectors/hotel-funding/): Hotel funding can be used to refinance a current hotel loan, renovation, buy an existing hotel, build a new hotel, or cover seasonality. Read more here.
- [Haulage finance and HGV loans](https://swoopfunding.com/za/sectors/haulage-finance-and-hgv-loans/): There are many types of haulage finance and HGV loans, and they may be arranged quickly and with little fuss. Find out more here.
- [Care home finance](https://swoopfunding.com/za/sectors/care-home-finance/): A care home mortgage is used to buy, develop, or refinance a care home. Learn all about the funding options available and apply today.
- [Buy a care home](https://swoopfunding.com/za/sectors/buy-a-care-home/): Buying a care home or expanding an existing care facility can make good sense, and many buyers will seek a care home mortgage to fund their purchase. Read more.
- [Farm equipment financing](https://swoopfunding.com/za/sectors/farm-equipment-financing/): Special plant and machinery loans to help South African farmers buy the equipment they need without increasing strain on cashflow. Read more here.
- [Nursery funding](https://swoopfunding.com/za/sectors/nursery-funding/): Setting up a nursery can be emotionally and financially rewarding for those who prepare thoroughly and follow a solid plan. Learn more here.
- [Dental practice loans](https://swoopfunding.com/za/sectors/dental-practice-loans/): Dental practices sell products and services that are in high demand. Well established practices can provide good profit margins and income. Learn more here.
- [Agricultural mortgage](https://swoopfunding.com/za/sectors/agricultural-mortgage/): An agricultural mortgage (aka farm mortgage) is a loan used to buy real estate or to release equity from a farm property. Learn more here.
- [Agricultural loans](https://swoopfunding.com/za/sectors/agricultural-loans/): Many farms suffer from poor cash flow and volatility in the prices they pay for supplies and what they achieve for their products. Read more here.
- [Petrol station finance](https://swoopfunding.com/za/sectors/petrol-station-finance/): Petrol stations are one of the few South African retail businesses that can provide 24/7 revenues. Read all about your funding options here.
- [Pub finance](https://swoopfunding.com/za/sectors/pub-finance/): Pub finance can be used to cover cashflow dips, buy inventory, refurbish premises, even buy a pub or join a franchise operation. Read all you need to know here.
- [Shopify loans](https://swoopfunding.com/za/sectors/shopify-loans/): As e-commerce continues to expand, online businesses get bigger, but this can pose a problem for Shopify merchants who lack the funds to fuel growth. Read more.
- [Construction loans and finance](https://swoopfunding.com/za/sectors/construction-loans-and-finance/): Construction finance for a new build or re-developing an existing property to sell for a profit, use for your own needs, or rent out for income. Learn more.
- [Auction finance](https://swoopfunding.com/za/sectors/auction-finance/): Buying property at auction can speed up the buying process, let you pay a lower price, or give you the opportunity to purchase an unusual property. Learn more.
---
## Business insurance
---
## Start a business
- [How to choose your title as a business owner](https://swoopfunding.com/za/start-a-business/how-to-choose-your-title-as-a-business-owner/): Your business title can set you apart from other company employees, indicate special skills, even determine how much you get paid. But which is right for you?
- [How to start a retail business](https://swoopfunding.com/za/start-a-business/how-to-start-a-retail-business/): Starting a retail business can be an exciting venture. With proper planning and execution, you can find success and meet your target market's needs. Learn more.
- [Open a pizza shop](https://swoopfunding.com/za/start-a-business/open-a-pizza-shop/): Starting a pizza shop is an exciting journey that brings the joy of making delicious food and the challenge of running a business. Learn more about it here.
- [Start a bakery](https://swoopfunding.com/za/start-a-business/start-a-bakery/): How can you get the bakery you’ve always dreamt of owning? Let’s find out. Learn all you need to know about starting a bakery business here.
- [Open a liquor store](https://swoopfunding.com/za/start-a-business/open-a-liquor-store/): Suppose your dream is to own a liquor store. Read how do you get there, what hurdles must you cross and most importantly, what will it cost? Let’s find out.
- [Start a brewery](https://swoopfunding.com/za/start-a-business/start-a-brewery/): With many breweries producing millions barrels of beer annually, the South African craft brewing industry is growing each year. Read more and get started.
- [Restaurant](https://swoopfunding.com/za/start-a-business/restaurant/): If you're looking to open a restaurant, look no further. Here’s a rundown of the key things you need to know before you take the plunge & become a restauranteur
- [How to get a loan to start a business](https://swoopfunding.com/za/start-a-business/how-to-get-a-loan-to-start-a-business/): How do startup loans work and what do you to do to get one? Read on to find out all you need to know about getting a startup loan for your business.
- [Laundromat business](https://swoopfunding.com/za/start-a-business/laundromat-business/): On average it costs R200,000 to R500,000 to launch a mid-size laundromat. Learn all about the costs and apply for finance with Swoop here.
- [Vending machine business](https://swoopfunding.com/za/start-a-business/vending-machine-business/): Vending machines are open 24/7. Read all you need to know about starting a vending machine business, and finance options available here.
- [How to start a small business](https://swoopfunding.com/za/start-a-business/how-to-start-a-small-business/): Starting your own business can be an exciting and rewarding journey. But there’s a lot to consider to get your business off the ground. Learn it all here.
- [Transport business](https://swoopfunding.com/za/start-a-business/transport-business/): Do you know a lot about the transport industry and are keen to run your own business? This short guide aims to cover the steps you need to take. Read more.
- [Nursery business](https://swoopfunding.com/za/start-a-business/nursery-business/): Do you have a background in childcare and dream of running your own nursery? Learn everything you need to know about starting a nursery business here.
- [Moving and removal business](https://swoopfunding.com/za/start-a-business/moving-and-removal-business/): If you dream of running your own business and you like being physically active, setting up a removal firm could be right up your street. Read more here.
- [Makeup business](https://swoopfunding.com/za/start-a-business/makeup-business/): Launching your own makeup business means you’ll be able to start your own brand. Furthermore, you can set your own prices & sell in-store or online. Read more.
- [Graphic design business](https://swoopfunding.com/za/start-a-business/graphic-design-business/): Setting up your own graphic design business can be an exciting journey. Read our guide on everything you need to know about starting a graphic design business.
- [Farming business](https://swoopfunding.com/za/start-a-business/farming-business/): Is it your dream to run your own farm? This guide takes you through the necessary steps to help you understand how to start and finance a farm. Read more.
- [Gym business](https://swoopfunding.com/za/start-a-business/gym/): If you’re a fitness professional and dream of running your own gym, it’s key to understand what’s involved, the costs, and how you’ll finance it. Learn more.
- [Consulting business](https://swoopfunding.com/za/start-a-business/consulting-business/): Curious to know how to start a consulting business? It’s key to have a clear understanding of what it involves and how to finance it. Read more here.
- [Landscaping business](https://swoopfunding.com/za/start-a-business/landscaping-business/): If you like working outside and are dreaming of being your own boss, setting up a landscape gardening business could be an option to explore. Read more here.
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# Detailed Content
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### Overdraft calculator
> Our business overdraft calculator can help you estimate the costs associated with using an overdraft facility for your business. Use it free here.
- Published: 2025-04-02
- Modified: 2025-05-15
- URL: https://swoopfunding.com/za/business-loan-calculator/overdraft-calculator/
Overdraft calculator Our business overdraft calculator can help you estimate the costs associated with using an overdraft facility for your business. It typically considers factors such as the overdraft amount, interest rate, and the duration of use. I want to borrow £ . 00 Term 31 days Interest rate 34 % This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan. Your results Total cost of your overdraft £0 Get a quote What is a business overdraft? A business overdraft facility is a flexible borrowing arrangement that allows a business to withdraw more money than is available in its bank account, up to a pre-approved limit. It is a form of short-term credit designed to help businesses manage cash flow, cover unexpected expenses, or bridge gaps between income and expenses. Key Features:Pre-agreed Limit: The bank sets a maximum amount the business can overdraw. Interest Charges: Interest is typically charged only on the amount overdrawn, not the full limit. Fees: Some banks charge arrangement or renewal fees for maintaining the overdraft. Repayment Flexibility: Funds can be repaid at any time, reducing interest costs. All calculators ADR calculator APY calculator Acid test ratio calculator Amortisation calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business rate calculator Business savings calculator Business valuation calculator Car finance calculator Car finance settlement calculator Cash flow calculator Commercial mortgage calculator Commercial stamp duty calculator Compound annual growth rate calculator...
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### Business loan for marketing
> A business marketing loan is a type of financing designed to help businesses fund advertising, branding, and promotional activities to attract customers.
- Published: 2025-03-13
- Modified: 2025-03-13
- URL: https://swoopfunding.com/za/business-loans/marketing-loans/
Business loans for marketing Swoop is a credit broker and does not provide capital. We work with a range of companies to offer clear comparisons that allow customers to make choices on financial products & services. Swoop may receive a commission, which may vary by product but typically in the form of a fixed percentage of the loan amount. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on March 13, 2025. Next review due March 1, 2026. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. The old saw that says advertising pays still rings true. Getting your business name out there, building awareness for your products and services and creating a brand identity that draws in your customers are essential actions to succeed. However, marketing activities can be expensive and for businesses without deep pockets, using valuable working capital to fund an ad campaign or promotion can be...
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### Bad credit working capital loans
> it’s still possible to get a working capital loan with bad credit, but you may have to put in more effort and be flexible on the terms. Read how, or apply here.
- Published: 2025-02-04
- Modified: 2025-02-19
- URL: https://swoopfunding.com/za/business-loans/working-capital-loans/bad-credit-working-capital/
Bad credit working capital loans Swoop is a credit broker and does not provide capital. We work with a range of companies to offer clear comparisons that allow customers to make choices on financial products & services. Swoop may receive a commission, which may vary by product but typically in the form of a fixed percentage of the loan amount. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. Add a header to begin generating the table of contents Page written by Ashlyn Brooks. Last reviewed on February 4, 2025. Next review due March 1, 2026. Ashlyn Brooks Expert financial copywriter Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia. It’s hard enough securing funding when you have amazing credit. Having a low credit score can make financing a challenge, especially for small businesses. However, it doesn’t have to stop you from getting the working capital you need to keep your business running smoothly. Whether you’re looking to cover day-to-day expenses or fund growth opportunities, there are financing options available, even if your credit isn’t perfect. Let’s break down what bad credit means, your options for getting a working capital loan, and how Swoop can help. Add a header to begin generating the table of contents What is considered ‘bad credit’? Anything below 600 could...
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### Material handling equipment financing
> Material handling equipment is designed to move all kind of goods and materials from A to B, but this comes at a cost. Find out more, or sign up with Swoop today.
- Published: 2024-10-08
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/material-handling-equipment-finance/
Material handling equipment finance How much finance do you need? Asset value R Asset type Name Email Contact number Send me updates on products, news and information on selected partners. By clicking this button, you agree to our Privacy policy & Terms of use. Thanks for registering. We'll get back to you straight away Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 29, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Factories, warehouses, airports, seaports, logistics centres and more - in many types of location you’ll see specialised machinery keeping business humming. Material handling equipment is designed to move all kinds of goods and materials from A to B, but for smart business owners, these expensive machines all have one thing in common: The best way to buy them is with an equipment lease or loan. Add a header to begin generating the table of contents What is material handling equipment finance? Material handling equipment finance is a form of equipment...
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### Crane equipment finance
> Crane finance is a specialized form of equipment financing, spreading the cost of expensive machinery over time. Read more or apply for crane finance here.
- Published: 2024-10-08
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/crane-finance/
Crane finance How much finance do you need? Asset value R Asset type Name Email Contact number Send me updates on products, news and information on selected partners. By clicking this button, you agree to our Privacy policy & Terms of use. Thanks for registering. We'll get back to you straight away Add a header to begin generating the table of contents Page written by Arabella McAvoy. Last reviewed on October 25, 2024. Next review due March 1, 2025. Arabella McAvoy Expert financial copywriter Arabella is a former BBC business journalist who began her career as a policy analyst at the Bank of England and Financial Conduct Authority, and more recently worked in the communications and policy team at the British Business Bank. You see them on construction sites, in factories, on farms and at the port. High, low, mobile or fixed, industrial cranes are everywhere and anywhere – providing major muscle when big things are on the move. Without a doubt, many industries and businesses could not function without these huge machines. But with price tags often in the Rmillions, buying them out of working capital can often be impossible – which is why savvy business owners use crane finance to take the strain. Add a header to begin generating the table of contents What is crane finance? Crane finance is a specialized form of equipment financing, Designed for businesses in the construction, manufacturing, agriculture, marine, logistics and other heavy equipment industries, this type of financing allows companies to...
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### Supercar finance
> They go fast, they look great and they cost far more than your typical daily driver. Read more about supercar finance, or arrange your exotic car finance here.
- Published: 2024-10-04
- Modified: 2024-12-17
- URL: https://swoopfunding.com/za/business-loans/asset-finance/supercar-finance/
Supercar finance How much finance do you need? Asset value R Asset type Name Email Contact number Send me updates on products, news and information on selected partners. By clicking this button, you agree to our Privacy policy & Terms of use. Thanks for registering. We'll get back to you straight away Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 29, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. They go fast, they look great and they cost far more than your typical daily driver. Supercars are in a different league when it comes to automobiles. But how do you buy one without spending piles of cash? Read on to find out more about supercar financing and what you need to qualify. Add a header to begin generating the table of contents What cars are classed as supercars? Supercars, exotic cars, and hypercars, are all part of an elite class of automobile that pushes the boundaries of luxury, performance, rarity, styling...
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### Invoice factoring vs. invoice discounting: What's the difference?
> When businesses need to improve cash flow, two common solutions are invoice factoring and invoice discounting, but which is right for you? Find out here.
- Published: 2024-10-03
- Modified: 2025-05-02
- URL: https://swoopfunding.com/za/business-loans/invoice-factoring/factoring-vs-discounting/
Invoice factoring vs. invoice discounting: What's the difference? Add a header to begin generating the table of contents Page written by Ashlyn Brooks. Last reviewed on May 2, 2025. Next review due March 1, 2026. Ashlyn Brooks Expert financial copywriter Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia. When businesses need to improve cash flow, two common solutions are invoice factoring and invoice discounting. While both options allow companies to access the funds tied up in unpaid invoices, they operate in distinct ways. This guide will explain the difference between factoring and discounting, helping you decide which option best suits your business needs. Add a header to begin generating the table of contents What is invoice factoring? Invoice factoring involves selling your unpaid invoices to a third-party company (called a factor) at a discounted rate. In exchange, the factor provides your business with a significant portion of the invoice's value upfront, typically 70-90%. The factor then assumes responsibility for collecting payment from your customers. Once the customer pays the invoice, the factor will give you the remaining balance minus their fees. Invoice factoring is ideal for businesses that need quick access to cash and want to offload the burden of managing collections. However, since the factor interacts directly with your customers, it can impact customer relationships if you’re not careful. What is invoice discounting? Invoice discounting, on...
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### Car finance settlement calculator
- Published: 2024-09-20
- Modified: 2025-05-14
- URL: https://swoopfunding.com/za/business-loan-calculator/car-finance-settlement-calculator/
Car finance settlement calculator Our free car finance settlement calculator can help you estimate your final outstanding payment to clear your outstanding finance. Original loan amount £ . 00 Length of agreement 36 months Monthly payments £ . 00 Final repayment £ . 00 Number of payments made 6 This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan. Your results Total payments so far £0 Outstanding amount (settlement) £0 Annual percentage rate (APR) 0% Get a quote How to calculate car finance settlement This amount includes the remaining balance, interest, and any early settlement fees. Here's a general formula to calculate the settlement amount manually:Outstanding balance: Start with the total amount still owed on the loan. Early repayment interest: This can vary based on the lender but is often a portion of the remaining interest on the loan. Early settlement fee: Some lenders may charge a fee for early repayment. The calculation would look like the below:Settlement Amount = Outstanding Balance + Interest Adjustment + Early Settlement Fee All calculators ADR calculator APY calculator Acid test ratio calculator Amortisation calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business rate calculator Business savings calculator Business valuation calculator Car finance calculator Car finance settlement calculator Cash flow calculator Commercial mortgage calculator Commercial stamp duty calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Currency converter Debt...
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### Car finance calculator
- Published: 2024-09-19
- Modified: 2025-05-14
- URL: https://swoopfunding.com/za/business-loan-calculator/car-finance-calculator/
Car finance calculator Our free car finance calculator can help you estimate your monthly repayments when taking out finance. Repayments Total borrow Amount borrowed £ . 00 Loan term 5 years Annual percentage rate 10% How much can you repay each month? £ . 00 Loan term 5 years Annual percentage rate 10% This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan. Your results Monthly repayments £0 Interest payments £0 Total amount £0 Amount you could borrow £0 Interest payments £0 Total amount £0 Get a quote How to calculate car finance payments To calculate your monthly asset finance costs, you'll need the following:Car Price: The total price of the vehicle. Deposit: The amount you're putting down upfront. Loan Term: The number of months or years over which you plan to repay the loan. Interest Rate: The percentage the lender charges on the loan. Final Balloon Payment (Optional): A large payment at the end of some car finance agreements (like PCP). All calculators ADR calculator APY calculator Acid test ratio calculator Amortisation calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business rate calculator Business savings calculator Business valuation calculator Car finance calculator Car finance settlement calculator Cash flow calculator Commercial mortgage calculator Commercial stamp duty calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Currency converter Debt service coverage ratio (DSCR) calculator Depreciation calculator...
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### Currency converter
> Our free currency converter can help you stay on top of exchange rates, whether you're planning a vacation, making a purchase, or conducting business.
- Published: 2024-06-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/currency-converter/
Currency converter Our free currency converter is here to help you stay on top of exchange rates, whether you're planning a vacation, making an online purchase, or conducting global business. Page written by AI. Reviewed internally on June 20, 2024. × Origin currency Destination currency Amount to convert R . 00 This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan. Your results Converted amount R 0 Get a quote What is a currency converter? A currency converter is a tool that allows you to quickly and easily convert one currency into another. It uses the current exchange rates to calculate the equivalent amount of money in different currencies. Currency converters are commonly used by travellers, businesses, and anyone needing to understand the value of money across different countries and provide a convenient way to stay updated on currency values and make informed financial decisions. Why use a currency converter? Using a currency converter is helpful for several reasons:Travel planning: It assists you in understanding how much your money is worth in another country, allowing you to budget more effectively. Business transactions: It makes international business easier by allowing companies to convert currencies accurately when dealing with cross-border transactions. Online shopping: It assists you in comparing prices and determining the cost of goods in your local currency when shopping from international websites. Investment decisions: It helps investors and financial analysts assess the value of foreign investments by...
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### Solar equipment financing for businesses
> Solar equipment financing refers to business loans and leases that help organisations buy or rent the commercial solar equipment they need. Read more here.
- Published: 2024-04-05
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/asset-finance/solar-equipment-financing-for-businesses/
Solar equipment financing for businesses Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Businesses that install solar equipment to provide their energy needs can benefit from cheap, green energy and major tax benefits as well as doing good for the environment. However, commercial solar energy systems are not cheap, typically costing more than R250,000 to buy and install. For this reason, many businesses choose to finance their solar investment – reducing strain on working capital by paying for the equipment over time instead of all at once. Add a header to begin generating the table of contents What is solar equipment financing? Solar equipment financing refers to specialist business loans and leases that help organisations buy or rent the commercial solar equipment they need. This type of financing is more readily provided by online lenders than traditional banks and credit unions and it can be used to buy or rent new or...
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### Manufacturing equipment financing
> Manufacturing financing can be used to buy machinery for manufacturing businesses, or to borrow against the value of equipment they already own. Read more here.
- Published: 2024-04-05
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/asset-finance/manufacturing-equipment-financing/
Manufacturing equipment financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 29, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Buying big-ticket manufacturing equipment such as conveyors, assemblers, ovens, presses, and packing systems can put a major dent in working capital. Instead, most South African manufacturers opt for equipment financing, using business loans and equipment leases to get the machinery they need without struggling to pay with cash. Add a header to begin generating the table of contents What is manufacturing financing? Manufacturing financing is a type of lending that can be used to buy equipment and machinery for manufacturing businesses, or to borrow against the value of equipment that manufacturers already own. In the first instance, manufacturing financing can help you to purchase or lease new or used equipment. In the second instance, manufacturing financing can release cash from a previously illiquid asset – machinery and equipment that your business owns – to provide funds that you can use elsewhere....
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### Dental equipment financing
> Dental equipment financing refers to business loans that help South African dental businesses get the equipment they need. Read more & apply with Swoop.
- Published: 2024-04-04
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/dental-equipment-financing/
Dental equipment financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 25, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Dental care is a huge industry in South Africa, covering everything from general oral care and restorative dentistry, to prosthodontics, cosmetic dentistry and more. Dentists utilise a vast array of equipment to deliver their services, and these machines, tools and technologies are often highly complex and need constant updating. Because this equipment can be expensive, most dental providers choose to buy or lease the machines and tools they need using equipment finance. This reduces strain on cashflow, provides practitioners with the latest devices, and helps to continually improve the efficiency and quality of the dental care they provide. Add a header to begin generating the table of contents What is dental equipment financing? Dental equipment financing refers to specialist business loans and leasing programs that help South African dental businesses obtain the equipment they need. This type of financing is more...
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### Construction equipment financing
> Construction equipment: Diggers, bobcats, dump trucks, and more is used by industries as varied as construction, agriculture, and landscaping etc. Learn more.
- Published: 2024-04-04
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/construction-equipment-financing/
Construction equipment financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Construction equipment – diggers, bobcats, cranes, dump trucks, graders, loaders, etc - is used by industries as varied as construction, agriculture, forestry, landscaping and mining. However, this kind of equipment does not come cheap and paying for it with working capital can often be prohibitive. Fortunately, there’s an answer to this problem: Construction equipment financing. Pay for the equipment as you use the equipment. Give your organisation the major machinery it needs without hurting cash flow. Add a header to begin generating the table of contents How do I know if I need an equipment loan? It’s a question of efficiency. If your current construction equipment has reached the stage where repairs and maintenance are becoming more expensive and more frequent, or you find yourself having to take on costly short-term rentals for some equipment that you do not have, then...
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### Bobcat financing
> Bobcats are the versatile machines of choice for many South African businesses and these vehicles can come in all shapes and sizes. Learn more with Swoop.
- Published: 2024-04-04
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/asset-finance/bobcat-financing/
Bobcat financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. In construction, land management, forestry, farming, landscaping and many other heavy duty industries, getting the job done right and on time is often reliant on the quality of your machinery and equipment. Bobcats are the versatile, go-anywhere, work-anytime machines of choice for many South African businesses and these vehicles can come in all shapes and sizes, with price tags to match – typically ranging from R20,000 to well over R100,000. With prices like this, it’s clear that buying a new or used bobcat for cash can put a serious dent in your working capital – which is why many businesses opt for bobcat financing – preferring to buy or lease the equipment over time and keep their cash on hand for other purposes. Add a header to begin generating the table of contents How much does bobcat equipment cost? The prices of...
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### Boat financing
> Boat loans function like auto loans – you borrow all or some of the cost of the boat and then you pay the principal back with interest. Read more here.
- Published: 2024-04-04
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/asset-finance/boat-financing/
Boat financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Although millions of South African businesses own cars, trucks and vans for commercial use, many organisations also need boats to provide the goods and services they sell. Commercial water craft can be used for fishing, mining, haulage, passenger and vehicle transport, leisure activities and many other functions. Depending on the age, type and size of craft, boats for commercial use can cost anywhere from the tens of thousands up to the millions of dollars – which is why business (and private) boat owners will typically use boat financing to buy the craft they need. Boat loans reduce the financial pressures of buying a new or used boat, letting the boat buyer pay over time instead of all at once. Financing may also let the boat buyer obtain a better boat than they may be able to afford if they were paying with...
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### Bakery equipment financing
> Bakery equipment financing and leasing refers to specialist loans that help organisations buy the bakery equipment they need. Learn more here.
- Published: 2024-04-04
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/asset-finance/bakery-equipment-financing/
Bakery equipment financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 24, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. No matter if you’re making fancy wedding cakes, artisan bread or thousands of sliced loaves, you need bakery equipment to get the job done right. However, when a commercial oven can cost anywhere from R3,000 to R6,000 equipping a bakery business to perform at its best can require a lot of dough. Fortunately, there’s an alternative: Bakery equipment financing is designed to reduce the financial strain of equipping bakeries with machinery and tools. Keep your working capital for other needs. Buy or lease your new equipment over time instead of paying all at once. Add a header to begin generating the table of contents What is bakery equipment financing and leasing? Bakery equipment financing and leasing refers to specialist business loans that help organisations buy the bakery equipment they need. This type of financing is more readily provided by online lenders...
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### Audio visual equipment financing
> Audio visual equipment includes devices that deliver a visual or sound effect to your audience. Learn all about it and how to get financed with Swoop today.
- Published: 2024-04-04
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/asset-finance/audio-visual-financing/
Audio visual equipment financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Big screens, big sounds. Audio visual (AV) equipment puts you in the picture and tells you what you need to know. Movie houses, theatres, sports events, conferences and almost every other type of event or venue need AV equipment to impress their audience. However, this kind of tech does not come cheap. Even a small show may need equipment worth many thousands of rands to deliver the effects that organisers need. Buying big-ticket AV equipment with cash can put a serious dent in your bank balance. That’s why AV companies, venue owners and event organisers use AV equipment financing to buy the bells and whistles they need. Read on to learn more about this kind of funding and how it can help your business make an impact without hurting cash flow. Add a header to begin generating the table of...
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### Aircraft financing
> Aircraft financing is lending that can be used to buy aircraft, or to borrow against the value of an aircraft that you own. Read more here.
- Published: 2024-04-03
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/asset-finance/aircraft-financing/
Aircraft financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 24, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Purchasing airplanes and helicopters for corporate use with cash can put a serious dent in any organisation’s liquidity and seldom makes good financial sense. Instead, most airplane buyers use aircraft financing – special business loans for the purchase of airplanes – to reduce financial headwinds. Get a better plane than you could buy with cash. Spread the cost over time. Keep more money in your bank. Aircraft financing can put you miles ahead. Add a header to begin generating the table of contents What is aircraft financing? Aircraft financing is a type of lending that can be used to buy private aircraft, or to borrow against the value of an aircraft that you already own. In the first instance, aircraft financing can help you to purchase or lease a new or used aircraft. In the second instance, aircraft financing can release cash...
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### No doc business loan
> No document, or ’no-doc’ business loans are finance products designed to deliver funding with almost zero paperwork. Learn more here, or apply with Swoop.
- Published: 2024-03-21
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/no-doc-business-loan/
No-doc business loan Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 29, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. No document, or ’no-doc’ business loans are streamlined finance products designed to deliver funding with (almost) zero paperwork. No-doc loans have simple application processes and may provide funding very quickly, but simplicity and speed come with a price – borrowers should expect to pay high interest rates and fees. Add a header to begin generating the table of contents What is a no-doc business loan? Technically, a no-doc loan requires nothing more than your name and address to deliver funding. In reality, these types of business loans do not exist. Even a basic business credit card application will ask you for far more information and you will usually have to provide documents that show income and proof of address. So, when we talk about no-doc loans, we really mean low-doc or nearly no-doc loans – financing that requires a lot less...
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### Revenue based financing
> Revenue-based financing, also known as ‘royalty financing’, uses the value of an organisation’s gross sales or profits to raise capital from lenders & investors
- Published: 2024-03-21
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/revenue-based-financing/
Revenue-based financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Your business may be generating good revenues, but if your credit score is weak or your trading history is short, you may find it tough to get a standard business loan. Revenue-based financing could be your solution to this problem. Use the value of your annual or monthly revenues to get the funds you need, then simply pay the loan back with a percentage of your monthly income. Add a header to begin generating the table of contents What is revenue-based financing? Revenue-based financing – also known as ‘royalty financing’ - uses the value of an organisation’s gross sales or profits to raise capital from lenders or investors. Unlike traditional business loans which typically provide a sum of cash based on business history or the value of corporate assets such as machinery or property, revenue-based financing is a bet by the lender/investor...
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### Price per square foot calculator
> Our price per square foot calculator helps you determine the cost of a property, or a space, based on its size, whether you are renting, leasing or buying.
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/price-per-square-foot-calculator/
Price per square foot calculator Our price per square foot calculator helps you determine the cost of a property, or a space, based on its size, whether you are renting, leasing or buying. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate price per square foot To calculate the price per square foot, you need to know the total cost and the total square footage. Then, you divide the total cost by the total square footage. Here's the formula:Price per square foot = Total cost ÷ Total square footageFor example, if the total cost is R10,000 and the total square footage is 1,000 square feet:Price per square foot = R10,000 ÷ 1,000 sq ft = R10 per sq ft All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price to earnings calculator Rate of return calculator Refinance calculator...
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### Internal rate of return calculator
> Our Internal Rate of Return (IRR) calculator helps you determine the profitability of investments or projects. Use it for free here to calculate your IRR.
- Published: 2024-03-19
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/business-loan-calculator/internal-rate-of-return-calculator/
Internal rate of return calculator Our Internal Rate of Return (IRR) calculator helps you determine the profitability of investments or projects. Page written by Ian Hawkins. Last reviewed on May 17, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset What is internal rate of return? Internal rate of return (IRR) is a financial metric used to evaluate the profitability of an investment. It represents the discount rate at which the net present value (NPV) of all cash flows (both inflows and outflows) from an investment equals zero. In simple terms, IRR is the break-even interest rate for your investment. IRR is useful when you want to compare different investments or projects. The higher the IRR, the more profitable the investment. How...
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### Emergency business loans
> What do you do when you need money now and don’t have time to wait for standard business loans? Emergency business loans may be your answer. Read more.
- Published: 2024-03-19
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/emergency-business-loans/
Emergency business loan Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. What do you do when you need money in a hurry and don’t have time to wait for standard business financing? Emergency business loans may be your answer. Often available within days or hours, this type of business loan can plug the financial gap when disaster strikes, or sudden costs put your business on the spot. Add a header to begin generating the table of contents What is an emergency business loan? An emergency business loan (also known as a ‘fast business loan’) can provide immediate funding when your business hits a bump in the road. Use the money to pay for unexpected costs, a sudden shortfall in cash flow, larger-than-anticipated tax bills, recovery from a disaster, or for almost any other type of economic need. Emergency business loans are typically available from online lenders as they can usually provide the...
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### Term loans
> Term loans for businesses can be fast and simple to get and may let you pay the money back over many years. Learn more here and apply with Swoop.
- Published: 2024-03-18
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/term-loans/
Term loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Term loans for businesses can be fast and simple to obtain and may let you pay the money back over many years. Often available with borrowing costs that are cheaper than other types of business finance, term loans can also be used for almost any purpose. No wonder they’re South Africa’s most common type of business loan. Add a header to begin generating the table of contents What is a business term loan? With a business term loan, your organisation receives a single, lump-sum cash injection and then you pay it back in regular instalments, plus interest and any fees, over a fixed period of up to 25 years. Instalments may be weekly, monthly or quarterly depending on the type of business you operate. Some term loans may be unsecured, so you do not provide collateral to protect the lender if you...
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### Compound annual growth rate calculator
> Our CAGR calculator (compound annual growth rate) helps you measure an investment's annual growth rate over a specified period. Use it for free here.
- Published: 2024-03-15
- Modified: 2024-05-16
- URL: https://swoopfunding.com/za/business-loan-calculator/compound-annual-growth-rate-calculator/
Compound annual growth rate calculator Our compound annual growth rate (CAGR) calculator helps you measure an investment's annual growth rate over a specified period. Page written by AI. Reviewed internally on May 16, 2024. × What is compound interest? Compound interest is the interest calculated on the initial principal and also on the accumulated interest from previous periods, leading to exponential growth of an investment or loan over time. What is CAGR (compound annual growth rate)? CAGR, or compound annual growth rate is a measure of the annual growth rate of an investment over a specified period, assuming that the investment has been compounding over that period. How to calculate CAGR To calculate the compound annual growth rate (CAGR), follow these steps:Find the beginning and ending values: Determine the initial value of your investment or asset (beginning value) and its final value (ending value) after a specific period. Calculate the total return: Subtract the beginning value from the ending value to find the total return or total growth of the investment. Total Return = Ending Value - Beginning ValueDetermine the number of periods: Identify the number of periods (usually years) over which the investment grew. For example, if you're analyzing a 5-year investment, there are 5 periods. Calculate the CAGR: Use the formula:CAGR = (Ending Value / Beginning Value)^(1 / Number of Periods) - 1Where:Ending Value is the final value of the investment. Beginning Value is the initial value of the investment. Number of Periods is the total number of...
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### Refinance calculator
> Our loan refinance calculator helps you estimate the potential savings and costs associated with refinancing your existing loan. Use it free here.
- Published: 2024-03-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/refinance-calculator/
Refinance calculator Our loan refinance calculator helps you estimate the potential savings and costs associated with refinancing your existing loan. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate loan refinance costs Calculating loan refinance costs involves several factors:Application Fees: Some lenders charge an application or origination fee when you apply for a new loan. This fee can vary widely depending on the lender and the type of loan. Closing Costs: Similar to when you initially obtained your business loan, refinancing typically involves closing costs. These may include fees for appraisal, title search, attorney services, and other administrative expenses. Prepayment Penalties: Check if your current loan carries any prepayment penalties for paying off the loan early. If so, factor in these costs when calculating the total cost of refinancing. Interest Rate: The new interest rate on your refinanced loan will determine your monthly payments and the total interest you'll pay over the life of the loan. A lower interest rate can lead to significant savings over time. Loan Term: Consider whether you're extending or shortening the term of your loan. While a shorter term can save you money on interest in the long run, it may also result in higher monthly payments. To calculate the total cost of refinancing, add up all the fees and costs associated with obtaining the new loan. Then, compare this figure with the potential savings you'll achieve through lower monthly payments and reduced interest over the life of the loan....
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### Business loans with a cosigner
> Getting a business loan with poor credit, lack of collateral, or for a risky type of business can be difficult. Learn how a cosigner can help you here.
- Published: 2024-02-26
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/business-loans-with-cosigner/
Business loans with a cosigner Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Getting a small business loan with poor credit, lack of collateral, or for a risky type of business can be very tough. However, in the right circumstances, adding a cosigner to the deal may increase your chances of approval. Add a header to begin generating the table of contents What is a cosigner for a business loan? In many cases, when you apply for a business loan, the lender will ask you to provide a personal guarantee. This means you are personally responsible for repaying the loan if your business defaults. Your home, your savings and your other valuable assets may be seized and sold by the lender in the event of total loan default. However, if your credit score is poor, or you lack sufficient collateral to support the loan, your personal guarantee may not be enough. In...
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### Commercial equity line of credit
> Did you know the equity in your property could be used as collateral to support a commercial equity line of credit? Learn more here, or apply with Swoop today.
- Published: 2024-02-26
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/commercial-equity-line-of-credit/
Commercial equity line of credit Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Many South African businesses own outright or are in the process of buying their commercial real estate – stores, factories, office blocks, etc. Instead of sitting idle, the equity in your property could be used as collateral to support a commercial equity line of credit. Get the funds your organisation needs when you need them and enjoy lower financing costs than many other types of business loan. Add a header to begin generating the table of contents What is a commercial equity line of credit? A commercial equity line of credit (CELOC) is a business loan that functions like a high-value credit card - utilising the equity in the commercial real estate you own or are buying to support a business line of credit. The equity in the property acts as collateral for the loan and the amount of...
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### BBBEE explained
> If your SME is looking to do business with the government or larger organisations, certification under BBBEE is an important step to remove barriers. Read more.
- Published: 2024-02-19
- Modified: 2025-01-10
- URL: https://swoopfunding.com/za/bbbee/
BBBEE explained - how does it work? How can I benefit? Add a header to begin generating the table of contents Page written by Clayton Van Wyk. Last reviewed on October 24, 2024. Next review due March 1, 2025. Clayton Van Wyk Funding Manager Hailing from Cape Town, Clayton has a depth of experience in business finance, helping SMEs understand and acquire business funding. Clayton has worked for several leading funds and lenders in South Africa including Lulalend and Grove Group, as well as Funding Bay in the UK. Clayton is highly knowledgeable across the debt, equity, and grant funding landscape. If your SME is looking to do business with the government or larger South African organisations, certification under the BBBEE (Broad-Based Black Economic Empowerment) act is an important step to remove barriers to trade. Here we'll take a deep dive into the act to understand why BBBEE certification was set up, the different levels of accreditation, and practical steps in applying for/renewing your BBBEE certificate. Add a header to begin generating the table of contents What is BBBEE? The BBBEE Act, or Broad-Based Black Economic Empowerment Act, is a South African law that aims to fix the unfair economic situation left behind by apartheid. It does this by encouraging companies to include more Black people in ownership, management, skills development, and other areas of their business. With the persistence of racial inequality through South African society, BBBEE is a step towards a fairer economy for all. How does it...
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### Same-day business loan
> Same-day business loans are made to deliver funding within 24 hours of loan approval. Read more here, or apply for same day funding with Swoop today.
- Published: 2024-02-13
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/same-day-business-loans/
Same-day business loan Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. It may be to fund an emergency or to grab an unexpected opportunity, but there are often moments in business when you need money faster than your cash flow will allow. Same-day business loans are streamlined to deliver funding within 24 hours of loan approval. Get the cash you need quickly with the minimum of fuss. Add a header to begin generating the table of contents What is a same-day business loan? Same-day business loans can give your organisation extra funds when you need them in a hurry. Mostly available from online lenders who have faster application processes, lower documentation requirements and more relaxed qualifying rules, same-day business loans can put the money in your bank account on the same day as approval, or at least within 24 hours. The downside of same-day business loans is that speed comes with a...
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### No collateral business loans
> Lenders often demand collateral when small businesses apply for a loan. But what do you do if you don’t have enough collateral? Learn it all here.
- Published: 2024-02-13
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/no-collateral-business-loans/
No collateral business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Lenders often demand collateral when small businesses apply for a business loan. But what do you do if you don’t have sufficient collateral, or you don’t want to give a personal guarantee? No collateral business loans are designed to give small businesses the funds they need without signing over their key assets. Read on to learn more about no-collateral business loans, how they work and what you need to get one. Add a header to begin generating the table of contents What is a no-collateral business loan? A no-collateral business loan, (also known as an ‘unsecured loan’), is exactly what it sounds like – you borrow money and provide no assets as security to the lender. This means the lender carries more risk, because if you default, they have no easy way to get their money back. In reality, it’s...
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### Vending machine financing
> Modern vending machines can cost anywhere from $3,000 to $5,000 per unit depending on their features. Save your working capital and finance one with Swoop.
- Published: 2024-02-12
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/asset-finance/vending-machine-finance/
Vending machine financing Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 29, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Vending machines are the stores that never close. Open 24/7 for the sale of food, drinks, candy, toys, and more, they’re a fast and convenient way to buy the things we need. However, modern vending machines can cost anywhere from R3,000 to R5,000 per unit depending on how many bells and whistles they carry. This is enough to put a major dent in any income stream. But don’t be alarmed. There’s an answer to this problem: Vending machine financing. Pay for the equipment as you use the equipment. Give your vending machine business the machinery it needs without hurting cash flow. Add a header to begin generating the table of contents What is vending machine financing? Vending machine financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used vending machines. This type of financing gives business owners an alternative way to pay for one or...
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### Tractor trailer financing
> It doesn’t matter whether you business is small or large, it rarely makes sense to pay for expensive commercial vehicles with cash. Learn more here.
- Published: 2024-02-12
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/asset-finance/tractor-trailer-finance/
Tractor-trailer financing Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 29, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. It doesn’t matter if you’re an owner-operator, a small fleet owner, or a large fleet organisation, it rarely makes sense to pay for expensive commercial vehicles with cash. Instead, tractor-trailer finance lets you pay for the truck as you use the truck and gives you better control of your working capital. Expand your trucking business without hurting cash flow. Add a header to begin generating the table of contents What is tractor-trailer finance Tractor-trailer finance– also known as equipment financing – is a special type of business loan used to support the purchase of new or used tractor-trailers. How does tractor-trailer financing work? There are two types of tractor-trailer financing: Finance (also known as a tractor-trailer loan) Tractor-trailer finance is a straightforward business loan. You make a down payment on the vehicle and then pay off the balance of the purchase price, plus interest, with regular payments over a fixed term contract. The tractor-trailer acts as security for the...
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### Tractor financing
> Tractor financing – also known as equipment financing – is a type of loan used to support the purchase of new or used tractors. Learn it all here.
- Published: 2024-02-12
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/asset-finance/tractor-finance/
Tractor financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Tractor financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used tractors. This type of financing lets you use the equipment as you pay for the equipment. Buy one or more tractors without putting strain on cash flow. There are two types of tractor financing:Finance (also known as a tractor loan)Tractor finance is a straightforward business loan. You make a down payment on the tractor and then pay off the balance of the purchase price, plus interest, with regular payments over a fixed-term contract. The equipment acts as security for the loan. When the agreement comes to an end, the tractor is paid for and yours to keep. LeaseA tractor lease is really a long-term rental agreement. Because you are only financing some of the purchase price, leasing typically...
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### Forklift financing
> Forklifts are essential equipment for all types of business, but with prices ranging from R15,000 - R50,000, they don’t come cheap. Apply for finance today.
- Published: 2024-02-12
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/forklift-finance/
Forklift Financing Add a header to begin generating the table of contents Forklifts are essential business equipment for all types of organisation, but with sticker prices ranging from R15,000 to R50,000, they don’t come cheap. Paying this kind of cost using working capital is not only financially inefficient, it can also be prohibitive. However, there’s an answer to this problem: Forklift financing. Pay for the equipment as you use the equipment. Give your organisation the machinery it needs without hurting cash flow. Add a header to begin generating the table of contents What is forklift financing? Forklift financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used forklifts. This type of financing gives organisations an alternative way to pay for one or more forklifts without putting strain on working capital by buying machinery with cash. What are the benefits of financing a forklift? Financing your forklift purchase has many benefits:Retain valuable working capital for use elsewhere in your businessImmediate equipment acquisition – may show as an asset on your balance sheetLow or no down paymentBuy over time – pay for your forklift with affordable monthly paymentsPreserve other credit lines How does forklift financing work? There are two types of forklift financing: Finance (also known as a forklift loan) Forklift finance is a straightforward business loan. You make a down payment on the forklift and then pay off the balance of the purchase price, plus interest, with regular...
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### Business line of credit
> Ideal for businesses that want maximum flexibility, a line of credit can give you all the funds you need when you need them. Read more here and apply here.
- Published: 2024-02-09
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/business-line-of-credit/
Business line of credit requirements Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Ideal for businesses that want maximum financial flexibility, a business line of credit can give you all the funds you need when you need them, lower your borrowing costs, and provide perfect peace of mind. Add a header to begin generating the table of contents What is a business line of credit? A business line of credit – also known as a revolving line of credit - is a business loan that functions like a high-value business credit card. Unlike a standard term loan, where you get all the cash in one lump sum, revolving credit lines allow businesses to withdraw as much as they want – up to their credit limit - from a floating loan account. The key benefit of this type of borrowing is that you only pay interest on the amount you withdraw, not the...
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### Excavator financing
> Excavators can be some of the most flexible and useful heavy machinery you can get, but they are expensive. Read all about excavator financing and apply here.
- Published: 2024-02-09
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/excavator-finance/
Excavator financing Add a header to begin generating the table of contents Page written by Arabella McAvoy. Last reviewed on October 25, 2024. Next review due March 1, 2025. Arabella McAvoy Expert financial copywriter Arabella is a former BBC business journalist who began her career as a policy analyst at the Bank of England and Financial Conduct Authority, and more recently worked in the communications and policy team at the British Business Bank. Excavators – also known as diggers or mechanical shovels – can be some of the most flexible and useful heavy machinery you can get. Operated by industries as varied as construction, agriculture, forestry and mining, they can be the powerhouse of any business. However, diggers don’t come cheap and paying for this type of heavy machinery with working capital can often be prohibitive. Fortunately, there’s an answer to this problem: Excavator financing. Pay for the equipment as you use the equipment. Give your organisation the machinery it needs without hurting cash flow. Add a header to begin generating the table of contents What is excavator financing? Excavator financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used excavators. This type of financing gives organisations an alternative way to pay for one or more diggers without putting strain on working capital by buying heavy machinery with cash. How does excavator financing work? If your organization needs an excavator, you have two ways to get one:...
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### Dump truck financing
> Dump trucks can cost from a few thousand ZAR up to over R200,000, but as an all-purpose workhorse they’re pretty tough to beat. Apply for funding today.
- Published: 2024-02-09
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/dump-truck-finance/
Dump truck financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Dump trucks can cost from a few thousand ZAR up to R180,000 or more, but as an all-purpose workhorse they’re pretty tough to beat. However, paying for this kind of equipment with working capital is financially inefficient and can often be prohibitive. Fortunately, there’s an answer to this problem: Dump truck financing. Pay for the equipment as you use the equipment. Give your organisation the vehicles it needs without hurting cash flow. Add a header to begin generating the table of contents What is dump truck financing? Dump truck financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used dump trucks. This type of financing gives organisations an alternative way to pay for one or more dump trucks without putting strain on working capital by buying vehicles with...
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### Commercial fleet finance
> Buying new business vehicles like trucks, vans and bulldozers aren't cheap. Fortunately, commercial fleet finance relieves the strain of these assets. Read more
- Published: 2024-02-08
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/commercial-fleet-finance/
Commercial fleet finance Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. New business vehicles don’t come cheap and buying big ticket items like trucks, vans and bulldozers out of working capital can impact business efficiency and often be prohibitive. Fortunately, there’s a solution to this problem: Commercial fleet finance. Give your organisation the vehicles it needs without hurting cash flow. Add a header to begin generating the table of contents What is commercial fleet financing? Commercial fleet financing – also known as equipment financing – is a type of business loan used to support the purchase of one or more vehicles that are used for business purposes. Typically, this means vehicles such as:Semi-trucksBox trucksLight/medium duty trucksPickupsTrailersConstruction equipment – bulldozers, scrapers, excavators, etc. Emergency vehicles – ambulances, fire trucks, etc. Commercial fleet finance is effectively a long-term rental agreement, and it is usually employed to purchase or lease more than one vehicle at...
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### Cash flow calculator
> Our cash flow calculator can be used to estimate the amount of money coming in and going out of a business over a specific period. Get started.
- Published: 2024-02-07
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/cash-flow-calculator/
Cash flow calculator Our cash flow calculator can be used to estimate the amount of money coming in and going out of a business over a specific period. It typically takes into account income sources, expenses, investments, loans, and other financial transactions to determine the net cash flow. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate cash flow To use our cash flow calculator, you would input the following information:Income: Include all sources of income, such as sales revenue, rental income, interest earned, etc. Expenses: List all expenses, including operating expenses (such as rent, utilities, salaries), taxes, loan payments, etc. Investments: If applicable, include any investments or capital expenditures made during the period. Loans and Financing: Enter any loan payments or financing activities, including both principal and interest payments. Once you've entered this information, the cash flow calculator will calculate the net cash flow for the period, showing whether there's a surplus or deficit of cash. This can help businesses and individuals plan for future expenses, manage liquidity, and make informed financial decisions. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of...
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### Purchase order financing
> Purchase order financing can give you the funds to complete all your orders even if your regular borrowing facilities are overstretched. Learn more here.
- Published: 2024-01-30
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/purchase-order-financing/
Purchase order financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Never miss a customer order again. Purchase order financing can give you the funds to complete all your orders even if your cash flow or regular borrowing facilities are overstretched. Add a header to begin generating the table of contents What is purchase order financing? Purchase order financing, also known as PO financing, is a cash advance that lets small businesses pay for goods to fill a customer order when they lack the funds to buy the goods themselves. Useful when your cash flow is weak or your regular credit facilities are maxed out, a PO loan means you don’t have to turn an order away because you have insufficient inventory or lack the cash to buy new stock from your suppliers. How does purchase order financing work? With purchase order financing, a lender pays your supplier up to 100% of...
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### Self-employed business loans
> Self-employed business loans can provide a vital safety net for freelancers, sole traders and independent contractors. Read more here.
- Published: 2024-01-29
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/self-employed-loans/
Self-employed business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. What are business loans for self-employed borrowers? Self-employed business loans can provide a vital safety net for freelancers, sole traders and independent contractors – covering dips in cash flow, paying unexpected expenses or allowing self-employed entrepreneurs to take their business to the next level and beyond. Use a self-employed business loan to:Support your cash flowBuy equipment, materials and inventoryPay utilities and suppliersBuy a new vehicleCover taxesExpand your operation or acquire a new businessAnd more Add a header to begin generating the table of contents How loans for self-employed borrowers work Self-employed borrowers can usually get the same types of business loans as larger organisations, although this type of financing may require you to provide collateral or at least a personal guarantee. Here’s a rundown of the most popular types of self-employed small business loan: Bank loansKey benefit: Lower borrowing costsMost bank...
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### No credit check business loans
> Securing a business loan can be a challenge for many organisations, but for business owners with bad credit, it can be very tough. Read more.
- Published: 2024-01-29
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/no-credit-check-business-loans/
No credit check business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Securing a small business loan can be challenging for many organisations, but for business owners with bad credit, it can be extremely tough. No credit check business loans may provide a solution to this problem, although this type of financing typically comes with higher costs, shorter terms and lower sums available. Add a header to begin generating the table of contents What are no credit check business loans? No credit check loans are usually provided by online and alternative providers instead of traditional lenders such as banks and credit unions. With this type of financing the lender does not check your personal or business credit score when reviewing your loan application. No check business loans can help small business owners with poor credit get the financing they need, but securing a loan without undergoing a credit check can be...
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### Seller financing
> Seller financing can be a win/win for both parties. Learn more about this popular route to buying the business you’ve always wanted here.
- Published: 2024-01-29
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/seller-financing/
Seller financing Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Getting a traditional business loan to purchase a business can be tough for would-be buyers who lack a ton of cash or less than stellar credit. Seller financing is one solution to this problem; the business seller acts like a bank and gives the buyer a loan to purchase their business. Seller financing can be a win/win for both buyers and sellers. Read on to learn more about this popular route to buying the business you’ve always wanted. Add a header to begin generating the table of contents What is seller financing? Seller financing, also known as ‘owner financing’ or ‘seller carryback’, is commonly used when a business owner wants to sell their business. The seller offers a loan to the buyer to cover part or even all of the sale price and the buyer then pays the seller back in regular...
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### Equipment appraisals
> Business equipment is more than just machinery. Here’s all you need to know about appraising its value, the process, and legal considerations. Read more.
- Published: 2024-01-26
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-appraisals/
Equipment appraisals: All you need to know Add a header to begin generating the table of contents Page written by Michael David. Last reviewed on August 26, 2024. Next review due March 1, 2025. Michael David Expert financial copywriter Michael David is a financial writer and former investment advisor. Writing for Capital Group, Dimensional Fund Advisors, Franklin Templeton Investments, HSBC, Invesco, PIMCO, Vanguard, global insurance companies, major banks and others, he has educated professionals, business owners and consumers about strategies for investing, insurance, banking and corporate finance for more than 20 years. Business equipment is more than just machinery, it’s an asset that goes on your balance sheet and can support your business financing needs. Here’s what you need to know about appraising its value. Add a header to begin generating the table of contents What is a machinery & equipment appraisal? Having your business equipment appraised means hiring an expert to provide an unbiased opinion of what it is worth. This independent valuation can be helpful when you are dealing with outside parties who want to be confident that the reported value is accurate and objective. In many cases, the work will be carried out by an accredited, qualified professional equipment appraiser. Why would you need an equipment appraisal? There are many reasons why you might need an objective appraisal of the value of your equipment, including:Financing. Banks and private lenders may require an appraisal before accepting your equipment or machinery as collateral for a secured business loan. Insurance....
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### Large business loans
> Although large business loans are more difficult to secure, they can provide the financial heft to propel your business to the next level. Learn more here.
- Published: 2024-01-24
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/large-business-loans/
Large business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Although large business loans are typically more difficult to secure than smaller financing options, thinking very big in business can bring outsize returns. Larger loans can provide the financial heft to propel your organisation to the next level and beyond. Add a header to begin generating the table of contents What is considered a large business loan? A large business loan is typically business financing of R500,000 or more. How do large business loans work and what are their uses? Large business loans work like any other business financing – you borrow a sum of cash and pay it back over time – except the numbers are much bigger. These types of loan may need to be secured by the borrower’s collateral, or they may use other assets, such as the borrower’s sales receipts as security. Large business loans can be...
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### Easy business loans
> Faster, simpler, more flexible. Easy business loans are an ideal funding choice for business owners who want a loan quickly. Read more and apply today.
- Published: 2024-01-24
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/easy-business-loans/
Easy business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Faster, simpler, more flexible. Easy business loans are an ideal funding choice for small business owners who want a loan quickly and without all the fuss. Add a header to begin generating the table of contents What qualifies as an easy business loan? Although there is no official definition of an easy business loan, the term usually applies to business financing that requires low documentation and has more lenient qualifying rules. Compared to banks and credit unions that offer more traditional business loans – funding that typically requires strong credit, excellent finances and several years in business – easy business loans are usually obtained from online lenders and may be secured with lower credit scores, shorter times in business and less financial paperwork. Key features of easy business loans include:Flexible qualificationsEasy business loans usually come with more relaxed qualifying rules. This...
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### Cash flow loans
> Cash flow can make or break any business, and poor cash flow is the biggest reason small businesses fail. Learn more about cash flow loans and apply here.
- Published: 2024-01-24
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/cash-flow-loans/
Cash flow loans for small businesses Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Cash flow can make or break any business, and poor cash flow is the biggest reason many small businesses fail. When money is going out faster than you can get it in, you have a recipe for disaster, but cash flow loans are designed to eliminate this problem – providing short to medium-term financing that can reduce financial pressure and give your business the chance to grow again. Add a header to begin generating the table of contents What are cash flow loans for small businesses? Cash flow loans are short to medium-term business loans used to cover dips in your income stream. Most easily secured from online or alternative lenders, cash flow loans can be used for day-to-day expenses, covering rent, making payroll, and many other needs. The funds are typically lent against the strength of your...
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### Invoice factoring
> Invoice factoring refers to selling unpaid invoices to a company that provides you with cash immediately. Learn more about this funding option, or apply here.
- Published: 2024-01-22
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/invoice-factoring/
Invoice factoring: The complete guide Add a header to begin generating the table of contents Page written by Michael David. Last reviewed on August 26, 2024. Next review due March 1, 2025. Michael David Expert financial copywriter Michael David is a financial writer and former investment advisor. Writing for Capital Group, Dimensional Fund Advisors, Franklin Templeton Investments, HSBC, Invesco, PIMCO, Vanguard, global insurance companies, major banks and others, he has educated professionals, business owners and consumers about strategies for investing, insurance, banking and corporate finance for more than 20 years. If you want to smooth out your business cash flow, invoice factoring is a solution to consider. It can be one of the quickest ways to receive an injection of cash when you need it. Here’s what you need to know. Add a header to begin generating the table of contents What is invoice factoring? Many businesses find themselves in the position of having invoices that are owed to them but not enough cash in the bank when they need it. Invoice factoring refers to selling those unpaid invoices to a factoring company that provides you with cash immediately. You can think of invoice factoring as a cash advance for your businesses. How does invoice factoring work? Invoice factoring has similarities to a short-term business loan, but it is really its own unique process. Here’s how it typically works:You get approved by a factoring company. They will want to understand your business and the creditworthiness of your clients so they...
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### Invoice discounting
> Invoice discounting means borrowing against unpaid invoices that are owed to you. Learn all about this funding option and apply here with Swoop.
- Published: 2024-01-22
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/invoice-discounting/
Invoice discounting: What is it? Add a header to begin generating the table of contents Page written by Michael David. Last reviewed on August 26, 2024. Next review due March 1, 2025. Michael David Expert financial copywriter Michael David is a financial writer and former investment advisor. Writing for Capital Group, Dimensional Fund Advisors, Franklin Templeton Investments, HSBC, Invesco, PIMCO, Vanguard, global insurance companies, major banks and others, he has educated professionals, business owners and consumers about strategies for investing, insurance, banking and corporate finance for more than 20 years. If you frequently find yourself waiting on clients to pay your invoices, there’s a way you might be able to speed things up. Invoice discounting is like getting a cash advance as soon as you issue an invoice. Here’s how it works. Add a header to begin generating the table of contents What is invoice discounting? Invoice discounting means borrowing against unpaid invoices that are owed to you in order to receive your money faster. It’s called “discounting” because, although you are able to access your funds more quickly, the amount you receive will be discounted by a fee that you pay to the finance company. How does invoice discounting work? Invoice discounting is like being able to access a short-term loan that is secured by your accounts receivable. Here’s how it works:You sign up with an invoice discounting company. You’ll want to shop around, as the specific services and fees can vary quite a bit. You issue an invoice...
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### Accounts receivable financing
> Accounts receivable financing means using your unpaid invoices as collateral to borrow cash. Learn all about accounts receivable financing and apply here.
- Published: 2024-01-22
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/accounts-receivable-financing/
Accounts receivable financing Add a header to begin generating the table of contents Page written by Michael David. Last reviewed on August 26, 2024. Next review due March 1, 2025. Michael David Expert financial copywriter Michael David is a financial writer and former investment advisor. Writing for Capital Group, Dimensional Fund Advisors, Franklin Templeton Investments, HSBC, Invesco, PIMCO, Vanguard, global insurance companies, major banks and others, he has educated professionals, business owners and consumers about strategies for investing, insurance, banking and corporate finance for more than 20 years. If you’ve ever looked into business financing, you may have run up against the requirement for collateral. While that usually means pledging real estate or other property as security for the loan, your outstanding receivables might also do the trick. Keep reading for more. Add a header to begin generating the table of contents What is accounts receivable financing? Accounts receivable financing means using your unpaid invoices as collateral to borrow money. If your business sends out invoices on a regular basis, accounts receivable financing is like having access to a series of cash advances secured by those invoices. Accounts receivable financing can help businesses manage their cash flow by allowing them to turn invoices into cash almost immediately. How does accounts receivable financing work? Accounts receivable financing can be part of your overall working capital strategy. Although you might use a small business loan or line of credit for major business investments, accounts receivable financing can be a useful way to...
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### Delayed draw term loan
> Delayed draw-term loans give access to a pool of funds as and when you need them, and you only pay interest on the borrowed funds you withdraw. Learn more here.
- Published: 2024-01-17
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/delayed-draw-term-loan/
Delayed draw term loan: A comprehensive guide Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. If you’re an entrepreneur looking for the perfect business opportunity, how much easier would your search be if you knew you definitely had the funds to quickly close the deal instead of waiting for a lender’s approval? Delayed draw-term loans can provide access to a pool of funds as and when you need them, and you only pay interest on the borrowed funds you withdraw. If this sounds like your perfect financial solution, you aren’t alone. DDTLs are now commonly used to finance all kinds of business opportunities by organisations large and small. Read on to find out more about DDTLs, how they work and what they can do for you. Add a header to begin generating the table of contents What is a delayed draw term loan? A delayed draw term loan (DDTL) is a term...
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### Amortisation calculator
> An amortization calculator is a financial tool designed to assist businesses in understanding and planning the repayment of loans over time. Try it today.
- Published: 2024-01-16
- Modified: 2024-05-31
- URL: https://swoopfunding.com/za/business-loan-calculator/amortisation-calculator/
Amortisation calculator An amortisation calculator is a financial tool designed to assist businesses in understanding and planning the repayment of loans over time. It helps seeking clarity on your repayment journey and making informed financial decisions. Page written by Ian Hawkins. Last reviewed on May 31, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Loan amount R . 00 Loan term 20 years Interest rate 4% Loan start date This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan. Your results Monthly payment R Total interest paid R Total cost of loan R Number of payments Payoff date Get a quote Chart Schedule How payments change over the...
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### Flexible finance
> Flexible financing can put organisations in better control of their money, giving them options if anything change. Learn more or apply with Swoop today.
- Published: 2024-01-12
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/flexible-finance/
What are flexible financing options? Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Not so long ago, there was almost zero flexibility in commercial finance for small and medium-sized South African businesses. Banks and credit unions set the rules and businesses were typically given fixed term loans with regular payment schedules and no leeway if the business landscape changed. However, that was then. Now, with online lenders driving the rapid expansion of alternative business funding, flexible financing has become commonplace and businesses that make the most of it can gain a valuable competitive advantage. In short, flexible financing can put organisations in better control of their money, giving them options if circumstances change and more avenues to grow without relying on hard-won working capital or rigid term loans. Use flexible funding to bridge gaps in cashflow, buy equipment and inventory, cover seasonal trade swings and reduce the interest changes and fees you...
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### Commercial finance
> If you run a business you may have heard the term ‘commercial financing’. But what does it mean, how does it work and is it right for your business? Read more.
- Published: 2024-01-09
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/commercial-finance/
Commercial financing: All you need to know Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. If you own or run a business you’ve probably heard the term ‘commercial financing’ before. But what does it mean, how does it work and is it right for your business? Well, wonder no more. Read on to find out all you need to know about commercial financing - and how you can make the most of it. Add a header to begin generating the table of contents What is commercial financing? Commercial financing comes in many shapes and sizes, ranging from term loans and revolving lines of credit to business mortgages, equipment loans, cash advances and more:Term loansThe most common type of commercial loan and typically used for one-off investments where you know exactly how much cash you need. Bulk materials or inventory purchases, plant and equipment investment, and debt repayment and restructuring activities work well...
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### R100,000 or less business loan
> If you are looking for a business loan up to R100,000 but aren't sure where to start, look no further. Read on to find out the best loans, or apply with Swoop.
- Published: 2024-01-08
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/best-business-loans-100000-or-less/
Best small business loans for R100,000 or less Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 29, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Supporting big expansion plans, making key acquisitions, ramping up production, or simply restructuring your business finances can often be tough using only working capital – which is why many organisations turn to business loans of R100,000 or less to fund their plans and growth. Read on to learn more about these types of finance, what they can do for you, and how to get the loan that suits your business best. Add a header to begin generating the table of contents What business loans are available for R100,000 or less? There are many types of business loan available for R100k or less - each has its pros and cons: Business term loan Commonly used for one-off investments where you know exactly how much cash you need. Commercial real estate purchases, plant and equipment investment, and debt...
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### Bad credit business loan
> Even if you have bad credit, or if you’ve been turned down elsewhere, it may still be possible to secure the funding your business needs. Read more & apply here
- Published: 2024-01-08
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loans/bad-credit-business-loans/
Bad credit business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. It only takes one financial misjudgment or a streak of bad luck to see your good credit turned into bad credit and then you’re locked out from many types of business loan. However, it doesn’t have to be like that. Even with bad credit (or no credit) you may still be able to secure the financing you need. Read on to find out more about bad credit business loans and how they can help you to rebuild your credit and make your business grow. Add a header to begin generating the table of contents What is a bad credit score? The term ‘bad credit’ refers to a history of not paying bills or loan repayments on time and the increased likelihood that the borrower will fail to make timely payments in the future. In practice, bad credit really means a...
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### Alastair Woods
- Published: 2023-11-21
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/alastair-woods/
Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Latest articles by Alastair Woods 13 articles written by this author 6 min read How to calculate capital employed 18 min read Invoice finance 19 min read Asset finance 16 min read Merchant cash advance 18 min read Revolving credit facility 20 min read Secured business loans 10 min read Unsecured business loans 16 min read Small business loans 15 min read Working capital loans 17 min read Commercial mortgages & property finance 9 min read Business grants 7 min read Equity financing 10 min read Business credit scores Ready to grow your business? Get started
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### Kerry Dwyer
- Published: 2023-11-21
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/kerry-dwyer/
Kerry Dwyer Equity & Grants Funding Manager After graduating from Business and Economics in Trinity College Dublin, Kerry worked in client facing financial planning and investment roles before joining Swoop as an Equity Account Manager. Kerry is passionate about meeting new businesses and helping them to get funding through equity and grants. Latest articles by Kerry Dwyer 0 articles written by this author Ready to grow your business? Get started
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### Sam Tasker Grindley
- Published: 2023-11-21
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/sam-tasker-grindley/
Sam Tasker-Grindley Head of Advisor Channel Sam is Swoop's Head of Advisor Customer Success supporting our accountants with every part of their advisory journey. He spent 8 years working in Accountancy Practice before moving into the fintech industry 2 years ago to help accounting firms build their business advisory offering. He is a chartered accountant and also the VP of ICAEW District Society in Yorkshire. Latest articles by Sam Tasker-Grindley 0 articles written by this author Ready to grow your business? Get started
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### Rhys Cunnah
- Published: 2023-11-21
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/rhys-cunnah/
Rhys Cunnah Head of Growth With a extensive background in Commercial and Corporate Lending from the RBS group having worked at both NatWest and Coutts, Rhys became the youngest Coutts employee in a 325 year history to manage and look after 90 high net worth businesses. Through Swoop, Rhys is able to create bespoke lending facilities through a wide range of products and has been involved in over £1bn of facilities in his career. Latest articles by Rhys Cunnah 0 articles written by this author Ready to grow your business? Get started
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### Sam Horner
- Published: 2023-11-21
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/sam-horner/
Sam Horner Head of Advisor Sales & Partnerships Sam is Head of Advisor Sales & Partnerships at Swoop and works closely with our accounting partners. He has 20 years of experience within the professional services industry spanning banking and legal. For the last 7 years, Sam has been focusing on accountants including the UK’s top 100 firms and global networks. Latest articles by Sam Horner 0 articles written by this author Ready to grow your business? Get started
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### Ian Hawkins
- Published: 2023-11-17
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/ian-hawkins/
Ian Hawkins News & Investigations Editor Ian Hawkins has made films for BBC World, CNN and Handelsblatt. His career started as a comedy writer for BBC and Channel 4, before shifting into telling stories for businesses in events and digital media. Latest articles by Ian Hawkins 2 articles written by this author 5 min read GenAI: the tools and prompts your business needs 4 min read Resolutions for 2024: Don’t do more - do what you do better 3 min read Are you one of the businesses threatened with closure because you cannot access funding? Ready to grow your business? Get started
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### Andrea Reynolds
- Published: 2023-11-17
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/andrea-reynolds/
Andrea Reynolds CEO & Founder Before launching Swoop, Andrea started as an accountant with KPMG. Her career evolved with a focus on raising funds for small businesses. Andrea is a non-executive director for Berkshire Hathaway European Insurance. Latest articles by Andrea Reynolds 0 articles written by this author Ready to grow your business? Get started
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### Rent vs. buy calculator
> The decision between renting and buying is a key financial choice. Use this handy calculator to find out what's best for you.
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/rent-vs-buy-calculator/
Rent vs. buy calculator The decision between renting and buying is a crucial financial choice. Use this handy calculator to find out what decision is best for you. Page written by AI. Reviewed internally on May 17, 2024. × What is a rent vs. buy calculator? A rent vs. buy calculator is a financial tool designed to help you evaluate the financial implications of renting versus buying a property, and assists you in making an informed decision by comparing the costs associated with renting and buying over a specified period. What other factors should be considered? Several factors can influence the decision between renting and buying. These factors can have a big impact on the financial outcome and should be carefully considered. Financial stability and flexibility: Your current financial situation can greatly affect your ability to secure a mortgage. Renting offers more flexibility in case of financial changes or unexpected expenses. Location and housing market conditions: The market in the area you're considering can significantly influence the decision. High-demand areas may have higher property prices, making renting a more practical option. Duration of stay: Consider how long you plan to stay in the area. If you anticipate moving within a few years, renting may be more cost-effective. Upfront costs and down payment: Buying a home typically requires a significant down payment, which can be a barrier for some buyers. Renting usually involves lower upfront costs. Mortgage interest rates: Interest rates impact the cost of financing a property. Higher rates can...
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### Apply for a business loan now
> Needed business funding yesterday? Swoop can get you up to R250,00 in just 24 hours. Read more and apply today.
- Published: 2023-10-24
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/apply-now/
Apply for a business loan right now Needed business funding yesterday? We can get you a loan of up to R250,000 in as little as 24 hours. Apply now Loans of up to R200,000 Interest rates from 8% Borrow for up to 15 years Funds in 24 hours What can I use the funds for? Use your instant business loan finance for any legitimate business purpose, for example: managing cash flow buying equipment meeting a one-off cost helping with payroll growing your business marketing Apply now How to apply Register your business with Swoop And access your personal dashboard. Get matched to instant loan offers We'll match you with all business loan offers, as well as other funding opportunities. Apply in minutes Keep updated with changing circumstances and easily submit your application to lenders. Apply now Industries taking advantage of instant loan offers Manufacturing Construction Wholesalers Transportation Business services Apply now Business loan calculator Tips for applying Make sure you have a clear idea about of the purpose of the loan. Prepare paperwork such as financial accounts before you apply. Find the right type of funding at the right rate by applying with Swoop. Apply now Apply now Related pages Accounts receivable financing Aircraft financing Apply for a business loan now Asset finance Asset-based lending Audio visual equipment financing Bad credit business loan Bakery equipment financing Boat financing Bobcat financing Business car finance Business line of credit Business loans Business loans for bed and breakfasts Business loans for women Business...
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### Sales tax calculator
> Our sales tax calculator can help you determine the the amount of sales tax that should be added to a purchase. Try our calculator today.
- Published: 2023-10-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/sales-tax-calculator/
Sales tax calculator Our sales tax calculator can help you determine the the amount of sales tax that should be added to a purchase. Page written by AI. Reviewed internally on June 10, 2024. × Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV Before tax price R . 00 Sales tax rate 0% This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan. Your results After tax price R0 Get a quote What is sales tax? Sales tax is a type of consumption tax imposed by governments on the sale of goods and services. It's typically a percentage of the purchase price and is collected by the seller at the point of sale. The seller then remits the collected tax to the government. The purpose of sales tax is to generate revenue for government agencies. This revenue is used to fund public services such as education, healthcare, infrastructure, and various other government functions. It's important to note that sales tax rates and regulations can vary widely between different regions, states, and countries. In some places, sales tax may be a single, uniform rate applied to most goods and services. In others, there may be different rates for different types of items or exemptions for certain goods like groceries or medical supplies. All calculators ADR calculator APY...
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### Lease calculator
> Our lease calculator can help you make informed decisions about buying assets, and helping you understand the implications of your lease. Read more.
- Published: 2023-10-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/asset-finance-calculator/lease-calculator/
Lease calculator Our lease calculator can help you make informed decisions about acquiring assets, and helping you understand the financial implications and commitments associated with leasing arrangements. Page written by AI. Reviewed internally on May 24, 2024. × All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to earnings calculator Rate of return calculator Refinance calculator Rent vs. buy calculator Return on capital employed calculator Return on investment calculator Revenue calculator Sales tax calculator WACC calculator (Weighted average cost of capital) See more
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### Inflation calculator
> Our inflation calculator helps you understand how the purchasing power of money changes over time due to inflation. Try our calculator here.
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/inflation-calculator/
Inflation calculator Our inflation calculator helps you understand how the purchasing power of money changes over time due to inflation. Page written by AI. Reviewed by Ciaran Burke on April 2, 2024. Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. × Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. Linkedin All calculators Acid test ratio calculator Amortisation calculator APY calculator Asset finance calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Internal rate of return calculator Invoice finance calculator Lease calculator Marginal cost calculator Merchant cash advance (MCA) calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to earnings calculator Rate of return calculator Refinance calculator Rent vs. buy calculator Return on capital employed calculator Return on investment...
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### Mortgage overpayment calculator
> Overpaying on a mortgage offers benefits. Even modest, regular overpayments can yield substantial interest savings over time. Use our calculator here.
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/mortgage-overpayment-calculator/
Mortgage overpayment calculator Overpaying on either a residential or commercial mortgage offers significant benefits. It reduces total interest costs and shortens the repayment period. This leads to accelerated equity buildup and increased financial flexibility. Even modest, regular overpayments can yield substantial interest savings over time. Page written by AI. Reviewed by Ciaran Burke on April 2, 2024. Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. × Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. Linkedin All calculators Acid test ratio calculator Amortisation calculator APY calculator Asset finance calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Marginal cost calculator Merchant cash advance (MCA) calculator Merchant cash advance (MCA) calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square...
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### Percentage calculator
> This calculator is designed to help you quickly and easily calculate percentages. Use it here and ease your calculations.
- Published: 2023-10-04
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/percentage-calculator/
Percentage calculator This calculator is designed to help you quickly and easily calculate percentages for a variety of purposes. Whether you're working out how much something has increased or decreased in value, what percentage of a number something is, or what number is a percentage of another value, our percentage calculator can help. Page written by AI. Reviewed by Ciaran Burke on April 2, 2024. Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. × Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. Linkedin All calculators Acid test ratio calculator Amortisation calculator APY calculator Asset finance calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Marginal cost calculator Merchant cash advance (MCA) calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Pre money valuation...
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### Return on investment calculator
- Published: 2023-10-03
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/return-on-investment-calculator/
Return on investment calculator Return on Investment (ROI) is a financial metric used to evaluate the profitability or efficiency of an investment. It measures the return or gain on an investment relative to the initial cost or outlay. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate return on investment To calculate Return on Investment (ROI), you'll need the following information:Initial Investment (Cost): This is the amount of money you initially invest in a project, venture, or asset. Final Value (or Earnings): This is the total value or earnings generated from the investment. The formula for ROI is:ROI = Net income / Cost of investment x 100 All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to earnings calculator Rate of return calculator Refinance calculator Rent vs. buy calculator Return on capital...
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### Break even calculator
- Published: 2023-10-03
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/break-even-calculator/
Break even calculator Break-even refers to the point at which a business or project neither makes a profit nor incurs a loss. At the break-even point, there is no net gain or loss, and all expenses are covered. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate break even point To calculate the break-even point, you'll need the following information:Fixed Costs (FC): These are costs that do not change with the level of production or sales. This may include rent, salaries, insurance, etc. Variable Costs per Unit (VC): These are costs that vary with the level of production or sales, such as raw materials or production costs. Selling Price per Unit (SP): The price at which you sell each unit of your product or service. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to...
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### Business loans for women
> Less than a third of South African SMEs are currently owned by women, and a lack of funding to female founders is named as a key reason. Read more here.
- Published: 2023-09-22
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/loans-for-women/
Business loans for women Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Despite increasing since 2016, female business ownership in South Africa is still out of balance to the population’s composition. Just over 20% of South African businesses are currently owned by women, and a lack of funding to female entrepreneurs to support startups, fuel expansion plans, and buy property and equipment, is named as a key reason business ownership by women is so low. Fortunately, this situation is changing, as more independent lenders are joining the business lending market and making more funding available for women entrepreneurs to close down the gender-finance gap. But what kind of loans can female business owners secure? What are the application processes? And what can these loans be used for? Read on to find out more about business loans for women and why they are so important to the nation’s economy. Add a header to...
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### Short-term business loans
> Short-term business loans are the fast and cost-effective way to support your working capital and keep your business running. Read more here.
- Published: 2023-09-22
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/short-term-loans/
Short-term business loans Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Rising costs, late-paying customers, and a slowing economy are enough to put a dent in any business’ cashflow and they’re a major concern for most South African SMEs. Add in unexpected emergencies, or a sudden boost in demand and it doesn’t take much to push a successful business into difficulty. Fortunately, there’s a solution to these problems – meet the short-term business loan – the fast and cost-effective way to support your working capital and keep your business running at full speed. Add a header to begin generating the table of contents What is a short-term business loan? A short-term business loan is exactly what it sounds like – money that your business borrows and then pays back quickly – usually in less than one year. If you don’t want your business burdened with long-term debt, short-term business funding can be...
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### Compound interest calculator
> Try our compound interest calculator to help determine how your money, will grow over time when it earns interest that is compounded. Read more here.
- Published: 2023-09-21
- Modified: 2025-01-10
- URL: https://swoopfunding.com/za/business-loan-calculator/compound-interest-calculator/
Compound interest calculator Our compound interest calculator can help determine how an initial amount of money, known as the principal, will grow over time when it earns interest that is compounded at regular intervals. Page written by Ian Hawkins. Last reviewed on May 16, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Definitions Initial Investment: The initial amount of money invested or loaned at the beginning of the compounding period. Contribute: Additional contributions made to the investment or loan at regular intervals, such as monthly or annually. Interest Rate: The rate at which interest is applied to the initial investment and any accumulated interest, expressed as a percentage. Compound It: The process of adding the accumulated interest back to the initial...
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### Depreciation calculator (straight-line method)
> This calculator can be used to calculate the depreciation expense of an asset over its useful life using the straight-line method. Find out more here.
- Published: 2023-08-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/depreciation-calculator/
Depreciation calculator (straight-line method) This calculator can be used to calculate the depreciation expense of an asset over its useful life using the straight-line method. The straight-line method evenly spreads the cost of an asset over its expected useful lifespan. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate depreciation (straight-line method) Here's how you can calculate depreciation using the straight-line method:Determine the cost of the asset. Estimate the salvage value (the value of the asset at the end of its useful life). Calculate the depreciable cost by subtracting the salvage value from the cost of the asset: Depreciable Cost = Cost of Asset - Salvage Value. Determine the useful life of the asset in years. Divide the depreciable cost by the useful life to calculate the annual depreciation expense: Annual Depreciation Expense = Depreciable Cost / Useful Life. A depreciation calculator using the straight-line method typically requires you to input the cost of the asset, salvage value, and useful life. The calculator then provides you with the annual depreciation expense. Using this method, the asset's value is reduced by the same amount each year, providing a systematic way to account for the reduction in value over time. This is a common method used in accounting to allocate the cost of assets and determine their book value. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business...
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### Acid test ratio calculator
> Your acid test ratio is calculated by dividing the sum of cash, marketable securities, and accounts receivable by the total current liabilities of the company.
- Published: 2023-08-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/acid-test-ratio-calculator/
Acid test ratio calculator An acid test ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate acid test ratio This ratio provides insight into a company's immediate liquidity and ability to meet short-term obligations without relying on the sale of inventory. It's an important financial metric for assessing a company's financial health. If you're looking to use an acid test ratio calculator, you can input the values of cash, marketable securities, accounts receivable, and total current liabilities to obtain the ratio result. This can help you evaluate the company's short-term financial position and its ability to handle unexpected financial challenges. All calculators ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to earnings calculator Rate of return calculator Refinance calculator Rent vs. buy...
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### PayPal fee calculator
- Published: 2023-08-15
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/paypal-fee-calculator/
PayPal fee calculator PayPal fees can vary depending on factors like the transaction amount, currency, and type of transaction (e. g. , goods and services, personal payment, etc. ). Page written by AI. Reviewed internally on June 6, 2024. × Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV How to calculate PayPal fees Identify Transaction Amount: Determine the total amount of the transaction before fees. Determine PayPal's Fee Percentage: PayPal charges a fee based on a percentage of the transaction amount plus a fixed fee. However, these fees can change, so make sure to check the latest fee structure on PayPal's official website. Calculate PayPal's Fee: Multiply the transaction amount by the percentage fee and add the fixed fee. All calculators ADR calculator APY calculator Acid test ratio calculator Amortisation calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation...
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### Business savings calculator
- Published: 2023-08-10
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/business-savings-calculator/
Business savings calculator A business savings calculator is a tool that allows you to estimate how much money your business can save over a certain period of time by making specific changes or improvements. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate business savings potential Identify the Current Costs: Start by listing the expenses you want to analyse. This could include things like operational costs, overhead expenses, energy bills, or any other area where you're considering potential savings. Determine the Potential Savings: For each expense category, determine how much you could potentially save by implementing changes. This could be through cost-cutting measures, process optimisation, or other strategies. This will involve some research or estimation. Calculate Total Potential Savings: Add up the potential savings from all the expense categories to find the total potential savings. Specify the Time Period: Decide on the time period over which you want to calculate the savings. It could be a month, a quarter, a year, etc. Calculate Annualised Savings: If your time period is shorter than a year, you'll need to annualise the savings. For example, if you're calculating savings for a quarter, multiply the total potential savings by 4 to get an annual estimate. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator...
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### WACC calculator (Weighted average cost of capital)
> WACC takes into account the cost of equity, which is the return expected by the company's shareholders, and the cost of debt, which includes interest.
- Published: 2023-07-21
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/business-loan-calculator/wacc-calculator/
Weighted average cost of capital calculator The Weighted Average Cost of Capital (WACC) is a financial metric that represents the average cost of financing a company's assets, considering both debt and equity components. Page written by Ian Hawkins. Last reviewed on May 17, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset What is WACC? WACC, or Weighted average cost of capital, is a financial metric used to assess a company's cost of capital. Alongside being a financial metric that represents the average cost of financing a company's assets, it represents the average rate of return a company is expected to pay to all its investors, including shareholders and debt holders, for funding its operations. The lower the WACC in relation to...
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### Rate of return calculator
> To calculate the rate of return, you'll need the initial investment value, the final investment value, and the time period over which the investment was held.
- Published: 2023-07-21
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/business-loan-calculator/rate-of-return-calculator/
Rate of return calculator To calculate the rate of return, you'll need the initial investment value, the final investment value, and the time period over which the investment was held. Page written by Ian Hawkins. Last reviewed on May 17, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Definitions Initial investment: The initial amount of money invested in a financial instrument, asset, or project. Final amount received: The total amount received or expected to be received at the end of the investment period, including any returns or profits. Investment length: The duration of time over which the investment is made, typically measured in years or months. What is rate of return? Rate of return is a financial metric that measures the...
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### Construction invoice finance
> Invoice finance for construction is a loan that allows construction businesses to get early payment of a percentage of the invoices they raise. Learn more here.
- Published: 2023-07-11
- Modified: 2024-10-25
- URL: https://swoopfunding.com/za/business-loans/invoice-finance/construction-invoice-finance/
Construction invoice finance The South African construction industry is dominated by a handful of giant corporations, multinational developers who build most of the largest, high profile construction projects in the country. Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. The lifeblood of the construction sector are the thousands of small and medium sized contractors and sub-contractors who carry out most of the physical construction work. For these businesses, as with nearly all SMEs, cash flow issues are commonplace, with a majority of businesses experiencing a major cash crunch at least once a year. In an industry notorious for late payments, long payment terms, and stage payments for part completed works, small constructors and sole traders are particularly vulnerable to cashflow problems – an issue that can impact existing and upcoming projects, paying suppliers and staff, or even create insolvency. But what can construction SMEs do? The answer may be found with invoice...
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### Recruitment invoice finance
> Invoice finance for recruitment organisations are loans that allow recruiters early payment of a percentage of the invoices they raise. Read more here.
- Published: 2023-07-11
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/invoice-finance/recruitment-invoice-finance/
Recruitment invoice finance As South African businesses struggle with an acute talent shortage, and a majority in hiring the staff they need, so many organisations are relying on contract, agency, and temporary workers to fill the gaps in their workforce – workers who are typically employed and paid by their recruitment agent. Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Like almost all SMEs, South African recruitment companies face rising costs, a slowing economy, and the risk of a severe cashflow crunch – an issue which will affect many businesses this year. In many cases, recruitment agencies must pay their temporary and contract workers before they receive payment from their clients, which only compounds the strain on cashflow, leaving them battling to cover costs and pay their own staff on time. But what can recruitment agencies do to ease the strain? Specialised invoice finance for the recruitment industry may be the answer...
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### ADR calculator
> The ADR is a common metric in the hospitality industry and is used to assess the financial performance and revenue generation of a hotel. Try our calculator.
- Published: 2023-07-11
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/adr-calculator/
ADR calculator The ADR is a common metric in the hospitality industry and is used to assess the financial performance and revenue generation of a hotel. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate average daily rate To calculate the ADR, you need two pieces of information:Room revenue: This refers to the total revenue generated from renting out hotel rooms over a specific period. Number of occupied rooms: This represents the total number of rooms occupied during the same period. The formula to calculate the ADR is as follows:ADR = Room Revenue / Number of Occupied RoomsOnce you have the room revenue and number of occupied rooms values, simply divide the room revenue by the number of occupied rooms to get the ADR. Using an ADR calculator can help hoteliers assess the pricing strategy, evaluate revenue performance, and make informed decisions to maximize profitability. All calculators Acid test ratio calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Loss ratio calculator Marginal cost calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator...
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### Loss ratio calculator
> A loss ratio calculator is a tool used to determine the ratio between the losses incurred by an insurance company and the premiums it collects. Try it out.
- Published: 2023-07-11
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/loss-ratio-calculator/
Loss ratio calculator A loss ratio calculator is a tool used to determine the ratio between the losses incurred by an insurance company and the premiums it collects. This ratio is a key metric in the insurance industry and is used to assess the financial performance and profitability of an insurance company. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate loss ratio To calculate the loss ratio, you need two pieces of information:Incurred losses: This refers to the total amount of claims paid out by the insurance company over a specific period. Earned premiums: This represents the total premiums collected by the insurance company during the same period. The formula to calculate the loss ratio is as follows:Loss Ratio = (Incurred Losses / Earned Premiums) * 100Once you have the incurred losses and earned premiums values, simply divide the incurred losses by the earned premiums and multiply the result by 100 to get the loss ratio as a percentage. In this example, the loss ratio is 40%, indicating that for every dollar of premium collected, the insurance company incurred 40 cents in losses. Using a loss ratio calculator can help insurance companies evaluate their risk exposure, pricing strategies, and overall profitability. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest...
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### Cost of equity calculator
> The cost of equity is a financial metric used to estimate the return required by investors to hold shares of a company's stock. Use our free calculator today.
- Published: 2023-06-30
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/business-loan-calculator/cost-of-equity-calculator/
Cost of equity calculator The cost of equity is a financial metric used to estimate the return required by investors to hold shares of a company's stock. It represents the minimum rate of return a company must generate to satisfy its shareholders. Page written by Ian Hawkins. Last reviewed on May 17, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Cost of equity - what is it? The cost of equity represents the return that a company is expected to generate on the funds provided by its equity investors, such as shareholders. It reflects the required rate of return to compensate investors for the risk associated with owning the company's stock. How to calculate cost of equity To calculate the cost...
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### Price to earnings calculator
> A price-to-earnings (P/E) ratio is a financial metric used to evaluate the relative value of a company's stock. Find out more.
- Published: 2023-06-30
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/price-to-earnings-calculator/
Price to earnings calculator A price-to-earnings (P/E) ratio is a financial metric used to evaluate the relative value of a company's stock. It is calculated by dividing the market price per share of a company's stock by its earnings per share (EPS). Page written by AI. Reviewed internally on May 17, 2024. × How to calculate P/E ratio To calculate the P/E ratio, follow these steps:Determine the market price per share: Find the current market price of one share of the company's stock. You can usually find this information on financial websites or through your stockbroker. Calculate the earnings per share (EPS): Obtain the company's net income from its latest financial statements and divide it by the total number of outstanding shares. This will give you the earnings per share. Divide the market price per share by the earnings per share: Divide the market price per share (step 1) by the earnings per share (step 2) to calculate the P/E ratio. The formula for calculating the P/E ratio is:P/E ratio = Market price per share / Earnings per sharePlease note that the P/E ratio is just one of many financial indicators used to assess a company's value and should not be the sole basis for making investment decisions. It's important to consider other factors such as industry trends, company performance, and future growth prospects when evaluating a stock. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business...
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### EBITDA calculator
> EBITDA gives an indication of a company's profitability before accounting for interest, taxes, and non-cash expenses. Try our free calculator.
- Published: 2023-06-30
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/ebitda-calculator/
EBITDA calculator EBITDA (Earnings before interest, taxes, depreciation, and amortisation) is a financial metric that measures a company's operating performance by excluding certain non-operating expenses. It provides an indication of a company's profitability before accounting for interest, taxes, and non-cash expenses. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate EBITDA To calculate EBITDA, follow these steps:Determine the company's net income: Obtain the net income figure from the company's income statement. Net income is the total revenue minus all operating expenses, interest, and taxes. Add back interest, taxes, depreciation, and amortisation: Identify the interest expense, taxes, depreciation, and amortisation from the company's financial statements. Add these values back to the net income obtained in step 1. Calculate EBITDA: Sum up the net income, interest, taxes, depreciation, and amortisation figures to calculate the EBITDA. The formula for calculating EBITDA is:EBITDA = Net income + Interest + Taxes + Depreciation + AmortisationEBITDA is commonly used as a measure of a company's cash flow and profitability, as it provides insight into its operating performance without considering non-operating factors. However, it's important to note that EBITDA has limitations and should be used alongside other financial metrics and analysis when evaluating a company's financial health. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate...
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### Operating margin calculator
> The operating margin shows the profitability of a company's core operations and indicates the percentage of revenue after deducting expenses. Read more.
- Published: 2023-06-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/operating-margin-calculator/
Operating margin calculator The operating margin measures the profitability of a company's core operations and indicates the percentage of revenue that remains after deducting operating expenses. Page written by AI. Reviewed internally on May 17, 2024. × How to calculate operating margin To calculate the operating margin, you need to have the financial information of a company, specifically its revenue and operating income. Here's how to calculate the operating margin:Gather financial information: Obtain the company's financial statements, such as the income statement, which provides details of the revenue and expenses. Identify operating income: Locate the operating income figure on the income statement. Operating income, also known as operating profit or earnings before interest and taxes (EBIT), represents the profit generated from the company's core operations before considering interest expenses and taxes. Determine the revenue: Find the revenue figure on the income statement. Revenue represents the total amount of money generated from the company's sales of goods or services. Calculate the operating margin: Divide the operating income by the revenue and multiply the result by 100 to express it as a percentage. The formula for calculating the operating margin is:Operating margin = (Operating income / Revenue) x 100The operating margin provides insights into a company's profitability and efficiency in managing its operational costs. It is a useful metric for comparing the performance of companies within the same industry or tracking a company's performance over time. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis...
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### Pre money valuation calculator
> A pre-money valuation is the estimated value of a company before it receives any external funding or investment. Learn more here.
- Published: 2023-06-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/pre-money-valuation-calculator/
Pre money valuation calculator A pre-money valuation is the estimated value of a company before it receives any external funding or investment. Page written by AI. Reviewed internally on June 25, 2024. × How to calculate a pre-money valuation Here's a general approach to calculating pre-money valuation:Gather financial information: Collect the relevant financial data of the company, such as its assets, liabilities, revenues, expenses, and net income. These figures can be obtained from the company's financial statements or other sources. Determine the appropriate valuation method: There are several methods to value a company, such as the market approach, income approach, or asset-based approach. Choose the most suitable method based on the company's industry, growth prospects, and available data. Market approach: This method considers the market value of similar publicly traded companies or recent acquisitions in the same industry. Look for comparable companies with similar business models, growth rates, and financial metrics. Calculate the average or median valuation multiples, such as price-to-earnings (P/E) ratio or price-to-sales (P/S) ratio, and apply them to your company's financial metrics. Income approach: This method estimates the present value of future cash flows generated by the company. Forecast the company's future cash flows over a specific period, usually 3-5 years, and discount them back to their present value using an appropriate discount rate. The discount rate should reflect the company's risk profile and the expected return investors would require. Asset-based approach: This method focuses on the company's net assets. Calculate the net value of the company's...
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### Revenue calculator
> To calculate revenue, you need to know the unit price of the product or service and the number of units sold. Try our free revenue calculator here.
- Published: 2023-06-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/revenue-calculator/
Revenue calculator To calculate revenue, you need to know the unit price of the product or service and the number of units sold. Page written by AI. Reviewed internally on May 24, 2024. × Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV How to calculate revenue To calculate revenue, you multiply the unit price of a product or service by the number of units sold within a specific time period. The formula for revenue is:Revenue = Unit price × Quantity soldRevenue is a crucial financial metric for businesses as it represents the total income generated from sales. It is important for several reasons:Performance evaluation: Revenue is an indicator of a company's sales performance. By comparing revenue over different periods, businesses can assess their growth, identify trends, and evaluate the effectiveness of their sales strategies. Financial planning: Revenue is a key component in financial planning and budgeting. It helps businesses estimate income, set sales targets, and allocate resources effectively. Revenue projections are essential for making informed decisions about investments, expenses, and potential expansion. Investor confidence: Revenue plays a significant role in attracting investors and stakeholders. It demonstrates the financial viability and potential profitability of a business. Investors often consider revenue growth as a positive sign, indicating the company's ability to generate returns on investment. Business valuation: Revenue is a critical factor in determining the value of a business. When assessing...
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### Net profit margin calculator
> The net profit margin is a profitability ratio that measures the percentage of revenue that results in net profit. Try out Swoop's handy calculator.
- Published: 2023-06-22
- Modified: 2024-06-05
- URL: https://swoopfunding.com/za/business-loan-calculator/net-profit-margin-calculator/
Net profit margin calculator The net profit margin is a profitability ratio that measures the percentage of revenue that results in net profit. Page written by Ian Hawkins. Last reviewed on June 5, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is the net profit margin (net income margin)? The net profit margin, also known as the net income margin, is a financial metric that measures the percentage of revenue that remains as net profit after deducting all expenses, taxes and interest from total revenue. It indicates the profitability of a...
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### Solar energy installations
- Published: 2023-06-20
- Modified: 2024-12-17
- URL: https://swoopfunding.com/za/business-loans/asset-finance/solar-energy-installations/
Solar financing Finance the purchase of solar energy to spread the cost over a period, reduce the strain on your cashflow, and beat loadshedding! Apply now South African small businesses can significantly reduce their electricity bills by adopting solar power, as they can generate their own electricity and reduce their reliance on Eskom, leading to long-term cost savings and improved financial stability. South Africa is especially well-suited to solar energy given the abundance of sunshine and increasing options for low-cost solar energy. In addition to cheaper and more reliable power, solar energy also has environmental benefits, significantly reducing your business' carbon footprint and contributing to a cleaner and more sustainable future. Making the switch to solar can be a challenge for small businesses given the upfront cost. That’s where government incentives and Swoop's funding providers come in. The Department of Energy offers tax incentives and rebates for businesses that invest in renewable energy, and Swoop can help you secure financial support to cover the upfront costs of installing solar panels and other renewable energy equipment. Why solar financing? Maintain your working capital Purchasing solar power outright can put a substantial strain on your cash flow. Spread the cost of the solar installation over the useful life of the asset in order to make it more accessible and retain your working capital for other expenses. Secure a reliable energy supply Eskom, South Africa's national grid electricity supplier is facing major capacity issues, which has meant that loadshedding quintupled in 2022 compared...
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### Marginal cost calculator
> By knowing marginal cost, a company can set prices that cover both variable costs and fixed costs. Read more and try our handy calculator.
- Published: 2023-06-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/marginal-cost-calculator/
Marginal cost calculator Marginal cost helps businesses make informed pricing decisions. By knowing the additional cost incurred to produce one more unit, a company can set prices that cover both variable costs and contribute towards fixed costs and desired profit margins. Page written by AI. Reviewed internally on April 2, 2024. × How to calculate marginal cost To calculate the marginal cost, you'll need information about the change in total cost and the change in quantity produced. Here's how you can calculate the marginal cost:Determine the initial total cost: Identify the total cost of production for a specific quantity. Determine the final total cost: Identify the total cost of production for a different quantity, which is greater than the initial quantity. Calculate the change in total cost: Subtract the initial total cost from the final total cost. This represents the change in cost. Change in total cost = Final total cost - Initial total costCalculate the change in quantity: Determine the difference between the final quantity produced and the initial quantity. Change in quantity = Final quantity - Initial quantityCalculate the marginal cost: Divide the change in total cost by the change in quantity. Marginal cost = Change in total cost / Change in quantityBy performing these calculations, you'll obtain the marginal cost, which represents the additional cost incurred to produce one additional unit of output. Please note that the concept of marginal cost is applicable in the short run, where some costs may vary with the level of production...
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### Return on capital employed calculator
> ROCE is used as a performance metric by investors, analysts, and managers to assess a company's profitability and the efficiency. Read more.
- Published: 2023-06-20
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/business-loan-calculator/return-on-capital-employed-calculator/
Return on capital employed calculator To calculate the return on capital employed (ROCE), you'll need two pieces of information: the operating profit and the capital employed. Page written by Ian Hawkins. Last reviewed on May 17, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset What is the return on capital employed? Return on capital employed (ROCE) is a financial ratio that measures a company's profitability and efficiency in generating profits from its capital investments. How do you calculate return on capital employed? To calculate return on capital employed (ROCE), you can also follow these steps:Determine the net operating profit after tax (NOPAT) by subtracting taxes from the company's operating profit. Calculate the capital employed, which includes both equity and debt financing....
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### APY calculator
> Use our annual percentage yield (APY) calculator to determine the potential earnings or growth of an investment over a year. Try it today.
- Published: 2023-06-16
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/business-loan-calculator/apy-calculator/
Annual percentage yield calculator Use our annual percentage yield (APY) calculator to determine the potential earnings or growth of an investment over a year. Page written by AI. Reviewed internally on May 17, 2024. × Definitions: Initial amount: Initial amount is the starting balance or principal investment when you begin saving or investing. Annual percentage rate: Annual percentage rate refers to the rate at which your investment grows or earns returns each year. Term: The duration for which your investment accumulates returns, influencing the overall growth of your savings. Compound interval: Compound interval refers to the periodicity at which the interest or returns on an investment are compounded. What is annual percentage yield? Annual percentage yield (APY) is a financial term that represents the total annual rate of return an investment will earn, taking into account the effects of compounding. It is expressed as a percentage and reflects the actual interest or investment earnings over a year, including the impact of reinvesting those earnings. Unlike the nominal interest rate, which only considers the flat rate of return without factoring in compounding, APY provides a more accurate measure of the investment's growth potential. APY takes into account how frequently the interest or earnings are compounded, such as annually, semi-annually, quarterly, monthly, or even daily. The APY formula considers both the principal amount (initial investment) and the accumulated interest or earnings. It calculates the interest earned on the principal and any previously accumulated interest, thereby reflecting the compounding effect. It's worth noting...
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### Start a business
> In South Africa, if you’re a sole trader, a startup, or an SME, it’s likely that at some point , you’ll need extra funds to grow. Learn more here.
- Published: 2023-06-15
- Modified: 2024-01-11
- URL: https://swoopfunding.com/za/start-a-business/
Start a business Discover a funding solution for your business that meets the demands of your sector Business loans Whether you’re a sole trader, a startup, or an SME, it’s likely that at some point in your business’ life, you’ll need extra funds to power growth. View funding options here. read more Grants A non-repayable lump sum usually awarded by the government or other companies to help get your business up and running. View grants here. read more Equity Find the most suitable investors for your business from a network of over 200 Venture Capital funds, Angel Networks, Family offices and Angel Investors. read more Business ideas Consulting business Farming business Graphic design business Gym business Landscaping business Makeup business Moving and removal business Nursery business Transport business Vending machine business Don’t waste time, there’s plenty of funding and saving solutions to help your business grow Get started for FREE
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### Basis point calculator
> A basis point calculator is a tool used to calculate changes in percentage terms. A basis point represents one-hundredth of a percentage point. Try it here.
- Published: 2023-06-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/basis-point-calculator/
Basis point calculator Use our handy basis point calculator to calculate the changes or differences in percentage terms. A basis point represents one-hundredth of a percentage point, or 0. 01%. Page written by AI. Reviewed internally on May 17, 2024. × What is basis point and why is it used? The calculator allows you to determine the numerical value of a given number of basis points, or to calculate the percentage change based on a given number of basis points. The primary purpose of a basis point calculator is to simplify financial calculations and comparisons, particularly in the realm of finance, investments, and interest rates. It is commonly used in the following scenarios:Interest Rates: When comparing different interest rates or analyzing changes in interest rates, basis points are used to express the difference. For example, if the interest rate increases by 25 basis points, it means the rate has increased by 0. 25%. Bond Yields: Basis points are frequently used to measure changes in bond yields. A basis point calculator helps determine the change in yield when comparing different bonds or analyzing market fluctuations. Financial Spreads: In finance, spreads often refer to the difference between two interest rates or bond yields. By using basis points, the spread can be expressed and compared more precisely. Investment Returns: When evaluating investment performance, basis points can be used to express changes in returns. For example, if an investment's return increased by 200 basis points, it means the return increased by 2%. By using...
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### Price elasticity of demand calculator
> Price elasticity quantifies the level of responsiveness exhibited by customers towards changes in the prices of a product or service. Try our calculator here.
- Published: 2023-06-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/price-elasticity-of-demand-calculator/
Price elasticity of demand calculator You can use this price elasticity of demand calculator to calculate the price elasticity of demand. Page written by AI. Reviewed internally on May 17, 2024. × What is price elasticity of demand? Price elasticity of demand refers to the measure of the sensitivity of the quantity demanded for a product or service to changes in its price. It reflects how responsive consumers are in adjusting their demand when the price of a product or service changes. What are the types of price elasticity of demand? There are three main types of price elasticity:Elastic demand: This occurs when a small change in price leads to a relatively larger change in quantity demanded. In other words, consumers are highly responsive to price changes, and a price increase results in a significant decrease in demand, while a price decrease leads to a substantial increase in demand. The elasticity coefficient in this case is greater than 1. Inelastic demand: In contrast to elastic demand, inelastic demand describes a situation where a change in price has a relatively smaller impact on quantity demanded. Consumers are less responsive to price changes, and demand remains relatively stable even when prices fluctuate. The elasticity coefficient in this case is less than 1. Unitary elastic demand: Unitary elastic demand occurs when a change in price results in an equivalent percentage change in quantity demanded. In this case, the elasticity coefficient is equal to 1. The percentage change in quantity demanded matches the percentage...
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### Business valuation calculator
> Looking to acquire a business, or sell a percentage of your own? Use this helpful business valuation calculator to get a rough idea of what a business is worth.
- Published: 2023-06-09
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/business-valuation-calculator/
Business valuation calculator Looking to acquire a business, or sell a percentage of your own? Use our helpful business valuation calculator to get a rough idea of what a business is worth. Page written by AI. Reviewed internally on May 17, 2024. × How is the value of a business calculated? The value of a business can be calculated using various methods, depending on the nature of the business and the purpose of the valuation. Here are three common approaches used to determine the value of a business:Market-Based Approach: This approach relies on comparing the business to similar companies in the market that have been sold recently. The valuation is based on the prices at which comparable businesses were bought or sold, considering factors such as industry, size, growth prospects, and financial performance. This approach assumes that the market value of similar businesses reflects the value of the subject business. Income-Based Approach: This approach focuses on the income generated by the business to determine its value. One common method is the discounted cash flow (DCF) analysis, which estimates the present value of the business's future cash flows. It takes into account factors like projected revenue, expenses, capital expenditures, and the time value of money. The DCF analysis calculates the net present value of these cash flows to arrive at a valuation. Asset-Based Approach: This approach values a business based on its tangible and intangible assets. Tangible assets include physical properties like real estate, equipment, and inventory. Intangible assets can include...
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### Restaurant equipment leasing
> Take the strain off cashflow – give your restaurant the equipment it needs with a low or no deposit restaurant equipment lease. Learn more here.
- Published: 2023-06-07
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/restaurant-equipment-leasing/
Restaurant equipment leasing Hospitality is big business in South Africa. There are more than 15,000 restaurants across the country, plus hundreds of thousands more bars and cafes. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Every one of these establishments needs specialised equipment to operate. However, in an industry where margins are always tight, paying for the tools and machines they need can have a major impact on a restaurant’s valuable working capital – which is why so many South African eateries choose to lease the equipment they need. Pay over time at the lowest cost, secure the best tax deductions, choose to buy or return the equipment when the contract ends. Take the strain off cashflow as you feed your hunger for success – give your restaurant the equipment it needs with a low or no deposit restaurant equipment lease. Apply now What is classed as restaurant equipment? No matter if it’s a full-service restaurant, a fast-food eatery, bar,...
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### Medical equipment leasing
> Because medical equipment can be expensive, many medical providers choose to lease the machines and tools they need. Learn all about it here.
- Published: 2023-06-07
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/medical-equipment-leasing/
Medical equipment leasing Healthcare is a huge industry in South Africa, covering everything from pediatric and senior care, to dental, vision and audio, with a vast array of equipment utilised by professionals who work in the sector. Apply now Page written by Chris Godfrey. Last reviewed on December 16, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Because this equipment can be expensive, many medical providers choose to lease the machines and tools they need using a medical equipment lease. This type of financing reduces strain on cashflow, provides practitioners with the latest devices, and helps to continually improve the efficiency and quality of the healthcare we receive. Apply now What is classed as medical equipment? The main categories of medical equipment are electronic, diagnostic, surgical, durable medical equipment (DME), acute care, IT hardware and software, storage, and transport. However, no matter what it’s called, almost every type of medical device can be obtained with a specialised medical equipment lease. Advantages of leasing medical equipment Paying for medical equipment out of valuable...
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### Commercial equipment leasing
> Forget about paying with cash. A commercial lease can give you the machinery you need now without hurting cash flow. Read more or apply with Swoop.
- Published: 2023-06-01
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/commercial-equipment-leasing/
Commercial equipment leasing Every South African business needs equipment to operate, but commercial machines, vehicles and processing systems can be expensive. Apply now Page written by Chris Godfrey. Last reviewed on October 25, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Price tags of more than R1million are common for the most sophisticated machinery - which is why most South African SMEs prefer to lease their commercial equipment instead of using valuable working capital to buy with cash. Pay over time with a low or no deposit deal, and return or keep the equipment at contract end. Forget about paying with cash. A flexible commercial lease can give you the machinery you need now without hurting cashflow. Apply now What is commercial equipment? Commercial equipment is an all-inclusive term for the machines, devices and processing systems used by organisations to produce, ship, and market the products and services they sell. Commercial equipment is critical to every business sector, and it may take the shape of complicated production machinery that is used in...
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### Heavy equipment leasing
> Forget about paying for equipment with cash. Pay over time with a flexible, low or no deposit lease to protect your capital & grow your business. Read more.
- Published: 2023-06-01
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/heavy-equipment-leasing/
Heavy equipment leasing Thousands of South African SMEs use heavy equipment to provide the services and products they sell, and these big machines can come in every shape and type. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. However, as different as they may be, you’ll find that many of them are paid for with a heavy equipment lease, the go-to choice of funding for XXL machinery. Forget about paying for heavy equipment with cash. Pay over time with a flexible, low or no deposit lease to protect your valuable working capital and grow your business faster. Apply now What counts as heavy equipment? Heavy equipment means self-propelled, self-powered, or pull-type equipment and machinery, including engines, weighing 5000 pounds or more. These types of equipment are primarily for construction, industrial, maritime, mining and forestry use, and they include earth-scrapers, backhoes, front-loaders, steer-loaders, dump trucks, cranes, asphalt and concrete equipment, treaded tractors, and more. Why lease heavy equipment? Heavy equipment can...
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### Technology equipment financing
> Today, almost every South African business uses IT technology to shape the products and services they sell and operate their communications. Learn more here.
- Published: 2023-05-22
- Modified: 2024-12-17
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/technology-equipment-financing/
Technology equipment financing Today, almost every US business uses IT technology to shape the products and services they sell, operate their communications, control their accounting, drive their marketing, or oversee their logistics and deliveries. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. IT technology has become so vital for business success that South African SMEs who do not have the latest tech are putting themselves at a commercial disadvantage. However, even though IT equipment is far cheaper than it used to be, it can still make a major dent in cashflow when it comes time to purchase. Fortunately, technology equipment finance is available to keep organisations on the IT cutting edge and cut the pressure on their cashflow. Secure the tech you need now, pay for it over time, never worry about your IT equipment again. Apply now What is IT equipment finance? IT equipment finance – or technology equipment finance – are loans and leases to obtain IT hardware...
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### Medical equipment finance
> Healthcare is a huge industry in South Africa, but the equipment can be expensive, most medical providers choose to buy or lease the machines and tools.
- Published: 2023-05-22
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/medical-equipment-finance/
Medical equipment finance Healthcare is a huge industry in South Africa, covering everything from pediatric and senior care, to dental, vision and audio, with a vast array of equipment utilised by professionals who work in the sector. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Apply now What is classified as medical equipment? The main categories of medical equipment are electronic, diagnostic, surgical, durable medical equipment (DME), acute care, IT hardware and software, storage, and transport. However, no matter what it’s called, almost every type of medical equipment can be financed for purchase or lease. EquipmentThe days of doctors working with little more than a stethoscope and a tongue depressor are long gone. Today’s medical professionals employ a myriad of complex devices to deliver top-rate healthcare – and it’s equipment that almost never comes cheap. The price-tag for some machines can easily exceed R1 million. Additionally, many devices and tools need constant updating to stay current to developments in the...
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### Equipment finance brokers
> Everybody knows there is strength in numbers, which is why it makes no sense for South African businesses seeking equipment finance to do. Read more.
- Published: 2023-05-18
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/equipment-finance-brokers/
Equipment finance brokers Everybody knows there is strength in numbers, which is why it makes no sense for South African businesses seeking equipment finance to do so on their own. Apply now Page written by Chris Godfrey. Last reviewed on October 25, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Instead of losing time and opportunities chasing funds individually, working with an equipment finance broker can give businesses access to dozens of lenders and immediately multiply their chances of success. Apply now What is an equipment finance broker? Equipment finance brokers are lending hubs for businesses and funding providers. They connect businesses seeking funds for new equipment with lenders who can provide the cash. Experienced brokers save businesses from the hassle of going door to door seeking loan approvals and will usually have a large roster of lenders they work with, as well as relationships with equipment suppliers who can deliver the plant, machinery and equipment that South African companies need. Some brokers will also have access to other funding for businesses,...
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### Heavy equipment finance
> For construction, industrial, and other heavy businesses, big is often better. Heavy equipment can get the job done when the lightweights can't. Read more.
- Published: 2023-05-18
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/heavy-equipment-finance/
Heavy equipment finance For construction, industrial, and other heavy businesses, big is often better. Heavy equipment can get the job done when the lightweights have given up. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Unfortunately, big often comes with a big price-tag, and buying major pieces of plant and machinery can take a toll on company cashflow. However, equipment finance is available to take the strain. Choose a loan or lease to secure the big machines your business needs, then use the equipment as you pay for it - eliminate the financial pain. Apply now What is heavy equipment? Heavy equipment means self-propelled, self-powered, or pull-type equipment and machinery, including engines, weighing 5000 pounds or more. These types of equipment are primarily for construction, industrial, maritime, mining and forestry use, and they include earth-scrapers, backhoes, front-loaders, steer-loaders, dump trucks, cranes, asphalt and concrete equipment, treaded tractors, and more. Should you finance or lease heavy equipment? Businesses wishing to secure...
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### Grant advance funding
> By utilising grant advance funding, companies that adopt grant programs have the ability to obtain their eligible capital several months ahead of time.
- Published: 2023-05-17
- Modified: 2024-05-29
- URL: https://swoopfunding.com/za/business-grants/grant-advance-funding/
Grant advance funding The UK grant landscape is one of the best in the world. However, with grants paid retrospectively, many businesses face cash flow issues when financing the initial stages of their project. By utilising grant advance funding, companies that have secured government grant funding have the opportunity to obtain this capital several months ahead of time. This approach, also referred to as grant-based funding, enables businesses to commence projects, fulfil grant milestones, preserve equity, and uphold project schedules. Check eligibility Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is grant advance funding? Grant advance funding refers to a financial arrangement where companies that participate in government grant programs can access a portion of their future grant capital in advance. In other words, it’s a loan to get cracking on your R&D project! It allows businesses to receive a portion of the grant funds before completing the milestones or project requirements outlined in the grant agreement. This funding option helps companies maintain cash flow, meet financial obligations, and progress with their projects without waiting for the complete disbursement of the grant funds. What are the advantages of grant advance funding? Grant advance funding offers several advantages to companies participating in government grant programs. Here are some key benefits:Improved cash flow: grant advance funding provides companies with access to a portion of their future grant capital in advance,...
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### Grant advance funding
> By utilising grant advance funding, ZA companies that adopt grant programs have the ability to obtain their eligible capital several months ahead of time.
- Published: 2023-05-17
- Modified: 2023-08-21
- URL: https://swoopfunding.com/za/business-grants/grant-advance-funding/
Grant advance funding The South African grant landscape is one of the best in the world. However, with grants paid retrospectively, many businesses face cash flow issues when financing the initial stages of their project. By utilising grant advance funding, companies that have secured government grant funding have the opportunity to obtain this capital several months ahead of time. This approach, also referred to as grant-based funding, enables businesses to commence projects, fulfil grant milestones, preserve equity, and uphold project schedules. Check eligibility What is grant advance funding? Grant Advance funding refers to a financial arrangement where companies that participate in government grant programs can access a portion of their future grant capital in advance. In other words, it’s a loan to get cracking on your R&D project! It allows businesses to receive a portion of the grant funds before completing the milestones or project requirements outlined in the grant agreement. This funding option helps companies maintain cash flow, meet financial obligations, and progress with their projects without waiting for the complete disbursement of the grant funds. What are the advantages of grant advance funding? Grant Advance funding offers several advantages to companies participating in government grant programs. Here are some key benefits:Improved cash flow: Grant Advance funding provides companies with access to a portion of their future grant capital in advance, often up to 80% of the total grant you’ve won. This helps improve their cash flow by injecting funds into their business earlier than waiting for the complete...
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### Startup equipment finance
> Startups are the lifeblood of the South African economy. However, many startups begin life with tight finances and buying equipment with cash may be impossible.
- Published: 2023-05-16
- Modified: 2024-12-17
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/startup-equipment-finance/
Startup equipment finance Startups are the lifeblood of the South African economy, often bringing new innovations to market before the big-name business giants have even thought of them. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. However, many startups begin life with tight finances and buying new equipment with cash may not be possible. Startup equipment finance can solve this common problem, providing funds to help startups secure the equipment they need to grow and prosper. Read on to learn how startup equipment finance can support your brand new business from the get go. Apply now What is startup equipment finance? Startup equipment finance is exactly what it sounds like – loans for new businesses to provide them with the equipment they need to get up and running. In the early days of any business it is usually best to preserve liquid cash to cover unexpected problems, capture new opportunities, or simply grow the business faster. Startup equipment finance can...
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### Industrial equipment finance
> Technological transformation, economic opportunity and buyer trends are driving many South African organisations to expand, upgrade or replace their equipment.
- Published: 2023-05-16
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/industrial-equipment-finance/
Industrial equipment finance Technological transformation, economic opportunity and changing buyer trends are driving many South African organisations to expand, upgrade or replace their industrial equipment. Apply now Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. However, no matter if your business is constructing skyscrapers, packing canned goods, or building robots, buying industrial equipment out of cashflow does not make business sense. Instead, use industrial equipment finance to spread costs over time and avoid financial strain. Use the equipment as you pay for it to boost your bottom line. Apply now What is industrial equipment? Industrial equipment is used in many business sectors. It may take the shape of complicated production machinery that is typically used in manufacturing, or it could be large equipment, such as bulldozers or cranes, which are used in construction, mining, and fossil fuel production. However, not all industrial equipment is used in heavy industries – technological and many light industries also use industrial equipment and complex tools to...
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### Partner with us
> To provide our customers with the best services, we need to partner with the very best finance providers and service providers out there.
- Published: 2023-05-12
- Modified: 2024-09-19
- URL: https://swoopfunding.com/za/partner-with-us/
Join Swoop’s partner programme in South Africa Earn commission and create a new service offering for your customers with a Swoop partnership Enquire today Submit partner enquiry Get approved Receive onboarding materials Start sending referrals Earn commission About Swoop's partner programme Join the Swoop Partner Programme to give your audience access to grants, equity investment, and loans. Swoop works with partners to provide funding directly to their audiences. Our partners play a vital role in providing funding access to SMEs, growing South African businesses. Enquire today Create a new revenue stream Add a new service line Receive marketing support Global funding opportunities Enquire today
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### Acquire a business
> Acquiring a business in the US can feel like a minefield, that's why we've broken it down into these guides so you have everything you need to scale & grow.
- Published: 2023-04-25
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/
Acquire a business Acquiring a business can feel like a minefield – there are so many things to consider. At Swoop, we get it. That's why we've broken it down into these simple steps so you have everything you need to know about acquiring a business, how to conduct due diligence, and where to find a business to acquire. 1. Find a business It's early days. Let's make sure you've got all the basics covered so you're all set for the next step in your journey. 2. Secure funding It's now time to make sure you have the capital available to acquire your chosen business. Review a range of options that will help you acquisition. 3. Plan a successful acquisition Get expert advice on how to thrive. From due diligence, to a merger strategy, find out how to plan a successful acquisition. Steps to acquiring a business Buying a business An overview of the steps required to buying a business Find a business Find the business that you want to acquire through traditional channels Value the business Accurately determine the value of the business you are looking to acquire Find a broker Details on how to find a business acquisition broker, should you require one Due diligence Actionable steps to conducting due dilligence in your business acquisition Letter of intent Guidance on writing a letter of intent for your business acquisition proposal Finance options Guidance on the types of finance available for acquiring a business Vendor financing Actionable steps to...
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### Business restructuring
> Whether it’s due to post-pandemic struggles, Brexit effects, labour shortages, or even sky high energy bills, many UK SMEs will need to restructure in 2023.
- Published: 2023-04-06
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/business-restructuring/
Business restructuring explained Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Whether it’s due to post-pandemic struggles, Brexit effects, labour shortages, or even sky high energy bills, many UK SMEs will need to restructure in 2023. Restructuring can alleviate high debt, bring in new investment, close down under-performing business units or production lines, even save a business from insolvency. But what exactly is restructuring? How does it work? What are the benefits? And what kind of financial tools are involved? Read on to find out all you need to know about this important business strategy. Add a header to begin generating the table of contents What is business restructuring? Business restructuring, also known as corporate restructuring, is the reorganisation of a company's management, finances, and operations to improve the efficiency and effectiveness of the business. Restructuring is typically initiated to help an organisation increase its productivity, reduce costs, improve or change the...
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### Business refinancing and debt consolidation
> Read here to find out if consolidating or refinancing your current business loans is right for you, and explore your options. Learn more here.
- Published: 2023-04-05
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/business-refinancing-and-debt-consolidation/
Business refinancing and debt consolidation Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Business debt consolidation and refinancing may reduce their monthly payments, give them longer to repay, and even free up cash to meet urgent business needs. How does this work? Read on to find out if consolidating or refinancing your current business loans is right for you. Add a header to begin generating the table of contents What is debt consolidation? Business debt consolidation means combining multiple loans from multiple lenders into a large, single loan from one provider. The new loan is used to pay off the older loans, and it may be paid back over the same or a longer or shorter time period than the previous agreements. What are the benefits of consolidating business debt? Business debt consolidation may deliver multiple benefits:Save time and administration costs by only dealing with one lender instead of many. You may...
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### Mezzanine finance
> Often associated with acquisitions and buyouts, mezzanine finance is a hybrid business loan that can be converted to equity. Read all you need to know here.
- Published: 2023-04-04
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/mezzanine-finance/
Mezzanine finance Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Sometimes, South African SMEs need to boost their business borrowing, but, because of the sector they’re in, their current debt levels, other business issues, or even macro market conditions, they are unable to secure a traditional loan. Without selling valuable equity and losing some ownership, what else can they do? Mezzanine finance has been designed to bridge this problem. Borrow the funds you need without giving up ownership. Pay the loan back on terms tailored to your circumstances. Sounds interesting? Read on to discover more about mezzanine finance and how it minds the gap in business lending. Add a header to begin generating the table of contents What is mezzanine finance? Frequently associated with acquisitions and buyouts, mezzanine finance is a hybrid business loan that can usually be converted to equity should the borrower default. Effectively, this means the lender is compensated...
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### How to find angel investors
> If you’re looking for investment in your business, whether you’re just starting out or planning to expand, an angel investor is one potential option to explore.
- Published: 2023-03-14
- Modified: 2024-03-15
- URL: https://swoopfunding.com/za/equity-financing/how-to-find-angel-investors/
How to find angel investors If you’re looking for investment in your business, whether you’re just starting out or planning to expand, an angel investor is one potential option to explore. Check matches Beyond simply investing in your business, angel investors can also bring a wealth of experience that could prove invaluable to your business. This guide explains everything you need to know about finding angel investors for your business. What are angel investors? Angel investors, or business angels as they are also called, are high-net worth individuals who are looking to invest in startup or early-stage businesses. In return for their investment, they receive a share of the company’s equity. Some angel investors will choose to invest alone, while others will be part of an angel syndicate (a group of angel investors). An angel investor usually has experience in business and will often have skills, knowledge and networks that can add value to your business and help it succeed. What should you look for in an angel investor? Primarily, you want to find an angel investor with the right amount of cash to invest. But there are also a number of other important factors you need to consider. These include:Industry experienceFirstly, you’ll want your angel investor to have experience in the specific industry you work in. This means they’ll understand the challenges you’re likely to face and will hopefully have the skills required to take your business from strength to strength, as well as fill in the gaps you...
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### How to find angel investors
> If you’re looking for investment in your business, whether you’re just starting out or planning to expand, an angel investor is one potential option to explore.
- Published: 2023-03-14
- Modified: 2023-05-11
- URL: https://swoopfunding.com/za/equity-financing/how-to-find-angel-investors/
How to find angel investors If you’re looking for investment in your business, whether you’re just starting out or planning to expand, an angel investor is one potential option to explore. Check matches As well as giving you the funds you might need to succeed, angel investors can also bring a wealth of experience that could prove invaluable to your business. This guide explains everything you need to know about finding angel investors for your business. What are angel investors? Angel investors, or business angels as they are also called, are high-net worth individuals who are looking to invest in startup or early-stage businesses. In return for their investment, they receive a share of the company’s equity. Some angel investors will choose to invest alone, while others will be part of an angel syndicate (a group of angel investors). An angel investor usually has experience in business and will often have skills, knowledge and networks that can add value to your business and help it succeed. What should you look for in an angel investor? Primarily, you want to find an angel investor with the right amount of cash to invest. But there are also a number of other important factors you need to consider. These include:Industry ExperienceFirstly, you’ll want your angel investor to have experience in the specific industry you work in. This means they’ll understand the challenges you’re likely to face and will hopefully have the skills required to take your business from strength to strength, as well...
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### Quick business loans
> Need a quick business loan? We'll help you get funds in as little as 3 hours.
- Published: 2023-03-03
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/business-loans/quick-business-loans/
Quick business loans Every business has periods when they need more cash than cashflow will allow – it could be to make an emergency repair, meet a sudden tax demand, or perhaps to grab an opportunity that’s too good to miss. Get funding Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV Whatever the reason, when your business cannot spare the cash to meet unplanned obligations, financial problems can quickly multiply, or the golden goose you were chasing may go to your competitor. Fortunately, quick business loans can solve these kinds of issues – giving UK SMEs the funds they need immediately and with the minimum of fuss. Not sure what quick business loans are, or how fast business finance works? Read on to find out all you need to know about getting extra cash in your account in no time at all. What is the difference between an instant approval business loan, and a typical loan? The clue is in the word ‘instant’. Quick business loans are for organisations that need money in a hurry. Applications are usually approved in seconds and completed in the shortest possible time, often placing funds into the borrower’s account in 24 hours or less. Loans of up to £10,000 may be available. In comparison, securing a traditional business loan begins by completing a formal application and providing documents to the lender. This stack...
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### Quick business loans
> Not sure what quick business loans are, or how they work? Read on to find out about getting extra cash in your account within no time.
- Published: 2023-03-03
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/quick-business-loans/
Quick business loans Every business has periods when they need more cash than cashflow will allow – it could be to make an emergency repair, meet a sudden tax demand, or perhaps to grab an opportunity that’s too good to miss. Apply for funding Whatever the reason, when your business cannot spare the cash to meet unplanned obligations, financial problems can quickly multiply, or the golden goose you were chasing may go to your competitor. Fortunately, quick business loans can solve these kinds of issues – giving South African SMEs the funds they need immediately and with the minimum of fuss. Not sure what quick business loans are, or how fast business finance works? Read on to find out all you need to know about getting extra cash in your account in no time at all. What is the difference between an instant approval business loan, and a typical loan? The clue is in the word ‘instant’. Quick business loans are for organisations that need money in a hurry. Applications are usually approved in seconds and completed in the shortest possible time, often placing funds into the borrower’s account in 24 hours or less. Loans of up to R10,000 may be available. In comparison, securing a traditional business loan begins by completing a formal application and providing documents to the lender. This stack of data is then reviewed by an underwriter, a process that can take days, or sometimes weeks. Once the loan is approved, contracts must be signed and...
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### How to get investors for your business
> If you’re looking for funding to launch a startup or scale your business, you don’t have to go down the traditional route of getting a loan from your bank.
- Published: 2023-03-03
- Modified: 2023-09-05
- URL: https://swoopfunding.com/za/equity-financing/how-to-get-investors-for-your-business/
How to get investors for your business If you’re looking for funding to launch a startup or scale your business, you don’t necessarily need to go down the traditional route of getting a loan from your bank. Another option is to look for people who are willing to invest in your business. Check matches Your investors might loan you money at a more competitive interest rate, or they might own a stake in your business, meaning they earn money when your company makes a profit. This guide explains all you need to know about how to get investors for your business. How important are investments for a small business? Investments for a small business can help your business to grow, improve and succeed. The funds you receive can help you to buy modern equipment, for instance, which could help to speed up processes and ensure you keep up with competition and demand. It could also enable you to hire more staff as well as invest in training and development of existing team members so that they learn valuable new skills. You might also choose to invest in a better onboarding programme or improve employee benefits such as flexible working or season ticket loans which can make your company more attractive to potential new employees. Depending on what sector your business is in, investment can also help your company pay for advertising and marketing or invest in research and development. How to find investors for your business: Get capital from family...
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### What is a commercial mortgage?
> Commercial mortgages, or business mortgages, are usually used by business owners who want to buy property or land for commercial use. Read more about them here.
- Published: 2023-02-22
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/commercial-mortgages/what-is-a-commercial-mortgage/
What is a commercial mortgage? Commercial mortgages, or business mortgages, are usually used by business owners who want to buy property or land for commercial use. Similar to residential mortgages, the money is borrowed from a bank or specialist lender and then repaid in monthly instalments over a set term, with interest added on top. The main difference is that with a commercial mortgage, the value of the land or property is usually much larger. Start your journey 0203 868 0364 Swoop is a credit broker and does not provide capital. We work with a range of companies to offer clear comparisons that allow customers to make choices on financial products & services. Swoop may receive a commission, which may vary by product but typically in the form of a fixed percentage of the loan amount. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. Commercial mortgages are often used by business owners who want to buy bigger premises so that they can expand. They might choose to buy their own premises to avoid rising rents or higher maintenance fees. However, commercial mortgages are also used by investors who want to buy property to lease to other businesses. A residential property owner might also choose to use a commercial mortgage to buy several properties to rent to tenants. How can I get a commercial mortgage? One of the best ways to get a commercial mortgage is to...
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### How to get a small business grant
> A grant can help your business grow, develop & reach new markets. There are hundreds of business grants available for businesses, so here’s how you can get one.
- Published: 2023-02-03
- Modified: 2024-05-15
- URL: https://swoopfunding.com/za/business-grants/how-to-get-a-small-business-grant/
How to get a small business grant Business grants can be an important source of funding for many small businesses. As well as helping you to get your business off the ground, they can also help your business grow and develop and reach new markets. There are hundreds of business grants available for small businesses, so here’s how to get one. Check eligibility Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is a small business grant and can my company get one? A small business grant is a sum of money awarded to a business. Grants are usually provided by the government or a private organisation for a specific purpose. Unlike most other forms of finance, you don’t need to pay back a grant, nor do you need to pay interest on it. You also don’t need to give away a share of your business in exchange. However, some grants will require you to invest the equivalent amount in your business. As an example, if you’re given a grant for R15,000, you might also be required to invest R15,000 into your business. There are several types of small business grants and they will usually have strict eligibility criteria. Whether you will qualify for one might depend on factors such as:The region you’re based in The type of business you run and the sector you’re inThe size of your...
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### Corporate tax calculator
- Published: 2022-12-29
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/corporate-tax-calculator/
Corporation tax calculator Use our handy corporation tax calculator to find out how much corporation tax your limited company will be liable for, and how much you can save. Page written by AI. Reviewed by Ciaran Burke on April 2, 2024. Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. × Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. Linkedin All calculators Acid test ratio calculator Amortisation calculator APY calculator Asset finance calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Franchise loan calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Marginal cost calculator Merchant cash advance (MCA) calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to earnings calculator Rate of return calculator Refinance calculator Rent vs. buy calculator...
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### Editorial policy
> Swoop's goal is to make it easy for SMEs to understand the sometimes overwhelming world of business finance. Read about our editorial policy and guidelines here
- Published: 2022-12-21
- Modified: 2024-01-24
- URL: https://swoopfunding.com/za/about-swoop/editorial-policy/
Swoop's editorial policy Our goal is to make it easy for SMEs to understand the sometimes overwhelming world of business finance. We aim to simplify the complexities, make information transparent, demystify the jargon, and empower customers to confidently make smart financial decisions. Since we started our journey in 2018, we have helped tens of thousands of SMEs acquire funding. The first step to acquiring the right funding for your business is to understand the myriad of options available to South African SMEs. At Swoop, we feel it’s important to share the process that goes into writing all of the articles that appear on our website. Our core editorial principles EmpowermentOur goal is to demystify business finance and make it accessible for everyone, no matter their level of financial literacy. We aim to provide reliable and up-to-date information so you can make informed decisions with confidence. AccuracyWe prioritise factual correctness and clarity throughout all of our website content, with frequent reviews taking place to reflect changes in the industry to ensure accuracy at all times. Further to this, to ensure we provide only the highest quality and accurate content, we collaborate with experts in the field, and feature their credentials publicly for you to see. We take any mistakes, inaccuracies or misrepresentations seriously, and we act quickly to rectify them if our readers point them out. InclusivitySwoop is for everyone. When it comes to financial products and policy, we provide the facts and put them into context. Our research is thorough...
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### Ciaran Burke
- Published: 2022-12-20
- Modified: 2024-01-10
- URL: https://swoopfunding.com/za/about-swoop/team/ciaran-burke/
Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. Latest articles by Ciaran Burke 0 articles written by this author Ready to grow your business? Get started
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### How Swoop works
> We work with our partners to offer simple and clear comparisons that allow customers to make choices on financial products and services.
- Published: 2022-12-16
- Modified: 2025-03-18
- URL: https://swoopfunding.com/za/about-swoop/how-swoop-works/
How Swoop works We work with our partners to offer simple and clear comparisons that allow customers to make choices on financial products and services. To do this, we partner with the very best finance providers and service providers out there. How does it work? https://www. youtube. com/watch? v=2_uaUS_0xag How does Swoop make money? Where services are free of charge to the customer, we receive commission from most of the companies we feature on Swoop. The payment we get will never make any difference to how much you pay for your product, service or policy. The way that Swoop gets paid varies for the different products and services. We either get paid a flat fee when you purchase a product or use a service, a % of the cost to you for that product or service, or a percentage of the total loan amount you receive from our partner. Swoop also offers investment matching and investor preparation services. The customer decides whether they would like to progress with these services and will be provided with an engagement letter setting out these services and the associated success fees payable by the customer upon receiving investment. These services are not carried out unless the customer has provided written confirmation of acceptance of the engagement. How we display the products and services will not be affected by the commercial agreements we have in place with our partners. We will always try to display them in a way that is clear, informative and helps...
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### In the press
> It makes us even more committed to putting better solutions into your hands at lightning speed. By empowering businesses we can bring about real change
- Published: 2022-12-16
- Modified: 2025-02-12
- URL: https://swoopfunding.com/za/about-swoop/in-the-press/
Swoop in the press We're proud of what our team do. See Swoop's press features, interviews and more here! Since our launch in 2018, we’ve continued to change the funding landscape through innovation Swoop in the news Swoop founder won’t take fintech success for granted Read more Swoop secures $6m strategic investment from Sandbox Industries Read more Irish fintech Swoop eyes US expansion with fresh funds Read more Swoop takes the top spot in the Deloitte 2023 Technology Fast 50 awards. Read more Swoop co-founders Andrea Reynolds and Ciaran Burke have been shortlisted for the EY Entrepreneur of the Year award 2024 in Ireland. Read more Identifying funding that actually fits a company makes a big pile of sense. Read more Meet the UK's six most innovative fintechs for SMEs Read moreWe’re really proud of all this. It makes us even more committed to putting better solutions into your hands at lightning speed. By empowering businesses we can bring about real change Want to be part of Swoop's next chapter? Take a look at our open roles See open roles
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### About Swoop
> Here at Swoop, we like to think of ourselves as your virtual CFO. That’s why we’ve made joining and working with us as safe, simple and friendly as possible.
- Published: 2022-12-16
- Modified: 2024-03-13
- URL: https://swoopfunding.com/za/about-swoop/
About Swoop At Swoop we are keen to provide our customers with the best possible range of funding and savings solutions to help them protect the financial health of their businesses, whilst removing all of the jargon and empowering businesses to grow. Who are Swoop? Here at Swoop, we like to think of ourselves as your virtual CFO. That’s why we’ve made joining and working with us as safe, simple and friendly as possible. We’ve created smart matching technology (which you can access via our easy-to-use dashboard) and we combine this with real people at the end of the phone. They want to share their financial knowledge and insights with you, and they’ll always put you – and your security – first. Want to find out more? At Swoop, we are proud of our achievements, our team, and our vision. If you would like to find out more about Swoop or our team, please click one of the links below: Our team Our most important investment is our people – the staff we choose and the customers we attract. Our experts from around the world make Swoop, well... Swoop. Our team Our careers We’ve achieved a huge amount in a short space of time. And that’s down to how we’ve paired great technology with great talent. Want to join our team? Check out our current vacancies. Current vacancies Our achievements We’re proud of our achievements. It’s hard to win recognition and trust in the financial sector, and this makes what...
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### Business van finance
> There are several ways to finance a work van, from HP, finance leasing, van refinance & more. Read on and learn all about your van finance options.
- Published: 2022-12-08
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/business-van-finance/
Business van finance No matter if your business is a limited company, PLC, partnership, or sole trader, there’s a business van finance deal for you. Get started Looking to finance a single company van or fleet of company vans? Financing one company van or a whole fleet of company vans makes good business sense. Instead of putting strain on cashflow and tying up hard-won capital in your vehicles, spread the cost out over time. Pay for your vans as you use them to make money for your business. Choose from purchase or lease options, refinance an existing commercial vehicle, even free up liquid cash from vans you already own. Whichever route you choose, van finance for business puts you in the driving seat. Get started Rates from 3% Funds within 48 hours Fit-outs and conversions Refinance available Types of finance available Which is the best type of finance for your business? Type of finance Upfront deposit? Balloon payment? Do you own the van at end of contract? Maintenance included? Excess miles charges? Hire Purchase Hire Purchase with balloon Sale and Leaseback Possibly Finance Lease Optional Possibly Operating lease Possibly, or you may collect a surplus Contract hire Van refinance Why use Swoop? A dedicated funding manager will help find a tailored solution to your needs Swoop is fully authorised and regulated by the Financial Conduct Authority Swoop's technology paired with our funding managers networks means you'll have access to deals only available through us Get funding fast - we can...
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### Business car finance
> There are several business car finance options, from HP, finance leasing, EV, fleet finance & more. Read our handy guide to understand your company car options.
- Published: 2022-12-08
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/business-car-finance/
Business car finance No matter if your business is a limited company, PLC, partnership, or sole trader, there’s a business car finance deal for you. Get started Looking to finance a single company car, or full fleet finance? Financing one company car or a whole fleet of company cars makes good business sense. Instead of putting strain on cashflow and tying up hard-won capital in your vehicles, spread the cost out over time. Pay for your cars as you use them to make money for your business. Choose from purchase or lease options, secure the tax advantages of electric cars, even free up liquid cash from vehicles you already own. Whichever route you choose, car finance for business puts you in the driving seat. Get started Balloons available Rates from 3% Tax benefits (EVs) Funds within 48 hours Types of vehicle finance available Which is the best type of car finance for your business? Type of finance Upfront deposit? Balloon payment? Do you own the car at end of contract? Maintenance included? Excess miles charges? Hire Purchase Hire Purchase with balloon Sale and Leaseback Possibly Finance Lease Optional Possibly Operating lease Possibly, or you may collect a surplus Contract hire Why use Swoop? A dedicated funding manager will help find a tailored solution to your needs Swoop is fully authorised and regulated by the Financial Conduct Authority Swoop's technology paired with our funding managers networks means you'll have access to deals only available through us Get funding fast - we...
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### Swoop reviews
- Published: 2022-12-06
- Modified: 2023-05-24
- URL: https://swoopfunding.com/za/about-swoop/reviews/
Swoop Funding reviews Since 2018 Swoop has helped thousands of SMEs, brokers, and advisors across the globe to find millions of pounds in funding across loans, equity, grants and more - for themselves or for their clients. Read some of our most recent reviews to get a feel for how businesses just like yours think about Swoop's service. Read the latest reviews Read all reviews
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### Asset finance calculator
> Looking to finance the purchase of business assets? Use this handy asset finance calculator to get an understanding of how much your loan might cost.
- Published: 2022-11-24
- Modified: 2024-05-27
- URL: https://swoopfunding.com/za/business-loan-calculator/asset-finance-calculator/
Asset finance calculator Looking to finance the purchase of business assets? Use this handy asset finance calculator to get an understanding of how much your loan might cost. Page written by Ian Hawkins. Last reviewed on May 27, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is asset finance? Asset finance is a form of lending you can use to buy business assets which are critical to the successful running of your company, such as machinery and vehicles. You can typically borrow as little as R10,000 and up to R10 million...
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### Business loans
> Business loans are often non-dilutive sources of funding, get free quotes from leading lenders and find the funding that is right for your business here.
- Published: 2022-11-15
- Modified: 2025-03-07
- URL: https://swoopfunding.com/za/business-loans/
Business loans South Africa Speed through to business loans and other lending options – get your business rolling with SwoopSwoop is a credit broker and does not provide capital. We work with a range of companies to offer clear comparisons that allow customers to make choices on financial products & services. Swoop may receive a commission, which may vary by product but typically in the form of a fixed percentage of the loan amount. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. Let’s get your business off the blocks Get started No matter if you’re a sole trader, a startup, or an SME, it’s likely that at some point in your business’ life, you’ll need extra funds to power growth. Instead of seeking cash investors, fast and cost-effective business loans can be a better option. Acquisitions, debt reduction, solid working capital. Stop waiting on slow cashflow or investors to expand. Boost your company’s growth with a loan that’s purpose-built for business needs. Use the funds for... Business expansion Provide the cash injection needed to enable business growth Start a business Start a business with facility aimed at early stage entrepreneurs Improve cashflow Maintain a health cash reserve by taking a loan and ironing out the peals Purchase stock Maintain sales growth by replenishing stock levels Vehicle finance Find the most suitable way to purchase assets like cars and vans to keep your business moving Property finance...
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### Sectors
- Published: 2022-11-14
- Modified: 2024-01-12
- URL: https://swoopfunding.com/za/sectors/
Business sectors Discover a funding solution for your business that meets the demands of your sector Business loans Whether you’re a sole trader, a startup, or an SME, it’s likely that at some point in your business’ life, you’ll need extra funds to power growth. View funding options here. read more Grants A non-repayable lump sum usually awarded by the government or other companies to help get your business up and running. View grants here. read more Equity Find the most suitable investors for your business from a network of over 200 Venture Capital funds, Angel Networks, Family offices and Angel Investors. read more Business loans Agricultural loans Sector guides Self-employed loans with bad credit
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### Contact us
> Our team of friendly advisors are on hand to help, whatever your query might be - over the phone, by email, and on our webchat.
- Published: 2022-11-11
- Modified: 2025-03-01
- URL: https://swoopfunding.com/za/contact-us/
Contact us Our team of friendly advisers are on hand to help,whatever your query might be Email us hello@swoopfunding. co. za Send us an email Cape Town 21 Dreyer Street, Cape Town, South Africa, 7708 London 120 Regent St. , London W1B 5FE, UK New York 43 W 23rd St, New York, NY 10010, United States Toronto 180 John St, Toronto, ON M5T 1X5, Canada Sydney Suite 801, Level 8, 84 Pitt Street, Sydney, NSW 2000, Australia Dublin Dogpatch Labs, The CHQ Building, Custom House Quay, Dublin, Ireland Birmingham 35 Bull Street, Lewis Building, Birmingham B4 6AF, UK Liverpool Suite 42, 4th Floor, Oriel Chambers, 14 Water Street, Liverpool, L2 8TD Newcastle Kingfisher Way, Silverlink Business Park, Newcastle upon Tyne, NE28 9NX, UK AberystwythAberystwyth Innovation and Enterprise Campus Gogerddan Campus, Aberystwyth University, Ceredigion SY23 3EE
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### Development finance calculator
- Published: 2022-11-07
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/development-finance-calculator/
South African development finance calculator Considering development finance? Use this simple calculator to understand how much you could borrow and how much it will cost. Page written by AI. Reviewed internally on May 23, 2024. × Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV How is development finance calculated? Unlike regular home or business mortgages, development loans are paid out in stages from an agreed loan pool. Lenders will typically limit the funds they are willing to provide to no more than 65% of land purchase costs, and up to 100% of the construction costs. Here's an example of new-build development finance:A plot of land has been sourced that has planning permission to build ten, three bedroom detached houses. The land can be purchased for R6,000,000 and the cost to build all ten houses will be R20,000,000. Total deal costs are R26,000,000, excluding fees and interest. The estimated value of each house after construction (including their freehold), is R3,500,000 meaning a Gross Development Value (GDV) of (10 x R3,500,000) R35,000,000. Development finance can be used to raise up to 65% of the land cost = R3,900,000 and 100% of the build cost = R20,000,000. This is also subject to the total borrowing requirement not exceeding 70% of the Gross Development Value (LTGDV), which in this scenario is 68% (R23,900,000 vs R35,000,000). A loan facility is set up for R23,900,000....
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### Franchise loan calculator
> This simple franchise loan calculator helps you understand the cost of your loan. See monthly interest & repayment amounts, as well as total interest & cost.
- Published: 2022-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/franchise-loan-calculator/
Franchise loan calculator This simple franchise loan calculator helps you understand the cost of your loan. See monthly interest & repayment amounts, as well as total interest & cost. Page written by AI. Reviewed by Ciaran Burke on April 2, 2024. Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. × Ciaran Burke COO & Co-Founder Ciaran is the technology and operations force behind Swoop. He began his career at KPMG and went on to start the professional creative network Hiive, now home to over 150,000 members and 4,000 businesses. Linkedin All calculators Acid test ratio calculator Amortisation calculator APY calculator Asset finance calculator Break even calculator Business loan calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method) Development finance calculator EBITDA calculator Inflation calculator Internal rate of return calculator Invoice finance calculator Lease calculator Marginal cost calculator Merchant cash advance (MCA) calculator Merchant cash advance (MCA) calculator Mortgage overpayment calculator Net profit margin calculator Operating margin calculator PayPal fee calculator Percentage calculator Pre money valuation calculator Price elasticity of demand calculator Price per square foot calculator Price to earnings calculator Rate of return calculator Refinance calculator Rent vs. buy calculator...
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### Franchise finance
> Finance for new and existing South African franchisees with loans from R1k to R5m. Ready to grow your business? See how much you could borrow today.
- Published: 2022-10-21
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/franchise-finance/
Franchise finance South Africa Hassle-free business loans for new & existing franchisees from R1k up to R5m. Get started Ensures your franchise has the resources it needs to succeed Whether you’ve been running your franchise business for a while or are considering opening your first one, Swoop is your partner in saving you money and time when it comes to getting great deals on financial products. While you’re giving your customers a great experience, we’re doing the hard work of bringing together the best deals on the market – some of which you won’t find anywhere else. Are you? A new franchisee? Don’t let a lack of knowledge about the financial landscape hold you back. We will give you the tools you need to get great deals on equipment financing and asset refinancing. Plus, our advisors are on call to answer questions and help you achieve your aims. An existing franchisee? At Swoop, we can help you run your business more profitably by helping you secure the best deals on equipment financing. Keep your machinery up to date and deliver the best quality in print for your customers. A serial franchisee? If you’re a past master at opening franchises, you’ll be delighted by how much time you’ll save when all your financial products are in one place. We can get you great deals on raising the money you need to expand your business or get your latest venture off the ground, leaving you free to do what you do best....
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### Team
- Published: 2022-10-19
- Modified: 2024-09-23
- URL: https://swoopfunding.com/za/about-swoop/team/
Meet the team Our most important investment is our people – the staff we choose and the customers we attract. They all make Swoop, well... Swoop Founded in 2018 Offices in South Africa, the UK, the US, Canada, Ireland & Australia 130+ professionals +50% female representation Entrepreneurship is in our DNA We’re working hard to reinvent the way businesses experience finance – we’re simplifying the complexities, ensuring transparency, eliminating inconvenience and empowering our customers to easily make money decisions every day. When we say ‘team’ we mean our customers, too. Like us, they are risk-takers, everyday entrepreneurs who believe in making a difference. They, too, contribute to our culture. When they flourish, we celebrate. When our customers invest in more jobs, sponsor the local sports club, export for the first time or invest in new facilities, it makes us happy. It’s especially rewarding when we see our work help businesses survive shock events like the pandemic and the cost of living crisis – we find them the finance they need, when they need it. Swoop's values - G R I I T Global Our mission is to solve access to finance for all small business owners. The problem we are solving isn't unique to any one place or region, so we must have a global outlook in what we do and how we think. view more Global What does this mean:We’re open minded. We respect people and their culture, beliefs and values. We’re curious, like to travel, we aim to...
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### Achievements
> It's hard to win recognition and trust in the financial sector, and this makes what we’ve already achieved worth talking about
- Published: 2022-10-04
- Modified: 2025-01-30
- URL: https://swoopfunding.com/za/about-swoop/achievements/
We’re proud ofour achievements It’s hard to win recognition and trust in the financial sector, and this makes what we’ve already achieved worth talking about Since our launch in 2018, we’ve helped thousands of businesses find funding across the globeWe’ve won major industry awards across the globe and secured significant backing from prominent players among the banking, VC, PE, and entrepreneur communities, as well as from the Irish Government. Swoop takes the top spot in the Deloitte 2023 Technology Fast 50 awards. Read more Swoop co-founders Andrea Reynolds and Ciaran Burke have been shortlisted for the EY Entrepreneur of the Year award 2024 in Ireland. Read more Swoop CEO and Co-Founder Andrea Reynolds has been awarded Irish Tatler’s Women of 2024 Business Award. Read more CEO and Co-founder Andrea Reynolds has been named one of Success Pitchers magazine’s Most Successful Business Women to Watch in 2022. Read more Swoop CEO and Co-founder Andrea Reynolds has been named on the Women in Fintech Powerlist 2021. Read more We've been given £7. 5m in grants by the Banking Competition Remedies (BCR) scheme. Read more The Competition and Markets Authority has mandated that all major UK banks integrate with us and advertise Swoop on their websites. Read more We were named in the “Hot Ten” list for the Global Fintech 50 for 2019. Read moreWe’re really proud of all this. It makes us even more committed to putting better solutions into your hands at lightning speed. By empowering businesses we can bring about real...
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### Islamic business finance
> Islamic business finance is governed by Shari’ah law and the tenet that money has no intrinsic value. Learn all about it here.
- Published: 2022-09-22
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/islamic-business-finance/
Islamic business finance: what is it and how does it work? Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Islamic finance is the fastest growing sector of international banking, with Islamic institutions based in South Africa holding assets over R5. 4 billion. With shared profit and loss loans, zero interest charges, and a commitment to supporting non-harmful enterprises, Islamic finance is quickly becoming a major force in South African business lending. Read on to find out more about this different kind of financing and to discover if it’s right for you. Add a header to begin generating the table of contents What is Islamic finance? Islamic finance is governed by Shari’ah law and the tenet that money has no intrinsic value but is a tool to smooth the exchange of products and services – a lubricant to simplify trade. This belief also states that it is wrong to make money from money...
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### Advisor referral program
- Published: 2022-09-13
- Modified: 2025-01-03
- URL: https://swoopfunding.com/za/advisors/referrals/
Refer accountants to Swoop & earn rewards Know other accountants who could benefit from Swoop for Advisors? Refer them to the platform and earn some extra money as part of Swoop’s referral program. Refer an accountant Help Swoop help fellow accountants For you If the accountant signs up on Swoop’s paid package, you will receive a £50 Amazon voucher plus 5% commission on their first 3 deals completed with us. For them Each accountant you invite will receive a 50% discount for their first month. Resources We'll support them and you with marketing material to promote your funding advisory service. Refer an accountant How it works Getting started in easy Simply register and access your personal dashboard to manage your funding and savings performance and metrics. Get matched to funding opportunities Our technology will match you with all suitable products and suggest the most relevant solutions across loans, equity and grants. Monitor your spending, cut costs and build savings Simply integrate your bank account to access an instant expenditure and savings report - start to cut costs immediately. Apply easily with our Swoop review process Keep updated with changing circumstances and easily submit your applications to relevant funding and savings providers. Refer an accountant
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### Development finance
> Development finance is a term for loans used to fund commercial or residential development project. It is typically short-term (6-24 months). Learn more here.
- Published: 2022-09-09
- Modified: 2024-07-19
- URL: https://swoopfunding.com/za/commercial-mortgages/development-finance/
Development finance explained – what is it & how does it work? Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on July 19, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. × Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Linkedin Websiteweb_asset Developing property for resale or to retain as an investment or for your own residential needs can be a great way to generate income or move up the property ladder. However, South African real estate development can be costly, and many potential developers lack sufficient funds to pay in cash....
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### Invoice finance
> Invoice finance is a popular choice for many businesses. Instead of waiting weeks for payment, receive up to 95% of the invoice sum in just a day or two.
- Published: 2022-09-01
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/invoice-finance/
Invoice finance is a popular choice for many UK businesses. Instead of waiting weeks for payment, receive up to 95% of the invoice sum in just a day or two.
Invoice finance explained Invoice finance is a popular choice for many South African businesses. Instead of waiting weeks for payment, receive up to 95% of the invoice sum in just a day or two. Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 24, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Improve cashflow, speed up your growth. Invoice finance lets you complete an order, send a bill, and get paid in 48 hours or less. Maintain control of your sales ledger to keep it confidential, or let the lender pursue outstanding payments for you. Release the cash in unpaid bills or borrow funds to buy the materials you need to fill an order. Flexibility is key. Forget about the business of chasing money. Focus on growing your company. What is invoice finance? Invoice is suitable for many small or medium-sized companies with B2B customers as it lets businesses get paid faster, sometimes within 24 hours, as they receive a large percentage of each invoice as soon as it is raised, using their unpaid invoices as the basis for...
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### Asset finance
> Asset finance makes it easier to buy, use and benefit from big-ticket items such as vehicles, plant, & machinery without the need for a large upfront payment.
- Published: 2022-08-31
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/asset-finance/
Asset Finance is a fast-growing funding choice for UK businesses. It makes it easier to buy, use and benefit from big-ticket items such as vehicles, plant, and machinery. Instead of paying one large sum upfront, spread the cost over time with smaller, regular payments. Use the items as you pay for the items and take pressure off your cashflow. Alternatively, make more of the high-value items your business already owns. Use those assets as collateral for loans to help your business grow.
Asset finance explained Buy, lease, or borrow - take the hard work out of hard assets. Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 24, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Asset finance is a fast-growing funding choice for South African businesses. With asset finance, a company uses its assets as security to borrow money or take out a loan against what they already own - making it easier to buy, use and benefit from big-ticket items such as company cars, vans, plant, and machinery. Instead of paying one large sum upfront, spread the cost over time with smaller, regular payments. Use the items as you pay for the items and take pressure off your cashflow. Alternatively, make more of the high-value items your business already owns. Use those assets as collateral for loans to help your business grow. Add a header to begin generating the table of contents What is asset finance? Asset finance is a finance option that allows business to grow by acquiring much needed equipment such as plant machinery, vehicles, aircrafts and...
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### Merchant cash advance
> Merchant cash advances are fast, flexible, and scalable sources of funding & are a favourite for UK hospitality, retail, & leisure businesses.
- Published: 2022-08-31
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/business-loans/merchant-cash-advance/
It may be relatively new to the business world, but the merchant cash advance is already a prime source of funding for consumer-facing businesses
Merchant cash advance It may be relatively new to the business world, but the merchant cash advance is already a prime source of funding for consumer-facing businesses. Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on April 24, 2024. Next review due April 6, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. × Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Linkedin Websiteweb_asset Fast, flexible, and scalable, the merchant cash advance is a favourite for UK hospitality, retail, and leisure businesses. Using your card payment terminal to access unsecured lending, it’s an ideal solution for businesses with few...
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### Merchant cash advance
> Merchant cash advances are fast, flexible, and scalable sources of funding & are a favourite for South African hospitality, retail, & leisure businesses.
- Published: 2022-08-31
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/merchant-cash-advance/
It may be relatively new to the business world, but the merchant cash advance is already a prime source of funding for consumer-facing businesses
Merchant cash advance It may be relatively new to the business world, but the merchant cash advance is already a prime source of funding for consumer-facing businesses. Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on August 26, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Fast, flexible, and scalable, the merchant cash advance is a favourite for South African hospitality, retail, and leisure businesses. Using your card payment terminal to access unsecured lending, it’s an ideal solution for businesses with few assets, but a good volume of daily card transactions. With no need to juggle monthly cashflow, repayment is made ‘at source’ as a percentage of your card revenue. Pay more as business grows, pay less if things are slow. The perfect mix for many SMEs. https://www. youtube. com/watch? v=3JXLui1ZBrE Add a header to begin generating the table of contents What is a merchant cash advance? A merchant cash advance (MCA) is flexible business funding that unlocks future income to provide immediate cash today. These loans may also be called a business cash advance. With an MCA, the lender...
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### Revolving credit facility
> A revolving credit facility (rolling line of credit) allows your business to quickly withdraw money and repay when convenient.
- Published: 2022-08-31
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/revolving-credit-facility/
A revolving credit facility is a rolling line of credit arranged between a business and a lender. Unlike a fixed business loan you can access funds on an as-needed basis and repay when it's convenient.
Revolving credit facility A revolving credit facility is a rolling line of credit arranged between a business and a lender. Unlike a fixed business loan you can access funds on an as-needed basis and repay when it's convenient. Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on August 26, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Add a header to begin generating the table of contents What is a revolving credit facility? A revolving credit facility (line of credit) is a type of working capital finance that enables businesses to quickly draw down or withdraw funds, repay, and withdraw again. You have a credit limit, just as you would with a business credit card or bank overdraft. It’s popular among businesses that need to boost their working capital, so you might use it for short-term financing that you plan to pay off quickly. A revolving credit line is a bit like a flexible, open-ended loan. You can borrow money, pay it back, borrow some more, and so on, for the agreed duration of the term. In other words, once...
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### Secured business loans
> A secured business loan gives you access to finance by offering up an asset such as property as security against the amount you borrow. Read more here.
- Published: 2022-08-30
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/secured-business-loans/
If you're a UK business with assets and you're looking for capital to grow, then securing a business loan against one or more your assets could be the ideal way to raise the funding you need. By taking security, the lender is much less likely to lose money should you fail to keep up the repayments. This means you will be more likely to be approved for a secured loan, as well as be offered lower interest rates, longer terms, and larger loans for your business. Between the banks and the alternative finance market, there is a broad range of lenders in the UK, each offering a variety of lending products.
Secured business loans A secured business loan allows to you to access finance by offering up an asset such as property as security against the amount you borrow Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 24, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. If you’re a South African business with assets and you’re looking for capital to grow, then securing a business loan against one or more your assets could be the ideal way to raise the funding you need. By taking security, the lender is much less likely to lose money should you fail to keep up the repayments. This means you will be more likely to be approved for a secured loan, as well as be offered lower interest rates, longer terms, and larger loans for your business. Between the banks and the alternative finance market, there is a broad range of lenders in South Africa, each offering a variety of lending products. What is a secured business loan? A secured business loan allows you to use an asset – or the total value...
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### Supply chain finance
> Supply chain finance provides unsecured cash advances to the supplier(s) in a supply chain, which gets them paid early. Learn more here.
- Published: 2022-08-24
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/supply-chain-finance/
Supply chain finance explained Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on August 26, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. More than half of South African SMEs say poor cashflow is the biggest issue for their business. Slow payment for goods or services delivered is a common problem. As more of the world’s trade is dominated by huge corporations, and suppliers must accept their extended payment terms, it’s unlikely this situation will improve. Fortunately, there is a solution for those who wish to take it – step forward supply chain finance – the short-term, unsecured lending option that delivers a win/win for all: Suppliers get paid faster and save on fees. Buyers protect working capital and keep their trading partners happy. Supply chain financing – where everyone’s a cashflow king. Add a header to begin generating the table of contents What is supply chain finance? Supply chain finance provides unsecured cash advances to the supplier(s) in a supply chain. It...
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### SaaS finance
> SaaS finance refers to financing options that are specifically designed to assist startup and scale-up efforts for South African SaaS businesses. Read more.
- Published: 2022-08-23
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/saas-finance/
SaaS Finance South Africa SaaS, or Software as a Service, relates to companies that provide a cloud-based service that enables user-access to software applications online. SaaS funding is designed to support companies who typically have an end customer (business) who purchases Software, on a subscription basis, hosted via an application made available to its users over the internet. Apply now What is SaaS Finance and is this right for my business? SaaS finance refers to financing options that are specifically designed to assist startup and scale-up efforts for software as a service (SaaS) businesses. Measuring finance for SaaS companies comes down to a few key metrics such as:Committed monthly recurring revenue (CMRR)Cash flowCustomer acquisition cost (CAC)Customer lifetime value (CLTV)Churn and renewal SaaS financing - What is it? SaaS financing offers non-dilutive capital investment. It gives tech-enabled businesses seamless access to growth capital, to be repaid in line with a companies’ future sales. This is a revenue-based funding solution that grows as your business grows. SaaS financing is not technically a loan, so a personal guarantee is not required. It has no impact on your company’s credit score and there is no interest. Instead, it is a capital investment at a fixed price, and your business retains 100 percent equity. Repayments are taken as a percentage of revenue. So when the business is not making as much money, repayments are lower, and when times are good, your repayment window shortens. SaaS financing - Why should I consider it? SaaS companies with...
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### Unsecured business loans
> Unsecured business loans give small businesses the opportunity to quickly access finance, with loans up to R5m. See how your business could benefit. Learn more.
- Published: 2022-08-22
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/unsecured-business-loans/
Unsecured business loans Unsecured business loans give you the opportunity to quickly access finance, without the need for collateral Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 24, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. If you’re a South African business who lacks assets, or if you don’t want to use your assets as security, an unsecured business loan could provide a quick, simple, and low-cost way to borrow. Add a header to begin generating the table of contents What is an unsecured business loan? An unsecured business loan allows you to borrow without having to secure the loan against any business assets, such as property, equipment or machinery. These loans are a relatively simple – and fast – way to get an affordable cash injection if your business lacks assets or if you don’t want to secure what assets you have against your loan. There are many South African lenders who can offer your small business funds for working capital, growth or expansion and if you like the idea of fixed, monthly repayments within an agreed...
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### Small business loans
> Small business loans are the smart, flexible, and low-cost way to finance business activities. Is your business eligible?
- Published: 2022-08-22
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/small-business-loans/
Small business loans South Africa Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on August 26, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. No matter if you’re a start up, mature business, sole trader, or a company with 200 employees, small business loans are the smart, flexible, and low-cost way to finance business activities. Stop relying on slow cashflow to expand. Turbocharge your company’s growth with a loan that’s purpose-built for your business needs. . Add a header to begin generating the table of contents What is a small business loan? To understand small business loans, we first need to ask, what is a small business? There are several definitions. Depending on who you ask, a small business can have as few as 1 and as many as 200 employees. In our experience, we’ve found that South African lenders define a small business as having up to 200 employees, with turnover less than R64m, and capital assets of less than R10m. Small business loans may be used for a variety of purposes – start-up, expansion, working capital, asset purchase,...
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### Working capital loans
> Working capital loans are short-term loans that help with day-to-day costs & are helpful for businesses whose income varies throughout the year. Read more here.
- Published: 2022-08-18
- Modified: 2024-10-29
- URL: https://swoopfunding.com/za/business-loans/working-capital-loans/
Working capital loans – what are they & how do I get one? Add a header to begin generating the table of contents Page written by Alastair Woods. Last reviewed on October 24, 2024. Next review due March 1, 2025. Alastair Woods South Africa Lead Alastair is South African and has a depth of experience in small business financing and strategy. He has led the launch and development of several successful ventures related to fintech, biotech and agriculture. Alastair studied economics and finance at the University of Cape Town, and then went on to complete his Masters at the University of Edinburgh. Many businesses go through periods when cash is tight. Some companies have fluctuating sales cycles that make this problem a regular occurrence. But no matter if this issue is a one-off event or a frequent situation, the lack of working capital to fund everyday operations and spur growth is not good for any type of business. Fortunately, there’s a solution to short-term financial stress – meet the Working Capital Loan – quick, simple, flexible, it’s the easiest way to keep your business running at full speed. https://www. youtube. com/watch? v=VQqJx-xArHQ Add a header to begin generating the table of contents What is working capital? Working capital – also known as ‘net working capital’, or ‘NWC’ – is the difference between a company’s current assets and its current liabilities and it is a measure of a business’s liquidity and short-term financial health. Current assets include items such as cash,...
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### Subscribe to the newsletter
> Keep up to speed with relevant industry updates, news, partner offers and more across grants, finance and equity, carefully curated by #TeamSwoop.
- Published: 2022-07-21
- Modified: 2024-12-18
- URL: https://swoopfunding.com/za/newsletter/
Clever finance tips and the latest news straight to your inbox Keep up to speed with industry updates, news, partner offers and more, carefully curated by #TeamSwoop. Join over 95,000 other ambitious businesses staying in the know What you'll get Swoop is your shortcut to better finances. Each week our team of experts pick out the news, thought leadership and educational content that will help you run your business more efficiently. When you'll get it Delivered to your inbox every week. What you can expect Up-to-date news on the events shaping the funding landscape for SMEs, including the latest grants, financial products and savings Actionable insights and tips on how to make your money work harder First alert on webinars and other events relevant to your business, including our pitch events where founders can talk directly to investors about their business Explainers on innovative products and services Inspiring customer success stories
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### Business loan calculator
> This simple business loan calculator helps you understand the cost of your loan. See monthly interest & repayment amounts, as well as total interest & cost.
- Published: 2022-05-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/
South African business loan calculator This simple business loan calculator helps you understand the cost of your loan. See monthly interest & repayment amounts, as well as total interest & cost. Page written by AI. Reviewed internally on May 8, 2024. × Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is a business loan calculator? A business loan calculator is an online tool designed to help business owners estimate their monthly loan payments and overall loan costs. The calculator takes into account various factors, such as the loan amount, interest rate, repayment term, and fees, to provide a detailed breakdown of the loan's cost. How do I use a business loan calculator? To use our business loan calculator, you simply need to input the loan amount, the interest rate, and the repayment term. The calculator will then generate your results, which will show you how much you will need to pay each month, the average monthly interest and the total amount you will pay over the life of the loan. All calculators Acid test ratio calculator ADR calculator Amortisation calculator APY calculator Asset finance calculator Basis point calculator Break even calculator Business savings calculator Business valuation calculator Cash flow calculator Commercial mortgage calculator Compound annual growth rate calculator Compound interest calculator Corporate tax calculator Cost of equity calculator Debt service coverage ratio (DSCR) calculator Depreciation calculator (straight-line method)...
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### Debt service coverage ratio (DSCR) calculator
> Our simple debt service coverage ratio (DSCR) calculator will help you understand your businesses ability to pay back its short-term debt obligations in cash.
- Published: 2022-05-18
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/business-loan-calculator/debt-service-coverage-ratio-dscr-calculator/
Debt service coverage ratio (DSCR) calculator Our simple debt service coverage ratio calculator (DSCR) will help you understand your businesses ability to pay back its short-term debt obligations in cash. Page written by Ian Hawkins. Last reviewed on May 23, 2024. Next review due March 1, 2025. Ian Hawkins Head of Content 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. × Ian Hawkins Head of Content 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. Twitter Linkedin Websiteweb_asset Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is debt service coverage ratio (DSCR)? Debt service coverage ratio (DSCR) is one of the biggest financial ratios that loan providers use to analyse your loan application. The ratio is highly useful because it offers a good indication on whether you’ll be able...
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### Management buyouts
> A management buyout, or MBO, involves the purchase of a business by its existing management team, usually with the help of a third party. Learn more here.
- Published: 2022-05-05
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-loans/management-buyout/
Management buyouts –what are they & how do I finance one? Add a header to begin generating the table of contents Page written by Chris Godfrey. Last reviewed on October 24, 2024. Next review due March 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance. Suitable for any industry, a management buyout, or MBO, can turn employees into entrepreneurs, monetise an owner’s share of a business, spin a department away from a parent company, or take a business from being publicly-traded to privately owned. In 2013, Dell Technologies used a management buyout to take the computing giant out of public hands. With the flexibility to fulfil almost any change of ownership for every type of company, an MBO is the Swiss army knife of finance tools. Add a header to begin generating the table of contents What is a management buyout? A management buyout, or MBO, involves the purchase of all or part of a company by its existing management team, usually with the help of external financing. In most cases, the management team takes full control and...
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### Semi-truck financing
> Looking to purchase a new or used semi truck in South Africa? Let Swoop guide the application process to ensure you get the best deal. Get started.
- Published: 2022-04-14
- Modified: 2024-12-17
- URL: https://swoopfunding.com/za/business-loans/semi-truck-financing/
South African semi-truck financing Ensure your trucking business is reliable and able to grow by spreading out the initial investment for a new truck. Get a quote Looking for a new or used semi truck for your trucking business? Having reliable equipment is important for the growth of your business. Investing in trucks can be expensive so it is important to spread out the cost with a quick, flexible and low cost truck loan or lease option. This allows the company to deploy the truck for service, yielding immediate benefits by way of revenues which are then used to pay down the debt taken out. Get a quote Borrow from R25,000 Rates as low as 3% Terms up to 72 months Funds within 48 hours What types of truck could I purchase? If your application is successful you can use your finance for any commercial trucking-related purchase: Semi-truck Box Haul Highway Dump trucks Platform & many others Get a quote How do I apply for semi truck finance? It’s quick and easy to apply for trucking finance online and our support team are on hand if you have any questions. Quickly check if you qualify Have your financial statements and equipment quote ready. Apply online in 10 minutes Tell us about you and your business with our simple application. Get your decision If approved, you’ll receive a no-obligation, personalised quote. Your loan is funded Once you accept, we run some final checks to process your loan and deposit the money...
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### Commercial mortgage calculator
> Use our simple UK commercial mortgage calculator to understand monthly repayments (in pounds), as well as total interest charged and total amount payable.
- Published: 2022-04-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/commercial-mortgage-calculator/
South African commercial mortgage calculator Use our simple commercial mortgage repayment calculator to get an idea of what your monthly repayments could be and how much interest you will pay throughout the term of your loan. Simply add the amount you’d like to borrow, the interest rate, and how long you’d like the repayments over and away you go! Page written by AI. Reviewed internally on May 24, 2024. × What is a commercial mortgage calculator? If you're a business owner looking to buy or refinance a commercial property, you might be wondering how much your mortgage payments will be. That's where a commercial mortgage calculator comes in handy. At Swoop Funding, our commercial mortgage calculator helps you estimate your monthly mortgage payments based on factors such as the loan amount, interest rate, and loan term. Additionally, you can factor in other costs like property taxes and insurance to get a more accurate estimate of your payments. By using our free online calculator, you can make informed decisions about your commercial real estate financing options and plan for the future of your business. What effects the monthly payment amount on a commercial mortgage? Several factors can affect the monthly payments for a commercial mortgage. Here are some of the most important ones:Loan amount: The amount of the loan will affect the monthly payment. The larger the loan, the higher the monthly payment. Interest rate: The interest rate is the cost of borrowing money and can significantly impact the monthly payment....
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### Invoice finance calculator
> Use our handy invoice finance calculator to get an understanding of how much you could release from invoices owed to you.
- Published: 2022-04-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/invoice-finance-calculator/
Invoice finance calculator Use our handy invoice finance calculator to get an understanding of how much you could release from invoices owed to you. Page written by AI. Reviewed internally on May 17, 2024. × How do you calculate invoice finance payments? Invoice finance is a type of financing where a business sells its outstanding invoices to a finance company in exchange for immediate payment. The finance company will typically pay a percentage of the value of the invoices upfront and then collect payment from the customers directly. The finance company will charge a fee for this service, which is typically calculated as a percentage of the value of the invoices. To calculate invoice finance payments, you will need to consider the following factors: Invoice value: The total value of the invoices being financed. Advance rate: The percentage of the invoice value that the finance company will pay upfront. This is typically between 70% and 90% of the invoice value. Discount rate: The fee charged by the finance company for providing the invoice finance service. This is typically between 1% and 5% of the invoice value per month. Repayment term: The length of time over which the finance company will collect payment from the customers. To calculate the invoice finance payments, you can use the following formula: (Invoice value x advance rate) - (Invoice value x discount rate x repayment term) For example, if you have R100,000 worth of invoices and the finance company is offering an advance rate of...
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### Merchant cash advance (MCA) calculator
> Understand your merchant cash advance repayments using our easy-to-use calculator. How much can your business afford?
- Published: 2022-04-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-loan-calculator/merchant-cash-advance-calculator/
Merchant cash advance calculator Calculate your merchant cash advance (MCA) repayments using the calculator below. Enter the amount you would like to borrow, the factor rate, and the amount your business takes in card sales each month to see an example repayment amount. Page written by AI. Reviewed internally on June 5, 2024. × Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What affects the term of my merchant cash advance? The term, or length of time, of a merchant cash advance can be affected by several factors, including:The amount of funding: Typically, the higher the funding amount, the longer the term will be. The repayment terms: Merchant cash advances are usually repaid through a fixed percentage of the business's daily credit card sales. The percentage and the duration of the repayment period can affect the term of the advance. The business's creditworthiness: If the business has a strong credit score and financial history, it may qualify for a longer term. The purpose of the advance: If the merchant cash advance is being used for a specific purpose, such as purchasing new equipment or expanding the business, the term may be longer to allow for a longer repayment period. The lender's policies: Different lenders have different policies and may offer different term lengths based on their risk assessment and business model. How do I calculate my merchant cash advance...
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### Commercial mortgages & property finance
- Published: 2022-02-08
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/commercial-mortgages/
Commercial mortgages explained You’re looking to purchase real estate for commercial use – let us help you access a range of options. Swoop is a credit broker and does not provide capital. We work with a range of companies to offer clear comparisons that allow customers to make choices on financial products & services. Swoop may receive a commission, which may vary by product but typically in the form of a fixed percentage of the loan amount. What is a commercial mortgage? A commercial mortgage is a form of mortgage offered to business owners who want to purchase commercial real estate, such as an office, retail space or factory. They work in a similar way to residential mortgages in that you borrow money that is secured against the property itself, offering an ideal solution if you are looking to expand your business or investment property portfolio. How much of a down payment will I need? The down payment required for a commercial mortgage depends on many variables, but usually falls between 20% and 50% of the cost of the property. The portion of the purchase price that you borrow is referred to as the loan-to-value (LTV) ratio. For example, if you are providing 30% of the purchase price and borrowing the rest, you will have a LTV of 70%. Here are some of the factors that will influence your maximum LTV as well as other aspects of your mortgage, such as the loan term and interest rate:Cash flow. One of...
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### Business grants
> There are many small business grants available in South Africa, where do you start? Let us simplify the process - we’ll match your business to tailored grants.
- Published: 2021-12-17
- Modified: 2025-01-10
- URL: https://swoopfunding.com/za/business-grants/
Startup & small business grants simplified Business grants remain a crucial source of government funding for many South African businesses. It’s often essential in getting a new capital development off the ground, or for exploring new and innovative models to solve some of society’s toughest social problems. Check eligibility How Swoop can help Register with Swoop Head to the 'grant funding' section of your Swoop account after entering your company information See your matches View all available grants that may be right for you, saving you hours of research time Apply We then send you directly from our grant finder through to the application page for the relevant grant provider Continually review your matches We continue to update the tool as new grants come to the market. We recommend reviewing your grant matches at least quarterly to ensure you are up to date with the options available to your business. Check eligibility Tips for applying Timing. Ensure you are applying at an appropriate stage and have a clear opportunity to take advantage of. New funds open all around the year, so make sure to check Swoop’s grant finder on a regular basis for new grants you may be eligible for. Define the opportunity and make sure you are eligible and fit the scope for the specific grant. It is easy to spend time applying for grants which are not suitable for your business. Have a defined project and outline and highlight the impact it’ll have to align with the scope....
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### Equity financing
> Equity financing is when an investor injects capital into a business in return for shares (equity) and/or some control of the business. Are you investor ready?
- Published: 2021-12-15
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/equity-financing/
Take the pain out of finding investors for your business Swoop uses smart matching to match your business to the most suitable investors from its huge network of Venture Capital funds, Angel Networks, Family offices and Angel Investors. Check matches Raise new capital in exchange for equity in your business If your business needs money to grow, you’ve the option of selling a stake in exchange for investment. Equity finance investors will have a claim on your future earnings but, in contrast to a loan, you don’t pay any interest – nor do you have to repay capital. Equity finance could suit your business if you have an expansion plan or project that lenders such as banks aren’t willing to support, or if you want to avoid loan payments. Your journey from startup to successful business could involve multiple rounds of equity financing from different types of investors, e. g. business angels, venture capitalists and private equity funds. Equity finance has two obvious advantages for businesses:Private investors can bring additional skills and knowledge to your business – plus a useful network contactsInvestors, not least because they share in any upside, are motivated to make your business a success – and will be more likely to provide follow-up funding. For more information on how to get investors for your business, click here. Read about some popular types of equity finance below, but it’s best to register now for full access to all the options available to you. Andrea ReynoldsSwoop’s CEO &...
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### Equipment leasing
> Equipment leasing is much like a loan, however, the lender is the owner of the equipment and the business pays lease payments to the owner. Learn all here.
- Published: 2021-12-14
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-leasing/
Equipment leasing Prefer not to take on debt for the equipment your business needs? Choose a lease and start benefiting straight away Apply now Equipment leasing is similar to a loan, however, the lender is the owner of the equipment and the business pays lease (or rent) payments to the owner of the equipment over an agreed upon term. Leasing differs from a loan in that it does not appear on your company balance sheet and the lease payments are deductible expenses on the income statement. Leases can provide much needed flexibility and can be structured depending on the cash flow cycle of your business. Why equipment leasing? Tax benefits For most lease programs, the business owner can write off the entire lease payment as a business expense, not just the interest paid. This means the entire amount paid for the equipment can be written off by deducting the monthly lease payments on the annual tax filing. Stay efficient Keep the business operating efficiently or meet increasing demand with the newest and most efficient tools. Ease of application Depending on the size of the equipment purchase; usually under R200,000 can be very quick and easy. Small ticket items are driven by the type and value of the equipment, as well as the credit quality of the business, usually resulting in a 24 to 48 hour application process. Apply now Other benefits of equipment leasing Apply now Types of assets suitable for leasing Transportation Construction Manufacturing Agricultural And many others Apply...
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### Equipment financing
> Equipment financing allows your business to purchase expensive equipment or machinery by spreading the cost & reducing the strain on cashflow. Read more.
- Published: 2021-12-14
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/equipment-financing/
Equipment financing Finance the purchase of expensive equipment to spread the cost over a period & reduce the strain on your cashflow Apply now Upgrading or replacing equipment your business needs quickly and economically is very important in order to keep the business operating efficiently or to meet increasing demand. Any tangible asset other than property used in the operation of a business may be considered business equipment. Purchasing the equipment outright can put a substantial strain on your cash flow so many businesses choose to finance expensive equipment to spread the cost over the useful life of the asset in order to make it more accessible. Other times, the business will want to use the capital to invest in other areas. Most of the time, the equipment itself is used as collateral for the loan. Looking for more information on equipment financing? Get in touch today Book a call Eligiblity South African corporations Deposit 0-25% Term Typically 5 years Purpose Purchase new or used equipment Speed From 48 hours Why equipment financing? Maintain your working capital Purchasing the equipment outright can put a substantial strain on your cash flow. Spread the cost of the equipment over the useful life of the asset in order to make it more accessible and retain your working capital for other expenses. Stay efficient Keep the business operating efficiently or meet increasing demand with the newest and most efficient tools. Tax benefits With each payment there is interest paid. For most equipment financing terms,...
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### Swoop for Advisors
> Swoop will work with you to discover the right funding solutions across debt, equity & grants, and easily make savings, making you indispensable to your clients
- Published: 2021-11-23
- Modified: 2025-05-15
- URL: https://swoopfunding.com/za/advisors/
Smart tech built by accountants, for accountants As accountants and advisors are called on to help their clients grow, Swoop will work with you to discover the right funding solutions across debt, equity and grants, identify and easily make savings, making you indispensable to your clients. Register your interest Book a demo Empower Access loans, equity, grants, savings & more A variety of mainstream banks & alternative lending providersSave on utilities, FX, broadband, insurance & more thanks to open banking Educate Strengthen your offering with extensive funding knowledge Education & support modules help you keep abreast of an ever-changing marketGenerate reports to highlight a business’ credit health and eligibility for loans or grants Expand Match your clients with tailored funding in minutes, fully supported by experienced funding professionals Intuitive tech helps you save hours on form-filling and document uploadingBe guided by our expert team of ex-underwriters, accountants, and equity analysts Register your interest How it works /* widget: How it works */ . list-steps-brokers { margin: 20px 0 40px 0; padding: 0 25px 0 0; } . list-steps-brokers li { list-style: none; margin-bottom: 20px; } . list-steps-brokers li a { display: flex; align-items: center; text-decoration: none; } . list-steps-brokers li a p { color: #546a7b; } . list-steps-brokers li a:hover p { color: #003e52; } . list-steps-brokers li . number-step { width: 50px; height: 50px; min-width: 50px; min-height: 50px; text-align: center; border: #ced7de solid 1px; font-size: 24px; line-height: 50px; font-weight: 700; color: #546a7b; border-radius: 50%; margin-right: 15px; } . list-steps-brokers...
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### Asset-based lending
> Asset-based lending is a common way for businesses to improve their working capital if access to traditional financing is difficult. Learn more here.
- Published: 2021-11-05
- Modified: 2024-12-16
- URL: https://swoopfunding.com/za/business-loans/asset-finance/asset-based-lending/
Asset-based lending Secure a loan against the assets of your business and take advantage of better interest rates Get a quote Asset-based lending is a common way for businesses to improve their working capital if access to traditional financing is difficult. As with all financial products, it is important to have all the information on how it works so that you can make the right decision for your business. Get a quote Why asset-based lending? Better interest rates Secured against the assets of your business which lessens the risk to the lender resulting in more favorable interest rates than an unsecured loan More flexibility The focus is on the quality of the asset to be secured and less on the credit rating of your business Fewer covenants There are typically fewer covenants with asset-based lenders as they focus more on the quality of the asset to be secured and less on the credit rating of the business Get a quote Types of asset-based lending Invoices When a customer places an order they issue a PO which outlines the order. The purchase order will show the order date, when goods are to be shipped, the quantity, and price per unit. The asset based lender will review the terms of the PO to understand who the customer is, the credit worthiness, and the value of the PO. Inventory It is common that business owners value inventory at retail, but any asset based lender will look to understand what they can sell the...
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### Business credit scores
- Published: 2021-10-07
- Modified: 2024-10-24
- URL: https://swoopfunding.com/za/business-credit-scores/
Get your free business credit score The deals you can get from lenders depend on your credit score: the better your score, the cheaper it is to borrow.   Swoop has joined forces with South Africa's leading credit bureaus to rate your business' credit. The service is free and does not affect credit scores, unlike credit checks and failed loan applications which can harm your reputation. Get started Why check your business credit score? No charge for the basic serviceTakes two minutesWon’t harm your credit scoreUnderstand how lenders view your businesses lendability Get started How it works Register Register with Swoop and enter your business’ details. Already registered? Great, we’ll have all the information we need, and you’ll get an answer in just a few clicks. Get started Get your free credit score You’ll get a quick overview of your business’ credit health using the traffic light system - green, amber, and red, as well as a 'probability of default' as a percentage. Get started Need more credit health details? Need more information? Purchase a detailed detailed credit report, including tangible actions you can take right now to improve your business’ credit . Get started Applying doesn't affect your credit score You are in complete control of your data No credit card required How do I improve my credit score? https://www. youtube. com/watch? v=qWUCwXdlzhU Andrea ReynoldsSwoop’s CEO & Co-Founder A word from Andrea "A good credit score will get you a better deal on financial products, saving you money and...
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### Swoop for Brokers
- Published: 2021-09-21
- Modified: 2023-06-09
- URL: https://swoopfunding.com/za/brokers/
The digital platform for Brokers Smart tech for brokers. Advanced finance-matching and deal flow management. Register your interest What you need to know Signing up to Swoop for Brokers will give you whole of market access to funders - as well as grants and equity investors - with a comprehensive list of products to offer your clients. Our portal is designed to take away the pain of scouring through hundreds of lenders and is built with speed, simplicity and security in mind, meaning you can close more deals in less time. Access a huge range of financial products including: Unsecured business loansAsset financeBridging loansSecured loansStartup loansInvoice financeWorking capital loansCredit linesProperty development financeMerchant cash advanceEquityGrants Benefits Swoop’s technology empowers Brokers with market-leading features: noun_Check_2422615 Earn commission on over 500 funding products with one smart onboarding system noun_Check_2422615 Access deals exclusive to Swoop such as unsecured loans of up to £5million noun_Check_2422615 Advanced technology matches with lenders across our vast marketplace noun_Check_2422615 Access bank and accounting integrations to streamline funding applications direct to funders noun_Check_2422615 Automatic smart document collection noun_Check_2422615 Get comprehensive compliance and technical support noun_Check_2422615 Coming very soon... equity and grants How it works /* widget: How it works */ . list-steps-brokers { margin: 20px 0 40px 0; padding: 0 25px 0 0; } . list-steps-brokers li { list-style: none; margin-bottom: 20px; } . list-steps-brokers li a { display: flex; align-items: center; text-decoration: none; } . list-steps-brokers li a p { color: #546a7b; } . list-steps-brokers li a:hover p {...
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### Compare free business bank accounts
> Compare our up-to-date offers on free business bank accounts and ensure you're not one of the many businesses overpaying by up to £700. Check now.
- Published: 2021-02-16
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/business-bank-accounts/free/
Compare free business bank accounts Tired of being overcharged and underserved on your business bank account? Depending on your businesses circumstances, you may be able to use a free business bank account. Ensure you’re getting the best deal with our quick and simple comparison tool. For a personalised banking report, and access to tailored funding and savings opportunities for your business, simply register here. Choose your business current account options Select All business bank accounts Small business bank accounts Free business bank accounts Bad credit bank accounts Sole trader business bank accounts Business savings accounts All business bank accounts Small business bank accounts Free business bank accounts Bad credit bank accounts Sole trader business bank accounts Business savings accounts For a personalised banking and saving report tailored to your business, simply register and securely integrate your bank account through our Open Banking technology. /*! elementor - v3. 21. 0 - 26-05-2024 */ . elementor-widget-image{text-align:center}. elementor-widget-image a{display:inline-block}. elementor-widget-image a img{width:48px}. elementor-widget-image img{vertical-align:middle;display:inline-block} Register your business with Swoop and integrate your bank account for your personalised report Join Swoop Read this article to me . plyr__controls . plyr__controls__item:first-child{ background:#2e9c8e ! important; } :root{ --plyr-color-main:#2e9c8e; --plyr-audio-controls-background:#f9fafb; --plyr-audio-control-color:#546a7b; } { color: #2e9c8e ! important; } . aivoov-text-color{color:#546a7b} Powered by AiVOOV What is free business banking? Free business banking is simply business banking with no fees attached. In other words, if you open a free business bank account you won’t have to pay a monthly or annual fee and there will be no charge for...
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### Homepage
> Simple and speedy access to business finance. Get matched with tailored funding across loans, equity, & grants, and cut business costs in one fell swoop.
- Published: 2020-09-10
- Modified: 2024-07-26
- URL: https://swoopfunding.com/za/
Easily find business funding & save some cash whilst you're at it, too. We get it, you're a time-poor business owner with limited understanding of your options when it comes to funding. Swoop takes the hassle out of finding funds to grow your business, allowing you to search tailored options including cash advances and grants. We'll also help you save on your business costs like energy, banking, and more. Think of us as your virtual CFO Get started Suddenly, finding funding is straightforward and hassle free. Fund your business Fund your business . ugb-40d9eb5 . ugb-cta__item{background-color:#003e52 ! important}. ugb-40d9eb5 . ugb-cta__item:before{background-color:#003e52 ! important}. ugb-40d9eb5 . ugb-cta__title{margin-bottom:30px ! important;font-size:32px ! important;color:#ffffff;text-align:center ! important}. ugb-40d9eb5 . ugb-button{background-color:#ffffff;padding-top:8px;padding-right:40px;padding-bottom:8px;padding-left:40px;border-radius:100px ! important}. ugb-40d9eb5 . ugb-button . ugb-button--inner,. ugb-40d9eb5 . ugb-button svg:not(. ugb-custom-icon){color:#0f334a ! important}. ugb-40d9eb5 . ugb-button:before{border-radius:100px ! important}@media screen and (min-width:768px){. ugb-40d9eb5. ugb-cta{padding-top:0px ! important}}@media screen and (max-width:768px){. ugb-40d9eb5 . ugb-cta__title{font-size:25px ! important}}Ready to grow your business? Get started
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### Complaints
> If you’re not completely happy with our service, we’d like to hear about it — that way, we can do something to put it right.
- Published: 2020-04-29
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/complaints/
Complaints If you’re not completely happy with our service, we’d like to hear about it — that way, we can do something to put it right. At Swoop we do everything we can to make sure our customers get the best possible service. However, sometimes, we don’t get things right first time. When that happens, we always encourage you to tell us about your complaint, so that we can put matters right. We want to: make it easy for you to tell us about your complaint give your complaint the attention it deserves resolve your complaint fairly without delay make sure you are satisfied with how your complaint was resolved. How to complain To make a complaint, you can: email us at support@swoopfunding. co. za write to us at The Complaints Department, Swoop Finance (Pty) Ltd, 21 Dreyer Street, Cape Town, South Africa, 7708
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### Disclosure
> What we do and how we’ll work with you - our services, how we get paid, how we process your data, and what to do if you’d like to make a complaint.
- Published: 2020-04-29
- Modified: 2024-12-18
- URL: https://swoopfunding.com/za/disclosure/
Disclosure Introduction The purpose of this document is to explain what we do and how we’ll work with you. This covers our services, how we get paid, how we process your data, and what to do if you’d like to make a complaint. It’s important that you read and understand this document. The term ‘Swoop’ (or ‘us’, ‘we’, ‘our’) refers to the owner of the service. Swoop Finance (Pty) Ltd is registered in South Africa (company number 2023/820661/07) and has its Registered Office at 21 Dreyer Street, Cape Town, South Africa, 7708. The Company is a subsidiary of BizFly Limited, registered in Ireland (company number 601838). The term ‘you’ or ‘your’ refers to the user of the service. Swoop is not a funder, our primary purpose is to link micro, small and medium businesses with relevant finance providers and finance products that match their funding needs. As a matching service, we are not required to be a registered finance provider as we do not provide loans. Our Services At Swoop, we help businesses access finance from a wide range of lenders, investors and government grant agencies that are suitable for your requirements and we help you make savings by comparing your costs for banking, utilities and other services with offers from other providers. We identify solutions that are most suitable for your requirements (based on the information you disclose to us). We will provide you with information about relevant finance providers and service providers, to ensure that you understand the...
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### Treating customers fairly
- Published: 2020-04-29
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/treating-customers-fairly/
Treating customers fairly At Swoop, we are committed to offering our customers the highest possible standards of service. In doing so, we are pleased to support an initiative to ‘Treat Customers Fairly’. Our commitment to our customers We will: Provide you with clear information about the service we offer, including any fees or charges Aim to understand your business needs, preferences and circumstances as they evolve, in order for us to narrow down the number of funding and savings options that are available to you Source the most appropriate funding and savings options for your business, using the information available to us from providers and the information you give us Tell you if we cannot find an option we consider suitable Aim to provide you with up-to-date information which we will present in a manner that is clear, fair and unambiguous Encourage you to ask questions if there is something that you do not understand Ensure that service and risk information remains clear and prominent at all times Provide you with details of our formal complaint procedure should you be dissatisfied with our service. How you can help us To help us give you the service that you require we ask you to: Tell us as much as possible about your business income and outgoings, so that we can properly assess how much your business can afford Let us know about future changes that might affect your business's ability to make repayments for any credit agreement you may enter into...
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### Terms and conditions
> Terms and conditions, which include our Privacy Policy, govern the use of the broking service provided by Swoop Finance Limited to any business registered with us.
- Published: 2020-04-28
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/terms-and-conditions/
Terms and conditions Thank you for visiting Swoop These terms and conditions (“Terms of Service”), which include our Privacy Policy, govern the use of the broking service (“Service”) provided by Swoop Finance Limited (“we”, “us”, “our”) to any business registered with us (“you”, “your”). Swoop Finance (Pty) Ltd is registered in South Africa (company number 2023/820661/07) and has its Registered Office at 21 Dreyer Street, Cape Town, South Africa, 7708. The Company is a subsidiary of BizFly Limited, registered in Ireland (company number 601838). Swoop Finance (Pty) Ltd is not a funder, our primary purpose is to link micro, small and medium businesses with relevant finance providers and finance products that match their funding needs. As a matching service, we are not required to be a registered finance provider as we do not provide loans. Limitations of what we offer Our Service is intended for your own business-related purposes only. We cannot guarantee that our Service will be successful for you, neither are we obliged to provide our Service to you. Our Service is based on information from third parties. We have no control over this information and it may contain inaccuracies or errors. Where you have not made us aware of your specific needs, it is your responsibility to ensure that any options presented to you through the Service meet your requirements. Content and information that we provide as part of the Service may not be timely or correct, and will change without notice, meaning that it is for...
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### Privacy policy
- Published: 2020-04-28
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/privacy-policy/
Privacy policy Swoop Finance (Pty) Ltd is registered in South Africa (company number 2023/820661/07) and has its Registered Office at 21 Dreyer Street, Cape Town, South Africa, 7708. The Company is a subsidiary of BizFly Limited, registered in Ireland (company number 601838). Who we are and how to contact us We are Swoop Finance (Pty) Ltd, the owner and operator of www. swoopfunding. co. za. www. swoopfunding. co. za (owned and operated by Swoop Finance (Pty) Ltd) is a business finance and cost savings matching platform for eligible South African businesses. www. swoopfunding. co. za reviews and compares finance matching options across loans, grants and investments, as well as savings matching options for business banking, foreign exchange and utility costs. Swoop Finance (Pty) Ltd (“we”, “us” and “our” in this privacy policy) is the data controller responsible for personal information processed by this website, and by the company. Business' refers to customers who use Swoop directly, or indirectly (“you” and "your" in this privacy policy). Where a business is registered by an ‘Introducer’, the business must have provided permission to the ‘Introducer’ to act on it’s behalf prior to registration with Swoop. It is most important that you read this privacy policy carefully so that you are fully aware of how and why we use your personal information. We do not knowingly collect personal information relating to children under the age of 18 – children under the age of 18 should not use our website. support@swoopfunding. co. za Address: 21...
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### Cookie Policy
> Swoop uses cookies to help us help you get the most out of Swoop's tools and webpages. You can view our cookies policy here.
- Published: 2020-04-28
- Modified: 2024-11-18
- URL: https://swoopfunding.com/za/cookie-policy/
Cookie Policy This Cookies Policy sets out how Swoop Finance (Pty) Ltd (we) use cookies when you (the user) use the Swoop website, any related mobile applications and any of our other online or mobile products (collectively, Swoop). The Cookies Policy forms part of our Privacy Policy. These, together with our Terms and Conditions (and any other documents referred to in these documents), explain how we use any of your personal information that we collect when you use Swoop. Please read these documents carefully. By using Swoop you are confirming your consent to our use of cookies as explained in this Cookies Policy. About cookies When we refer to “cookies” we mean any tool used to store or access information about a user’s computer or other device. Cookies are widely used to allow online and mobile sites to function efficiently. A cookie is often a small text file that transfers onto your computer, tablet or mobile device when you visit a site. The cookie may be sent back to that site when you visit again, and may then be used by the server to identify and track your use of Swoop. Cookies last for various durations. A “session cookie” is a short-lived cookie which, depending on your browser settings, is usually deleted when you close your browser. A “persistent” cookie is a long-term cookie that will be stored by your browser until its set expiry date (unless you delete it before the expiry date). Cookies have four different functions and...
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### Swoop's 10 steps to improving cash flow and working capital immediately
> Ever wonndered how to improve your cash flow and working capital immediately? We have the answers! Read our 10 Swoop steps to maximise your potential.
- Published: 2020-04-23
- Modified: 2023-08-21
- URL: https://swoopfunding.com/za/swoops-10-steps-to-improving-cash-flow-and-working-capital-immediately/
Swoop's 10 steps to improving cash flow and working capital immediately This is a crucial time for businesses facing a coronavirus-induced cash crunch. You’re right to be considering immediate steps to improve your cash flow, particularly over the next twelve weeks. And you’ll also be looking closely at your working capital needs for the next twelve months. You can make savings now immediately. If you’re registered with Swoop we can instantly match you with savings solutions across your everyday spend. Here are our ten steps to help you save, improve cash flow and boost your working capital: 1. Monitor cash flow daily or at least weekly If you don’t already use online accounting software, now’s the time! There are different brands of software but they all allow you to store your accounting information in the cloud so you can stay on top of your cash flow wherever you are. Most importantly you can view cash flow forecasts with a few mouse clicks. Swoop can then integrate with your accounting software to simplify and speed up any application for funding. 2. Make savings, cut your everyday costs Right now, there are a number of savings Swoop can help you make across your cost base, e. g. in banking, foreign exchange, utilities, insurance and broadband costs. By securely integrating your bank account Swoop can quickly analyse your everyday spend and identify where you can make savings immediately. Over the last 12 months we helped 2,582 businesses make total savings of over £2m...
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### Careers
> We've achieved a huge amount in a short space of time. And that’s down to how we’ve paired great technology with great talent. Join us!
- Published: 2020-04-22
- Modified: 2025-03-20
- URL: https://swoopfunding.com/za/about-swoop/careers/
Join our team We’ve achieved a huge amount in a short space of time. This is down to how we’ve paired great technology with great talent. By choosing a career at Swoop, you’ll be part of an entrepreneurial culture that is committed to making a difference for our customers’ success. It is our people’s energy and relentless drive that fuels Swoop every day. Our DNA At Swoop, our ethos is built around a culture of grit. Every single one of us has the ability to make something better, to question what we do, to find a different way, to go above and beyond our day job. Swoop admires people with grit or should we say GRIIT - our core values. If you think this describes you, you could be just who we’re looking for. Life at Swoop Competitive packageFlexible working including fully remote, hybrid and office based options25 days holiday increasing to 26 after one year’s service plus bank holidaysPrivate health insurancePension planShare options schemeEmployee volunteering programWellbeing programMultiple membership perks and discountsTraining and coaching grantsEmployee referral schemeCycle to work schemeQuarterly socialsA stack of the latest technologies and working gadgets Linkedin Equal opportunities Swoop is an equal opportunities employer. We believe passionately that employing a diverse workforce is central to our success. We make recruiting decisions based on your experience and skills. All applicants will be considered for employment without attention to ethnicity, religion, sexual orientation, gender identity, family or parental status, national origin, veteran, neurodiversity status or disability status. Disability...
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### Grants
> There are so many grants available in the UK, where do you start? Let Swoop simplify the process - we’ll match your business to tailored grant options
- Published: 2020-04-20
- Modified: 2021-04-07
- URL: https://swoopfunding.com/za/grants/
It really is like lemon squeezy Let Swoop’s platform simplify the process - we’ll match you to tailored grant options for your business Raising money for your business is no easy task, and it can be expensive and time consuming – but you can cut costs if your business is eligible for a grant. There are so many grants available in the UK, and it can be hard to find the right one. To make things easier, Swoop has partnered with UK and European business grant providers, as well as Local Enterprise Partnerships (LEPs), to offer you access to these grants and schemes all in one place, fast! There are thousands of business grants available in the UK at both national and regional levels. Grants are often sector-specific or tied to a particular product or outcome. We are constantly updating our database so that we can provide you with comprehensive up-to-date access to the latest grant opportunities. The most appealing thing about grants is that you don't have to pay grant money back, but you might have to meet a matched funding requirement (typically 25-50%). During the application process, you might also have to agree on expected outputs. Below you’ll find some popular grant schemes – as well as information about tax credits from HMRC – but it's best to register now for full access to all the finance options available. Swoop can match your business with the most relevant grant providers . ugb-b89aec1 . ugb-cta__item{background-color:#003e52 ! important}. ugb-b89aec1 ....
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## Blog
### Making the business case for your RSVP this holiday season
> Events are a great way to make connections that will benefit your business - you just need to make sure you approach them properly
- Published: 2024-11-21
- Modified: 2024-11-27
- URL: https://swoopfunding.com/za/blog/networking-101
- Category: Swoop guides, Blog
Events are a great way to make connections that will benefit your business - you just need to make sure you approach them properly. This time of year is party season: between September and New Year’s Day, you’ll find many calls on your downtime. But can you justify slipping out from work early to put on your glad rags? What about the loss of productivity the next day when you’ve got a dry mouth and a stubborn headache? There are good reasons for saying “yes” to the right invitations: you could find yourself making new connections outside your usual circle, or strengthen old relationships (I’m often finding myself speaking with people I’ve met peripherally elsewhere). Help is at hand. As Swoop’s #1 Champion Networker, here are my top tips for getting the most out of a networking event. Understand the tone Getting the tone right is everything. Some events are more sociable and some are more business-focused. Why does this matter? Because it informs a lot about your approach: what you can expect to get out of it, how you’ll approach people and even what you wear. Can you go straight from the office with a pocket full of business cards? Or do you need to spend a bit more time getting ready? You can get some mileage out of confounding expectations - I once saw a woman in the construction business wearing a pair of steel-toed boots with her designer ballgown. An unforgettable look. You might need to read...
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### What documents do you need for your funding application? A business owner's guide
- Published: 2024-10-02
- Modified: 2024-10-02
- URL: https://swoopfunding.com/za/business-loans/what-documents-do-you-need/
- Category: SME support, Loans
Making applications is quicker and less hassle when the information you need is already at hand Your business needs funding, but the phone is ringing. And that new staff member has a question. And your biggest customer is expecting a revised quote by the end of the day... . Making an application for funding feels like it’s going to be hard work before you settle down and get started. But by getting everything that you need together before you begin, you’ll find that you get through it more quickly.   Here are the key documents typically requested by lenders, investors and grant awarding bodies: Financial Documents Income statement: This document shows your business's revenue, expenses, and net profit over a specific period. Balance sheet: A snapshot of your business's financial health, including assets, liabilities, and equity. Cash flow statement: This statement reveals your business's inflows and outflows of cash. Tax returns: Corporate and personal tax returns can provide valuable insights into your financial history. Profit and loss projections: Forecasts of your future income and expenses. Business Plans Business plan: A detailed outline of your business, including its mission, goals, market analysis, and financial projections. Executive summary: A concise overview of your business plan, typically one to two pages long. Legal Documents Articles of incorporation or partnership agreement: These documents establish your business's legal structure. Operating agreement: For limited liability companies (LLCs), this agreement outlines the rights and responsibilities of members. Permits and licences: Any necessary permits or licences required for...
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### How do small business loans work
> A business loan is a type of financing designed to meet the financial needs of a business. Read all about how it works with Swoop.
- Published: 2024-04-18
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/how-do-small-business-loans-work/
- Category: SME support, Swoop guides, Blog
Securing a business loan can be a pivotal step for small and medium-sized enterprises (SMEs) aiming to grow or sustain their operations. Understanding the timeframe and process involved in obtaining financing is crucial for effective planning and decision-making. Here at Swoop, our experts wanted to provide a detailed explanation of this topic, helping business owners navigate the complexities of securing a business loan efficiently. What is a business loan? A business loan is a specific type of financing designed to meet the financial needs of a company. It provides businesses with the capital necessary to fund operational costs, expansion efforts, or equipment purchases, allowing for growth and sustainability without depleting cash reserves. How do business loans work? Business loans work by providing a lump sum of money or a credit line to businesses in exchange for repayment over time, with interest. The terms of the loan, including repayment schedules and interest rates, vary widely depending on the lender and the borrower's financial health. What are business loans used for? Business loans can be used for a wide range of purposes, from bridging gaps in cash flow and purchasing inventory to financing large-scale expansion projects and acquiring new equipment. Each loan type is tailored to fit different business needs and scenarios, ensuring that companies can continue to operate and expand effectively. What can you not use a business loan for? Typically if it’s unrelated to your business, your business loan shouldn’t be used for it. For clarity on what you can...
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### How long does it take to get a business loan
> A business loan can take anywhere from 24 hours to months to get, depending on various factors. Read all about how it works with Swoop.
- Published: 2024-04-16
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/business-loans/how-long-does-it-take-to-get-a-business-loan/
- Category: SME support, Swoop guides, Blog
When you're planning to boost your business with some extra funds, one of the first questions you might have is, "How long does it take to get a business loan? " Understanding the timeline can help you plan better and set realistic expectations for your financial strategy. Here at Swoop, our experts wanted to provide a detailed explanation of this topic to guide you smoothly through your funding options. How long does getting a business loan take? A business loan can take anywhere from 24 hours to several months to secure, depending on various factors. The type of lender you choose: Different lenders have different processing times. Online lenders might offer quicker approvals compared to traditional banks. The complexity of your loan application: More detailed and complex applications might take longer to review and process. How prepared you are with the necessary documents: Having all your documentation ready can significantly speed up the process. Step 1: Applying Initially, you'll start with the application itself, which can be a straightforward process, especially with online lenders. Depending on the lender, this step could take less than 30 minutes if you're well-prepared. The key here is to gather all necessary information beforehand to ensure a smooth and swift application process. Information you need to supply: When you're applying for a business loan, you'll need to provide a mix of both personal and professional information to your lender. Here's what you should have on hand: Personal information: Full name and contact details Social security...
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### How to convert money factor to interest rates
> A money factor, also known as the lease factor or lease fee, is essentially the financing charge. Learn more about how it works in this guide.
- Published: 2024-04-15
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/support-for-small-businesses/how-to-convert-money-factor-to-interest-rates/
- Category: SME support, Swoop guides, Blog
When you’re looking for financing for your business, it’s important to understand how lenders calculate the total cost of the loan. If you plan on leasing or purchasing equipment or vehicles, you’ll probably hear the term money factor.   The money factor is the cost of financing on a monthly lease payment. It’s similar to the interest rate on a payment — but doesn’t incorporate certain fees, making it difficult to predict the true cost of a loan. In this article, we'll break down what the money factor is, how it works, and, most importantly — how to convert it into an interest rate so you can easily compare your financing options.   How do money factors work? A money factor, also known as the lease factor or lease fee, is essentially the financing charge. It’s often expressed as a small decimal, such as 0. 00125 or 0. 0030. Occasionally, the money factor is expressed as a factor of 1,000, such as 1. 5 instead of 0. 0015. The higher the money factor, the higher your total lease payment.   Money factors are most commonly used in car or equipment leasing — or any asset that often depreciates over time. When you take out a loan, your monthly payments include depreciation, taxes, and interest. The money factor will determine the cost of interest. How to calculate a money factor In most cases, the lessor will provide the money factor to you. But it’s helpful to know how to calculate it...
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### What is a personal guarantee?
> A personal guarantee is an extra layer of security for lenders which binds personal assets to the business’s obligations. Learn more about how it works here.
- Published: 2024-04-03
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/support-for-small-businesses/what-is-a-personal-guarantee/
- Category: SME support, Swoop guides, Blog
A personal guarantee is a legal commitment made by an individual, typically a business owner or executive, to take on personal responsibility for a loan if the business is unable to repay its debt. This means that if the business defaults, the individual is personally liable for satisfying the debt, potentially using their personal assets. Such guarantees are common prerequisites for obtaining business loans, especially for new or financially unstable companies, providing lenders with a layer of security against the risk of non-payment. How does a personal guarantee work? A personal guarantee integrates an extra layer of security for lenders by binding an individual’s personal assets to the business’s loan obligations. Here’s an in-depth explanation: Risk mitigation for lenders: By requiring a personal guarantee, lenders mitigate the risk associated with lending to businesses that might be new or have a less stable financial history. Legal obligation: Once signed, a personal guarantee becomes a legal obligation. If the business fails to meet its loan repayments, the guarantor must cover the debt from personal resources. Asset liability: In enforcing a personal guarantee, lenders can target the guarantor’s personal assets, including savings, investments, and property, to recover owed funds. Types of personal guarantees Personal guarantees vary in terms of the extent of liability and the conditions under which a guarantor might be pursued for repayment. Understanding these differences is important for business owners as they assess their borrowing options. Unlimited personal guarantees Unlimited personal guarantees place the guarantor in a position of maximum...
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### How to price a product
> Product pricing is the process of setting a value for a product or service that your target market will pay. Read all about the process here.
- Published: 2024-04-03
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/support-for-small-businesses/how-to-price-a-product/
- Category: SME support, Swoop guides, Blog
Businesses small and large will have their share of problems no matter the industry or profession. Pricing products and services is one that most businesses will empathize with. Understanding how to price your products can make the difference in a long and thriving business or one that struggles to stay afloat.   What is product pricing? Product pricing is the process of setting a value for your product or service that your target market is willing to pay. For example, if you're opening a coffee shop, product pricing comes into play when determining how much to charge for each type of coffee. Likewise, if you own a service-based business, you may opt for a per-project or per-hour pricing scheme.   How should I price my products? When deciding how to price your products, you'll want to consider both your costs and your customer's perception of value. This balance ensures you cover expenses while appealing to your market.   Here's how to start: Evaluate your costs: Know the ins and outs of what it takes to produce your product or deliver your service. Understand your market: Consider what your target customers are willing to pay and how your competitors are pricing similar products. Choose a pricing strategy: Select a strategy that aligns with your brand, market position, and profit goals. If you’re having trouble knowing where to begin, competitor research can give you insight into how pricing is done for your industry and your location. This can also be a great...
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### What is a good profit margin?
> Profit margin is a key financial metric that businesses use to measure the profitability of their products or services. Lean more and read all about it.
- Published: 2024-04-03
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/support-for-small-businesses/what-is-a-good-profit-margin/
- Category: SME support, Swoop guides, Blog
Are you a business owner looking to improve your company's financial performance? One crucial metric to consider is profit margin. In this guide, we'll discuss profit margin, its calculation, and why it's so important for investors and business owners. So, let's dive in and learn more about this crucial financial metric. What is a profit margin? Profit margin is a significant financial metric that businesses use to measure the profitability of their products or services. It is calculated as the percentage of revenue that exceeds the costs of goods sold (COGS) and other expenses. This metric provides insights into a business's financial health by indicating how much profit it generates from each sales dollar. A higher profit margin indicates that a company generates more profit than its revenue, while a lower profit margin indicates the opposite. What is a good profit margin? A good profit margin is an ultimate goal for businesses because it directly reflects their ability to generate revenue and control costs. A high profit margin indicates that a business is running efficiently and can keep its expenses low while maximising revenue. This means the company can make the most of its resources and investments, which is crucial for long-term success. On the other hand, a low profit margin can be a warning sign that a business is not operating efficiently and may be struggling financially. It can also indicate that the business needs to price its products or services appropriately or that it needs to be able...
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### How to find investors for your business
> If you’re looking for funding to start or scale your business, you don’t have to go down the traditional route of getting a loan from your bank. Read more.
- Published: 2024-03-20
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/equity-financing/how-to-find-investors/
- Category: Blog, Equity
If you’re looking for funding to launch a startup or scale your business, you don’t necessarily need to go down the traditional route of getting a loan from your bank. Another option is to look for people who are willing to invest in your business. Your investors might loan you money at a more competitive interest rate, or they might own a stake in your business, meaning they earn money when your company makes a profit.   This guide explains all you need to know about how to find investors for your business. How important are investors for a small business? Investmentors for a small business can help your business to grow, improve and succeed. The funds you receive can help you to buy modern equipment, for instance, which could help to speed up processes and ensure you keep up with competition and demand. It could also enable you to hire more staff as well as invest in training and development of existing team members so that they learn valuable new skills. You might also choose to invest in a better onboarding programme or improve employee benefits such as flexible working or season ticket loans which can make your company more attractive to potential new employees. Depending on what sector your business is in, investment can also help your company pay for advertising and marketing or invest in research and development. How to find investors for your business: Get capital from family & friends A good place for an early-stage...
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### How to build your business credit
> Building a strong business credit profile is a good choice for all small business aiming for sustainability and growth. Read how to build it easily here.
- Published: 2024-03-18
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/support-for-small-businesses/how-to-build-your-business-credit/
- Category: SME support, Swoop guides, Blog
Building a strong business credit profile is a smart choice for any company aiming for sustainability and growth. Just as individuals need good personal credit, businesses must establish and maintain solid credit to access better financing options, negotiate favourable terms with suppliers, and separate personal and business finances. Establishing business credit is a strategic process that can open doors to a multitude of opportunities, ensuring your business can thrive in competitive markets. Why is it important to establish business credit? Business credit is important for several reasons. First, it enables your company to secure loans and lines of credit necessary for expansion or overcoming temporary cash flow issues. A strong business credit score can also lead to lower interest rates, saving your business substantial amounts of money over time. Plus, suppliers and vendors are more likely to offer better terms and credit limits to companies with good business credit. This not only improves your purchasing power but contributes to more flexible cash flow management. Establishing business credit also helps in separating your personal finances from your business operations, thereby protecting your personal credit and assets from business-related risks. Does my personal credit matter to my business? Yes, you should always assume your personal credit will factor into how your business is viewed. In most cases, such as when applying for small business loans or business credit cards, lenders will consider your personal credit scores. This is even more true for new businesses and small businesses. New businesses are typically classified...
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### Why did my credit score drop?
> Let's unpack the reasons your credit score might drop and understand how these can be a game-changer in the financial landscape. Learn all about it here.
- Published: 2024-03-18
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/business-credit-scores/why-did-my-credit-score-drop/
- Category: SME support, Swoop guides, Blog
Understanding the dynamics of credit scores can often feel like navigating through a maze, with each turn influenced by various financial decisions and behaviours. For financial advisors and brokers, you’re expected to demystify this journey for your clients, providing them with the clarity and guidance needed to maintain or improve their financial health. Here at Swoop, we recognise the importance of a healthy credit score in securing loans and funding options. We’ll help identify the common reasons behind a drop in credit scores, underscoring the pivotal role such insights play in crafting effective investment strategies. Through Swoop Funding's lens, we aim to illuminate the path for finance professionals, enabling them to leverage our platform's unique opportunities to benefit their clients. Let's unpack the factors that can influence credit score fluctuations and how understanding these can be a game-changer in the financial landscape. What makes up your credit score? Your credit score is composed of five separate categories with different weights. Some affect your score more than others. Payment history (35%) Amounts owed (30%) Length of credit history (15%) New credit (10%) Credit mix (10%) Alt text: pie-chart-showing-the-five-FICO-scoring-categories-and-percentages 6 Reasons why your credit score has dropped A credit score is a dynamic metric that reflects your financial reliability. Its fluctuations can impact your ability to access various financial products. For clients navigating the complexities of their financial journey, understanding the reasons behind a credit score decline is crucial. This knowledge not only empowers them but also enables financial advisors and brokers...
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### How to calculate the cost of debt
> The cost of debt refers to the overall cost that a company pays on borrowed money. Find out how to calculate the cost of debt, and the formula here.
- Published: 2024-02-15
- Modified: 2024-06-10
- URL: https://swoopfunding.com/za/blog/how-to-calculate-the-cost-of-debt/
- Category: SME support, Swoop guides, Blog
For small businesses or start-ups, securing funding is the foundation for expanding your company.   Business loans and lines of credit can provide the necessary capital but also come at a cost. Calculating your cost of debt helps you to figure out if taking on debt makes financial sense for your company's situation and future goals.   In this guide, we’ll explore how to calculate the cost of debt, why it matters to your business, and how working with a funding partner like Swoop can optimize the process. What is the cost of debt? The cost of debt refers to the overall cost that a company pays on borrowed money. This includes loans, bonds, credit lines, or any other form of debt financing.   The cost of debt is how much interest a company pays on borrowed money. This includes loans, bonds, credit lines, or any other form of debt financing.   There are two ways most businesses seek new financing — through equity financing or debt equity. With equity financing, an investor will provide capital in exchange for ownership of the company (a percentage of the company’s equity).   With debt equity, a company will receive financing as a loan to be repaid over time with interest. For most loans, the cost of debt depends on the interest rate, closing costs or added fees, and repayment timeline. The higher the interest rate and fees, the higher the total cost of debt.   Why does the cost of debt matter?...
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### Differences between a partnership and corporation
> When launching a small business, one of the key legal and structural decisions owners face is whether to establish a partnership or corporation. Read more.
- Published: 2024-02-15
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/blog/differences-between-a-partnership-and-corporation/
- Category: SME support, Swoop guides, Blog
When starting a small business, one of the most important legal and structural decisions owners face is whether to establish a partnership or corporation. The business structure you choose for your small business can impact everything from day-to-day operations, legal protections, taxation, and financing. Understanding key differences will ensure you choose the best structure to achieve your business goals and set your company up for success. What is a partnership? A partnership is a business structure owned by two or more individuals, known as partners. Partners equally share control over business decisions, profits, tax liabilities, and personal legal exposure. Partnerships are popular among smaller companies as they have low startup costs and require little paperwork. Registering a partnership involves filing a partnership agreement outlining profit/loss distribution and partners’ roles and rights. Common types of partnerships include: General partnership: Partners equally own and operate the business while sharing profits and losses. All partners participate in management decisions and carry unlimited personal liability. Limited partnership (LP): Includes at least one general partner who handles management plus limited partners who carry limited liability based on their investment portion. Limited partners typically can’t participate in daily control and operations. Limited liability partnership (LLP): Functions like a general partnership but partners have limited personal liability protection against co-partner malpractice or misconduct. Partners still carry unlimited liability for their own actions. Joint ventures: A project-based partnership where two or more businesses collaborate temporarily for a specific purpose under shared management and profit goals. Partnerships are easy...
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### At the end of the financial year: are you ready for the year ahead?
> Whether last year was your best year, yet, or you are amazed to have survived, a large part of what happens in the future is in your hands. Read more here.
- Published: 2024-02-14
- Modified: 2024-12-05
- URL: https://swoopfunding.com/za/blog/ready-for-the-year-ahead/
- Category: Swoop guides, Blog
Swoop looks at how businesses can take advantage of opportunities and make themselves more resilient in the new year. Whether last year was your best year, yet, or you are amazed to have survived, a large part of what happens in the future is in your hands. Will it be business as usual? Or do you hope to implement major changes? Do you need to reach more customers, or do you need to look after the ones you already have better? Are you generating more business or is there already too much to handle? At Swoop, we know SMEs. We speak to all kinds of businesses at all levels of success every single day. With the new year almost here, we wanted to share some of the ideas that have helped businesses overcome tough times and grow. Disclaimer: every business is different, there is no “one size fits all”, so take only what is useful to you from this blog. Ending 23/24 Have you ever noticed that when you impose a hard deadline, such as the end of the year or a period of leave, things get done? The lesson here is to impose more hard deadlines. Between now and the EOY, you should ensure your financial housekeeping is in good order: Close the books accurately: ensure your financial records are complete and up-to-date. Make sure you reconcile bank statements, categorise all transactions and prepare accurate financial statements such as profit and loss and balance sheet. Minimise outstanding payments: collect...
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### Income statements: The full guide
> An income statement is one of the three main financial reports for your business. Find out all there is to know about income statements here, or get in touch.
- Published: 2024-02-07
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/blog/income-statements-explained/
- Category: SME support, Swoop guides
An income statement is one of the three main financial reports for your company. It holds vital information about your business such as revenue and expenses – painting a clear picture of the company's profitability and operational efficiency over a specific period. This document serves as an essential tool for business owners, investors, and financial advisors to assess financial performance and make informed strategic decisions. Let's unpack the details of the income statement, including what it is, its importance and how to successfully prepare one.   What is an income statement? An income statement, also known as a profit and loss statement, is a fundamental financial document that provides a snapshot of a company's financial performance over a specific period. This statement records all revenues and expenses of the business, ultimately revealing the net profit or loss incurred. What does an income statement include? Every company is different and will prepare their income statement depending on their industry and business accounting practices. But the main components of an income statement should be similar to the following: Sales or revenue Cost of goods sold (COGS) Gross profit Operating expenses Earnings before tax Net income or loss Sales or revenue Sales or revenue is the income received by a company from its business activities, typically from the sale of goods and services to customers. It is the starting point of an income statement and serves as an indicator of a company's potential to generate profit. High revenue, however, does not always equate...
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### What are assets, liabilities and equity?
> Assets, liabilities and equity are three core elements of a balance sheet. Learn all you need to know about them here, alongside their uses.
- Published: 2024-02-07
- Modified: 2024-07-18
- URL: https://swoopfunding.com/za/blog/what-are-assets-liabilities-and-equity/
- Category: SME support, Swoop guides
Assets, liabilities and equity are three core elements of a company's balance sheet. They offer a look at what your company owns, owes and allows you to know the true performance both past and present so you can make strategic plans for the future.   Examples of assets, liabilities and equity Assets, liability and equity all have their differences but they overlap and weave together on your balance sheet. Being able to organise them correctly will make the difference in a correct balance sheet or a clustered one. Let’s look at them individually. Assets Assets simply put are what you own. They are thel resources a company owns and uses for its operations, contributing to revenue generation. They are broadly categorised into: Current assets: Easily convertible into cash within a year. Cash and cash equivalents Accounts receivable Inventory Non-current or fixed assets: Long-term investments, offering benefits beyond one year. Property, plant and equipment (PP&E) Intangible assets (e. g. , patents, trademarks) Long-term investments How to calculate total assets The total assets of a company are the sum of its current and non current assets. The formula is straightforward: Total assets = Current assets + Non-current assets Let’s take this formula and consider a simplified scenario for a business.   Current assets: Cash: R20,000 Accounts receivable: R15,000 Inventory: R10,000 Non-current assets: Property and equipment: R50,000 Intangible assets: R5,000 If you were needing to calculate your total assets, you would use the formula as so:Total assets = R20,000 (Cash) + R15,000 (Accounts...
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### How to get a startup loan
> Startup loans are a great way for a business to launch with a bang: they are offered at a competitive rate and often come with professional advice. Learn more.
- Published: 2024-01-18
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/startup-loans/how-to-get-a-startup-loan/
Every business founder should investigate whether a startup loan is right for them. Startup loans are a great way for a business to launch with a bang: worth up to R25,000 per company director, they are offered at a competitive rate of just 6 percent (at time of writing, January 2024) and often come with mentoring and professional advice. If your business is less than three years old, you should consider this as a source of funding. Let’s look at what you need to have in place to apply and how to maximise your chances of success. Before you apply Craft a solid business plan: a well-written business plan demonstrates your viability and seriousness to lenders. You’ll find plenty of resources and templates online to help you map out your business idea, market analysis, financial projections, and marketing strategy. Assess your financial needs: it’s important to have a plan about how you will use the money. Show how much capital you need for things such as operations, equipment, inventory, and marketing. Overestimating can see you saddled with unnecessary debt, while underestimating can hold back your growth. Boost your credit score: a strong personal and business credit history will stand you in good stead for future borrowing and indicates the general health of your business. Lenders (and potential future investors) consider your credit score to be a key indicator of your ability to manage finances responsibly. Explore funding alternatives: Startup loans should be considered alongside other sources of funding such as...
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### GenAI: the tools and prompts your business needs
> GenAI tools are often free to try out and because the selling point is the natural language recognition, you don’t need any specialist knowledge. Read more.
- Published: 2023-12-13
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/genai-tools-and-prompts/
- Category: Swoop guides, Blog
Generative AI has been a big story - but what can it really do for your business? The big technology news in 2023 has been Generative AI (GenAI) - bots that are able to write text, produce realistic images and much more. Unlike many tech breakthroughs, GenAI is accessible: the tools are often free to try out from the comfort of your own desktop, and because the selling point is the natural language recognition, you don’t need any specialist knowledge to get started.   What is GenAI, and why should I use it? The promise of GenAI is that it can speed up and automate tasks that you would normally need a human to perform. And while every business has different needs, here’s Swoop’s pick of five tools you should check out: they could make a big difference to how you do things.   What AI tools should my business be using? Below those, you’ll also find our tips on how to get the most out of the AI tools you decide to start using. For content Do you find writing emails, social posts and other communications hard work? Jasper might be exactly what you’re looking for to take the weight off your shoulders.   Jasper can help automate the generation of written content, making it useful for any business that needs to produce articles, blog posts, and more. For video creation Video is the most powerful content you can produce: people like to see products in action or see...
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### Resolutions for 2024: Don’t do more - do what you do better
> Instead of giving you a list of things to feel guilty about, we’ve put together a list of habits that will help your business grow in the next year. Read more.
- Published: 2023-12-08
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/resolutions-for-2024/
- Category: SME support, Blog
If your good intentions evaporate before February, here are some tips to embed better habits for the year ahead. At Swoop, we know that telling you to adopt some new years resolutions is pointless: they never last beyond the second week in January, and besides, founders have enough to do without quitting chocolate.   Instead of giving you a list of things to feel guilty about not doing, we’ve put together a list of habits that will actually help your business grow in the next 12 months - and won’t be difficult to keep up. We’ve put together a mix of regular habits and some one-off tasks that you can come back to in the spring when enthusiasm is picking up again.   1. Manage your time Remember why you wanted to start your own business? It was to be in control of your own income, time and life.   It’s too easy for “urgent” tasks to squeeze out the “important” tasks. So audit the time you’re spending, make sure you’re doing the right thing by yourself and re-set boundaries where you have to. They say that investing in yourself is never a waste of time or money, so make sure you’re taking time out to look after yourself physically and mentally.   Make a list of the things you don’t enjoy doing, things you’re not good at and things that take you more time than they should - and delegate, automate or eliminate.   This will free up time...
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### Debtor Days: All you need to know
> Cash flow is an indicators of whether a business is doing well or not. Pay attention to debtors day to ensure your company's health. Read more here.
- Published: 2023-11-24
- Modified: 2024-07-19
- URL: https://swoopfunding.com/za/blog/debtor-days/
- Category: SME support, Blog
Cash flow is one of the key indicators that a business is doing well. To ensure your company’s financial health, you need to pay attention to the fundamentals including debtor days. What are debtor days? Debtor days is the average time it takes for customers to pay their invoices. The sooner they pay, the stronger your cash flow. If clients keep on delaying payments, it may cause problems like increased debt, costly overdrafts, delayed payroll and vendor payments, and missed growth opportunities. Why are debtor days important? It’s important to find a way to limit the number of debtor days to keep your business’ cash flow healthy. Don’t wait until your working capital is fully stretched due to delayed client payments. Debtor days indicate your company’s liquidity, and it measures your business’ ability to handle unexpected costs and sustain your day-to-day operations. Make sure to calculate and track your debtor days, so you can stay on top of your business and take action before serious cash flow problems arise. The shorter the debtor days, the better. How do you calculate debtor days? Manage your receivables well and improve your company’s liquidity by calculating and monitoring this important metric. Debtor days formula Just follow this formula to calculate your debtor days ratio. Debtors Days = (Average account receivables / Annual total sales ) x 365 Days For example, if your average account receivables is 3,000,000 and the annual total sales is 20,000,0000, your debtor days is 54. 75 days Debtors Days...
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### Swoop Funding empowers South African businesses with official launch
> Swoop Funding, the global powerhouse in business funding solutions, proudly announces its official launch in South Africa. Read more here.
- Published: 2023-11-17
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/swoop-funding-empowers-south-african-businesses/
- Category: SME support, News
Cape Town, South Africa, 16th November 2023 Swoop Funding, the global powerhouse in business funding solutions, proudly announces its official launch in South Africa. This strategic expansion is made possible with the formidable support of industry leaders Sage and Enterprise Ireland. As Swoop strides into the South African market, it marks a momentous step in the company's commitment to addressing social, political, and economic challenges facing the nation. With a mission to combat high unemployment rates and stimulate economic growth, Swoop is empowering South African businesses by providing seamless access to various funding solutions. At the heart of Swoop's mission is the commitment to offer comprehensive financial support, where a survey reveals that 96% of South African small- and medium-sized businesses are requesting assistance with Access to Finance. Swoop connects businesses to a spectrum of funding options, including loans, equity investment, and grants. This holistic approach ensures that businesses can access the right type of finance tailored to their unique needs, fostering growth and sustainability. The decision to establish roots in South Africa is strengthened by influential partnerships with Sage, a global leader in accounting software and business technology solutions, and Enterprise Ireland, a cornerstone of Irish economic development. These partnerships underscore a shared commitment to fostering innovation, growth, and sustainability within the South African business landscape. Ciaran Burke, Co-founder of Swoop Funding, expresses enthusiasm, "We are thrilled to introduce Swoop to South Africa, a country teeming with potential and a vibrant entrepreneurial spirit. Our platform is designed to be...
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### Three strategies to hiring the A-team your startup deserves
> Putting together a good team could make a difference when looking for funding. What should you consider when assembling your own A-team? Read more here.
- Published: 2023-11-16
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/hiring-an-a-team/
- Category: SME support, Swoop guides, Blog
With VCs keen to work with the best team possible, how do you make sure your talent will attract investors? There is an old saying among VCs that says it’s better to work with an A-team with a B-idea than a B-team with an A-idea. What are the benefits of prioritising the team? Investors need to trust the businesses they work with An experienced team will recognise danger signs early A good team will work together well to resolve issues Putting together a great team could make a big difference when it comes to securing funding. What should you consider when assembling your own A-team to begin with? Here are Swoop’s three strategies for making sure you have the right people around you.   STRATEGY #1: Think of your weak spots Your startup will not have the experience or expertise in every field. Be humble, consider which weak spots your startup has and hire to fill those gaps. Some founders may be intimidated by others that have expertise where they are least knowledgeable. Understandably, it can also be very tough to hand over control of your business to others whom they might not know and trust. Consider the knowledge you already have and how long you have spent to acquire this. It is important to be self-aware, think of the value these hires would mean for your startup, rather than shifting your focus to learn the ropes. New hires are important and require extra attention and care. Spend some time...
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### Are you one of the businesses threatened with closure because you cannot access funding?
> One in ten businesses is said to fail because of funding problems. At Swoop, we’re doing what we can to turn this around. Learn more here.
- Published: 2023-11-08
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/is-your-businesses-threatened-with-closure/
- Category: SME support, Blog
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....
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### How to promote your business
> Promoting your business is important to ensure potential customers know what your business offers. Read our guide on how to promote your business here.
- Published: 2023-10-11
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-promote-your-business/
- Category: SME support, Swoop guides, Blog
If you’re starting a small business, you’re unlikely to have a huge budget to put behind promoting it. That means any dreams of a dazzling marketing campaign might have to be put on hold. But it doesn’t mean you can’t find an effective way to advertise your business and get it noticed. Promoting your business is key to ensuring potential customers know what your business offers and how you can help them. This comprehensive blog offers some top tips on how to start promoting your business locally, via social media and online, as well as tips on what to avoid. Promoting your business: dos and don'ts Before you start, take a look at the following dos and don’ts. Do... Take a look at your competitors to see how they promote their businesses Know your target audience Consider how you will measure the success of your marketing efforts Have a schedule so that you know exactly what will be promoted and when Don’t...   Use jargon and buzzwords that your audience might not understand Get disheartened if things don’t go your way immediately. It can take time to get your promotional activities right and learn from your mistakes Spend time on platforms your target audience doesn’t use Focus all your marketing budget on one area How to promote your business locally As a first step, it’s worth developing a local client base as this can enable your business to grow. It won’t massively eat into your budget and can help you...
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### Nurturing your mental health: 9 ways to manage mental health as a business owner
> Running a business can be rewarding, but it also comes with its set of challenges that can take a toll on you. Read our guide on mental health here.
- Published: 2023-10-09
- Modified: 2024-12-05
- URL: https://swoopfunding.com/za/blog/mental-health-as-a-business-owner/
- Category: Swoop guides, Blog
Why is mental health important for business owners? Running a business can be immensely rewarding, but it also comes with its unique set of challenges that can take a toll on your mental health. The pressure to make critical decisions, handle financial responsibilities, and manage a team can be overwhelming. In this blog, we'll explore effective strategies for managing your mental health as a business owner. 1. Prioritise Self-Care: Self-care is often underestimated but is essential for maintaining mental well-being. Make time for activities that help you relax. Whether it's yoga, meditation, reading, or simply taking a walk in nature, incorporating self-care into your routine can reduce stress and improve your mental health. 2. Set Realistic Goals: Setting unrealistic expectations can lead to frustration and anxiety. Instead, set achievable goals and break them down into manageable steps. This not only reduces stress but also provides a sense of accomplishment as you reach each milestone. 3. Delegate and Seek Support: You don't have to do everything yourself. Delegate tasks to capable team members and consider outsourcing when necessary. Seek support from mentors, business advisors, or mental health professionals who can provide guidance and a fresh perspective. 4. Maintain a Work-Life Balance: Balancing work and personal life is crucial. Set boundaries for work hours and ensure you allocate time for family, friends, and hobbies. Disconnecting from work during your downtime allows you to recharge and maintain a healthier mental state. 5. Manage Stress: Stress is inevitable, but how you manage it can...
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### How to get investors to say “yes”
> What does it take to get an investor to “yes”? Read our guide on how to win investors' trust and secure funding here.
- Published: 2023-10-06
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/equity-financing/how-to-get-investors-to-say-yes/
One word. Three letters. But it could be the turning point for your business. What does it take to get an investor to “yes”? In this article we're going to explore the art of winning investors' trust, touching their emotions and triggering their fear of missing out, to secure the crucial funding you require for your startup. . stk-7d4c11f{height:20px ! important} Trust in the investment Your first hurdle as a startup founder is this: Why would someone who doesn’t even know you give you thousands or sometimes millions of pounds? Your pitch deck will do a lot of the ground work here, showcasing your great business with good scalability, commercial traction, and the other vital components. The other part of your issue is why the investors should empathise with you. Being your authentic self is vital in instilling trust and creating a connection with people who are often on the other side of a screen. Transparency is the cornerstone of trust. This means being upfront about your financials, progress, and even the challenges you might face. While it’s important you don’t waste your investors' time with irrelevant information, transparency is about revealing both the good and the bad news. Too often, bad news gets covered up or sugarcoated in hope that things will magically improve; they rarely do, and investors will find out. You need to convince your investors that you are a straight shooter. Otherwise, you are simply setting yourself up for failure. A big challenge is conveying your brand...
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### How to download a bank statement
> If your business uses online banking, there might be times when you need to download a bank statement. Read all about the process in our guide.
- Published: 2023-09-18
- Modified: 2024-04-19
- URL: https://swoopfunding.com/za/blog/how-to-download-a-bank-statement-2/
- Category: SME support, Swoop guides, Blog
If your business uses online banking, there might be times when you need to download a bank statement. If you’re not quite sure what the process involves or how to go about it, this blog runs through all you need to know. What is a bank statement? A bank statement summarises all of your business transactions over a set period of time. This is usually one month (or 30 days). Whether it’s a paper copy or a digital one, a bank statement enables you to quickly view all the financial transactions that have gone into and come out of your business bank account, as well as what your current bank balance is. Business bank statements provide valuable information and can help you to better manage your business finances, so it’s certainly worth understanding how they work. Some of the information listed on your bank statement includes: Your bank’s information: This might include the name, address and phone number of your bank. Your business information: Including the name of your business and address, plus your account number and sort code. Account summary: This shows the account balance at the beginning and end of the set period (usually a month), as well as the total deposits and withdrawals. Individual transactions: The main part of the bank statement highlights the date, description, amount and account balance after each transaction. How to download a bank statement online Managing your business bank account online makes it quick and easy to view your banking transactions and...
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### How to download a bank statement
> If your business uses online banking, there might be times when you need to download a bank statement. Learn how to do it here.
- Published: 2023-09-18
- Modified: 2024-06-07
- URL: https://swoopfunding.com/za/blog/how-to-download-a-bank-statement/
- Category: SME support, Swoop guides, Blog
If your business uses online banking, there might be times when you need to download a bank statement. If you’re not quite sure what the process involves or how to go about it, this blog runs through all you need to know. What is a bank statement? A bank statement summarises all of your business transactions over a set period of time. This is usually one month (or 30 days). Whether it’s a paper copy or a digital one, a bank statement enables you to quickly view all the financial transactions that have gone into and come out of your business bank account, as well as what your current bank balance is. Business bank statements provide valuable information and can help you to better manage your business finances, so it’s certainly worth understanding how they work. Some of the information listed on your bank statement includes: Your bank’s information: This might include the name, address and phone number of your bank. Your business information: Including the name of your business and address, plus your account number and sort code. Account summary: This shows the account balance at the beginning and end of the set period (usually a month), as well as the total deposits and withdrawals. Individual transactions: The main part of the bank statement highlights the date, description, amount and account balance after each transaction. How to download a bank statement online Managing your business bank account online makes it quick and easy to view your banking transactions and...
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### Business models: Types, examples, and how to design one 
> All businesses need a business model, no matter what industry they operate in. Read all about business models in our handy guide.
- Published: 2023-09-18
- Modified: 2024-05-29
- URL: https://swoopfunding.com/za/blog/business-models-types-examples-and-how-to-design-one/
- Category: SME support, Swoop guides, Blog
Every business needs a business model, no matter what industry they operate in. Taking the time to assess what type of business model will help you achieve your goals as well as understanding how to design one is key to helping you succeed. Here’s what you need to know. What is a business model? In a nutshell, a business model is a company’s plan for making money. It should outline: What product or service the company will sell How it plans to market it Who the target market is What expenses the company will face How the company expects to make a profit. A business model can help new businesses attract investment as well as motivate team members. It should cover projected startup costs and include a marketing strategy and competitor review. It should help potential investors understand exactly how the business makes money. But business models are also useful for established companies. These businesses should take the time to regularly review and adapt their business model to be able to anticipate trends and challenges that lie ahead. Keep in mind that while a business model and a business plan are both key elements of your overall business strategy, they are not the same. A business model shows how your business will generate revenue and reach profitability, while a business plan digs a little deeper and looks at how you will implement your business model. This includes looking at operational practices and what goals you need to reach by when,...
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### How to run a successful business
> You hear the term ‘successful business’ a lot, but what does that mean? Find out here, and our top tips for running a successful business.
- Published: 2023-07-12
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-run-a-successful-business/
- Category: SME support, Swoop guides
Approximately 660 new businesses were launched in South Africa in 2022. They joined the hundreds of existing organisations that already power our economy. Some of these businesses will fail, but many others will succeed, with some becoming giants and major household names. But what is it that makes the difference between a business that succeeds and one that doesn’t, and how can you ensure your business is in the winning circle? Read on to discover all you need to know about running a successful business. How do you define 'success' You hear the term ‘successful business’ quite a lot, but what does that mean? For many people, it means a business that makes strong profits and for the owners, delivers wealth and a good lifestyle. However, the truth is, ‘success’ in business can mean many things: It could mean delivering ground-breaking innovation and creating revolutionary products and services. Or it may mean giving your customers the best customer experience possible. For some, like non-profits, success may mean helping others and delivering on a cause or a mission. Or it may just mean you get a lot of satisfaction out of what you do. So, success in business can mean whatever you want it to mean, but no matter what your definition is, sticking to a plan and keeping sight of your goals are essential to succeed. What are the steps to running a successful business? Building and running a successful business is hard work and if you’re starting a new...
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### Small business bookkeeping: The complete guide
> A business without bookkeeping is risking failure. Bookkeeping builds the financial records that are essential for success, provides order and more.
- Published: 2023-07-10
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/small-business-bookkeeping-the-complete-guide/
- Category: SME support, Swoop guides
A business without bookkeeping is a business risking failure. Bookkeeping builds the financial records that are essential for success, provides order and structure to business performance, and gives business owners and managers clear sight of how well their business is working. What is bookkeeping? Bookkeeping is a vital role for the smooth functioning of a small business. It involves the day-to-day recording and reporting of an organisation’s financial information, and it is different to accounting, which is the process of using the business’ data to establish its financial position and make decisions about how the finances are managed. Bookkeeping involves a variety of activities, including: Keeping sales and purchase ledgers to track income and expenses Monitoring cashflow Making payments to suppliers Chasing payments from customers Ensuring the business pays its taxes on time and pays the correct amount due Claiming tax back against business expenses Managing staff payroll and paying and reporting PAYE Why do small businesses need to do bookkeeping? Bookkeeping is necessary for these important reasons: It allows the business to keep on top of money owed to suppliers and from customers, understand its cash position and cashflow, and to measure its financial performance. It ensures the business does not fall foul of late charges or penalties or miss other mandatory expenses, such as business rates. It gives the business the records and information it will need to secure loans and credit from banks and suppliers, or grants from public sources. It allows the business to plan properly....
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### 10 reasons why you need a business bank account
> Read our guide here to discover all you need to know about opening or switching a business bank account, along with its benefits and costs.
- Published: 2023-07-10
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/business-bank-accounts/why-you-need-a-business-bank-account/
- Category: SME support, Swoop guides
In 2022 there were estimated 2. 6 million SMEs in South Africa, an increase of 114,000 from the year before. Running your own business or working for yourself has never been more popular. However, too many of these businesses, (especially start-ups), are making life harder for themselves – because they either lack a dedicated business bank account, or the business bank account they have is not fit for purpose, (which means they’re missing out on business banking deals and services that could save them time and money). So what should South African businesses who find themselves in this situation do? Read on to discover all you need to know about opening or switching a business bank account. Get a bank account that’s built for business and make your business’ money work as hard as you do.   What is a business bank account? It’s a bank account opened in the name of a business and that’s suitable for limited companies, partnerships, sole traders, freelancers and gig workers. A business bank account is used solely for business transactions, and it is separate from your personal account. Many business bank accounts are simple money-in, money-out arrangements, usually with a debit card attached. However, there are other business bank accounts that can manage payroll for employees, handle tax payments and refunds, issue invoices, and support your accounting systems. Depending on the way your business operates, there’s almost certainly a business bank account to suit your specific needs. Do I need a separate business...
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### Best business banking apps
> Modern business is a 24/7 experience, with many UK SMEs working round the clock, or needing access to their money any time of day. See our comparison here.
- Published: 2023-07-10
- Modified: 2024-05-27
- URL: https://swoopfunding.com/za/business-bank-accounts/best-business-banking-apps/
- Category: SME support, Swoop guides
Modern business is a 24/7 experience, with many UK SMEs working round the clock, or needing access to their money any time of day. Business banking apps are the digital passport to complete banking freedom, giving account holders control of their cash, anytime, anyplace, anywhere. Read on to learn more about the UK’s best business banking apps and how they can unlock a whole new world of business opportunities.   What is a business banking app? It’s a digital banking application that operates via your mobile phone or as a desktop version that you can access via your computer. Business banking apps give the account holder real-time access to their money, plus a host of banking services, such as payments, transfers, transaction histories, loans, automatic invoicing, and foreign currency exchange. Business banking apps are operated and provided by two types of financial institution – the traditional high street banks, and ‘challenger banks’ who are the newer, digital rivals attempting to revolutionise the way UK SMEs bank. Many of the challengers do not call themselves banks, they prefer to be known as ‘digital platforms’, but the services they offer often mimic those provided by the old guard such as Santander and Barclays Bank. Why use a business banking app? In a word, convenience. Since the arrival of true open banking in 2005 it has become much easier for SMEs to access their business bank account, and now, businesses – limited companies, sole traders, freelancers and gig workers – expect to be...
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### Soft asset finance: What you need to know
> Soft assets refer to non-physical assets that hold significant value for businesses. Read about soft assets and how to finance them here.
- Published: 2023-06-30
- Modified: 2024-07-19
- URL: https://swoopfunding.com/za/business-loans/asset-finance/soft-asset-finance/
- Category: SME support, Asset finance, Swoop guides
When it comes to financing your business, it's important to understand the concept of soft assets. What is classed as a soft asset? Soft assets refer to intangible or non-physical assets that hold significant value for businesses. These assets can include intellectual property, software, licenses, trademarks, patents, and even specific types of equipment, such as commercial ovens used in the catering sector. Difference between a hard and a soft asset It's crucial to differentiate between soft and hard assets. Unlike soft assets, hard assets are tangible and physical items that have intrinsic value, and maintain their value more than a soft asset. Hard assets typically include vehicles (cars, trucks, buses and coaches, and agricultural machines such as tractors), industrial machinery, plant equipment (yellow metal), and engineering equipment. Assets that are outside of this range will fall under the soft asset category. The primary distinction lies in the nature of these assets. Soft assets, being intangible, can be challenging to value accurately. Traditional lenders often hesitate to provide financing for soft assets due to the absence of physical collateral. This is where soft asset finance comes into play, offering tailored funding solutions that address the unique characteristics of intangible assets. What are the benefits of financing soft assets? Financing soft assets offers several advantages for businesses that heavily rely on intangible assets. Consider the following benefits: Preserving cash flow: Soft asset financing allows businesses to preserve their cash flow by spreading the cost of acquiring or developing intangible assets over time....
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### How to get venture capital funding
> If you’re looking for funding to help launching your business or to help it expand, venture capital funding is option worth exploring. Read how here.
- Published: 2023-05-30
- Modified: 2024-06-04
- URL: https://swoopfunding.com/za/equity-financing/how-to-get-venture-capital-funding/
- Category: SME support, Equity
If you’re looking for funding to help get your business off the ground or to help it expand, venture capital funding is one option worth exploring. It won’t be the right choice for every business, but if you think it could work for you, here’s what you need to know.   What is venture capital funding? Venture capital funding is a type of financing that investors provide to startup companies and early-stage businesses that are believed to have long-term growth potential.   Venture capital (VC) can be thought of as a subset to private equity. Venture capitalist firms tend to invest in promising startups that need growth capital and business expertise to help take them to the next level. Private equity firms, on the other hand, tend to invest in established businesses that might want a cash injection or new strategy to move them forwards.   How do venture capital funding investors differ from traditional investors? Venture capital investors tend to offer financing to startups and small businesses that are likely to generate high rates of growth and above-average returns. Venture capital funding tends to come from wealthy investors, investment banks and other financial institutions.   VC firms have considerably more to invest (typically more than R250,000) compared to other investors because they typically pool funds from other investment companies, large corporations and pensions. In return for their investment, they get a large stake in the company. This means they will have a say in how you run your business,...
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### How to finance property development
> If you want to invest in a property development project and don’t have much cash lying around, you’ll probably need to apply for property development finance.
- Published: 2023-05-30
- Modified: 2024-05-13
- URL: https://swoopfunding.com/za/commercial-mortgages/how-to-finance-property-development/
- Category: SME support, Commercial mortgages
If you want to invest in a property development project and don’t have much cash lying around, it’s likely you’ll need to apply for property development finance to get your project started.   This guide takes a detailed look at the options available to you so that you can decide which type of finance best suits your financial position and the type of property you’re looking to buy. How does property development finance work in South Africa? Property development finance is an umbrella term used to cover a range of different finance options that can help you to buy a property you want to develop, refurbish or convert or even to help you build a property from scratch. Development finance can cover term loans, bridging loans and commercial mortgages.   Bear in mind that eligibility criteria can vary depending on the type of finance you require. Some lenders will focus heavily on your personal credit score and financial circumstances, while others will prefer to look at your business plan. Be sure to check the eligibility criteria closely before you apply for property development finance, as you might be better suited to certain options. Private property development finance If you’re looking to invest in private residential property, private property development finance can offer the funds you require. You can apply for this type of finance whether you’re a private individual, residential property developer, or property or building company.   It’s worth having a detailed investment strategy in place before you apply...
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### Checklist for buying a business
> Buying a business may have advantages over starting from scratch, such as existing operations, customers, and cash flow. Read all about it here.
- Published: 2023-05-25
- Modified: 2024-06-05
- URL: https://swoopfunding.com/za/blog/checklist-for-buying-a-business/
- Category: Business acquisition, Swoop guides
Buying an existing business may have advantages over starting from scratch, such as existing operations, customers, and cash flow. But the due diligence process can be quite involved. Here’s a checklist to help you do it right.   Buying a business can be an exciting and deeply engaging experience. Here are some of the main steps to follow: Decide on the type of business. Where do your interests lie? Which industries align with your skills and experience? Do you want it to be home-based? Do you want to keep it small or run a large team of people? Assemble a team. Before you start seriously looking for an acquisition target, it’s smart to have some professionals around you. Your team might include an accountant to help you analyse the businesses, a lawyer who can draw up offers and contracts, a financial advisor to help with your personal finances, a banker or lender who can assist with financing, and potentially a business broker who can help you source deals. Select a potential acquisition. Based on the criteria you set and any input from your team, start by identifying a business for sale that you believe is worth investigating more closely.   Write a Letter of Intent. Your lawyer can help you draft a Letter of Intent that tells the seller you are interested in their business. This letter will typically include a non-disclosure clause and some parameters around a due diligence period, during which time you will be allowed to examine...
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### How to calculate corporation tax
> The main tax that a limited company must pay is corporation tax. Here, we cover everything you need to know about calculating how much you owe.
- Published: 2023-05-18
- Modified: 2024-05-29
- URL: https://swoopfunding.com/za/blog/how-to-calculate-corporation-tax/
Understanding your taxes is an important part of running a business. Taxable income has to be calculated and paid to enable your business to continue operating. The main tax that a limited company must pay is corporation tax. This is a tax on your business profits, so any money your business makes after overheads and expenses have been deducted. Here, we cover everything you need to know about calculating how much you owe. What is small business corporation tax? All limited companies registered in the UK must pay corporation tax, no matter their size. Companies must register for corporation tax when they set up as a limited company.   Corporation tax is paid annually to HMRC and must be paid both on your company’s profits and on any gains from selling assets such as land or shares that have increased in value. You must pay your tax within nine months of the end of your financial year.   Crucially, it’s your company’s responsibility to calculate how much tax is owed and pay it to HMRC before filing your company tax return. Your tax return must be filed within 12 months of the end of your financial year, so you’ll need to prepare it well ahead of the deadline to know how much tax you owe.   Sole traders and partnerships don’t need to pay corporation tax as they must pay income tax through self-assessment instead.   How to calculate corporation tax for small businesses and startups To work out your...
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### How to check your business credit score
> Your business credit score can show whether your company will get accepted for credit. Learn how to check your business credit score here.
- Published: 2023-05-18
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/business-credit-scores/how-to-check-your-business-credit-score/
Your business credit score can help determine whether your company will get accepted for credit such as a business loan, or business credit cards, as well as the interest rate you’ll be charged. Just like your personal credit score, the higher your business credit score, the better your chances. This guide explains everything you need to know, including how to check your business credit score. What is business credit? Your business credit score represents your company’s creditworthiness. This means it shows potential lenders, investors or suppliers how well you’ve managed your finances in the past and whether you have a good track record of repaying what you owe on time. Business credit scores in South Africa are calculated by credit reference agencies (CRAs). They do this by looking at financial information such as the type of accounts you file and whether you file them on time.   Different CRAs have their own way of calculating credit scores, so you won’t have one single business credit score. It can vary depending on the CRA. Different lenders will also use difference credit agencies, which means it’s worth checking your credit score across the different CRAs.   Most CRAs use a numerical scale from 0 to 100, with 0 being the worst score you can get and 100 being the best. With Creditsafe, the score indicates the likelihood of a company becoming insolvent in the next 12 months, with 0 being very likely and 100 being very likely. The higher the business score,...
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### How to pitch a business idea
> Coming up with a business idea can be easy, but knowing how to pitch it is a different matter. Read our top 5 steps for a successful pitch here.
- Published: 2023-05-14
- Modified: 2024-05-24
- URL: https://swoopfunding.com/za/blog/how-to-pitch-a-business-idea/
- Category: SME support, Swoop guides, Blog
It can be easy to come up with a business idea, but knowing how to pitch it is an entirely different matter. Pitching a business idea can be a nerve-wracking experience, but doing it effectively is key to getting others on board and turning your vision into reality. To help set you up for success, here’s our step-by-step guide on how to pitch a business idea.   What makes a great pitch? A great pitch needs to grab the attention of your listener and give them a clear picture of your idea or concept. To do this, it’s crucial that you fully understand your idea, your growth strategy and your overall business plan. You need to understand the steps that are required to make your idea a reality and be able to instil confidence in your investors that they can expect a return on investment.   To have the best chances of persuading others that it is a worthwhile investment, you’ll need to be able to show complete confidence in your business idea when you’re pitching it. Pitch a business idea in 5 steps: Identify your target audience As a first step, it’s crucial that you research potential investors to establish who you need to pitch to. Getting the right investment is not only about money – it’s also about building a partnership. When researching investors, consider factors such as the types of industries they invest in. This can help you to tailor your pitch and concentrate on their priorities....
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### How to do a stocktake
> Controlling your stock is important if you want to accurately measure performance. Here we cover all you need to know about stock take.
- Published: 2023-05-13
- Modified: 2024-05-24
- URL: https://swoopfunding.com/za/blog/how-to-do-a-stocktake/
- Category: SME support, Swoop guides, Blog
Controlling your stock is important if you want to be sure you’re accurately measuring efficiency and performance. This guide covers all you need to know about how to do a stocktake. What is a stocktake? A stocktake is the process of counting and recording the amount and value of stock a business currently has.   It’s best to carry out a stocktake at regular intervals, say every month, so that you can keep track of how much stock you have. You can choose to carry out your stocktake manually or with the help of technology, but the aim is to get an accurate count of everything.   Why are stocktakes important? Stocktakes are important because they help with your stock control. If you’re a business that sells food, for example, you will need to know when items are due to go out of date so that you can take them off the shelves and restock them with fresh products. A stocktake can also be used to: Help determine the cost of goods sold Reduce overstocking on items you don’t need Ensure you have enough of a certain product to meet demand Assess whether your ordering process is efficient  Identify any missing or damaged items.   Regular stocktakes will also show you how much of your cash is tied up in stock and help you maintain a good cash flow. What records do I need to keep during a stocktake? When you carry out a stocktake, you’ll need to have a...
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### How to set up a cleaning business
> Are you thinking about starting your own cleaning business? Here’s everything you need to know about the process of getting set up in our guide.
- Published: 2023-05-12
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/blog/how-to-set-up-a-cleaning-business/
- Category: SME support, Swoop guides, Blog
Thinking about starting your own cleaning business? Here’s everything you need to know about the process of getting set up, from carrying out research and buying the right equipment to writing a business plan and hiring staff.   Why start a cleaning business? There are many benefits to setting up a cleaning business. For a start, it’s a business that’s in demand. According to Servest, the cleaning industry is a multi-million-rand industry in South Africa and it employs almost 100,000 people. Furthermore, the industry is expected to have an annual growth rate of 6. 2%. Another advantage of setting up your own cleaning business is that startup costs are low. You won’t require a storefront and there are no upfront costs associated with buying stock as you won’t be selling products. All you’ll need is suitable cleaning products, a mode of transport and insurance.   Further benefits include flexible work schedules where you can pick and choose your own hours, the option to turn down jobs you don’t fancy, and the fact you don’t need to have stacks of qualifications to get started.   Key steps to starting a cleaning business Market research If you’ve decided to go ahead and start your own cleaning business, your first step is to carry out some market research. You need to think about what type of cleaner you want to be and what market you want to serve.   There are three main cleaning markets – domestic, commercial and specialised. Domestic cleaning: This...
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### How to create a business PayPal account
> Setting up a business PayPal account can enable you to take payments for products and services without the need to pay for a pricey merchant account.
- Published: 2023-05-12
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/blog/how-to-create-a-business-paypal-account/
- Category: SME support, Swoop guides, Blog
Setting up a business PayPal account can enable you to take payments for products and services without the need to pay for a pricey merchant account. But while many people know how to set up a personal PayPal account, not as many are as familiar with how to create a business PayPal account. Here’s our step-by-step guide to help you. What is a PayPal business account? A PayPal business account is simply an account used by businesses to send and receive payments. It can be used to process payments online and in person and you can link it up with your business bank account to transfer your money.   PayPal business accounts come with a range of tools and features to help you set up online payment buttons or electronic shopping carts. Customers don’t need to have a PayPal account to pay you as your business account can accept a range of payment types online.   As well as online payments, you can also take payments on the go and in person with a Zettle card reader (part of the PayPal family) and your smartphone, which will enable you to process card and contactless payments and track sales.   Alternatively, customers can pay by scanning a QR code using the PayPal app, or you can get paid by email by creating and sending invoices through your business account. The invoice is sent straight to your customer’s email inbox and they can then pay you online using their credit card or...
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### How to set up a courier business
> If you’re considering starting your own courier business, it’s important to do some research first. Here’s a guide on how to increase your chances of success.
- Published: 2023-05-12
- Modified: 2024-04-19
- URL: https://swoopfunding.com/za/blog/how-to-set-up-a-courier-business/
- Category: SME support, Swoop guides, Blog
If you’re considering starting your own courier business, it’s important to do your research first. Here’s our handy guide on how to set up a courier business and increase your chances of success. Why start a courier business? The COVID-19 pandemic and associated lockdowns have helped to contribute to a rise in demand for courier services as increasing numbers of people shop online and expect items to be delivered to their door.   On top of this, more people are choosing to buy and sell second-hand items on sites such as eBay and Vinted, which means more couriers are needed to deliver the goods. However, the courier industry is also very competitive and you’ll be competing against the likes of D2D Couriers and MDS Collivery, along with the larger international firms such as TNT, DHL and Evri (formerly Hermes).   This means that if you’re thinking about launching your own courier company, you’ll need to carry out some research in your area beforehand to establish how you’re going to position yourself and stand out from the rest of the competition.   Key steps to set up a courier company: Market research Your very first step is to carry out some thorough market research. You need to find out whether there is enough demand for another courier service in your area and how much competition there is.   Look at other courier businesses to work out: How much they charge and the type of services they offer Whether they focus on...
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### How to boost cash flow
> Understanding simple steps you can take to boost cash flow is important for SMEs. This guide explains how to boost cash flow & keep your business running.
- Published: 2023-04-28
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-boost-cash-flow/
- Category: SME support, Swoop guides, Blog
Understanding the steps you can take to boost cash flow is important for small businesses. Businesses that successfully manage cash flow tend to be more profitable in the long run, while those that lack the cash to pay for bills, rent and wages are more likely to fail. This guide explains how to boost cash flow and keep your business running efficiently. What is cash flow? Cash flow is a measurement of the amount of money you have coming in and going out of your business over a period time. If your cash flow is positive, that means you have more money coming into your business than you have going out. You’ll therefore be able to pay your suppliers, rent, employees and taxes on time. On the other hand, if your cash flow is negative, you’ll have more money going out of your business than you have coming in. And that can make it difficult to meet your bill payments and other expenses. Why is cash flow important? Cash flow is important because it enables you to meet your existing financial obligations and also plan for the future. Maintaining a healthy cash flow can help ensure the smooth day-to-day running of your business and help set it up for success. Understanding your cash flow will mean you can forecast company profits more accurately and identify opportunities for investment, while you can also build up cash reserves to cover you in times of difficulty. How do I boost my business’ cash...
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### How to do a SWOT analysis
> Any growing business needs a roadmap to help it work its way through the challenges and opportunities it’s likely to face. Find out how to SWOT here.
- Published: 2023-04-27
- Modified: 2024-06-05
- URL: https://swoopfunding.com/za/blog/how-to-do-a-swot-analysis/
- Category: SME support, Swoop guides, Blog
Any growing business needs a roadmap to help it work its way through the challenges and opportunities it’s likely to face. A SWOT analysis can help you with this, so here’s our handy “how to” guide.   What is a SWOT analysis? SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a framework used to evaluate how closely a business is aligned with its growth trajectories and success benchmarks. It can help a business identify ways to improve as well as assess negative factors that could get in the way of success. What does each part of a SWOT analysis mean? Below is a breakdown of what each part of a SWOT analysis means: S – strengths. These are all the things your company does well and separates it from the competition. Examples could include a strong balance sheet or brand. It can also include internal resources such as skilled staff or tangible assets such as intellectual property.   W – weaknesses. These are all the things that stop your business from performing at its best and those that your competitors do better than you. This could be high levels of debt or a weak brand, for instance.   O – opportunities. This refers to favourable external factors that could give you a competitive advantage, whether that’s better tax rates or the emerging need for your products or services. T – threats. This refers to everything that poses a risk to your company or its likelihood of...
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### How to do a SWOT analysis
> Any growing business needs a roadmap to help it work its way through challenges and opportunities. Find out how to do a SWOT analysis here.
- Published: 2023-04-27
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-do-a-swot-analysis-2/
- Category: SME support, Swoop guides, Blog
Any growing business needs a roadmap to help it work its way through the challenges and opportunities it’s likely to face. A SWOT analysis can help you with this, so here’s our handy “how to” guide. What is a SWOT analysis? SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a framework used to evaluate how closely a business is aligned with its growth trajectories and success benchmarks. It can help a business identify ways to improve as well as assess negative factors that could get in the way of success. What does each part of a SWOT analysis mean? Below is a breakdown of what each part of a SWOT analysis means: S – strengths. These are all the things your company does well and separates it from the competition. Examples could include a strong balance sheet or brand. It can also include internal resources such as skilled staff or tangible assets such as intellectual property. W – weaknesses. These are all the things that stop your business from performing at its best and those that your competitors do better than you. This could be high levels of debt or a weak brand, for instance. O – opportunities. This refers to favourable external factors that could give you a competitive advantage, whether that’s better tax rates or the emerging need for your products or services. T – threats. This refers to everything that poses a risk to your company or its likelihood of growth. It could...
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### How to set up an online business
> Setting up an online business can be a big decision. Here’s everything you need to know about setting up an online business.
- Published: 2023-04-27
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-set-up-an-online-business/
- Category: SME support, Swoop guides, Blog
Setting up an online business can be a big decision to make. Although websites can be built cheaply and run from the comfort of your own home, you’ll still need to give some thought to the type of product or service you want to launch, how much demand there is and how you’re going to market your product or service. Here’s everything you need to know about setting up your online business. Why start an online business? There are many reasons why you might want to start an online business. Unlike with a bricks and mortar business, you don’t need to worry about leasing a property or budgeting for employee wages. Instead, all you will need initially is a computer, a domain name and a website builder, which can make it a significantly cheaper option. Running your business online also means you’re not restricted to one particular location – you can run your business from almost anywhere. You can also sell your product or service to anyone, no matter where they live, which means your customer base might grow each year across the globe. What’s more, because your business is based online, you can remain open 24/7. You don’t need to be physically present for sales, so you can keep generating revenue with less involvement. How to start your online business To help get your online business off the ground, follow the steps below: Conduct market research Once you’ve come up with an idea for your online business, it’s time...
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### How to file company accounts
> All companies are required to file their company accounts with Companies House each year. Read how to file your company accounts here in this handy guide.
- Published: 2023-04-21
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-file-company-accounts/
- Category: SME support, Swoop guides, Blog
Filing company accounts is a crucial part of running a business, and can be drawn upon when seeking future financing through business loans or other types of funding. If you’ve never done it before or you’re unsure where to start, this guide takes you through the process of filing company accounts, the deadlines for filing them, and what you need to know about preparing your accounts. Who needs to file company accounts? All companies are required to file their company accounts with Companies House each year. This is a legal requirement, no matter whether you make a profit, loss, are not trading or are dormant. Company accounts must also be filed with HM Revenue and Customs (HMRC) when you submit your company tax return. There is an option to file jointly with Companies House and HMRC via the HMRC website.   What do company accounts contain? Company accounts show how a company has performed over a period of time (typically 12 months). They will usually contain: Profit and loss account: this is an income statement that sets out the calculation of your profit or loss for the reporting year. Balance sheet (statement of financial position): this shows the value of everything your business owns. It also shows any payments your business needs to make, as well as any money owed by debtors, that are due by the last day of the financial year covered by the accounts.   Notes to the accounts: this is used to further explain and break...
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### How to file company accounts
> All companies are required to file their company accounts with Companies and Intellectual Property Commission each year. Read our handy guide here.
- Published: 2023-04-21
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-file-company-accounts-2/
- Category: SME support, Swoop guides, Blog
Filing company accounts is a crucial part of running a business, and can be drawn upon when seeking future financing through business loans or other types of funding. If you’ve never done it before or you’re unsure where to start, this guide takes you through the process of filing company accounts, the deadlines for filing them, and what you need to know about preparing your accounts. Who needs to file company accounts? All companies are required to file their company accounts with Companies and Intellectual Property Commission  each year. This is a legal requirement, no matter whether you make a profit, loss, are not trading or are dormant. What do company accounts contain? Company accounts show how a company has performed over a period of time (typically 12 months). They will usually contain: Profit and loss account: this is an income statement that sets out the calculation of your profit or loss for the reporting year. Balance sheet (statement of financial position): this shows the value of everything your business owns. It also shows any payments your business needs to make, as well as any money owed by debtors, that are due by the last day of the financial year covered by the accounts.   Notes to the accounts: this is used to further explain and break down figures in the financial statements. Director’s report: this contains the principle activity of the business, names of directors, details of any political and charitable donations and policies on employees. It must be...
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### How to buy and open a franchise
> If you're dreaming of setting up your own business, buying a franchise could be a good way to get started. Read how to get started and finance a franchise here.
- Published: 2023-04-13
- Modified: 2024-04-15
- URL: https://swoopfunding.com/za/blog/how-to-buy-and-open-a-franchise-2/
- Category: SME support, Swoop guides, Funding resources, Blog
If you’re keen to set up your own business, buying a franchise could be a good way to get started. Buying a franchise can be less risky than starting a business from scratch as you’ll be able to buy the rights to sell goods or services from a company that’s already established.   However, as with any business venture, there are also drawbacks to be aware of. Find out how to buy and open a franchise, alongside the advantages and disadvantages here. Advantages of buying a franchise Some of the advantages of buying a franchise are outlined below: The franchise is based on a proven business model: This means you know the product or service already works which can increase your chances of success. A good franchisor should regularly research and update the business model. You might use a recognised brand name: This can make it easier to sell the product and you might benefit from any advertising carried out by the franchisor.   You’re often given training: This can help you to get set up faster, while also learning essential skills.   It can be easier to finance the business: If a business is already up and running, it can be much easier to borrow money to invest in your franchise. You will usually be given exclusive rights to the franchise: This means you’ll have a specified region or exclusive client base.   Disadvantages of buying a franchise Initial startup costs can be high: You’ll need to pay a...
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### How to calculate liquidity
> Liquidity is an important term to understand if you run a business. This guide explains all there's to know about liquidity ratios & the different types.
- Published: 2023-03-31
- Modified: 2024-06-05
- URL: https://swoopfunding.com/za/blog/how-to-calculate-liquidity/
- Category: SME support, Swoop guides, Funding resources, Blog
Liquidity is an important term to understand if you run a business. Liquidity is a company’s ability to convert assets into cash to pay off its short-term obligations or liabilities – those that will become due in less than a year.   This guide explains all you need to know about measuring a company’s liquidity, including the different types of liquidity ratio. What are liquidity ratios? A liquidity ratio is a calculation used to measure a company’s ability to pay off any short-term debt obligations using its current (or liquid) assets. It’s used to indicate whether the business can pay off its debt and business loans with the cash it has readily available, or whether it will need to raise additional capital to do so. It can also show how quickly the assets held can be turned into cash for the debt. Why are liquidity ratios important? Liquidity ratios are important because they can give you an indication of a business’s financial health. As mentioned above, your liquidity ratio tells you whether you will be able to repay your debts. This usually means that you have sufficient cash, bank deposits or assets that can be quickly converted to cash to pay your bills. If you don’t have sufficient liquidity, it’s likely your business will run into financial difficulties. Liquidity ratios are also important to both lenders and investors. Lenders will want to be sure your business has enough current assets to repay its debts, while investors will also look at...
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### How to manage cash flow
> Managing your cash flow is an important part of running a business. If your business lacks the cash to pay for wages, bills and rent, it could fail.
- Published: 2023-03-30
- Modified: 2024-05-15
- URL: https://swoopfunding.com/za/blog/how-to-manage-cash-flow/
- Category: SME support, Swoop guides, Funding resources, Blog
Managing your cash flow is a crucial part of running a business. If your business lacks the cash to pay for wages, bills and rent, your business could ultimately fail. Here, we explain what cash flow is and how to manage it to help set your business up for success.   What is cash flow? Cash flow is simply a measurement of the amount of money you have coming into and going out of your business in a set period of time.   When you have a positive cash flow, you have more cash coming into your business than you have going out. This means you can pay suppliers, employees, taxes and rent on time. But when your cash flow is negative, you have more cash going out of your business than you have coming in. And in this instance, it can make it difficult to cover bills and other expenses.   Keeping an eye on your cash flow is therefore critical if you want your business to grow. Manage your cash flow in 5 easy steps Below, we’ve outlined 5 easy steps to help you better manage your business’ cash flow. Be proactive in your management Where you can, it’s important to plan ahead. Make sure you know what’s on the horizon in the coming months and ensure you have the funds ready to meet your financial requirements. This will put you in a stronger position to get funding on your own terms and help you better understand your...
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### How to sell a percentage of your business
> There are many reasons why you might want to sell a percentage of your business, but it’s important to understand how to do it in the right way. Read on here.
- Published: 2023-03-30
- Modified: 2024-05-07
- URL: https://swoopfunding.com/za/blog/how-to-sell-a-percentage-of-your-business/
- Category: SME support, Swoop guides, Funding resources, Blog
There are many reasons why you might want to sell a percentage of your business, but whatever the reason, it’s important to understand how to do it in the right way. Here’s what you need to know. Is selling part of your business right for you? Selling part of your business is not an easy decision to make. However, it might be something you want to consider if you need to raise additional funds for your business, whether you’re looking to expand or pay off debts, or if you want to refocus your business and reduce costs.   Ideally, you want to take a year or two to prepare for the sale as this can help you to improve your financial records, business structure and customer base to make the business more profitable. In turn, this will enable you to keep the business running smoothly and help make the transition process easier for your buyer. Remember, too, that finding a buyer can take several months, so you’ll need to have patience. Why consider selling a percentage of your business? Some of the reasons you might consider selling a percentage of your business include: Reducing responsibilities: If you have too much on your plate, selling part of your business can help reduce some of your responsibilities and allow you to focus on what’s most important for your business.   Raising capital: Selling off a portion of your business can enable you to raise capital which can help you to pay off...
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### How to sell a percentage of your business
> There are several reasons why you might want to sell a part of your business, but it’s important to understand how to do it in the right way. Read on here.
- Published: 2023-03-30
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-sell-a-percentage-of-your-business-2/
- Category: SME support, Swoop guides, Funding resources, Blog
There are many reasons why you might want to sell a percentage of your business, but whatever the reason, it’s important to understand how to do it in the right way. Here’s what you need to know. Is selling part of your business right for you? Selling part of your business is not an easy decision to make. However, it might be something you want to consider if you need to raise additional funds for your business, whether you’re looking to expand or pay off debts, or if you want to refocus your business and reduce costs.   Ideally, you want to take a year or two to prepare for the sale as this can help you to improve your financial records, business structure and customer base to make the business more profitable. In turn, this will enable you to keep the business running smoothly and help make the transition process easier for your buyer. Remember, too, that finding a buyer can take several months, so you’ll need to have patience. Why consider selling a percentage of your business? Some of the reasons you might consider selling a percentage of your business include: Reducing responsibilities: If you have too much on your plate, selling part of your business can help reduce some of your responsibilities and allow you to focus on what’s most important for your business.   Raising capital: Selling off a portion of your business can enable you to raise capital which can help you to pay off...
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### How to pay off a cash advance
> If you need cash fast, it is easy to be tempted to withdraw money on your credit card. This guide looks at how cash advances work and how to pay them off.
- Published: 2023-03-29
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-pay-off-a-cash-advance/
- Category: SME support, Swoop guides, Funding resources, Blog
If you need cash fast, you might be tempted to withdraw money on your business credit card. Doing so can be a quick and convenient way to get the funds you need. But it can also be very expensive. This guide takes a detailed look at how cash advances work and how to pay them off. What is a cash advance? A cash advance is a way of obtaining immediate funds through your credit card. One of the most popular ways to do this is to withdraw money on your credit card from an ATM. Most credit cards let you do this in the same way as a debit card. However, the difference is that you will need to pay back the amount you have withdrawn and interest will be added. Interest usually applies immediately – even if you pay off your credit card bill in full that month. What transactions are considered to be a cash advance? As well as withdrawing cash on your credit card, there are a number of other transactions that can be considered a cash advance. These include when you use your credit card to: Buy travel money and travellers’ cheques Buy foreign currency Buy gift vouchers Make a mortgage payment Pay a utility bill Buy a lottery ticket or scratch card (note that you can no longer use a credit card for other gambling transactions) Transfer money from your credit card to a current account Buy cryptocurrency It’s important to check your card provider’s...
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### How to get an EORI number
> If you’re thinking about growing your business internationally, it’s likely you’ll need an EORI number. Here’s everything you need to know about the process.
- Published: 2023-03-17
- Modified: 2024-05-29
- URL: https://swoopfunding.com/za/blog/how-to-get-an-eori-number/
- Category: SME support, Swoop guides, Commercial mortgages, Blog
If you’re thinking about growing your business internationally, it’s likely you’ll need an EORI number. Here’s everything you need to know about the application process. What is an EORI number? An EORI number is a unique ID code used to track and register customs information in the European Union (EU). EORI number stands for Economic Operator Registration and Identification number and it’s used by customs and other authorities to monitor and track shipments. The EORI system was brought in on 1 July 2009 and replaced the Traders Union Reference Number System.   Who needs an EORI number? You will need an EORI number if your company imports goods into or exports goods from the EU. You might need an EORI number if you move goods: Between Great Britain (England, Scotland and Wales) or the Isle of Man and any other country (including the EU) Between Great Britain and Northern Ireland Between Great Britain and the Channel Islands Between Northern Ireland and countries outside the EU You will also need an EORI number to register for an export licence on SPIRE. However, you won’t need an EORI number if you’re moving goods that are not controlled goods and they are for personal use only. Which type of EORI number you need and where you get it from will depend on where you’re moving goods to and from. You may need more than one. If you don’t have the right EORI number, you may have delays at customs and increased costs.  ...
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### How to get a business mortgage
> You might need a business mortgage, if you’re looking to buy a new building or release equity from an existing one. Read here how to.
- Published: 2023-03-17
- Modified: 2024-05-24
- URL: https://swoopfunding.com/za/commercial-mortgages/how-to-get-a-business-mortgage/
- Category: SME support, Swoop guides, Commercial mortgages, Blog
You might need a business mortgage, also known as a commercial mortgage, if you’re looking to buy a business that includes property, a new building or release equity from an existing property you already own. Read on to find out how business mortgages work and how to get one.   What are commercial mortgages? A commercial mortgage is a type of loan that is used to buy property or land for commercial use. While standard unsecured business loans can offer funds of up to R250,000, commercial mortgages are suitable for businesses that need to borrow between R50,000 to R25,000,000. Similar to a residential mortgage, you usually borrow the money from a bank or specialist lender and then repay it in monthly instalments over a set term, with interest added on top. However, with a commercial mortgage, the value of the business property or land is usually much greater than it is with a residential mortgage.   Commercial mortgages usually have terms of between three and 25 years and you will usually need a deposit of between 20% and 40%. What are the types of commercial mortgages? The two main types of commercial mortgage are owner-occupied and commercial investment mortgages.   Owner-occupied mortgages are used if you want to buy a property to be used by your own business. This could be your main place of work or a regional location. Commercial investment mortgages, on the other hand, are used to buy a property as an investment – for example if...
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### How to create a marketing strategy for your business
> If you want to succeed the marketing world, it’s important to stay ahead of the game and understand how to appeal to your target market.
- Published: 2023-03-14
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-create-a-marketing-strategy/
- Category: SME support, Swoop guides, Blog
If you want to succeed in a fast-paced marketing world, it’s important to stay ahead of the game and understand how to appeal to your target market. As part of this, you’ll need to know how to create an effective marketing strategy. This guide explains everything you need to know about creating a marketing strategy for your business. What is a marketing strategy? A marketing strategy is a detailed and structured overview of how a business or organisation will reach, convert and retain new customers. A clear marketing strategy will define measurable goals and outline the target market, audience profiles, competitors and value for customers. It will provide a long-term vision for overall marketing efforts. Why do I need one? There are many reasons why it’s important for your business to create a marketing strategy. Without one, you’ll be reducing how effective your promotional and sales activity will be. Some of the reasons for have a marketing strategy are outlined below: Insights into your target audience Creating a marketing strategy can help you to connect with your target audience, which is absolutely crucial if you want to succeed. As well as identifying who your customers are and what they want from your company, you’ll also be able to understand the different ways of being able to reach them. Data driven decision making When you create a marketing strategy you can better analyse data which can help you make key decisions. Analysing company data will enable you to devise better marketing...
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### How to finance a new business
> If you’re looking to grow your new business, it’s important to know how to finance it. Read here how to discover financing options, and apply with Swoop today.
- Published: 2023-03-13
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/blog/how-to-finance-a-new-business/
- Category: SME support, Swoop guides, Funding resources, Blog
If you’re looking to grow your new business, it’s important to know how to finance it. Financing your business in the right way will provide a solid financial base and ensure you have sufficient funding to help your business succeed.   There are many different ways to finance a new business and different methods will suit different business types, as this guide explains. What is business finance? Business finance is simply the funding a business needs to operate. You’ll need funds to start, run or expand your business. Having sufficient funds available to you will help drive your business forward, allowing you to buy raw materials, hire staff, invest in equipment and so on. Finance is the foundation of any business as it’s almost impossible to succeed without it.   What are the best ways to finance a new business? There are several ways to finance a new business, so it’s important to research each one carefully to help you decide which is the right option for you and your business.   Personal investments Investing your own money into your business can be quicker than applying for finance and, as you’re not borrowing from anyone, you won’t need to pay interest. Using your own money can also help to show any future lenders that you’re confident in your company’s success.   You might have a lump sum to invest in your business if you’ve saved up enough over the years or if you’ve received a large redundancy pay out or...
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### How to calculate capital employed
> Capital employed is the amount of capital investment a business uses to operate. It can help indicate how a company is investing money. Read more here.
- Published: 2023-03-07
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-calculate-capital-employed-2/
Capital employed refers to the amount of capital investment a business uses to operate. It can help indicate how a company is investing its money. This guide explains everything you need to know about how to calculate capital employed. What is capital employed? Capital employed, or funds employed, is one of many financial metrics and refers to how much capital a company has invested into itself through means such as purchasing equipment, hiring employees and so on. It can also refer to how much capital has been used for a particular project, whether that’s opening stores in other locations or developing new products.   Capital employed is often used to measure a company’s profitability and efficient use of capital.   What is the formula to calculate capital employed? The most commonly used formula to calculate capital employed is as follows: Capital employed = total assets - current liabilities Essentially, capital employed is calculated by taking the total assets from the company’s balance sheet and then subtracting all current liabilities, or short-term financial obligations.   It’s also possible to calculate capital employed with the following formula: Capital employed = fixed assets + working capital Fixed assets are assets purchased for long-term use, such as property, plant and equipment. Working capital is the capital available for daily operations and is calculated as current assets minus current liabilities.   Whichever formula you use, make sure you stick with it – do not switch between them when making comparisons as the calculation will differ...
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### How to calculate market size
> If you're dreaming of starting a business or launching a product, doing your research and assessing how many potential customers you might attract is crucial.
- Published: 2023-03-07
- Modified: 2024-06-06
- URL: https://swoopfunding.com/za/blog/how-to-calculate-market-size/
- Category: SME support, Swoop guides, Blog
If you’re thinking about launching a business or product, doing your research and assessing how many potential customers you might attract is absolutely crucial if you want to be confident of success. As part of this, you’ll need to know how to calculate market size. This guide explains what market size is, how to calculate it and why it’s important. What is market size? Market size simply means the number of potential customers you could sell your product or service to. In other words, it’s the size of the sales opportunity available to you.   As an example, it could be the number of people visiting a high street who could become customers of a new ice cream parlour, or the number of car owners in your area that could use a new car washing service.   There are two types of market size to calculate as well as your business’ expected share. The first type is the total addressable market (TAM). In a nutshell, this means finding out whether the potential market for your business is large enough. It’s the number of customers or amount of money you could earn if your business achieved a 100% success rate and 100% sales to every potential customer. The second is the target or available market, which is the size of the market that your business can realistically reach. It might also be referred to as the Segmented Addressable Market (SAM). The expected share of market is also worth adding to the...
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### How to forecast cash flow
> Knowing how to forecast cash flow is a crucial part of financial planning when you run a business. This guide explains all there's to know.
- Published: 2023-03-06
- Modified: 2024-07-19
- URL: https://swoopfunding.com/za/blog/how-to-forecast-cash-flow/
- Category: SME support, Swoop guides, Blog
Knowing how to forecast cash flow is an important part of financial planning when you run a business. Maintaining a healthy cash flow is essential so that you can plan ahead effectively and have money available in the event of an emergency. This guide explains all you need to know about creating a cash flow forecast. What is cash flow? Cash flow is a measurement of the amount of cash that comes into and goes out of your business over a period of time.   Cash that comes in is usually the money you get from sales, but it might also be from selling assets or receiving a grant, for example. Outgoing cash will include wages, bills, and payments to suppliers.   If you have positive cash flow, this means you have more cash coming into your business than you have going out. On the other hand, when your cash flow is negative, you have more cash going out of your business than you have coming in. This can make it difficult to cover bills and other expenses, particularly if it lasts for a lengthy period of time.   Why measure cash flow Measuring cash flow is important because it helps you to meet your existing financial obligations and plan for the future. Cash flow measurement can be the difference between business success and failure.   Benefits of cash flow forecasting A cash flow forecast can enable you to assess if and when you’re going to run out of money...
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### How to scale a business
> If you want to grow your business, it’s important to understand how to do it effectively. Read our guide on how to effectively scale your business here.
- Published: 2023-03-01
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-scale-a-business/
- Category: SME support, Swoop guides, Funding resources, Blog
If you’ve decided you want to grow your business, it’s important to understand how to do it effectively. You’ll need to have the right strategy, team and processes in place to be able to support new customers, products and services.   If you scale too fast or you lose focus, things could go very wrong. But with the right planning and considered goals, scaling your business could be a big success. Is your business ready to scale? First up, you need to assess whether your business is ready to scale and evaluate where your business stands today. Scaling up often exposes weaknesses in the business, so it’s important to think about how growing your business will affect your company. Consider whether your IT systems, general infrastructure and website meet your current and future needs or will you need to invest heavily before scaling?   Scaling a business means taking steps to ensure your business grows without sacrificing quality or increasing costs. If you’ve acquired a strong customer base, have a great team of skilled professionals and you’ve recently been turning away clients, now could be the perfect time to scale your business.   Steps to scaling your business If you’re ready to get going, take a look at the steps below to help you get started: Evaluate current position and plan for expansion The first step is the planning stage. Think about what you need to do to increase sales and whether you currently have the staff and systems in...
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### How to build a property portfolio
> Building a property portfolio can be a profitable investment, but only if it’s done right. Read the guide to funding and building your portfolio here.
- Published: 2023-02-22
- Modified: 2024-05-24
- URL: https://swoopfunding.com/za/blog/how-to-build-a-property-portfolio/
- Category: SME support, Swoop guides, Commercial mortgages, Blog
Building a property portfolio can be a hugely profitable investment, but only if it’s done right. If you’re thinking of taking the plunge, our guide takes you through the process of getting started, choosing the right strategy and deciding on long-term goals.   What is a property portfolio? A property portfolio is a collection of properties owned by an individual, group or company for the purpose of generating income. This can include residential, commercial and industrial properties that are rented out to tenants. Income can also be generated by holding on to the properties for a number of years so that they can rise in value, allowing you to sell them for a profit. A well-managed property portfolio should provide a steady and reliable income stream over the long-term, with the aim of increasing wealth. It might even enable you to retire early.   To help minimise risk and increase your chances of success, it’s sensible to diversify your property portfolio by having different property types in different locations.   How to start a property portfolio The steps below will guide you through the process of building a property portfolio. Set your targets Your very first step is to think about your targets and goals. Ask yourself what you are hoping to achieve through your property portfolio. Do you want to boost your earnings through rental income or are you hoping to benefit from property price growth when you sell the property? You might want to hit both targets –...
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### How to start a buy-to-let business
> Investing in buy-to-let property can be a lucrative business and it can create financial security. Read about funding options and apply today.
- Published: 2023-02-16
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/blog/how-to-start-a-buy-to-let-business/
- Category: SME support, Swoop guides, Commercial mortgages, Blog
Investing in buy-to-let (BTL) property can be a lucrative business and it can create financial security. You can choose to own a rental property as a private landlord or you might prefer to set up a limited company to run your business. This guide explains the differences between the two so you can decide which option is best for you. What is a buy-to-let property company? A buy-to-let property company is a limited company through which you buy rental properties.   If you’re a landlord, you have two choices – you can buy properties as an individual and pay income tax, or you can buy them through a limited company and pay corporation tax.   Many landlords choose to set up a limited company for their buy-to-let portfolio because it can be more tax efficient. Landlords also receive their rental income differently as it belongs to the company. This enables you to either pay yourself a salary from the company or take your rental income as dividends. What are the pros and cons of setting up a property company? Before you decide whether setting up a property company is right for you, it’s important to weigh up the pros and cons, as we’ve outlined below: Pros Setting up a limited company means you’ll pay corporation tax which can be lower than individual income tax rates If you have a limited company, your investment property becomes legally separate from your personal affairs which means you are no longer personally liable for...
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### How to start a property management company
> If you’re dreaming of starting a property management company, it’s important to do your research and make sure you understand what it involves.
- Published: 2023-02-15
- Modified: 2024-05-08
- URL: https://swoopfunding.com/za/blog/how-to-start-a-property-management-company/
- Category: SME support, Swoop guides, Commercial mortgages, Blog
If you’re thinking about starting a property management company, it’s important to do your research, secure your funding or commercial mortgage, and make sure you understand exactly what it involves. Read our guide to find out more. What is a property management company? A property management company is a company that looks after property portfolios on behalf of its clients. Your clients could be a landlord with one property or someone who owns and rents out hundreds of properties. You’ll need to deal directly with prospective tenants or renters. What does a property management company do? In a nutshell, a property management company is there to give landlords peace of mind that their property is being looked after and managed well. One of the key responsibilities of a property management company is to deal with any maintenance issues and repairs in the property. The company will need to work out exactly what needs doing and arrange for a suitable tradesperson to carry out the work within a reasonable timeframe and budget. The property management company must also keep all parties informed throughout. It might even visit the property to check how well tenants are looking after it. If a property management company is also acting as a letting agent, it will need to market properties and find and vet suitable tenants. The company will also need to draw up legal tenancy contracts and collect rent.   How do I start a property management company? A good first step is to...
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### How to calculate EBITDA
> There are several metrics businesses can use to calculate their financial health and performance. EBITDA is one of them. Read more here.
- Published: 2023-02-14
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-calculate-ebitda/
- Category: SME support, Swoop guides, Blog
There are several different metrics businesses can use to calculate their financial health and performance, and EBITDA is one of them. EBITDA is often used by businesses to compare their financial performance against that of their competitors, while analysts might use it to help determine the sustainability of an organisation.   Additionally, if you are looking for a business loan, many banks will use EBITDA to assess whether a company can repay its debts.   This guide takes a closer look at how to calculate EBITDA and its pros and cons.   What is EBITDA? EBITDA stands for earnings before interest, taxes, depreciation and amortisation. It is a type of earnings metric that can help understand a business’s ability to generate cash flow for its owners. It also helps financial advisers and analysts calculate how much a business is earning before any reductions and modifications take place.   EBITDA doesn’t account for the different ways a company might use debt, equity, cash or other sources of capital to finance its operations. It also excludes non-cash expenses such as depreciation, and it excludes taxes. As such, EBITDA can be a useful way to evaluate a business and is often used to compare two similar businesses or determine a company’s cash flow potential. EBITDA became a popular method of measuring a company’s performance in the 1980s. Investors and lenders involved in leveraged buyouts found it a useful way to estimate whether the targeted company had the profitability to pay off the debt...
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### How to get a business loan with bad credit
> Getting a business loan with bad credit can be hard, but it’s not impossible. This guide takes you through your options, and the process.
- Published: 2023-02-07
- Modified: 2024-04-19
- URL: https://swoopfunding.com/za/blog/how-to-get-a-business-loan-with-bad-credit/
- Category: SME support, Swoop guides, Loans, Blog
Getting a business loan with bad credit can be more difficult, but it’s certainly not impossible. This guide takes you through your options so that you can find a solution that works for you and your business. What is considered bad credit? Bad credit usually means you or your business hasn’t managed credit well in the past and as a result, your credit score will be low. A credit history exists for anyone or any business that has taken out credit, such as a loan or credit card, in the past. However, if you were late with payments or you were unable to repay your loan or credit card debt in full, this will have had a negative impact on your credit score. Similarly, if you’ve exceeded your credit limit or you’ve been declared bankrupt in the past, this will also have dragged your credit score down. As a result, lenders will now view you as higher risk and might not be so willing to let you borrow money. Note that if your business is just starting out and has never borrowed before, it won’t have built up a credit history yet which means that lenders have no way of knowing how responsible you are as a borrower. This isn’t the same as having ‘bad credit’, but it can still be trickier to get accepted for loans. Some lenders might look at your personal credit score instead of your business score to give them an idea of how creditworthy you...
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### How to get a UTR number
> When you file your self-assessment tax return, you will be asked to enter your UTR number. Find out what a UTR number is, and how to find yours here.
- Published: 2023-02-07
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/blog/how-to-get-a-utr-number/
- Category: SME support, Swoop guides, Blog
Your Unique Taxpayer Reference (UTR) number is important when it comes to filing your self-assessment tax return. Here’s how to go about getting one.   What is a UTR number? A UTR number is what HM Revenue & Customs (HMRC) uses to identify you as a taxpayer. You’ll be sent a UTR number when you register for self-assessment so that you can file your tax return each tax year. You’ll need to do this to inform HMRC of your income, gains and relevant expenses and to pay your tax bill.   What does a UTR look like? A UTR number is 10 digits long, usually followed by the letter ‘K’. Your UTR number is completely unique to you and once you’ve been sent your UTR number, it will never change. Who needs a UTR number? You’ll need a UTR number if you need to submit a self-assessment tax return. And you’ll need to do this if in the last tax year: You were a self-employed sole trader and earned more than £1,000 You were a partner in a business partnership You earned £100,000 or more You might also need to file in a tax return if any of the following apply: You’re a landlord and your income from renting out a property was more than £2,500 You earned more than £2,500 in untaxed income through tips or commission, for instance You need to pay Capital Gains Tax on profits from selling shares or a second home Your income from savings...
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### How to write an invoice
> Our guide explains how to write an invoice, when invoices are needed and how to send them. Read the guide and steps required here.
- Published: 2023-01-24
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-write-an-invoice/
- Category: SME support, Swoop guides, Blog
Knowing how to invoice correctly is one of the most important parts of running a business. As well as ensuring you get paid for the goods or services your business has provided, invoicing is also crucial when it comes to keeping accurate tax records. Our guide explains how to write an invoice, as well as when invoices are needed and how to send them. What is an invoice? An invoice is simply a bill that you send to your customers or clients to ask for payment for the goods and services you’ve provided. The invoice should include a description of the services or goods, along with the payment amount, payment terms and payment method.   As well as helping to ensure you get paid, invoices are also important for bookkeeping as they help prove your income. Businesses are required to keep records up to six years, with self-employed individuals needing to keep evidence of sales, income and expenses for five years. Having an accurate record of your invoices will help when you come to file your tax return. Invoices can also act as legal proof that you carried out a service if you do not get paid and need to take further action.   When are invoices required? You will need to send an invoice to a customer or client if they have purchased goods or services from you. An invoice states in writing what the client has purchased, the date they purchased it and how much they are being...
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### How to value a business
> If you’re planning to sell your business, make an acquisition or raise capital, it’s important to know your business' worth. Find out here.
- Published: 2023-01-23
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-value-a-business/
- Category: SME support, Swoop guides, Blog
If you’re planning to sell your business, make an acquisition or raise business capital, it’s important to know how much your business is worth. You don’t want to over-value your business as this can deter buyers or investors, but you also don’t want to sell the business short. To help you find the right balance, here’s everything you need to know about how to value a business.   What is a business valuation? A business valuation is simply the process of determining the market value of a company. There are several reasons why knowing how to do this can be useful: A business valuation can help put a price tag on your business if you’re looking to sell it. It can help provide investors with a realistic estimate of how much your business is worth.   You might need to provide valuation figures as part of your tax return.   A business valuation can help set a fair price if staff want to buy or sell shares in your company.   Valuing your business can help you get a better idea of its financial health and focus your efforts on the areas that need improving. What affects the value of a business? There are a number of factors that can affect the value of a business. Tangible assets such as your business premises, land, stock and equipment are easy to value. But you will also need to consider intangible assets such as:  Your company’s reputation The value of your business’...
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### How to set up a limited company
> A limited company can be set up by just one person who will be the sole shareholder, or it can be set up by several shareholders. Read more here.
- Published: 2023-01-18
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-set-up-a-limited-company/
- Category: SME support, Swoop guides, Blog
New businesses usually fall into one of three categories - a sole trader, partnership or a limited company.   Which one is best for you will depend on how you run your company and how long it’s been trading for. But if your company is expanding and you’re looking to take on more staff, forming a limited company could make the most sense.   Here’s our step-by-step guide on how to set up a limited company.   Why set up a limited company? There are a number of reasons why you might want to set up a limited company. For a start, your business will be its own legal entity with its own bank account. This means that as a company director, your personal and business finances will be separate and you can’t lose more than the face value of your share in the business. In other words, you can’t lose your personal assets if your business fails, as you could if you were a sole trader.   A limited company can be set up by one person who will be the sole shareholder of the company, or it can be set up by several shareholders. Is setting up a limited company right for your business? If you started out as a sole trader and your business has now expanded and has a higher revenue, it could be worth forming a limited company. Rather than paying income tax on your earnings, as you do as a sole trader, being a...
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### How to register and pay for corporation tax
> If you’re a limited company, you’ll need to pay corporation tax on your profits each year. This guide explains all you need to know about paying corporation tax
- Published: 2023-01-17
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/blog/how-to-register-and-pay-for-corporation-tax/
- Category: SME support, Swoop guides, Blog
If you’re a limited company, you’ll need to pay corporation tax on your profits each year. Sole traders and partnerships don’t need to pay corporation tax as they must pay income tax through self-assessment instead. This guide explains all you need to know about how to pay corporation tax and the deadlines for doing so. Who has to pay corporation tax to HMRC? It’s a legal requirement to pay corporation tax to HM Revenue & Customs (HMRC) if you’re a limited company trading and registered in the UK. You will need to start paying corporation tax once you are turning a profit. Companies must register for corporation tax when they set up as a limited company. You can do this via the gov. uk website and it must be done within three months of starting to trade. Trading includes buying, selling, advertising, renting a property and employing someone.   To register, you will need to sign into your business tax account. You’ll need your company’s Government Gateway user ID and password to do this – if you don’t have one, you can create one at sign in. You will also need your company’s 10-digit Unique Taxpayer Reference (UTR) which will be posted to you within 14 days of the company being registered with Companies House.   You will need to tell HMRC your company’s registration number, the date you started to do business (your company’s first accounting period will start from this date), and the date your annual accounts are...
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### How to reclaim VAT
> Being VAT registered also means you can reclaim VAT on all goods and services your business buys, making them cheaper than if you weren’t VAT registered.
- Published: 2023-01-17
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-reclaim-vat/
- Category: SME support, Swoop guides, Blog
If your business is registered for Value-added tax (VAT), you must charge VAT on all your goods and services and then pay this amount to HM Revenue & Customs (HMRC). However, being VAT registered also means you can reclaim VAT on all goods and services your business buys, making them cheaper than if you weren’t VAT registered.   Understanding the process for reclaiming VAT is important as it’s not always straightforward. This guide takes you through the steps. Who can claim back VAT? You can only claim back VAT if you are a VAT-registered business. Your business must be registered for VAT if your VAT taxable revenue has exceeded £85,000 over the past 12 months. Your VAT taxable revenue is the total value of everything you sell that is not exempt from VAT.   What can you reclaim VAT on? You can only reclaim VAT on goods and services that were exclusively used for your business. You can’t reclaim VAT on goods and services that are for non-business use or are for client entertaining. You also can’t claim for services that are exempt from VAT, such as insurance. To give you a clearer idea of what you can reclaim VAT on, take a look at the following: Claiming back VAT on previous business costs You can use your first VAT return to claim back VAT costs that your business incurred before you registered for VAT. However, there are certain rules that you’ll need to follow to do this.   For...
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### Finance lease vs. operating lease – what’s the difference?
> Finance and operating leases are two low-cost ways for a business to secure the major tools they need, but how do they differ? Find out which suits your needs.
- Published: 2023-01-13
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/asset-finance/finance-lease-vs-operating-lease
- Category: Asset finance, Loans, Blog
Rent to buy, or simply rent. Obtain your major business assets without causing a cashflow crunch. Finance and operating leases – two ways to make your business cash go further Most South African businesses need expensive assets to produce the goods and services they sell. These assets are typically cars, work vans, plant and machinery. Without them, many businesses simply cannot function. However, buying big-ticket items can create problems with cashflow and for companies with seasonal finances, spending a large sum all at once may be impossible. But not to worry. Say hello to finance and operating leases – two low-cost ways for businesses to secure the major tools they need. What is a finance lease? A finance lease is a method of financing business assets, and it works as a long-term rental agreement, with the assets remaining the property of the finance company (also known as the lessor) that hires them out, and the lessee (you) paying for the hire of the assets. The lessee has the option to buy the asset at the end of the contract period. How do they work? A finance lease allows your business to use an asset for a fixed period and for a fixed monthly rental cost. At the end of the agreement the business will have the option to purchase the asset for a pre-agreed sum. A finance lease allows businesses to spread the cost of the asset over time and with lower monthly payments than if they were to purchase...
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### Operating leases explained: What are they? How do they work?
> Buying big-ticket items can create problems with cashflow. But not to worry. Operating lease is a way for businesses to secure the tools they need. Read more.
- Published: 2023-01-13
- Modified: 2024-04-12
- URL: https://swoopfunding.com/za/business-loans/asset-finance/operating-lease/
- Category: Asset finance, Loans, Blog
No matter if your business is a limited company, PLC, partnership, or sole trader, there’s an operating lease for you. Operating leases – don’t buy that business asset, pay less to rent it Most South African businesses need expensive assets to produce the goods and services they sell. These assets are typically cars, vans, plant and machinery. Without them, many businesses simply cannot function. However, buying big-ticket items can create problems with cashflow and for companies with seasonal finances, spending a large sum all at once may be impossible. But not to worry. Say hello to the operating lease – the low-cost way for businesses to secure the major tools they need. Why spend more to buy when you can pay less to rent? Roll maintenance and repairs into the deal. An operating lease is fast, flexible and affordable. Give your business what it requires without creating a financial crunch. How do they work? An operating lease is a low-cost way for businesses to obtain the big-ticket items they need. Unlike purchase loans, the lessee, (you) does not buy the asset, you rent it and you cannot purchase the asset at the end of the contract.   In most cases (especially with business vehicles), the agreement will include a residual Value that is based on the period of the lease and the estimated value of the asset at the end of the contract. At the end of the agreement the asset is usually sold to a third party on behalf...
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### How to calculate profit
> As a small business, it’s important to understand how to calculate profit to see how well your business is performing. Read all about it here.
- Published: 2023-01-11
- Modified: 2024-05-22
- URL: https://swoopfunding.com/za/blog/how-to-calculate-profit/
- Category: SME support, Swoop guides, Blog
The amount you will be asked to pay each month will be based on how much you have left after you pay any rent, food or utility bills. Note that you will be charged interest on these payments.   As a small business, it’s crucial to understand how to calculate profit so that you know how well your business is performing. Read on to find out how to calculate profit for your business.   The formulas to calculate profit Profit simply means your business revenue minus any expenses. In other words, it tells you how much your business has earned once all costs have been deducted. The profit can either be kept in the business or reinvested to finance future growth.   There are three main types of profit – gross profit, operating profit and net profit. Gross profit Your gross profit is your total sales minus your direct costs. These include the cost of raw materials and staff wages, for example. The gross profit shows you that you’re selling goods and services at a higher price than they cost you to produce.   You can work out your company’s gross profit with the following calculation:  Revenue – direct costs = gross profit Operating profit Your operating profit is the income from sales once operating expenses, such as rent, utility bills and equipment, have been deducted. It excludes things like tax and interest and can show you how efficient your business operations are. To work out your operating profit, carry...
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### How to get funding for a new business
> Choosing the right kind of funding is important if you want to ensure your new business is set up for success. Read all about it here.
- Published: 2023-01-10
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-get-funding-for-a-new-business-2/
- Category: SME support, Swoop guides, Loans, Blog
Choosing the right kind of funding is important if you want to ensure your new business is set up for success. Adequate funding can help you to expand, buy equipment, cover marketing costs and hire staff where needed.   For this reason, it’s worth taking the time to consider the different funding options available to you so that you can assess what works best. What's the first step in funding a small business? Before you decide how to get funding for your new business, you need to consider how much funding you actually need. As well as thinking about how much it will cost to initially startup your business, you’ll also need to factor in your operating costs for the year ahead.   It’s important to ensure you have enough money to help your business get off the ground and succeed, but you should also avoid borrowing too much and burdening yourself with a lot of debt. Carefully estimating how much income you’ll generate over the next year should help you work out how much funding you will require. Once you’ve done this, there are three initial options that are worth exploring: Using your own money  Investing your own money into your business can make you look more attractive to lenders if you need to borrow further funds. Using your own money helps to show lenders you’re confident that your business will succeed – after all, if you don’t want to invest in it, why would anyone else? You might...
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### How to get a business loan
> We look at everything there's to know about applying for a business loan. Read our step by step guide, or register with Swoop today to see funding options.
- Published: 2023-01-10
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-get-a-business-loan/
- Category: SME support, Swoop guides, Loans, Blog
A business loan can provide essential funding for your business. Whether you’re just starting out and you need funds to help pay for equipment, or you’ve been trading for a few years and you’re looking for bigger premises, a business loan is a popular way to borrow money. Here, we look at everything you need to know about applying for a business loan. Calculate how much you need The first step to getting a business loan is to calculate how much money you need to borrow. Business loans can be for as little as R1,000 or as much as R3 million. You’ll need to consider exactly what you need the funds for and be prepared to explain this to the lender. For example, you might want to use the money to purchase property or a vehicle, pay salaries, or fund overhead costs.   Keep in mind that the amount you can actually borrow will depend on your business’ financial situation and credit rating. If your business has been trading for a number of years and has a good credit score, you’re more likely to be able to borrow a larger sum compared to a business that is only just starting out and has yet to build a credit history. Write a business plan As part of your business loan application, you’ll need to write a business plan. A well-presented, thorough plan will prove to lenders that you’re serious about your business and have a clear vision about the future of...
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### How to complete a VAT return
> If your business is VAT registered, you will need to complete and submit VAT returns to His Majesty’s Revenue and Customs (HMRC).
- Published: 2023-01-09
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/blog/how-to-complete-a-vat-return/
- Category: SME support, Blog
Value-added tax, or VAT, is a tax charged by the government on many goods and services. If your business is VAT registered, you will need to complete and submit VAT returns to His Majesty’s Revenue and Customs (HMRC). Here’s all you need to know about how to do a VAT return. What is a VAT return? A VAT return is a form you must fill in to inform HMRC how much VAT you’ve charged and how much you’ve paid to other businesses. All VAT registered businesses must complete a VAT return even if they have no VAT to pay or reclaim. Your business must be VAT registered if your VAT taxable revenue has exceeded £85,000 over the past 12 months. Your VAT taxable revenue is the total value of everything you sell that’s not exempt from VAT. You can register for VAT via the gov. uk website.   From the day that you register your business for VAT, you will need to charge VAT on taxable sales. This is known as output VAT. You might also be able to reclaim the VAT you’ve been charged on business-related purchases and expenses. This is known as input VAT. You then need to pay the difference between these two figures to HMRC at the end of your accounting period. When do I need to complete my VAT return? You must submit your VAT return one month and seven days after the end of an accounting period. This occurs every three months, meaning you’ll...
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### How to value a company
> There’s no one way to value a company. Here are some of variables you might want to account for in your valuation process.
- Published: 2023-01-02
- Modified: 2023-01-02
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-value-a-company/
- Category: Blog, Business acquisition, Loans, Funding resources
There’s no one way to value a company, and the final answer usually involves a mix of quantitative and qualitative factors. Here are some of variables you might want to account for in your valuation process:Value of the assets. Add up the value of everything the business owns, including all property, equipment, and inventory. Subtract any debts or other liabilities. This gives you the net asset value of the business — what it would be worth if you liquidated everything and turned it into cash. This is a good place to start, but it doesn’t account for the additional value created by revenue and earnings. Revenue calculation. The revenue generated by a business is another key metric to account for in its valuation. Although it does not reveal how profitable the business is, in established industries with predictable profit margins, business valuations are sometimes expressed as a multiple of revenue - say two or three times annual revenue. An experienced advisor can guide you on the appropriate multiple for your industry. Earnings multiple. Valuing a business based on a multiple of its earnings is typically more revealing than using a multiple of its revenue. For one thing, it measures the net earnings after expenses, which provides a truer picture of profitability. For another, it tends to be forward-looking, based on earnings expectations. For example, if a typical price-to-earnings (P/E) ratio is 10 times earnings, then a business that is expected to earn $300,000 per year is worth $3 million. Discounted...
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### How to plan for buying a business
> Buying a US business can be a complex task. In fact, many people never get past the stage of “just thinking about it”. Read the steps to buying a business here.
- Published: 2023-01-02
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-plan-for-buying-a-business/
- Category: Blog, Business acquisition, Loans, Funding resources
Buying a business can be a complex task. In fact, many people never get past the stage of “just thinking about it” because they don’t know where to start or they find all the decisions overwhelming. But fear not; here is a step-by-step guide to the process of planning to buy a business. All you have to do is take it one step at a time. 1. Get preparedThe first place to start is with a little preparation. The actual business acquisition will be a much easier process by first outlining these three things: the right team, a clear picture of what you want to do, and how you plan on doing it. 2. Assemble a team of advisorsAlthough you will be the one driving the process, you can’t do it alone. At a minimum, you will want assistance from a trusted legal advisor to help you structure and sign the deal. You will also need financial advisors who can assist with the financing. During the acquisition process, you may want additional support with the valuation of the business and possible lease negotiation. As you take over management of the business, you might consider finding help with taxes, real estate, IT, human resources, and more. 3. Define your objectivesOne of the most important aspects of preparation is understanding your reasons for acquiring a business and what you hope to achieve. Identifying your personal skills and preferences, your emotional drivers, and your strategic and financial objectives will help you approach things...
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### Finance leasing explained - what is it?
> A finance lease is an affordable way to finance expensive assets over time with a low deposit. How could your business benefit? Read more here.
- Published: 2023-01-01
- Modified: 2024-08-26
- URL: https://swoopfunding.com/za/business-loans/asset-finance/finance-lease/
- Category: Asset finance, Blog
No matter if your business is a limited company, PLC, partnership, or sole trader, there’s a finance lease for you. A finance lease puts you in control Most businesses need expensive assets to produce the goods and services they sell. These assets are typically cars, vans, plant and machinery. Without them, many businesses simply cannot function. However, buying big-ticket items can create problems with cashflow and for companies with seasonal finances, spending a large sum all at once may be impossible. But not to worry. Say hello to the finance lease – the low-cost way for businesses to secure the major tools they need. Buy over time with a low deposit. Roll maintenance and repairs into the deal. Finance leasing is fast, flexible and affordable. Give your business what it requires without creating a financial crunch. How does a finance lease work? The term ‘finance lease’ has become a catchall phrase for asset financing that is not a dedicated purchase agreement (such as hire purchase). In fact, there are three main types of finance lease: Finance lease: A finance lease allows your business to use an asset for a fixed period and for a fixed monthly rental cost. At the end of the agreement the business will have the option to purchase the asset for a pre-agreed sum. A finance lease allows businesses to spread the cost of the asset over time and with lower monthly payments than if they were to purchase the asset. Operating lease: Similar to finance...
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### How to use vendor financing to buy a business
> Many US small business buyers need to assemble financing from a variety of sources to complete the acquisition. Read about using vendor financing here.
- Published: 2022-12-30
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-use-vendor-financing-to-buy-a-business/
- Category: Blog, Business acquisition, Loans, Funding resources
Many small business buyers need to assemble financing from a variety of sources to complete the acquisition. Vendor financing, which is also called vendor take-back or VTB, is where the seller of the business agrees to take part of the sale price through a series of payments with interest. The seller is essentially extending debt to the buyer, where the debt is often secured against the assets of the business. When the deal closes, the seller will receive the purchase price minus the borrowed amount. Usually, this debt to the seller ranks below other debt that you might owe to a bank or other lending institution — a risk that the seller must understand and accept. If you want to use vendor financing to buy a business, you should let your business broker, the seller, and any other parties involved in the deal know as early in the process as possible. This way, the seller is not surprised later on, and you can work towards agreeing on several key points, including:The amount of the loanThe interest rate The payback periodThere are a few key details you will want to agree on with the seller over the term of the loan, such as:Will the seller continue to have a role in the business? How long will they remain involved? What financial reporting will the buyer provide? All of these terms and conditions can be included in the final agreement that you will both sign. What is a vendor take back mortgage...
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### How to find a business to buy
> The first and arguably most important step to finding a US business for sale is to set your personal objectives. Find out where to buy a business and more here.
- Published: 2022-12-29
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-find-a-business-to-buy/
- Category: Blog, Business acquisition, Loans, Funding resources
If you want to buy a business, whether it is a small business like a restaurant, laundromat, e-commerce store, or a franchise, or even a large enterprise like a factory or firm, you have options You can search public listings and online resources, network within your community, or hire the services of a business broker who specializes in connecting buyers with sellers and can possibly even approach businesses that are not currently for sale to see if they are open to having a conversation. Key steps to finding a business for saleThe first and arguably most important step to finding a business for sale is to set your personal objectives. This is where you define the type of business you want, its financial characteristics, the industry to focus on, the lifestyle associated with running the business, the amount you wish to invest, and the types of financing arrangements you are looking for. Knowing all of this in advance will reduce the risk of pursuing opportunities that don’t suit your needs and increase the odds of finding a business that you will enjoy running, and guide you towards lasting success. Once you know what you are looking for, the next steps are to begin your search. Tap into your network of personal and professional contacts and potentially retain a business broker to help you find a business that matches your objectives. Using a business brokerA business broker helps buyers and sellers of businesses find one another and complete a transaction. They...
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### How to conduct due diligence for a business acquisition
> Due diligence means conducting a deep dive into the inner workings of a business, allowing you to identify its opportunities & risks for an acquisition.
- Published: 2022-12-28
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-conduct-due-diligence-for-a-business-acquisition/
- Category: Blog, Business acquisition, Investment
The ideal way to conduct due diligence is to first assemble a team of legal, accounting and other professionals, to then sign a Letter of Intent (LOI) with the seller, and finally, to follow a step-by-step process to analyze and evaluate the business. What is due diligence? Due diligence means conducting a deep dive into the inner workings of a business. It allows you to identify its opportunities and risks, to determine whether it is desirable to purchase and, if so, calculate a potential purchase price. How do I carry out due diligence? Due diligence is not easy — it’s a detail-oriented process that, if done correctly, can take weeks or even months to complete. It is wise to define what your process will be at the outset so that no stone goes unturned. There will be a temptation to save time and money by hurrying the process, but being methodical in your due diligence is crucial to ensure that you make the best decision and avoid negative surprises after the deal is signed and there’s no going back. Define a processYour due diligence process should address a series of key topics. Here are some of the essential questions to ask:How financially sound is the business? This includes a line-by-line analysis of revenue and expenses over time to understand how profitable the business is and which way its sales are trending. How healthy is the environment? This refers to factors outside the four walls of the business, such as trends...
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### How to find a business acquisition broker
> Like any important professional relationship, finding a US business acquisition broker is partly about looking through listings and asking for referrals.
- Published: 2022-12-27
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-find-a-business-acquisition-broker/
- Category: Blog, Business acquisition, Funding resources
Like any important professional relationship, finding a business acquisition broker is partly about looking through listings and asking for referrals to someone competent, and partly about choosing a person who you will feel comfortable working with. You will probably want to interview several brokers before deciding on the best one for you. Here are some places to look:Search for business brokers. Type “business brokers” into any search engine, and you will find local options. The good thing about this approach is you will probably find many potential brokers. The challenging thing is it may not be obvious who is likely to be a good fit for your needs. Business for sale listings. Another approach is to search online and even scan local newspapers for businesses that are currently for sale. Very often, you will see the name of the business broker listed. This might help you identify the exact business you want, or at least a broker who is already working with similar businesses. Ask for referrals. If you know business owners who have bought or sold a business, they might be able to recommend someone. And, as you are assembling your business acquisition team, there’s a good chance your banker, accountant, attorney, or financial planner can recommend someone. Check the IBBA. The International Business Brokers Association trains and certifies business brokers, and its website allows you to search for local professionals by postal code. Many business brokers will be competent, but some will be better than others. One way...
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### How to buy a business
> For the majority of buyers looking to purchase a business, the goal of financing is not only to acquire the business, but to grow it too. Read more here.
- Published: 2022-12-23
- Modified: 2025-02-18
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-buy-a-business/
- Category: Blog, Loans, Funding resources
Buying a business is a multi-step process. Although the process can vary, these are some of the key steps you should take when looking to acquire an existing business:Define your objectives. Start by knowing why you want to acquire a business, which type of business you want, and how you will measure your success. Assemble a team of advisors. Line up the right professionals to assist you in your new company. Your team might include a business broker and legal and accounting advisors. Draft an acquisition plan. Map out your timeline, your budget, the role of each team member, the type of company you want to buy. and the risks you’re prepared to accept. Identify a business to buy. Use your personal network, public listings, and professional assistance to find a business that matches your objectives. Draft a letter of intent. This lets the seller know that you are serious and will kick off the formal due diligence and negotiation process. Conduct due diligence. Closely evaluate the business — its financial status, employees, suppliers, customers, and competition. Negotiate the acquisition price. Determine a fair price to pay for the business and work with the seller to come to an agreement. Arrange financing. Fund the acquisition using some mix of personal savings, investor equity, a commercial mortgage if required, and debt from a lender or even the vendor themselves. Finalise the deal. Agree with the seller on every term and condition of the sale and sign the paperwork. Transition ownership. Start...
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### How to write a letter of intent (LOI) for business acquisition
> A letter of intent is important for a business as it signals the beginning of due diligence and negotiations that are necessary to complete an acquisition.
- Published: 2022-12-22
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-write-letter-of-intent-loi/
- Category: Blog, Business acquisition
Once you’ve set your objectives for buying a business, done your initial research and identified what looks like a good acquisition target, it’s time to let the seller know that you’re officially interested. This makes it possible to deepen your research and move the project forward. The tool you use at this point is a letter of intent — which is often referred to as an LOI. What is a letter of intent? A letter of intent is a letter from you to the seller of the business that lets them know that you are seriously considering submitting a formal bid to purchase the business, and that lays out the proposed transaction details at a high level. Although it is not a legally binding agreement to purchase, it may include elements that create binding obligations between the potential buyer and seller, including:Confidentiality agreement. This lets the seller know that they can safely disclose key information about the business to you, such as their financial records, client lists, and intellectual property, and that you will keep it confidential. This allows you to examine the business much more closely and puts the seller’s mind at ease. Exclusivity period. This sets out a period of time during which the seller agrees not to entertain offers from any other buyers without speaking to you first. This gives you the time you need to do your due diligence and protects your option to buy if you so choose. There may be financial penalties for the...
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### How to finance a business acquisition
> When considering how to buy a business, the simplest way is to fund it out of your own savings or to access personal borrowing facilities. Read more here.
- Published: 2022-12-21
- Modified: 2025-03-17
- URL: https://swoopfunding.com/za/acquire-a-business/how-to-finance-a-business-acquisition/
- Category: Blog, Business acquisition, Loans, Funding resources
Often, the purchaser of a business will give the seller a Letter of Intent to purchase the business that is contingent on being able to secure financing. If you get to this step and you are not able to bootstrap the business financing all by yourself, there are a number of options available to you. For most buyers of existing businesses, the goal of financing is not only to acquire the business, but to make sure you have the flexibility and resources to grow. What is a business acquisition? A business acquisition involves one person or entity purchasing a business from another person or entity. This could mean a single person buying a local restaurant franchise from somebody else, or a large manufacturing company taking over the operations and production facilities of a smaller competitor. With SBA franchise loans available, this is a popular choice amongst US SMEs. Whether your deal is large or small, simple or complex, chances are it will require some type of outside financing. How can I finance a business acquisition? When considering how to buy a business, the simplest way is to fund it out of your own savings or to access personal borrowing facilities such as a home equity line of credit. But for many business owners, these sources will not be enough. You may need to consider raising equity from investors or taking on some type of business loan. These are the same basic options used by large enterprises when they make an...
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### Match funding for grants explained – what is it?
> Match funding for grants means that in order to receive a business grant, you will need to fund some of it yourself, often through a loan. Learn more.
- Published: 2022-10-24
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/business-grants/match-funding/
- Category: Loans, Funding resources, Grants
Business grants can be a crucial source of funding for small businesses. They can help businesses expand, research and develop new products or invest in training and equipment. Business grants are usually awarded by the government or other companies but, unlike a loan, they do not need to be repaid.   When researching business grants you might come across the term ‘match funding’. It’s important to understand exactly what match funding means and how it could potentially impact your business. Here, we explain all you need to know about how match funding works. What is match funding for grants? Match funding for grants means that in order to receive a particular business grant, you will need to put up some of your own funds. Grant organisations might request match funding to give them the reassurance that you are serious about the project being invested in and that you are able to raise adequate funds to support it. How does match funding work? With match funding, you as the business agree to put up a certain percentage of the total funding required, and the partner organisation will provide the rest. Often, businesses will provide match funding in the form of a loan, but there are other options, as we explain below. As with all grants, match funding criteria can vary widely, so it’s important to research your options carefully to be sure you are applying for the right option for your business. What is charity match funding? Charity match funding works...
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### Bridging finance explained - what is it?
> Bridging finance is similar to a commercial mortgage and is used to purchase or raise capital secured against property or a land, but drawdown happens faster.
- Published: 2022-10-24
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/commercial-mortgages/bridging-finance/
- Category: Commercial mortgages, Loans, Funding resources
A bridging loan is similar to a mortgage and is used by individuals and businesses to purchase or raise capital secured against either a residential and/or commercial property or a land asset. Unlike a traditional commercial mortgage, execution and drawdown happens much faster. The loan may be raised against a property for which a traditional mortgage may not be suitable and in certain cases where the applicant has no income. How does bridging finance work? The major difference between a mortgage and a bridging loan is that while a traditional mortgage lender will focus on the ability of the applicant to maintain payments on the loan, a bridging lender focuses more on the property and its suitability as security. When a bridging loan is approved most lenders will build in an interest reserve facility which allows them to take payment on the loan over the term without committing the borrower to make a monthly payment. This provides the lender with the surety that the interest will be paid on time and provides the borrower with the comfort they don’t need to make payments that may be impossible due to cashflow constraints.   The priority for bridging lenders is the exit strategy as this is how they will get repaid: the key question for the lender is: “What will change during the term of the loan to allow the borrower to repay the loan? ” Usually this means that bridging loan exits are via re-mortgage to a conventional lender or sale...
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### SEIS – the Seed Enterprise Investment Scheme explained
> Own a new business? The Seed Enterprise Investment Scheme (SEIS) is designed to attract investors to UK businesses that are less than 2 years old. Find out more
- Published: 2021-11-15
- Modified: 2024-05-08
- URL: https://swoopfunding.com/za/equity-financing/seis-seed-enterprise-investment-scheme/
- Category: Investment, Funding resources, Blog, Equity
Note: since April 1st 2023 the amount a business can receive in SEIS funding rose to £250,000, the amount an investor can contribute rose to £200,000, and the maximum age of the business able to take advantage of the scheme increased from 2 years to 3 years. Raising startup and seed capital for young companies has always been difficult. Investors can be wary of entrepreneurs and untried ideas. The UK Government-supported Seed Enterprise Investment Scheme (SEIS) makes this process easier by giving generous tax relief to investors in new businesses. They invest, you get funding, they get a tax break. It’s a successful formula for all. Since its introduction in 2012, more than £1 billion has been raised for thousands of UK companies with SEIS. Get your new business off the ground with the investment scheme that does what it says on the tin.   What is the Seed Enterprise Investment Scheme (SEIS)? The Seed Enterprise Investment Scheme (SEIS) is one of four venture capital schemes offered by the UK Government. SEIS is designed to attract investors to UK businesses that are less than three years old. The SEIS is a tax relief programme - it does not provide cash funding. By providing generous tax breaks to investors, the scheme makes it easier for companies to attract investment. Think of SEIS as a seed capital magnet. Not only do investors get a stake in your business they also get tax relief on their investment. A win/win situation.   https://www. youtube....
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### How to refinance a business loan
> Find out everything there's to know about refinancing a business loan and if it’s the right decision for your business. Read all about it here.
- Published: 2021-01-19
- Modified: 2024-03-28
- URL: https://swoopfunding.com/za/blog/how-to-refinance-a-business-loan/
- Category: Blog, SME support, Loans, Funding resources, Savings
If you took out a loan when your business was just starting up, it’s likely that you’ll now have access to a wider range of business financing possibilities than you did back then.   Since applying for your original loan, your business may have grown and become more established, you may have built up a business credit history, and you may even have some collateral to put down for a new loan.   As a result, your business is likely to be much more attractive to lenders and you’re more likely to get accepted for more competitive business loan rates and terms, making now a good time to refinance. Here, we explain all you need to know about refinancing a business loan.   How does business loan refinancing work? When you refinance a business loan, you simply take out a new loan to repay your existing one.   There are many benefits to doing this. For a start, it could allow you to take advantage of lower interest rates, making your new loan much cheaper than your existing one. Alternatively, refinancing could enable you to choose a longer loan term and reduce your monthly payments, or it could allow you to borrow more to improve your cash flow. Refinancing can also enable you to consolidate or combine a number of different loans into one loan with one lender and a single monthly payment. This can make managing your business finances much easier.   Is refinancing right for your business? To...
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## Case studies
### How to Secure Funding: Essential Tips
- Published: 2024-09-06
- Modified: 2024-09-06
- URL: https://swoopfunding.com/za/case-studies/how-to-secure-funding-essential-tips/
https://www. youtube. com/watch? v=A5DtglPGhdg
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### Why South African SMEs choose Swoop Funding
- Published: 2024-09-06
- Modified: 2024-09-06
- URL: https://swoopfunding.com/za/case-studies/why-south-african-smes-choose-swoop/
https://www. youtube. com/watch? v=HO_nTsKKD-0
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### Why Swoop
- Published: 2024-09-06
- Modified: 2024-09-06
- URL: https://swoopfunding.com/za/case-studies/why-swoop-south-africa/
https://www. youtube. com/watch? v=UYyhWyr9aDc
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### Exploring funding options for South African SMEs
- Published: 2024-09-06
- Modified: 2024-09-06
- URL: https://swoopfunding.com/za/case-studies/exploring-funding-options-for-south-african-smes/
https://www. youtube. com/watch? v=pbTJ65vmfa8
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### Even bankers are coming to Swoop for funding
> Knowing that Swoop has an established business, Irfan saw an opportunity to use Swoop's marketplace of funders and put the platform to the test. Read more.
- Published: 2024-06-11
- Modified: 2024-11-27
- URL: https://swoopfunding.com/za/case-studies/bankers-coming-to-swoop/
When the employee of a major Canadian bank needed help funding their property portfolio, Swoop had the solution to their needs Irfan, a past executive leader at Canada's largest bank, got to know about Swoop when he was helping our company expand from the UK and Ireland into North America.   While working with us, Irfan was able to gain a deeper understanding of Swoop's offering and saw the value that it offered to business owners looking to compare the best financial products for their specific needs. Irfan’s own business interest lay in acquiring commercial property in Britain. Knowing that Swoop had an established business in the UK, Irfan saw an opportunity to leverage Swoop's marketplace of funders and put the platform to the test. As Daire Burke, Head of North America at Swoop says, there were a few issues in the way: “Irfan is not resident in the UK and his co-buyer didn’t have formal real estate experience. That said, they were from a family with a history of real estate investment and had been working alongside family members to gain experience for several years. The properties they were looking at were classified as ‘high street retail’ by several lenders, which limited their appeal. This was despite their location in a highly desirable and affluent area of the country. ” The properties that Irfan and his co-buyer were looking at were occupied by several different tenants and a number of the leases were due to expire within the next...
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### Growing the business of Growing Paper: how Swoop is helping a South African business get ready to hit the international market
> Growing Paper is a South African company that produces handmade, biodegradable paper embedded with seeds. Read more here.
- Published: 2023-11-08
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/growing-the-business-of-growing-paper/
Funding is key to making a success of grass-roots businesses which tackle the problems of unemployment and unsustainability Growing Paper is a South African company that produces handmade, biodegradable paper embedded with seeds. Founded to give consumers the option to make a responsible decision regarding the environment, social impact, local economy and sustainability, the company is dedicated to creating employment opportunities in the Swartland municipality. This region has seen a continuous rise in unemployment reaching nearly 15 percent - with a disproportionate impact on women and children.   Roxanne Schumann, Founder of Growing Paper, says that the company has strong ambitions to grow and become a household brand for South African customers. In these early stages, however, there was a capital shortfall:  “Growing Paper was at that stage that many businesses reach where we were not cash flow positive. We were growing but had hit that in-between phase where we didn't have the income to cover the investment we needed for equipment, international marketing and a renovation project. There’s currently a lag with our present need to pay salaries, expand and keep up the infrastructure. ” It was essential to get some form of bridging finance to stay afloat, says Roxanne, because laying off employees was counter to the values and goals of the business.   “We’re temporarily victims of our own ambition! We’re not at maximum capacity but are moving in that direction. This year we’re expanding internationally and expect to see the rewards next year. We were in...
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### A different approach to care requires a different approach to funding
- Published: 2023-04-18
- Modified: 2023-04-20
- URL: https://swoopfunding.com/za/case-studies/a-different-approach-to-care-requires-a-different-approach-to-funding/
Swoop is helping to make an exciting new care facility a reality in the Midlands. “Conventional care fails people who have needs outside quite narrow criteria. We saw the need to expand what care can do for people and provide positive solutions to people with complex needs. ” So says Martine Verweij, Partner at Te Hira Care Home, who approached Swoop when her company needed funding to purchase a building for a bold new project. The aim is to found a working farm that provides meaningful activities for users, allowing them to retain and build skills that they can use in other aspects of their lives.   Originally from the Netherlands, Martine says that the UK is far behind her home country when it comes to care. Martine herself joined Te Hira as a partner 18 months ago, following a career in catering and charity. With business partner Christina Robinson, the pair make a formidable double act combining experience across a range of sectors.   In their next venture, Martine and Christina will create a care facility that provides activities including horticulture, animal therapy, baking and cooking and running the household.   “People need activities to stay engaged,” says Martine. “People have needs that are not well served by requiring them to sit still and be quiet. ” Finding the right funding for the new building was a challenge, however - until Swoop was recommended by Cottons, Te Hira’s accountants, and the process of closing a deal on a commercial...
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### Swoop solves the funding problem for accounting firm
- Published: 2023-03-07
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/swoop-solves-the-funding-problem-for-accounting-firm/
Gravitate Accounting used to dread clients asking about funding. Now they see it as an opportunity to delight business owners Sam Newton, Founder at Gravitate Accounting, says that the Sheffield firm prides itself on being “hands on” with the 200 plus clients on their books: “We’re a three-year-old, up-and-coming digital accountancy practice. We don’t just do a set of accounts. We’re in contact with our clients monthly, producing KPI reports, management accounts and so forth. At some point, every business will have a need for cash. ” In the past, being asked to find funding had presented Sam and his colleagues with a dilemma: “As a smallish firm, we didn’t have the resources to research funding in-house. We would have to speak to their bank or other funders and try to find them a good deal, but how does that work? Do you charge the client an hourly rate? And can you charge them at all if you don’t find something suitable? ” All that changed when Sam found Swoop, which uses clever matching technology to scour the market and highlight options that meet the needs of cash hungry businesses. Sam says the change has been dramatic: “Now we just upload all the information onto a portal that Swoop provides, giving them all they need to approach various lenders. With their in-house knowledge, Swoop can target specific lenders and come back with deals for our clients. ” Swoop can handle all kinds of funding from simple credit cards to complex...
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### Overcoming the barriers to buying out founders
- Published: 2023-01-26
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/overcoming-the-barriers-to-buying-out-founders/
Employee-owned businesses can boost engagement, motivation and well-being - but finding the funding isn’t always straightforward. There are a number of routes to being your own boss. One is to come up with an idea for a new business. The other is to buy out an existing successful business. At BCS, an outsourced IT support service based in Kent, employees bought out the founders of the company in 2018. Since becoming 100 percent employee-owned, the business has been named as one of the UK’s top 25 managed service providers and scooped a Responsible Business Champion Award. Why did BCS need Swoop? Jo Lewellyn, Finance Director at BCS says:  “BCS moved to a 100 percent employee-owned business with a loan from the founders of the business. After the first few years of paying the founders’ loan, we felt it would be beneficial to source the funds commercially to release the founders of any obligation to our company. ” Pretty open and shut, you might think. But Jo explains why the company ran into a funding roadblock:  “As an employee owned company, we have no documented shareholders and the structure of the business along with the employee owned trust part of the company meant things were not straightforward. This unique setup meant it was difficult to source funding through the normal channels available. ” Jo approached Swoop to investigate whether there were any lenders prepared to help. Tom Hawley and Chris Richards, Funding Managers at Swoop, got on the case and presented...
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### Finding a new lender to put their faith in a growing care home business
- Published: 2022-11-01
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/finding-a-new-lender-to-put-their-faith-in-a-growing-care-home-business/
When the customer’s former lender left the healthcare market, finding a replacement proved challenging. Then Swoop stepped in. If your go-to funding option dries up, what would you do?   That was the situation facing our care home customer earlier this year as their original facility expired. On going back to their lender, they found that they had made the decision to pull out of the healthcare market.   This came as a severe blow to the customer who just about survived, despite turning away new residents throughout the COVID-19 pandemic in order to protect existing residents. Now, with the care home returning to full occupancy, profits were up - but this wasn’t sufficient for most lenders. “After doing the right thing and surviving through the pandemic, it felt like a slap in the face to be told lenders wanted a full 12 months of data to confirm our profitability,” explained Swoop’s customer.   “Just as we felt we were bouncing back, it felt as though the rug was being pulled. ” Swoop’s Commercial Mortgage team took on the case. Ed Brown, Commercial Finance Manager at Swoop explains:  “From a business point of view, the only way was up: the home was making its way to full occupancy and becoming as profitable as it had ever been. For me, this was a business that had shown resilience, courage in taking the right actions to protect people, and I thought they deserved another chance to keep the doors open. ” Swoop...
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### At your convenience: Swoop helps a business owner grow his portfolio of local stores
- Published: 2022-08-19
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/at-your-convenience-swoop-helps-a-business-owner-grow-his-portfolio-of-local-stores/
When the banks said “no”, Swoop took over a difficult case - and worked with the customer to find a solution Hitesh Bhokhirya is adding to his growing stable of convenience stores across the North of England - and his latest acquisition is thanks to Swoop. Hitesh tells us:  “I’ve been in convenience stores since 2010. Early on, I used to simply go to my bank when I needed money. But when I found a store I wanted to buy, there was no finance available from the High Street. My own bank wasn’t lending to businesses and other banks didn’t want to take on someone who wasn’t already their customer. ” Hitesh thought that his business growth would stall - until he was introduced to Chris Richards, Senior Funding Manager at Swoop... who turned out to be a familiar name.   “I was introduced to Chris through my funding guy in Birmingham,” says Hitesh. “Chris was someone I had encountered before when he worked at RBS. I was delighted to be able to restart a long standing relationship and I immediately knew I was in good hands. ” Hitesh was right: Chris was quickly able to find a path to funding a third store to his portfolio by looking beyond the usual suspects to find a company with an appetite to lend. The full acquisition of the business took over six months with both sides needing to delay proceedings for various reasons: Hitesh was concerned over the valuation of the...
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### Stopping a temporary setback from becoming a long-running problem
> Swoop helped customers secure a VAT loan for their business
- Published: 2022-07-26
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/stopping-a-temporary-setback-from-becoming-a-long-running-problem/
How a chamber of commerce found one company the help it needed Swoop’s customer is a communications business that helps its clients improve their engagement with end users through technology. The company’s founders were introduced to Swoop by the Cumbria Chamber of Commerce. The company had a short term cash flow issue as one of their debtors was unable to pay as scheduled. With their quarterly VAT bill coming up, the founders knew they would not be able to meet their own commitments without outside support. Within just three days of receiving the enquiry, Swoop managed to secure the business a VAT loan, spreading their tax bill over three payments, massively improving the company’s cash flow position. Tom Hawley, Funding Manager at Swoop says: “It has been a pleasure working with these customers. They were always quick to respond to requests for information, which makes the process as seamless as possible. I'm looking forward to working with them both again - as we will be funding their next VAT bill along with the implementation of a longer term financing solution. ”
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### Swoop’s “glass half full” approach enables pub chain to seize opportunity to boost profits
> After Pitcher Pub Group’s existing bank declined the facility request, Swoop stepped in to offer an alternative.
- Published: 2022-06-29
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/case-studies/swoops-glass-half-full-approach-enables-pub-chain-to-seize-opportunity-to-boost-profits/
After Pitcher Pub Group’s existing bank declined the facility request, Swoop stepped in to offer an alternative. How did Swoop secure the refinancing for this family run pub group? Christoper and Marion Pitcher have been at the helm of their family-run pub group for 17 years. They were approached with the opportunity to switch suppliers, being offered a fee incentive and a reduced cost on beer supply. This was more than peanuts - the switch would unlock significant additional profitability that would go straight to the bottom line and the Pitchers realised this was too good an opportunity to miss.   While the decision was easy, carrying out the plan was difficult due to their circumstances: The Pitchers had an existing loan to repay with their current supplier Their existing bank declined to refinance the loan facility with the current supplier, citing the reasons that it was forecast-led, as well as the bank’s lack of appetite to support the pub sector Their existing bank was also reluctant to release the public houses held as security on the loan, despite the loans having been repaid When the bank called time on the Pitchers’ credit line, they sent for Swoop.   Ann Marie Swift, Commercial Finance Manager at Swoop, took on the case with a thirst to find lenders that were looking to support the pub sector. Through gaining a thorough understanding of the proposed deal and the assets of the Pitcher Pub Group, Ann Marie demonstrated the improvement in profitability from...
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### Seeing a challenging property purchase through to the end
> With many other buyers falling at the hurdles on buying a Grade II listed holiday let complex, could Swoop close the deal for our customer?
- Published: 2022-03-10
- Modified: 2024-05-17
- URL: https://swoopfunding.com/za/case-studies/seeing-a-challenging-property-purchase-through-to-the-end/
With many other buyers falling at the hurdles on buying a Grade II listed holiday let complex, could Swoop close the deal for our customer? Alex Dury is like many entrepreneurs: after a lifetime of acquiring skills and experience in one area, they see an opportunity where those skills put them at an advantage. In Alex’s case, his career as a builder meant that property investment was an attractive option for him as he could add value to his own property at low cost.   When Alex saw that a bed and breakfast plus two small cottages had been on the market, Alex saw the opportunity as too good to pass up: the three properties are based near the seaside in rural East Sussex and comprise a six bed house (previously used as a B&B) plus a pair of two bed cottages. Unfortunately, a number of factors made the purchase difficult:  Alex’s own lack of experience in the holiday market counted against him The B&B had changed use, being rented out as a holiday let. There were no accounts to track the financial performance of the property following this change of use The property is Grade II listed Despite numerous potential purchasers, the property had gone unsold due to the inability of interested parties to secure finance When Alex approached Swoop, we were confident that we could help where others had failed. Ann Marie Swift, Commercial Finance Manager at Swoop, carried out full research into the property finance market to...
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### Swoop helps vegan meal company sprout new growth
> Vegan meal delivery service The Brook has found that their partnership with Swoop allows them to focus on what truly matters
- Published: 2022-02-23
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/swoop-helps-vegan-meal-company-sprout-new-growth/
Vegan meal delivery service The Brook has found that their partnership with Swoop allows them to focus on what truly matters With COVID-19 closing restaurants across the country, The Brook pivoted to delivering restaurant-quality plant-based meals to locked-down customers. Today, the company’s delivery service has diversified to include a range of products available in dedicated chiller cabinets at supermarkets such as Co-operative, Budgens and Londis.   With plant-based eating becoming more popular, the business model is one that Thea Brook, Founder at The Brook, plans to expand post-pandemic. Thea originally approached Swoop to find a bridging loan: “We needed to increase our production capacity so that we could take on the bigger retailers,” says Thea. “Swoop not only saved us a lot of time, they also got us a good deal. ” A loan from Mint moved The Brook to the next stage in their evolution. Thea says that the funding enabled her to take advantage of the opportunity to make a name for the business in retail: “Not to be too dramatic, but getting the money was life or death for the business. It meant that we didn’t have to raise again to build the business to where it needed to be. We could focus inwards and make sure our processes and recipes were where they had to be, rather than focus outwards looking for sources of funding. ” Thea makes particular mention of Andrew Moon who oversaw the funding journey. Thea says:  “Andrew had so much positive energy...
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### How businesses are refinancing their CBILS loans as their circumstances change
> CBILS products saved many businesses from failure but as circumstances change, many are finding that their old deals need revisiting
- Published: 2022-01-10
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/how-businesses-are-refinancing-their-cbils-loans-as-their-circumstances-change/
CBILS products saved many businesses from failure but as circumstances change, many are finding that their old deals need revisiting to ensure they are fit for purpose With the repayment holiday ending for many of those who took out CBILS products at the beginning of the pandemic, many are looking at whether the loans can be restructured to create better cashflow outcomes or help them take advantage of new opportunities. The Swoop team is always ready to help businesses that need to make their money work that little bit harder... Construction firm demolishes £10k overpayment Seb, Senior Funding Manager at Swoop, has been working with a construction company that was paying 12 percent on a £150k loan. “The initial loan was through the CBILS scheme with an accredited CBILS lender and when the repayment holiday ended, the shock of the new outgoing prompted the customer to ask whether they couldn’t get a better deal elsewhere. ” Through using Swoop’s experienced Funding Managers the client was offered a refinancing deal at just eight percent on the same 48 month term. “Over the course of the lifetime of the loan, this represents a saving of over £10,000 to the customer,” says Seb. “That sort of money makes a real difference and has a noticeable impact on cashflow for my customer’s business. ” Growing business raises an additional £250k Meanwhile, a cladding company found they needed to raise further funds to buy essential machinery needed to carry out a recently-won £4million contract. The...
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### TFI helped Swoop land in Canada
> Read how Toronto Finance International (TFI) wrote about Swoop’s arrival in Canada.
- Published: 2021-11-04
- Modified: 2021-11-04
- URL: https://swoopfunding.com/za/case-studies/tfi-covered-swoops-arrival-in-canada/
“Toronto has the highest volume of top-quality SMEs in Canada. From here, we can get to know the market and the nuances of the SME community not just in the city but elsewhere in Canada and the U. S. ” Andrea Reynolds, Founder and CEO at Swoop Funding Three years after launching a digital platform in the UK that has enabled thousands of small and mid-sized enterprises (SMEs) to acquire millions of pounds of financing, Swoop Finance expanded into North America. As its point of entry to the market, the company selected Toronto, the second-largest financial centre in North America, and Ontario, the second largest tech cluster in North America. “We go where the customers are,” says Andrea Reynolds, Swoop’s founder and CEO. “Toronto has the highest volume of top-quality SMEs in Canada. From here, we can get to know the market and the nuances of the SME community not just in the city but elsewhere in Canada and the U. S. ” Working directly with SMEs, in partnership with banks, non-bank lenders, advisors, chambers of commerce and other participants in the financial sector, Swoop provides a digital platform where customers can compare thousands of financial products and services, from loans, cash advances and credit facilities to equity, mortgages, grants and tax credits. Using Swoop’s platform, they can assess their financial requirements and then gain access to appropriate financing “in one fell swoop,” says Reynolds. The company’s technology benefits SMEs and their advisors alike. “Smaller businesses are hard to serve if...
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### Titian Consulting Casestudy
> As a small business owner, you need outside assistance with strategic planning; financial processes, cashflow management & forecasting, reporting & compliance.
- Published: 2021-09-27
- Modified: 2022-11-03
- URL: https://swoopfunding.com/za/case-studies/titian-consulting-casestudy/
The Challenge Hilary O’Dwyer who heads up Titian Consulting in Australia offers virtual CFO services to small businesses. As a small business owner, you need outside assistance with strategic planning; financial processes, cashflow management and forecasting, reporting and compliance. The same clients often have questions about securing funding for their business including working capital loans and capital raises. The challenge is to provide them with timely information and connect them to right funding suited to their business needs. The Solution Hilary – “I had actually come across Swoop through an event organized by the Irish Australian Chamber of Commerce and thought Swoop’s product offering was fantastic. Some of my clients had been talking about financing and had been trying to access SME Government backed loans without much luck, that’s when I thought Swoop could help” The Result Swoop worked with Titian Consulting to assist 4 of their clients with their funding needs. The Swoop team was able to work with Hilary to understand the clients business needs and make recommendations for funding options tailored to the business’s requirements. Swoop was able to successfully assist all 4 clients with their debt applications to suitable funders and get speedy approval. Advisor testimonial – “I have connected 4 of my clients with Swoop and all of them were successfully funded. All 4 had no backing from the big banks yet were able to take advantage of non-bank funding which shows how well Swoop works for businesses like these. This gives me confidence to...
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### AreaWealth Case Study
> AreaWealth is a technology driven investment management platform that maximises efficiencies for advisers in managing their clients’ financial needs.
- Published: 2021-09-27
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/areawealth-case-study/
The Challenge AreaWealth is a technology driven investment management platform that maximises efficiencies for advisers in managing their clients’ financial needs. The Australian fintech provides a secure all-in-one platform that integrates a vast array of tools and resources through which advisers can assess, identify, and initiate targeted solutions for their clients. With their business model proven, Areawealth was eager to pursue ambitious strategic objectives to further client growth as well as expand their product offerings. In order to do so Areawealth needed access to further equity capital yet was unsure of how to navigate the equity landscape successfully. The Solution Areawealth initiated an equity seed capital raise with Swoop and leveraged Swoop’s expertise and connections within the equity funding space. Initially, Swoop – led by our equity expert Tim Brown - assisted in the preparation of AreaWealth’s pitch deck and presentation. Following such, AreaWealth was introduced to First Pacific Capital who would become their strategic funding partner. The Results With Swoop working as an intermediary and advisor to AreaWealth and First Pacific Capital throughout the process, AreaWealth was able to secure a capital raise of $2 million dollars. Client Testimonial “Swoop has been instrumental in achieving our desired Seed round funding objective which was oversubscribed, through an introduction of a Strategic Funding Partner - First Pacific Capital Pty Ltd. Throughout this process Tim has been strategic, collaborative and supportive working directly with AreaWealth and First Pacific Capital. ” Dean Lupton, Chief Commercial Officer - Area Wealth Administration Services Pty Ltd
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### Presols case study
> Find out how Swoop helped Presols access additional revenue needed to take their business to its next stage of growth.
- Published: 2020-12-18
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/presols-case-study/
The challenge Presols offers long-term, high-quality and sustainable products and solutions for both business and retail segments. Aware of the shift in preferences and attitudes of the general public towards hygiene following the impact of COVID-19, and concerned about the major environmental impact of disposable masks, Presols sought to become a holistic provider of preventative hygiene products. This includes offering their customers high-quality washable, reusable and customisable facemasks. Having partnered with manufacturers across each of their product lines, and now at the point of generating revenue and breaking-even, additional revenue was needed to take the business to its next stage of growth.   The solution It was at this point that the team at Presols applied for Startup Funding having been connected to Virgin Startup by Swoop. The Swoop team also helped Presols assess their FX exposure and identify how they could be charged less FX fees for every inventory order made in dollars.   The results  Presols was able to use the funds to finance inventory purchase, enabling further growth for the business as the team continues to achieve great results like receiving Amazon’s Choice for one of their face mask collection.   Client testimonial  “We came across Swoop through a web search. The experience with Swoop has been fantastic. They really took the time to understand our business and continue to engage with us. This has helped us open new doors of funding and cost savings. ” www. presols. co. uk  https://www. linkedin. com/company/presolsuk/https://www. facebook. com/presolsuk/https://www. instagram. com/presolsuk/
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### Case Study: Concise Media
> With Concise Media growing very quickly, the team wanted to ensure that they found a debt option that was right for the business.
- Published: 2020-09-21
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/case-study-concise-media/
The challenge Having recently been appointed CFO at Concise Media, Mark Winkler had been working with the team for a number of months, exploring the different funding avenues available to the business. With Concise Media growing very quickly, the team wanted to ensure that they found a debt option that was right for the business. They had applied for CBILS previously but had been rejected due to the EU rule on state aid. The solution After being introduced to Swoop, Mark had a conversation with Mike and Sam from the Swoop team about the opportunities available to the business. Importantly, he received an update from Swoop regarding changes to the eligibility criteria for CBILS. Following this, Swoop were able to identify two or three parties that they felt might be suitable - in particular, they thought IWOCA would be a good match. The results Mark worked closely with Swoop to collate and present the information to IWOCA in the appropriate manner. This led to a call with IWOCA themselves followed by a proposal. Everything was wrapped up that day, and the money came through over the bank holiday weekend. Client testimonial “There were a number of elements which were important in this process, but primarily this was access to a broad range of lenders, and a deep level of expertise and genuine understanding of the debt products and the lenders’ requirements. With any debt products, there’s always the risk of downside circumstances so it’s important to have a team like...
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### Purple PR case study
- Published: 2020-04-27
- Modified: 2020-11-19
- URL: https://swoopfunding.com/za/case-studies/purple-pr-case-study/
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### Macacha case study
- Published: 2020-04-27
- Modified: 2020-11-19
- URL: https://swoopfunding.com/za/case-studies/macacha-case-study/
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### Nimble case study
- Published: 2020-04-27
- Modified: 2020-11-19
- URL: https://swoopfunding.com/za/case-studies/nimble-case-study/
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### The Story of Bookbarn International
> After an appearance on Dragons’ Den in 2017 failed to attract investment, William began looking for alternative financial backing to grow the business
- Published: 2019-10-29
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/the-story-of-bookbarn-international/
The challenge Bookbarn International sells second-hand and antiquarian books through 20 different online marketplaces around the world.   William Pryor – a direct descendent of Charles Darwin – and a colleague took over the troubled business in 2013 and has spent the last six years turning it around. He built the brand and put the software and systems in place that have enabled it to trade effectively on a global scale. Today, around 80 per cent of its sales are online, with the other 20 per cent taking place from its two shops and café in Somerset. After an appearance on Dragons’ Den in 2017 failed to attract investment, William began looking for alternative financial backing to grow the business, which was growing 25 per cent year on year. The solution Earlier this year, Bookbarn International CEO Nick Bates came across the Swoop Funding platform and advised William to get in touch. William had engaged a number of brokers previously, and none were able to get him the funding needed. It didn’t take long for that to change once he’d discovered Swoop. The results One call with the Head of Funding Solutions at Swoop was all it took. Swoop understood the complexities of the Bookbarn International business, and was able to build a strong business case for an underwriting team to give William a fast decision. On September 13 2019, just four days after his initial contact with Swoop, William – who has written several books himself – received an...
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### Case Study: Holy Moly Dips
> Holy Moly Dips needed funding and advice in order to design and make their product, bring it over from Mexico and get it into UK supermarkets
- Published: 2019-07-12
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/case-studies/case-study-holy-moly-dips/
The challenge Mexican food fans Gaz and Tom made it their mission to create a range of 100% natural guacamole and avocado-based dips, after a discussion about why you couldn’t buy delicious guacamole in supermarkets. They had the basis of a great idea in Holy Moly Dips, but no idea how to make it a reality. They needed funding and advice in order to design and make their product, bring it over from Mexico and get it into UK supermarkets. And they needed to understand more about the commercial, financial and operational pitfalls they might face as an SME. The solution The Holy Moly Dips duo discovered Swoop through an entrepreneurial accelerator. Over the last two years, Swoop has helped the Holy Moly Dips team in a multitude of ways, by listening to what they need and where they want to go, and helping them to find investors, partners and people who can support them in doing so. They have utilised a range of Swoop’s services, including financing, trade financing and tier one investment. Swoop has also linked Gaz and Tom up with a network of people who have been through similar experiences launching startups, or who have similar businesses – and now they all help each other. The results Holy Moly Dips has become the first company in the UK that has introduced 100% natural guacamole and avocado-based dips into the big supermarkets. It is sold in Waitrose, Sainsbury’s, Ocado and Wholefoods, and more than 100 other stores. Everything...
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### Case Study: Nimble Babies
> Nimble Babies was founded by professional chemist Von Sy when his sister mentioned that his niece’s milk bottles had gone cloudy and she struggled to get them clean
- Published: 2019-06-21
- Modified: 2024-05-20
- URL: https://swoopfunding.com/za/case-studies/case-study-nimble-babies/
- Category: Loans
The Challenge: Nimble Babies was founded by professional chemist Von Sy. When his sister mentioned that his niece’s milk bottles had gone cloudy and she struggled to get them really clean, Von set about finding a solution. He launched Nimble Babies’ first product – Milk Buster – in 2015. Von knew the next step would be to launch more plant-based cleaning products but, having spent all his money on the launch of Milk Buster, he needed to source additional funds before he could do so. The solution: Swoop stepped in, helping Von to navigate the daunting funding process and introducing him to potential funding sources ranging from tier 1 to invoice finance. Following a series of meetings and phone calls to find out more about the potential funding routes, Von decided that the best approach for Nimble Babies would be to opt for an equity funding option. This ensured that he would benefit from the advice of experienced mentors while having the reassurance of good cash flow and enough working capital to fulfil large orders from retailers and distributors. The Results: Thanks to the possibilities that funding has opened up, multi-award-winning Nimble Babies now has 10 plant-based cleaning products in its portfolio. It is available in 87 Boots stores around the UK, as well as on Boots. com, Ocado. com and Amazon. co. uk. Nimble Babies also exports to several overseas markets and hopes to soon be stocked in many more of Boots’ 2,500 stores nationwide, as well as other...
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## Business glossary
### Proprietary limited company
- Published: 2024-05-07
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/proprietary-limited-company/
Definition A proprietary limited company is a legal entity that operates as a separate entity from its shareholders and directors.   What is a proprietary limited company? One of the key characteristics of a proprietary limited company is limited liability. This means that the liability of the company's shareholders is limited to the amount they have invested in the company. In the event of financial losses or legal claims against the company, the personal assets of shareholders are generally protected from being used to settle the company's debts. A proprietary limited company is owned by its shareholders, who hold shares in the company. The ownership structure can vary, with some companies having a single shareholder while others may have multiple shareholders. The day-to-day operations of a proprietary limited company are typically managed by its directors. They are responsible for making strategic decisions, ensuring compliance with laws and regulations, and overseeing the company's affairs. Proprietary limited companies are subject to various regulatory requirements and compliance obligations under company law. Failure to meet these requirements can result in penalties or legal consequences for the company and its directors. As a separate legal entity, a proprietary limited company has the ability to raise capital by issuing shares to investors. This can facilitate growth and expansion opportunities for the company by providing access to additional funds for investment in assets, technology, research and development, and other business activities. Example of a proprietary limited company John and Jane decide to start a small software development...
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### South African Institute of Chartered Accountants (SAICA)
- Published: 2024-05-03
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/south-african-institute-of-chartered-accountants/
Definition The South African Institute of Chartered Accountants (SAICA) is a professional accounting body in South Africa that represents chartered accountants and accounting professionals.   What is the South African Institute of Chartered Accountants? SAICA plays a key role in regulating the accounting profession, promoting excellence in accounting education and training, and contributing to the development of the accountancy profession in South Africa. SAICA is responsible for the education and training of potential chartered accountants in South Africa. It offers various pathways to becoming a chartered accountant, including undergraduate and postgraduate accounting programs, as well as training contracts with approved employers. Additionally, SAICA provides ongoing professional development opportunities for its members to enhance their skills, knowledge, and competencies throughout their careers. This includes continuing professional education programs, seminars, workshops, and networking events. The Institute represents the interests of its members and the accounting profession at large in South Africa. It engages with government agencies, regulatory bodies, and other stakeholders to support policies and reforms that promote the growth, integrity, and sustainability of the accounting profession and the broader economy. Furthermore, SAICA conducts research and publishes reports on various topics relevant to the accounting profession and the business environment in South Africa. It aims to contribute to thought leadership, innovation, and best practices in accounting and business management.
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### SACU-EFTA FTA
- Published: 2024-05-03
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/sacu-efta-fta/
Definition The SACU-EFTA FTA refers to the free trade agreement (FTA) between the Southern African Customs Union (SACU) and the European Free Trade Association (EFTA). What is SACU-EFTA FTA? The SACU-EFTA FTA aims to promote trade liberalisation between the member countries by reducing or eliminating tariffs and other trade barriers on goods traded between the two regions. This creates opportunities for increased trade and investment flows, leading to economic growth and development. The FTA establishes rules of origin criteria to determine the eligibility of goods for tariff treatment. These rules specify the criteria that must be met for goods to qualify as originating from either SACU or EFTA countries, ensuring that only goods produced within the respective regions benefit from tariff preferences. In addition to trade in goods, the SACU-EFTA FTA may also include regulations related to trade in services and investment. This may involve commitments to liberalise trade in services sectors, such as financial services, telecommunications, and professional services, as well as provisions to protect and promote investment flows between the two regions. The SACU-EFTA FTA may also include regulations for cooperation and capacity building initiatives to support the implementation of the agreement and improve the trade and economic relationship between the member countries. This may involve technical assistance, training programs, and other forms of support to strengthen institutions and build regulatory capacity. Example of SACU-EFTA FTA For instance, let's say South African farmers want to export their organic produce to Norway. Thanks to the SACU-EFTA FTA, they can...
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### Payment reference number (PRN)
- Published: 2024-05-03
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/payment-reference-number/
Definition A payment reference number (PRN) is a unique identifier assigned to a specific payment transaction to facilitate accurate and efficient processing by banks and financial institutions. What is a payment reference number? The primary purpose of a payment reference number is to ensure that payments are correctly allocated to the intended recipient or account. It serves as a reference or identifier that links the payment to a specific invoice, bill, or transaction. PRNs are typically generated by the entity or organisation requesting payment. They may be generated electronically through billing or invoicing systems or manually assigned by the payer when making a payment. These numbers are alphanumeric codes consisting of a combination of letters, numbers, or special characters. They are designed to be unique to each payment transaction, helping to prevent duplication or confusion. Banks and financial institutions use PRNs to match incoming payments with the relevant recipient accounts or invoices. PRNs are included in electronic payment messages and bank records. PRNs streamline the payment process for both parties involved, reducing the risk of errors, delays, and misallocations. They improve transparency and accountability in financial transactions by providing a clear reference point for auditing and reconciliation purposes. PRNs also facilitate efficient communication and coordination between payers and recipients, particularly in cases where multiple payments need to be reconciled against specific accounts or invoices. Example of payment reference number John Smith is making a payment of R500 to his utility company for his monthly electricity bill. The utility company provides...
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### Payments Association of South Africa
- Published: 2024-05-03
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/payments-association-of-south-africa/
Definition The Payments Association of South Africa (PASA) is an organisation established to facilitate safe, efficient, and reliable payment systems in South Africa.   What is the Payments Association of South Africa? Payments Association of South Africa’s primary purpose is to coordinate and oversee the functioning of payment systems within South Africa, ensuring their safety, efficiency, and integrity. PASA operates under the oversight of the South African Reserve Bank (SARB) to ensure compliance with relevant regulations and standards governing payment systems. PASA plays a key role in facilitating various payment systems and services, including electronic funds transfers (EFT), card payments, and real-time gross settlement (RTGS) systems. It establishes rules, standards, and procedures to govern payment systems and promote interoperability among different payment service providers. PASA operates through various committees and working groups dedicated to specific aspects of payment systems, such as risk management, security, and innovation. It collaborates with stakeholders from the public and private sectors to address emerging challenges, increase the resilience of payment systems, and promote innovation and best practices in the industry. Additionally, PASA promotes innovation and the adoption of new technologies in payment systems to enhance convenience, security, and accessibility for consumers and businesses. It facilitates the development and implementation of new payment solutions, such as mobile payments, digital wallets, and instant payment systems, to meet the evolving needs of the market.
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### Ransomware
- Published: 2024-04-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/ransomware/
Definition Ransomware is a type of malware designed to encrypt files or lock down computer systems, with the intention of getting payments from victims in exchange for restoring access to their data or systems. What is ransomware? Ransomware is a significant cybersecurity threat that can have major consequences for individuals, businesses, and organisations. It typically works by encrypting files on the victim's computer or network, making them inaccessible without the decryption key. Some ransomware variants may also lock down entire computer systems, preventing users from accessing their operating system or files until the ransom is paid. After encrypting files or locking down systems, ransomware displays a ransom demand to the victim, usually in the form of a message or notification on the affected device. The ransom demand typically instructs the victim to pay a sum of money to obtain the decryption key or regain access to their files or systems. Ransomware attacks can have severe consequences for victims, including data loss, financial loss, operational disruption, and reputational damage. Businesses and organisations may suffer downtime, loss of productivity, and damage to customer trust and confidence as a result of ransomware attacks. Preventing ransomware attacks requires a multi-layered approach to cybersecurity, including implementing robust security measures, keeping systems and software updated with the latest security patches, and educating users about cybersecurity best practices. Regularly backing up important data and storing backups offline or in a secure location can reduce the impact of ransomware attacks by allowing affected systems to be restored without...
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### Malware
- Published: 2024-04-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/malware/
Definition Malware, short for malicious software, refers to any software specifically designed to disrupt, damage, or gain unauthorised access to computer systems, networks, or devices.   What is malware? Malware represents a significant cybersecurity threat, posing risks to individuals, businesses, and organisations worldwide. Types of malware: Viruses: Malware that attaches itself to legitimate programs or files and replicates when the infected program or file is executed. Worms: Self-replicating malware that spreads across networks, exploiting vulnerabilities in operating systems or software. Trojans: Malware disguised as legitimate software or files, which may include backdoors, keyloggers, or remote access tools. Ransomware: Malware that encrypts files or locks down systems, demanding payment for decryption or restoration of access. Spyware: Malware designed to covertly monitor and collect sensitive information, such as passwords, browsing history, or keystrokes, often for malicious purposes. Adware: Malware that displays unwanted advertisements or redirects users to harmful websites, potentially generating revenue for the attacker. Rootkits: Malware that provides unauthorised access to a computer or network while concealing its presence and activities from detection. Effective cybersecurity measures can help prevent malware infections, including using reputable antivirus software, keeping systems and software updated with security patches, implementing firewalls and intrusion detection systems, and educating users about safe computing practices. Antivirus software and other security tools can also help detect and remove malware infections from systems. However, some sophisticated malware variants may dodge detection or require manual removal techniques. Example of malware A user receives an email with an attachment claiming to be an...
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### Challenger bank
- Published: 2024-04-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/challenger-bank/
Definition A challenger bank is a relatively new type of financial institution that challenges the traditional banking model by offering innovative and customer-focused banking services primarily through digital channels.   What is a challenger bank? Challenger banks are often startups or smaller institutions compared to traditional banks and aim to disrupt the industry by providing improved user experiences, lower fees, and more transparent services. These banks prioritise user experience by offering intuitive interfaces, quick account setup processes, and personalised financial management tools. They aim to make banking more efficient and enjoyable for customers. Additionally, the banks often introduce innovative features that differentiate them from traditional banks. This may include real-time transaction notifications, automated savings tools, budgeting assistance, and integration with third-party financial services. Challenger banks typically have lower overhead costs compared to traditional banks, allowing them to offer competitive interest rates on savings accounts, reduced or no fees for basic banking services, and favourable foreign exchange rates. Furthermore, challenger banks often target specific demographic groups or niche markets that may be underserved by traditional banks, such as freelancers, immigrants, or small businesses. By understanding the unique needs of these segments, challenger banks can tailor their offerings accordingly. Despite their disruptive nature, challenger banks are subject to the same regulatory requirements as traditional banks. Ensuring compliance with these regulations is essential for maintaining trust and credibility with customers. Example of a challenger bank BankX, an emerging challenger bank, reshapes banking norms with its tech-forward approach. Offering zero-fee accounts and instant peer-to-peer...
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### Burn rate
- Published: 2024-04-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/burn-rate/
Definition Burn rate in business finance refers to the rate at which a company is spending its available cash reserves or funds over a specific period. What is the burn rate? A burn rate indicates how quickly a company is using its financial resources and provides valuable insight into its financial sustainability. The formula for calculating the burn rate is: Burn rate = Total expenses / Time period Burn rate reflects the amount of cash a company is "burning through" to cover its expenses. This includes salaries, rent, utilities, marketing costs, research and development expenses, and any other operational costs. It serves as a key metric for assessing a company's financial health. A high burn rate relative to available funds indicates that the company may run out of cash quickly if it does not generate additional revenue or secure additional financing. Startups and high-growth companies may have high burn rates as they invest heavily in product development, marketing, and customer acquisition to capture market share and scale their operations. Investors closely monitor a company's burn rate as part of their due diligence process, especially in the startup and early-stage investment landscape. A high burn rate may raise concerns about the company's ability to achieve profitability or secure additional funding to sustain its growth path. Example of burn rate Company XYZ has R500,000 in cash reserves. Over the past month, it spent R50,000 on salaries, R20,000 on rent, R15,000 on utilities, and R10,000 on marketing, totalling R95,000 in expenses. Using the...
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### Retained earnings
- Published: 2024-04-10
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/retained-earnings/
Definition Retained earnings refer to the portion of a company's net income that is not distributed to shareholders as dividends but is instead retained and reinvested in the business. What are retained earnings? Retained earnings represent the sum of all past profits that have been reinvested in the company since its beginning, minus any dividends or other distributions to shareholders. They serve as a source of internal financing for various purposes such as funding expansion projects, research and development, debt repayment, or other investments aimed at increasing the company's value and competitiveness in the market. Retained earnings accumulate over time as a result of profitable operations. They are derived from the net income generated by the company after deducting all expenses, taxes, and dividends. While retained earnings are not directly distributed to shareholders, they contribute to increasing shareholder value in the long run. By reinvesting profits into the business and generating higher returns, companies can potentially boost stock prices and create wealth for shareholders over time. The decision regarding how much of the net income should be retained and how much should be distributed as dividends is influenced by various factors. A company may choose to retain more earnings during growth phases to fuel expansion, while mature companies with stable cash flows may opt to distribute a higher portion of earnings as dividends to reward shareholders. Example of retained earnings At the beginning of the year, ABC Inc. has retained earnings of R500,000. Throughout the year, the company generates a...
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### Cash sweep
- Published: 2024-04-09
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cash-sweep/
Definition Cash sweep refers to the process by which excess funds in a bank account are automatically transferred into another account or investment that offers higher interest rates or better returns. What is a cash sweep? A cash sweep helps individuals or organisations optimise the use of their cash by ensuring that passive funds are not left sitting in low-interest accounts. There are several common types of cash sweep arrangements: Money market sweep accounts: Funds from a checking account are moved into a money market account, known for its higher interest rates compared to regular checking or savings accounts. Repurchase agreements (Repo sweep): This involves transferring extra funds into short-term investments. Repos are short-term loans backed by securities, offering a secure and liquid option for storing cash. Investment sweep accounts: Some brokerages provide cash sweep options. This enables investors to earn returns on their unused cash while retaining liquidity for trading or investment opportunities. Loan sweep accounts: Extra funds in a checking account are used to repay outstanding loan balances. This reduces interest costs while still allowing access to cash when required. Automatic transfers to external accounts: Some banks provide cash sweep services, automatically moving extra funds to external accounts at other financial institutions, like high-yield savings or investment accounts. By automatically moving cash into higher-yielding accounts or investments, individuals and organisations can maximise their returns on cash balances. Furthermore, cash sweep arrangements can help manage risk by diversifying investments or reducing exposure to counterparty risk. Example of a cash...
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### Angel syndicate
- Published: 2024-03-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/angel-syndicate/
Definition An angel syndicate is a group of individual angel investors who pool their resources and expertise to collectively invest in early-stage startups. What is an angel syndicate? Angel syndicates enable individual angel investors to combine their financial resources, allowing them to make larger investments than they would be able to alone. By pooling funds, syndicates can provide startups with greater access to capital, which is crucial for early-stage growth and development. Participating in an angel syndicate allows individual investors to diversify their investment portfolios across multiple startups. This helps spread risk and mitigate the potential for losses, as investments in early-stage companies are more risky. Angel syndicates conduct thorough due diligence on potential investment opportunities, evaluating factors such as market potential, competitive landscape, team capabilities, and growth prospects. Syndicate members collaborate to identify promising startups and assess their viability before making investment decisions. Angel syndicates aim to generate returns for their members through successful exits, such as acquisitions or initial public offerings (IPOs) of portfolio companies. Syndicate members typically share in the profits generated from successful exits, providing a financial incentive for participating in the syndicate. Example of an angel syndicate A group of experienced angel investors forms an angel syndicate focused on investing in early-stage software-as-a-service (SaaS) companies. They identify a promising SaaS startup developing a productivity tool for remote teams, and collectively invests R500,000 in exchange for a 15% equity stake in the company. The syndicate members leverage their expertise and networks to support the startup, and...
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### Market segmentation
- Published: 2024-03-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/market-segmentation/
Definition Market segmentation is a strategic approach used by businesses to divide a market into smaller, more manageable segments or groups of consumers who share similar characteristics, needs, or behaviours.   What is market segmentation? The purpose of market segmentation is to better understand and target specific customer groups with tailored marketing strategies, products, and services. Markets consist of diverse groups of consumers with varying needs, preferences, and behaviours. Market segmentation acknowledges this diversity and recognises that a one-size-fits-all approach to marketing may not effectively reach all consumers. Segments can be defined based on various criteria, including demographic factors, geographic location, psychographic characteristics, behavioural traits, or a combination of these factors. The choice of segmentation criteria depends on the nature of the market and the objectives of the marketing strategy. Once segments are identified, marketers evaluate and prioritise them based on factors such as segment size, growth potential, profitability, and compatibility with the company's resources and capabilities. This process helps marketers decide which segments to focus on and allocate their marketing resources effectively. Segmentation enables marketers to develop tailored marketing strategies and tactics for each segment. This includes customised product offerings, pricing strategies, distribution channels, and promotional activities designed to engage with the specific needs and preferences of each segment. Example of market segmentation A beverage company conducts market research and identifies that within its target market of young adults aged 18-30, there are distinct segments based on lifestyle and preferences.   Health-conscious individuals: This segment values health and wellness,...
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### Return on capital employed (ROCE)
- Published: 2024-03-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/return-on-capital-employed/
Definition Return on capital employed (ROCE) is a financial metric used to evaluate the profitability and efficiency of a company's capital investments.   What is return on capital employed? Return on capital employed measures how effectively a company is generating profits from its capital investments, including both debt and equity. The formula for ROCE is as follows: ROCE = (EBIT / Capital employed) x 100 ROCE is a key measure for investors, analysts, and management because it provides insights into how efficiently a company is using its capital to generate profits. A higher ROCE indicates that the company is generating more profits per unit of capital employed, which is generally favourable. Conversely, a lower ROCE suggests inefficiency in capital allocation. This metric takes into account the capital structure of the company, including both debt and equity. It provides insights into how effectively the company is managing its debt obligations while generating profits. While ROCE is a valuable metric, it has limitations. For example, it may be influenced by accounting practices, industry norms, and economic cycles. Additionally, it does not consider the cost of capital explicitly, which can vary based on market conditions. If you want to calculate the return on capital employed for your business, try our handy calculator today. Example of return on capital employed Let's consider a company, ABC Inc. , which reported an earnings before interest and taxes (EBIT) of R500,000 for the year. The company's total capital employed, including both debt and equity, is R2,000,000. Using...
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### Exchange rate
- Published: 2024-03-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/exchange-rate/
Definition An exchange rate refers to the value at which one currency can be exchanged for another.   What is an exchange rate? An exchange rate is essentially the price of one country's currency in terms of another country's currency. Exchange rates are determined by the foreign exchange market, which operates globally and around the clock. These rates fluctuate constantly due to various factors such as supply and demand, economic indicators, geopolitical events, and central bank policies. Exchange rates are quoted in pairs, with the base currency listed first and the counter currency listed second. The exchange rate indicates how much of the counter currency is needed to purchase one unit of the base currency.   There are two types of exchange rates: fixed and floating. Fixed exchange rates: A currency's value is tied to another currency or a basket of currencies. Governments or central banks maintain this fixed value by buying or selling their currency as needed. While providing stability, this system can be difficult to sustain in the long run. Floating exchange rates: Currency value is set by market supply and demand. While central banks may intervene to stabilise or address extreme volatility, market participants primarily determine the exchange rate. This system offers flexibility and adapts more freely to economic changes. Exchange rates play a crucial role in international trade, investment, and finance. They affect the cost of imported and exported goods and services, influence investment decisions, impact tourism and travel expenses, and can affect a country's balance...
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### Deferred income
- Published: 2024-03-22
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/deferred-income/
Definition Deferred income is a liability recorded on a company's balance sheet that represents revenue received in advance of being earned. What is deferred income? Deferred income refers to the money a company receives for goods or services that it has not yet provided to the customer. It is recognised as a liability on the balance sheet because the company has an obligation to deliver the goods or services in the future. As the company fulfils its obligations and delivers the goods or services to the customer, the deferred income is gradually recognised as revenue on the income statement. This recognition typically occurs proportionately over the period during which the goods or services are provided. Companies are required to disclose the nature and amount of deferred income in their financial statements to provide transparency regarding their future revenue obligations and the timing of revenue recognition. Deferred income is important for financial analysis as it provides insights into a company's cash flow, revenue recognition practices, and future performance expectations. It also helps investors and analysts assess the sustainability of a company's revenue stream and its ability to fulfil its obligations to customers. Example of deferred income Let's say a fitness centre sells annual memberships for R1,200 each. A customer purchases a membership and pays the full amount upfront. Since the membership covers a period of 12 months, the fitness centre hasn't yet earned all of the revenue received. At the time of purchase: The fitness centre records R1,200 as deferred income...
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### Cross rate
- Published: 2024-03-22
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cross-rate/
Definition A cross rate refers to the exchange rate between two currencies, neither of which is the official currency of the country in which the quote is provided.   What is cross rate? The cross rate is the exchange rate between two currencies, calculated from their respective exchange rates with a third currency, often known as the base currency. These rates are used in situations where the currencies being exchanged are not commonly traded directly against each other in the foreign exchange market. Instead, their exchange rate is calculated indirectly through a common intermediary currency. Cross rates are calculated using the exchange rates of the currencies involved and the base currency. The process involves multiplying or dividing the exchange rates to calculate the cross rate. For example, if you want to find the cross rate between Currency A and Currency B, you would first convert both currencies to a common base currency, such as the US dollar, and then calculate the exchange rate between Currency A and Currency B based on their respective rates against the base currency. Cross rates are crucial for businesses and investors engaged in international trade or investment, especially when dealing with currencies that are not widely traded. They allow parties to calculate exchange rates for currency pairs that may not have direct liquidity in the foreign exchange market. The efficiency of the foreign exchange market ensures that cross rates remain consistent with direct exchange rates after accounting for transaction costs and other factors. Any significant...
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### Compound interest
- Published: 2024-03-22
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/compound-interest/
Definition Compound interest is a concept in finance that refers to the interest earned or charged on both the initial principal amount and the accumulated interest from previous periods. What is compound interest? It is interest calculated on the initial amount of money invested or borrowed, as well as on the interest accumulated over time. This compounding effect can significantly boost savings or debt obligations over time. Compound interest has a snowball effect, where the interest earned or charged in each period is added to the principal, resulting in a larger base for calculating future interest. Over time, this compounding effect accelerates the growth of investments or debts. Compound interest is a powerful tool for wealth accumulation over the long term. By reinvesting earnings and allowing them to compound over time, investors can achieve significant growth in their investment portfolios. On the other side, compound interest can work against borrowers, causing debts to grow rapidly if left unpaid. Credit cards, mortgages, and other loans with compound interest accrue interest on the outstanding balance, including both the principal and any accrued interest. Failure to make timely payments can lead to a cycle of increasing debt due to the compounding effect. Example of compound interest Let's say a company invests R50,000 in a high-yield bond with an annual interest rate of 6%, compounded annually, to finance a new project. In the first year, the company earns 6% interest on its initial investment of R50,000, amounting to R3,000. So, at the end of...
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### Capital expenditure
- Published: 2024-03-22
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/capital-expenditure/
Definition Capital expenditure refers to the funds a company spends to buy, upgrade, or maintain physical assets with the intention of generating future benefits or returns over an extended period.   What is capital expenditure? Capital expenditures are investments made by companies to improve their long-term productive capacity or efficiency. It typically involves significant monetary outlays and is characterised by its long-term impact on the business. These expenditures are generally aimed at enhancing the company's ability to generate revenue, increase efficiency, or expand operations. Types of capital expenditure: Acquisition of fixed assets: This includes purchases of property, plant, and equipment, such as machinery, vehicles, buildings, and land. Capitalised costs: Certain costs associated with the development of long-term assets, such as research and development (R&D) expenses. Improvements and upgrades: Expenditures incurred to improve the efficiency, capacity, or functionality of existing assets. Software and intangible assets: Investments in software licences, patents, trademarks, and other intangible assets are also classified as capital expenditures. Capital expenditures are reflected as assets on the balance sheet and are typically depreciated or amortised over their useful life. While capital expenditures do not directly impact the income statement in the period they are incurred, they affect profitability indirectly through depreciation or amortisation expenses over time. Lastly, capital expenditures are reflected as cash outflows in the investing activities section of the cash flow statement. Furthermore, capital expenditures play a vital role in driving growth, competitiveness, and sustainability for businesses across various industries. They enable companies to modernise infrastructure, adopt...
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### Administrative expenses
- Published: 2024-03-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/administrative-expenses/
Definition Administrative expenses refer to the costs incurred by a business in the day-to-day operations and management of its activities.   What are administrative expenses? These expenses are essential for the functioning of the business but do not directly contribute to the production of goods or services. Administrative expenses cover a wide range of costs associated with general management, administration, and support functions within an organisation. Some common examples of administrative expenses include: Salaries and wages: Compensation paid to administrative staff involved in general administration and support functions. Office rent and utilities: Costs associated with leasing office space and utility bills such as electricity, water, and internet services. Office supplies and equipment: Expenses related to office supplies, equipment, and furniture necessary for day-to-day operations. Insurance: Payments made for various types of insurance coverage, including property insurance, liability insurance, and workers' compensation insurance. Depreciation and amortisation: Allocation of the cost of tangible assets (depreciation) and intangible assets (amortisation) used in administrative activities. Training and development: Expenses for employee training programs, professional development seminars, and educational courses. Office maintenance and cleaning: Expenses related to maintenance of office facilities, including janitorial services, repairs, and renovations. Administrative expenses are recorded on the income statement of a company and are deducted from its total revenue to calculate its operating profit. Monitoring and controlling administrative expenses are essential for businesses to maintain profitability, improve efficiency, and allocate resources effectively.   Example of administrative expenses Let's consider a small consulting firm. Some of its administrative expenses for...
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### Accounting rate of return (ARR)
- Published: 2024-03-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accounting-rate-of-return/
Definition The accounting rate of return (ARR) is a financial metric used to evaluate the profitability of an investment project or asset by comparing the average accounting profit generated by the investment to the initial investment cost.   What is the accounting rate of return? ARR is often expressed as a percentage and provides insight into the average annual return generated by the investment relative to its initial cost. To calculate the accounting rate of return, the following formula is typically used: ARR = (Average accounting profit / Initial Investment) x 100 ARR is relatively simple to calculate and understand compared to other investment appraisal methods, making it a popular metric for small businesses or projects where complex financial analysis may not be feasible. Keep in mind that ARR does not explicitly consider the time value of money, as it does not discount future cash flows back to their present value. This can be a limitation, especially when comparing investment projects with different cash flow timing. While ARR may not be suitable for comparing investment projects with different durations or cash flow profiles, it can be useful for comparing similar projects or investment alternatives within an organisation. Example of the accounting rate of return Let's say a company invests R50,000 in a new project. Over the next five years, the project generates the following annual accounting profits: Year 1: R10,000 Year 2: R12,000 Year 3: R14,000 Year 4: R16,000 Year 5: R18,000 Calculate the average accounting profit: Average accounting profit...
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### Absolute return
- Published: 2024-03-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/absolute-return/
Definition Absolute return refers to the performance of an investment or portfolio relative to its initial value, without considering any benchmark.   What is absolute return? Absolute return focuses solely on the absolute gains or losses generated by the investment over a specific period. The goal of absolute return investing is to achieve positive returns regardless of market conditions. This approach aims to generate profits consistently, regardless of whether the overall market is rising or falling. To calculate the absolute return, the following formula can be used: Absolute return (%) = ( (Final value - Initial value) / Initial value) x 100 Absolute return strategies often prioritise capital protection and risk management, seeking to limit downside volatility and protect against significant losses. By focusing on absolute returns, investors aim to achieve steady and predictable growth over time, rather than attempting to outperform a specific benchmark. Absolute return strategies are commonly used by hedge funds, private wealth managers, and institutional investors seeking to diversify their portfolios and reduce overall portfolio risk. However, absolute return strategies can vary widely in terms of risk profile, investment approach, and performance outcomes, making them suitable for investors with different risk tolerances and investment objectives. Example of absolute return Let's say an investor invested R10,000 in a stock at the beginning of the year. At the end of the year, the investment is now worth R12,000. To calculate the absolute return: Absolute Return (%) = ( (12,000 - 10,000) / 10,000) x 100 = 20% So,...
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### The Basic Conditions of Job Act (BCEA)
- Published: 2024-03-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/the-basic-conditions-of-job-act/
Definition The Basic Conditions of Employment Act (BCEA) is a key piece of labour legislation in South Africa that sets out the minimum employment conditions and standards applicable to most workers in the country.   What is the Basic Conditions of Job Act? The BCEA aims to regulate and protect the rights of employees and promote fair labour practices in the workplace. It establishes minimum standards for various aspects of employment, including working hours, leave entitlements, rest periods, overtime pay, and termination of employment. These minimum conditions apply to most employees in South Africa, regardless of their occupation, industry, or employment contract type. Leave entitlements: The BCEA provides for various types of leave entitlements for employees, including annual leave, sick leave, maternity leave, and family responsibility leave.   Public holidays: It outlines the entitlement of employees to public holidays and the conditions under which they should be paid if required to work on a public holiday.   Termination of employment: The BCEA regulates the termination of employment relationships, including the notice periods required for termination, severance pay provisions, and procedures for dismissals.   Furthermore, the BCEA establishes mechanisms for enforcement and compliance, empowering labour inspectors to monitor workplaces, investigate complaints, and enforce compliance with the Act. It provides for penalties and sanctions for non-compliance with BCEA provisions, including fines, compensation orders, and criminal prosecution for serious violations.
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### Southern African Customs Union (SACU) agreement
- Published: 2024-03-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/southern-african-customs-union-agreement/
Definition The Southern African Customs Union (SACU) agreement is a regional trade arrangement established to promote economic cooperation and integration among its member states in Southern Africa.   What is the Southern African Customs Union agreement? SACU is one of the world's oldest customs unions, comprising five member countries: Botswana, Eswatini (formerly Swaziland), Lesotho, Namibia, and South Africa. It operates as a customs union, which means that member states have established a common external tariff (CET) for goods imported from non-member countries. Member states also eliminate tariffs on trade among themselves, creating a single market for goods and services within the union. A unique feature of SACU is its revenue-sharing arrangement, where customs duties collected on imports entering SACU member states are pooled and then distributed among the member countries based on a revenue-sharing formula. This formula considers factors such as the relative size of each country's economy and its share of total imports, ensuring a fair distribution of customs revenue among member states. SACU aims to facilitate trade and promote economic development in the region by reducing trade barriers, improving customs procedures, and increasing trade facilitation measures. Member states implement initiatives such as the harmonisation of customs documentation, the automation of customs processes, and the development of trade infrastructure to expedite the movement of goods across borders and reduce trade costs. Example of Southern African Customs Union agreement An example of the Southern African Customs Union (SACU) agreement in action is when a company in South Africa exports goods...
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### South African Reserve Bank (SARB)
- Published: 2024-03-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/south-african-reserve-bank/
Definition The South African Reserve Bank (SARB) is the central bank of South Africa, and is implementing monetary policy, maintaining price stability, and promoting sustainable economic growth and financial stability.   What is the South African Reserve Bank? The SARB is responsible for formulating and implementing monetary policy to achieve its primary objective of price stability. It sets the benchmark interest rate, which influences borrowing and lending rates in the economy. Through its monetary policy decisions, the SARB aims to control inflation within its target range and support sustainable economic growth. As the issuer of South Africa's national currency, the South African rand (ZAR), the SARB is responsible for issuing and regulating banknotes and coins in circulation. It manages the currency supply to maintain confidence in the rand, ensure enough liquidity in the financial system, and facilitate efficient payments and transactions. The SARB oversees the banking sector and financial institutions operating in South Africa to ensure their safety, soundness, and compliance with regulatory requirements. It supervises banks, insurance companies, and other financial organisations to promote financial stability, protect depositors' funds, and reduce systemic risks.   Furthermore, the SARB monitors and assesses risks to financial stability, including systemic risks, market disruptions, and vulnerabilities in the financial system. It collaborates with other regulatory authorities, such as the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA), to coordinate overall supervision and crisis management efforts. Lastly, the SARB engages in international cooperation and collaboration with other central banks, monetary authorities, and international...
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### South African Revenue Service (SARS)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/south-african-revenue-service/
Definition The South African Revenue Service (SARS) is the national tax authority of South Africa responsible for collecting tax revenue and ensuring compliance with tax laws and regulations. What is the South African Revenue Service? SARS plays a key position within the nation's fiscal system, overseeing a range of tax activities, managing customs and excise duties, and actively countering tax evasion and fraud. One of SARS’ roles is collecting various taxes on behalf of the South African government, including income tax, value-added tax (VAT), corporate tax, customs duties, excise duties, and other fees. It implements tax policies and regulations set forth by the National Treasury to generate revenue for funding government expenditures and public services. In addition to tax collection, SARS is responsible for administering customs and excise duties on imported and exported goods. It oversees customs clearance processes, enforces import and export controls, and collects duties and tariffs on international trade transactions. SARS administers the tax system by processing tax returns, assessing tax liabilities, issuing tax assessments, and collecting tax payments from individuals, businesses, and other organisations. It provides taxpayer services, such as tax registration, filing assistance, and taxpayer education programs to promote compliance and improve taxpayers understanding of their obligations. SARS is empowered to enforce tax laws and fight tax evasion, fraud, and non-compliance through audits, investigations, and enforcement actions. It conducts risk-based compliance programs, targeting high-risk taxpayers and sectors to detect and prevent tax fraud. SARS collaborates with other law enforcement agencies and international counterparts to fight...
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### South African depository receipts
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/south-african-depository-receipts/
Definition South African Depository Receipts (SADRs) are financial instruments that allow investors outside of South Africa to indirectly invest in securities listed on the Johannesburg Stock Exchange (JSE). What are South African depository receipts? SADRs represent ownership of shares in South African companies, but they are issued and traded on exchanges outside of South Africa, typically in international financial centres like London or New York. With SADRs international investors get a convenient and cost-effective way to access South African equities and diversify their investment portfolios. They enable investors to participate in the growth potential of the South African economy and its leading companies while benefiting from the liquidity and transparency of international financial markets. The trading of SADRs are subject to regulatory oversight by relevant authorities in the jurisdiction where they are listed. Additionally, the underlying South African companies must comply with regulatory requirements set forth by the JSE and other regulatory bodies. Investors in SADRs are exposed to currency risk, as fluctuations in exchange rates between the foreign currency denomination of the SADRs and the investor's home currency can impact investment returns. However, for investors seeking exposure to South African equities, SADRs provide a means to manage this currency risk while accessing the potential returns of the South African market. Example of South African depository receipts Let’s consider an investor based in the United States who wants to purchase SADRs representing shares of a prominent South African mining company listed on the Johannesburg Stock Exchange (JSE). Instead of directly...
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### SAVI top 40
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/savi-top-40/
Definition The SAVI Top 40, also known as the South African volatility index top 40, is an index that tracks the performance of the top 40 companies listed on the Johannesburg Stock Exchange. What is SAVI top 40? The SAVI Top 40 index consists of the 40 largest companies by market capitalisation listed on the JSE. These companies represent a diverse range of sectors and the selection of constituents is based on their market capitalisation, ensuring that the index includes the most significant players in the South African equity market. Unlike traditional market capitalisation-weighted indices, the SAVI top 40 uses a volatility-based weighting method to determine the weight of each constituent in the index. This approach aims to reduce the impact of highly volatile stocks on the index performance and provide a more stable investment outcome for investors. Companies with lower historical volatility are assigned higher weights in the index, while those with higher volatility are assigned lower weights. The SAVI top 40 index serves as a benchmark for evaluating the performance of South African equity funds, exchange-traded funds (ETFs), and other investment products. Investors can use the index as a reference point for assessing the relative performance of their investment portfolios or as the basis for constructing index-tracking or passive investment strategies. As the top 40 companies listed on the JSE, the constituents of the SAVI top 40 index are considered representative of the South African equity market's overall performance. Changes in the index composition reflect shifts in market...
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### Rand hedge
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/rand-hedge/
Definition Rand hedge refers to an investment strategy used by investors in South Africa to reduce the effects of currency depreciation or volatility on their investment returns. What is rand hedge? Rand hedge involves diversifying investment holdings across different currencies, particularly those that have historically appreciated against the South African rand. Commonly used currencies for this purpose include the US dollar (USD), euro (EUR), British pound (GBP), and Swiss franc (CHF). By doing so, investors aim to protect the value of their investments against potential depreciation of the rand. Investors pursuing a rand hedge strategy often allocate capital to international assets, such as foreign stocks, bonds, real estate, and commodities. These assets provide exposure to global markets and currencies, reducing the portfolio's reliance on the performance of the South African economy and currency. The allocation to rand hedge assets within an investment portfolio depends on individual investor preferences, risk tolerance, and market. Some investors may allocate a significant portion of their portfolio to foreign currency-denominated assets, while others may maintain a more balanced approach with a smaller allocation to rand hedge strategies. Example of rand hedge An example of a rand hedge strategy would be a South African investor purchasing shares of multinational companies listed on foreign stock exchanges. These companies generate a significant portion of their revenue from international markets and are less influenced by fluctuations in the South African rand. By holding shares in these companies, the investor aims to protect their investment portfolio from the negative effects...
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### Prudential Authority (PA)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/prudential-authority/
Definition The Prudential Authority (PA) is a regulatory body in South Africa responsible for supervising and regulating banks, insurers, and other financial institutions to ensure their safety, soundness, and stability. What is the Prudential Authority? The PA's role is to promote and enhance the safety and soundness of the financial system by regulating and supervising banks, insurers, and other financial institutions operating in South Africa. It’s responsible for setting prudential standards and regulations governing the financial sector to ensure the stability and resilience of financial institutions.   The PA conducts ongoing supervision of regulated organisations to assess their financial health, risk management practices, and compliance with the regulations. It conducts regular examinations, risk assessments, and stress tests to identify risks and vulnerabilities within the financial system. In cases of non-compliance or breaches of the standards, the PA may take actions, such as imposing sanctions, issuing directives, or revoking licence. Furthermore, the PA plays a key role in resolving financial institutions that are failing to minimise disruptions to the financial system and protect depositors and policyholders. It develops resolution plans, implements resolution strategies, and coordinates crisis management efforts in collaboration with other regulatory authorities and stakeholders.   Example of the Prudential Authority An example of the Prudential Authority (PA) in action could involve the regulation and supervision of a South African bank to ensure its compliance with capital requirements. The PA would regularly assess the bank's financial health, risk management practices, and compliance with the regulations to safeguard depositors' funds and...
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### Labour Relations Act (LRA)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/labour-relations-act/
Definition The Labour Relations Act (LRA) is a comprehensive piece of legislation in South Africa that governs labour relations and practices in the country. What is the Labour Relations Act? The Labour Relations Act aims to promote fair labour practices and protect the rights of workers. It serves as a foundational framework for regulating employment relationships, addressing workplace issues, and promoting social justice in the labour market. The LRA applies to all employers, employees, trade unions, and employer organisations operating within South Africa's jurisdiction. It covers various aspects of employment, including recruitment, hiring, working conditions, terms of employment, dismissal, and collective labour relations. The LRA prohibits unfair labour practices by employers, such as discrimination, victimisation, unfair dismissal, and interference with employees' exercise of their rights under the Act. It provides solutions for employees who have been subjected to unfair treatment, including reinstatement, compensation, and other appropriate relief. Furthermore, the LRA recognises the right of workers to engage in protected strike action as a means of resolving labour conflicts. It sets out procedures for initiating and conducting strikes, including requirements for notice and resolution. Similarly, employers have the right to initiate lockouts in response to labour conflicts, subject to certain legal requirements. Example of the Labour Relations Act  An example of the Labour Relations Act in action could involve an employee filing a complaint of unfair dismissal against their employer with a relevant labour court. The court would then facilitate conciliation between the employee and employer in an attempt to resolve...
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### Johannesburg Stock Exchange (JSE)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/johannesburg-stock-exchange/
Definition The Johannesburg Stock Exchange (JSE) is the largest securities exchange in Africa, and serves as a platform for trading a wide range of financial instruments. What is the Johannesburg Stock Exchange? As the primary stock exchange in South Africa, the JSE plays a key role in facilitating capital formation, enabling investment opportunities, and promoting economic development in the region. Companies seeking to list their securities on the JSE must meet stringent listing requirements, including financial disclosure, corporate governance standards, and compliance with relevant regulations. The exchange provides a platform for both domestic and international companies to access capital markets and raise funds through equity or debt offerings. The JSE is regulated by the Financial Sector Conduct Authority (FSCA) and operates in accordance with the rules and regulations set forth by South Africa's securities laws and regulatory authorities. The JSE uses advanced trading technology and infrastructure to facilitate efficient and transparent trading operations. It operates a fully electronic trading platform, enabling market participants to execute trades electronically in real-time and access market data and analytics for informed decision-making.
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### Johannesburg interbank acceptance rate (JIBAR)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/johannesburg-interbank-acceptance-rate/
Definition The Johannesburg interbank acceptance rate (JIBAR) is a benchmark interest rate used in South Africa's financial markets.   What is the Johannesburg interbank acceptance rate? JIBAR represents the average interest rate at which South African banks are willing to lend to one another on an unsecured basis for a specified term, typically ranging from overnight to one year. JIBAR serves as a key reference rate for pricing various financial instruments, including loans, bonds, and derivatives, and it plays a key role in determining the cost of borrowing and the overall interest rate in South Africa. JIBAR rates are calculated daily by the JIBAR administrator based on submissions from a panel of contributing banks. Each contributing bank provides its estimate of the interest rate at which it could borrow funds in the South African interbank market, considering factors such as prevailing market conditions, liquidity, credit risk, and funding needs. The calculation and administration of JIBAR are subject to regulatory oversight and governance standards to ensure the accuracy, integrity, and transparency of the benchmark rate. Regulatory authorities may prescribe rules and guidelines for the determination of JIBAR rates and monitor compliance with regulatory requirements to prevent manipulation or abuse of the benchmark. Changes in JIBAR rates can have significant implications for financial markets and the broader economy. Movements in JIBAR reflect shifts in interbank lending conditions, liquidity dynamics, and monetary policy expectations, influencing borrowing costs, investment decisions, and the pricing of financial assets across various sectors of the economy. Example of...
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### Financial Sector Conduct Authority (FSCA)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/financial-sector-conduct-authority/
Definition The Financial Sector Conduct Authority (FSCA) is a regulatory organisation based in South Africa. Its primary role is to supervise the behaviour of financial institutions and markets, ensuring that consumers are treated fairly and maintaining the stability of the financial system. What is the Financial Sector Conduct Authority? The FSCA regulates and supervises financial institutions, financial products, and financial services providers to promote fair, transparent, and efficient financial markets. Its regulatory mandate encompasses a wide range of financial activities, including banking, insurance, pensions, collective investment schemes, and market behaviour. One of the primary purposes of the FSCA is to protect consumers from unfair treatment and financial abuse. The authority sets standards for the marketing, sale, and distribution of financial products, monitors compliance with consumer protection regulations, and investigates complaints related to financial services. Financial institutions and financial services providers operating in South Africa are required to be licensed, registered, or authorised by the FSCA to conduct regulated activities. The authority evaluates licence applications, assesses requirements, and monitors ongoing compliance with regulatory obligations. The FSCA has powers to enforce compliance with financial regulations, investigate misconduct, and take actions against businesses or individuals found to be in breach of the requirements. This includes charging fines, issuing public warnings, and suspending licences to safeguard the integrity of the financial system and protect consumers. Example of the Financial Sector Conduct Authority An example of the Financial Sector Conduct Authority in action could involve the authority investigating a complaint filed by a consumer against...
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### Broad-Based Black Economic Empowerment Act (BBBEE)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/broad-based-black-economic-empowerment-act/
Definition The Broad-Based Black Economic Empowerment Act is a South African law designed to resolve economic inequalities resulting from apartheid policies. What is the Broad-Based Black Economic Empowerment Act? The BBBEE Act aims to drive inclusive economic growth, foster social transformation, and redress historical imbalances by encouraging businesses to empower and uplift black individuals and communities. The primary objective of the BBBEE Act is to advance economic transformation in South Africa by promoting the participation of black people as well as black-owned businesses, in various sectors of the economy. The Act seeks to achieve this through measures aimed at increasing black ownership, management control, skills development, and employment equity. By complying with these elements, businesses can earn BBBEE points and improve their BBBEE rating, which may increase their competitiveness. Businesses operating in South Africa are required to comply with the BBBEE Act and report on their BBBEE status annually. Failure to comply with the Act or achieve satisfactory BBBEE ratings may result in penalties, loss of business opportunities, or reputational damage. The BBBEE Act has had a significant impact on the South African business landscape, driving increased black ownership and participation in key sectors of the economy, promoting skills development and job creation, and facilitating broader socio-economic empowerment and transformation.   If you want to learn more about the BBBEE Act, read our comprehensive guide. Example of the Broad-Based Black Economic Empowerment Act An example of the Broad-Based Black Economic Empowerment Act in action could involve a South African company...
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### BRICS Exchange Alliance
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/brics-exchange-alliance/
Definition The BRICS Exchange Alliance is an initiative aimed at fostering collaboration and cooperation among stock exchanges in the BRICS countries – Brazil, Russia, India, China, and South Africa.   What is the BRICS Exchange Alliance? The BRICS nations are significant emerging economies that represent a big portion of the world's population, economic output, and market capitalisation. The primary purpose of the BRICS Exchange Alliance is to promote cross-border investment, facilitate capital flows, and enhance market integration among the stock exchanges of the BRICS countries. Each member plays a key role in enhancing the purpose of the alliance and promoting cooperation among BRICS capital markets. The Alliance engages in various activities to achieve its goals, including the development of joint initiatives, sharing of best practices, promotion of cross-listing and cross-border trading opportunities, and facilitation of information exchange and technical assistance among member exchanges. These activities aim to improve market liquidity, investor confidence, and the attractiveness of BRICS capital markets to domestic and international investors. Example of the BRICS Exchange Alliance An example of the BRICS Exchange Alliance in action could involve the stock exchanges of Brazil, Russia, India, China, and South Africa collaborating to launch a joint initiative aimed at facilitating cross-border investment opportunities for investors across the BRICS nations. Through this initiative, the member exchanges could streamline listing requirements, harmonise trading procedures, and promote the visibility of BRICS-listed companies to attract investment flows within the region.  
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### African Tax Administration Forum (ATAF)
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/african-tax-administration-forum/
Definition The African Tax Administration Forum (ATAF) is an intergovernmental organisation established to promote cooperation, collaboration, and capacity building among tax administrations in Africa. What is the African Tax Administration Forum? The African Tax Administration Forum serves as a platform for African countries to work together to improve tax systems, enhance tax compliance, and strengthen tax administration practices across the continent. ATAF's membership consists of tax administrations from African countries, including revenue authorities, tax agencies, and other governmental bodies responsible for tax administration. Member countries collaborate with each other and with external partners, such as international organisations and development agencies, to address common challenges and share best practices in tax administration. ATAF has launched several initiatives and programs to support its member countries in improving tax compliance, enhancing revenue collection, and building institutional capacity in tax administration. These initiatives cover areas such as transfer pricing, tax transparency and information exchange, taxpayer education and outreach, and digitalisation of tax administration processes. Example of the African Tax Administration Forum An example of the African Tax Administration Forum in action could involve member countries collaborating to develop a regional training program aimed at improving tax compliance among small businesses. Through ATAF's coordination, tax authorities from different African nations could come together to share best practices, develop training materials, and organise workshops to educate small business owners on their tax obligations and how to fulfil them effectively.
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### Administrative non-compliance penalty
- Published: 2024-03-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/administrative-non-compliance-penalty/
Definition Administrative non-compliance penalties refer to financial penalties or sanctions imposed on individuals or businesses by authorities or government agencies for failing to follow administrative requirements, regulations, or statutory obligations.   What is an administrative non-compliance penalty? These penalties are typically charged for administrative infractions or breaches that do not involve criminal conduct but result from oversight or failure to comply with procedural or regulatory requirements set forth in South African laws and regulations. Administrative non-compliance can encompass a wide range of infractions, including late filing of regulatory reports or documents, failure to maintain proper records, submission of inaccurate or incomplete information, or violations of administrative procedures outlined in specific statutes or regulatory guidelines. The structure and severity of administrative penalties may vary depending on the nature of the infraction, the regulatory authority involved, and the specific laws or regulations violated. Penalties can include monetary fines, administrative sanctions or suspension of licences or permits. Regulatory authorities may disclose information about administrative non-compliance penalties to the public as part of their transparency efforts. Public disclosure serves to inform stakeholders, investors, and the general public about regulatory compliance issues, enforcement actions taken against non-compliant parties, and the consequences of regulatory non-compliance. Example of an administrative non-compliance penalty An example of an administrative non-compliance penalty could involve a business failing to submit its annual financial reports to the relevant regulatory authority by the specified deadline. As a result of this oversight, the regulatory authority may charge a financial penalty against the business for...
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### Gross income
- Published: 2024-03-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/gross-income/
Definition Gross income refers to the total revenue generated by a company from its primary business activities before deducting any expenses. What is gross income? Gross income represents the amount of money earned from sales of goods or services without accounting for any costs associated with producing or delivering those goods or services. Gross income is calculated by subtracting the cost of goods sold (COGS) from the total revenue.   Gross Income = Total revenue - Cost of goods sold (COGS) It serves as a key performance indicator (KPI) for evaluating the efficiency and profitability of a company's operations. It provides insights into the company's ability to generate revenue and covers the basic costs of production. While gross income represents the revenue generated by a company, it does not reflect its overall profitability. To determine profitability, additional expenses such as operating expenses, interest, taxes, and depreciation must be deducted from gross income to calculate net income. Gross income is crucial for budgeting and financial planning purposes. It helps companies forecast future revenue streams, set sales targets, and allocate resources effectively to maximise profitability. Example of gross income Company ABC, a retail clothing store, generates R1,000,000 in revenue from sales of clothing items over the course of a year. To acquire these clothing items for sale, Company ABC incurs R600,000 in costs. Now we can calculate Company ABC's gross income: Gross income = R1,000,000 - R600,000 = R400,000 So, Company ABC's gross income for the year is R400,000. This represents the...
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### Earnings before tax (EBT)
- Published: 2024-03-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/earnings-before-tax/
Definition Earnings before tax (EBT), also known as pre-tax income or profit before tax, is a financial metric used to assess a company's profitability before accounting for taxes. What is earnings before tax? Earnings before tax represents the amount of money a company earns from its core operations before deducting taxes and other non-operating expenses. Earnings before tax is calculated using the formula:  Earnings before tax = Total revenue - Operating expenses EBT is a key measure of a company's operating performance because it reflects its ability to generate profits from its core business activities, independent of tax considerations. Furthermore, it allows for comparisons of profitability between companies in different tax jurisdictions or with varying tax structures. EBT is a key component in financial analysis and is often used in various financial ratios and metrics. For example, it serves as the starting point for calculating earnings per share (EPS), return on assets (ROA), return on equity (ROE), and other profitability ratios. For investors, EBT provides valuable insights into a company's financial health and its ability to generate profits from core operations. A consistent and growing EBT over time indicates a healthy and sustainable business model. Example of earnings before tax Company XYZ generated R1 million in revenue last year. They incurred R600,000 in operating expenses. Their earnings before tax (EBT) can now be calculated: EBT = R1,000,000 - R600,000 = 400,000 So, Company XYZ's earnings before tax for the year was R400,000. This figure represents the profit generated by the...
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### Market validation
- Published: 2024-03-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/market-validation/
Definition Market validation is a key process in business development and entrepreneurship aimed at confirming the potential and demand for a product or service within a specific market.   What is market validation? Market validation involves gathering evidence and feedback from potential customers, industry experts, and stakeholders to assess whether there is a need for the offering and whether customers are willing to pay for it at a profitable price point. Comprehensive market validation typically includes several key components: Identifying target market: This involves defining the specific segment of customers who are likely to benefit from the product or service.   Problem-solution fit: Market validation seeks to validate whether the product or service addresses a real problem or fulfils a need in the market.   Assessing market size and opportunity: Evaluating the size and growth potential of the target market is crucial for determining the scalability and long-term viability of the business. Prototype testing and iteration: Building a prototype or minimum viable product (MVP) allows entrepreneurs to gather early feedback from users and iterate on the product based on their insights. Pricing strategy: Market validation involves testing different pricing models and price points to determine the optimal pricing strategy that maximises profitability while remaining competitive in the market. Validation metrics: Establishing key performance indicators (KPIs) and validation metrics helps track the success of the market validation efforts. Example of market validation Imagine a software startup that is developing a new task management application for freelancers. Before investing further resources into...
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### Serviceable obtainable market (SOM)
- Published: 2024-03-15
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/serviceable-obtainable-market/
Definition Serviceable obtainable market is a concept in business strategy and market analysis, which refers specifically to the portion of the SAM that a company can actually capture. What is a serviceable obtainable market? SOM represents the subset of the serviceable available market (SAM) that a company can effectively capture and convert into revenue. It reflects the achievable market share within the target market segments. SOM analysis requires the segmentation of the market into relevant and distinct segments. However, SOM focuses on identifying and prioritising segments where the company can gain a competitive advantage and achieve market share. Calculating SOM involves evaluating the company's competitive position, market penetration strategies, and market share objectives within the target segments. It requires an assessment of the company's strengths and weaknesses relative to competitors and an understanding of customer needs and preferences. Understanding SOM informs resource allocation decisions. By focusing resources on segments with the greatest potential for market share gains, companies can optimise their efforts and maximise returns on investment. SOM analysis provides a basis for revenue forecasting by estimating the company's potential revenue within the target market segments. By projecting market share gains over time, companies can set realistic revenue targets and track progress towards achieving them. Example of a serviceable obtainable market Let's consider an example of SOM for a company that produces premium coffee targeting coffee enthusiasts in a specific city. Through market research, the company estimates there are approximately 50,000 coffee enthusiasts in the city. However, considering factors such...
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### Serviceable available market (SAM)
- Published: 2024-03-15
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/serviceable-addressable-market/
Definition A serviceable available market is a concept in business strategy and market analysis, closely related to total available market (TAM). SAM focuses on the portion of the market that a company can realistically target and serve with its products or services. What is a serviceable available market? SAM refers to the portion of the total addressable market (TAM) that a company can effectively reach and serve with its products or services. It represents the subset of potential customers within a market segment that the company can realistically target given its resources, capabilities, and market positioning. SAM analysis requires careful segmentation of the market into relevant segments. However, SAM focuses on identifying and prioritising segments that align with the company's strategic objectives, capabilities, and competitive advantages. Calculating SAM involves narrowing down the TAM to the specific segments that the company intends to target. SAM estimation may also consider factors such as distribution channels, regulatory constraints, and competitive landscape. This analysis helps companies identify the most attractive market segments to focus their resources and efforts on. Furthermore, it guides resource allocation decisions and by focusing resources on segments with the greatest revenue potential and alignment with the company's strengths, companies can optimise their market penetration efforts. While SAM represents the immediate market opportunity, it also serves as a foundation for identifying future growth opportunities, as companies can gradually expand their reach to similar segments or new geographic markets. Example of a serviceable available market Let's consider an example of SAM for...
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### Total addressable market (TAM)
- Published: 2024-03-15
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/total-addressable-market/
Definition A total addressable market is a concept in business strategy and market analysis. It refers to the overall revenue opportunity available for a product or service within a defined market.   What is a total addressable market? TAM represents the total revenue opportunity available in a specific market segment. It reflects the maximum potential revenue that could be generated if a company achieved 100% market share within that segment. Segmentation can be based on factors such as demographics, geographic location, industry verticals, or customer behaviour. Calculating TAM involves multiplying the number of potential customers within a market segment by the average revenue that each customer is expected to generate. This can be done using various approaches, including top-down analysis, bottom-up analysis, and value-based analysis. Top-down analysis: In top-down analysis, TAM is estimated by considering the overall market size and then narrowing it down to the specific segment of interest. Bottom-up analysis: Bottom-up analysis involves estimating TAM by aggregating the revenue potential of individual market segments. Value-based analysis: Value-based analysis focuses on the economic value that a product or service delivers to customers.   While TAM provides valuable insights, it's important to recognise its limitations. TAM represents the theoretical maximum market opportunity and may not account for factors such as competition, market dynamics, or economic conditions. Example of a total addressable market Let's consider an example of TAM for a company that produces electric scooters targeting urban commuters in a particular city. Market segmentation: The company segments the market based...
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### Credit union
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/credit-union/
Definition A credit union is a financial cooperative owned and operated by its members, who are typically individuals with a common bond.   What is a credit union? Unlike traditional banks, which are owned by shareholders and operated for profit, credit unions are nonprofit organisations that exist to serve their members' financial needs. Credit unions are membership-based organisations, and individuals must meet eligibility requirements to join. Common membership criteria include residing in a specific geographic area, working for a certain employer, belonging to a particular industry or profession, or being a member of an affiliated organisation or association. Members of a credit union are also its owners. Each member has equal voting rights regardless of the amount of money they have deposited or invested in the credit union.   Credit unions operate on a not-for-profit basis, meaning that any profit generated is returned to members in the form of dividends, lower interest rates on loans, higher interest rates on savings accounts, and improved services. Unlike banks, credit unions do not have shareholders expecting dividends or capital gains. Credit unions offer a range of financial products and services similar to those provided by banks, including savings accounts, checking accounts, certificates of deposit (CDs), loans , credit cards, and online banking services. Some credit unions may also offer additional services such as insurance, investment products, and financial counselling. Example of a credit union Sarah is looking for a place to deposit her savings and obtain a loan for a car. She decides...
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### Book-to-market ratio
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/book-to-market-ratio/
Definition The book-to-market (B/M) ratio is a financial metric used to evaluate the relative valuation of a company's stock by comparing its book value to its market value.   What is a book-to-market ratio? The book-to-market ratio provides insight into the valuation of a company's stock relative to its accounting value. A high book-to-market ratio suggests that the company's stock is relatively undervalued by the market compared to its book value, while a low ratio indicates that the stock may be overvalued. The book-to-market ratio is calculated by dividing a company's book value per share by its market value per share. The formula is as follows: B/M ratio = Book value per share / Market value per share The book value per share is typically derived from the company's balance sheet by dividing its total shareholders' equity by the number of outstanding shares. The market value per share is obtained by multiplying the current market price per share by the number of outstanding shares. While the book-to-market ratio provides valuable insights into a company's valuation, it has some limitations. For example, it does not take into account future earnings potential, growth prospects, or qualitative factors that may impact a company's stock price. Example of a book-to-market ratio Let's consider a company, ABC Inc. , which has the following financial information: Book value per share: R20 Market value per share: R30 To calculate the book-to-market ratio for ABC Inc. , we use the formula from above: B/M ratio = R20 /...
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### Benefit-cost ratio (BCR)
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/benefit-cost-ratio/
Definition The benefit-cost ratio (BCR) is a financial metric used to evaluate the profitability or viability of an investment or project by comparing the benefits gained from the project to its costs.   What is a benefit-cost ratio? The benefit-cost ratio is commonly used as a decision-making tool in project evaluation and investment analysis. However, other factors such as risk, uncertainty, strategic alignment, and qualitative considerations should also be taken into account when making investment decisions. The formula for calculating the benefit-cost ratio is: BCR = Total present value of benefits / Total present value of costs A benefit-cost ratio greater than 1 indicates that the present value of benefits exceeds the present value of costs, suggesting that the project is potentially economically viable or profitable. A BCR of exactly 1 implies that the project's benefits equal its costs, while a BCR less than 1 indicates that the costs outweigh the benefits, suggesting that the project may not be economically feasible or advisable. The ratio takes into account the time value of money by discounting both the benefits and costs to their present values. This adjustment reflects the principle that a ZAR received or spent in the future is worth less than a ZAR received or spent today. While the benefit-cost ratio provides valuable insights into the economic viability of projects, it has some limitations. For example, it may not fully capture non-monetary factors such as intangible benefits, social impacts, and environmental considerations. Additionally, the accuracy of BCR calculations depends...
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### Bankruptcy
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bankruptcy/
Definition Bankruptcy is a legal process that individuals and businesses can use to obtain relief from overwhelming debt burdens when they are unable to repay their creditors.   What is bankruptcy? Bankruptcy involves filing a request in a bankruptcy court, where a judge oversees the process and resolves the debtor's financial issues. Bankruptcy laws vary by country, but they generally aim to provide a fair and orderly process for debtors to address their financial difficulties while protecting the rights of creditors. One of the primary goals of bankruptcy is to provide debtors with a fresh start by discharging eligible debts. Bankruptcy laws provide exemptions that protect certain assets from being seized and sold to repay creditors. Exempt assets may include a primary residence, vehicle, household goods, retirement accounts, and personal belongings. Bankruptcy laws often require debtors to undergo credit counselling before filing for bankruptcy and complete financial management courses after filing. These requirements aim to educate debtors about budgeting, financial management, and responsible credit use to prevent future financial difficulties. Furthermore, bankruptcy can have a significant impact on a debtor's creditworthiness and ability to obtain credit in the future. A bankruptcy filing typically remains on a debtor's credit report for several years, potentially affecting their ability to qualify for loans, credit cards, and favourable interest rates. Example of bankruptcy John, a small business owner, has been struggling financially due to declining sales and mounting debts. Despite his efforts to cut costs and increase revenue, he finds himself unable to keep...
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### Artificial intelligence (AI)
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/artificial-intelligence/
Definition Artificial intelligence (AI) refers to the simulation of human intelligence in machines, enabling them to perform tasks that typically require human intelligence.   What is artificial intelligence? AI includes a broad range of techniques, algorithms, and technologies aimed at replicating or augmenting human cognitive abilities. There are various subfields within AI, including: Machine learning: Machine learning involves the development of algorithms that enable computers to learn from data and make predictions or decisions without being explicitly programmed.   Natural language processing (NLP): NLP focuses on enabling computers to understand, interpret, and generate human language. Computer vision: Computer vision involves developing algorithms that allow computers to interpret and understand visual information from images or videos. Robotics: Robotics combines AI with mechanical engineering to create intelligent machines capable of performing physical tasks. Expert systems: Expert systems are AI systems that imitate the decision-making ability of a human expert in a specific domain.   AI technologies are increasingly being integrated into various sectors and industries. They are driving innovation, automation, and efficiency, transforming how businesses operate and how people live and work. While AI offers numerous benefits it also raises ethical, social, and economic concerns. Issues such as job displacement, bias in algorithms, data privacy, and the impact on society require careful consideration and regulation as AI continues to advance. Example of artificial intelligence  A virtual assistant, such as Amazon's Alexa or Apple's Siri, uses artificial intelligence to understand and respond to voice commands or queries from users. When a user asks...
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### Acceleration clause
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/acceleration-clause/
Definition An acceleration clause allows the lender or creditor to demand immediate repayment of the entire outstanding balance or take other specified actions if the borrower fails to meet certain obligations outlined in the agreement.   What is an acceleration clause? An acceleration clause grants the lender the right to accelerate the repayment schedule, making all remaining payments due immediately. The primary purpose of an acceleration clause is to protect the lender's interests by providing a mechanism to address borrower default or breaches of contract. By accelerating the repayment schedule, the lender can reduce potential losses and take timely action to recover funds or collateral. Acceleration clauses typically specify the circumstances or events that trigger the acceleration of the loan or contract. Common triggering events may include: Default on loan payments: Failure to make timely payments of principal or interest as required by the loan agreement. Breach of covenants: Violation of specific terms, conditions, or covenants outlined in the agreement. Bankruptcy or insolvency: Filing for bankruptcy or insolvency proceedings by the borrower, which may jeopardise the lender's ability to recover the outstanding debt. Material adverse change: Significant adverse changes in the borrower's financial condition, creditworthiness, or ability to repay the debt. Acceleration clauses pose significant risks for borrowers, as they can result in immediate repayment obligations or negative consequences in the event of default. Borrowers should carefully review and understand the terms of any loan agreement or contract containing acceleration provisions before signing to reduce potential risks and liabilities. Example...
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### Accelerated depreciation
- Published: 2024-02-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accelerated-depreciation/
Definition Accelerated depreciation is a method used in accounting to allocate the cost of a tangible asset over its useful life in a way that allows for larger deductions in the earlier years of the asset's life compared to the straight-line method of depreciation.   What is accelerated depreciation? The primary purpose of accelerated depreciation is to match the expenses associated with the use of an asset with the revenue it generates over its useful life more accurately. By front-loading depreciation deductions, businesses can reduce their taxable income and tax liabilities in the earlier years of an asset's life, providing cash flow benefits and improving financial performance. There are different methods of accelerated depreciation, including: Double-declining balance (DDB): Under this method, depreciation expense is calculated by applying a fixed rate to the asset's book value at the beginning of each period. The depreciation expense decreases over time as the asset's book value declines. Sum-of-the-years'-digits (SYD): This method assigns a decreasing fraction to each year of the asset's useful life, with the total of the fractions equal to the sum of the digits of the asset's useful life. Businesses often use accelerated depreciation for assets that are expected to generate higher returns or become outdated more quickly, such as technology or equipment. However, businesses should consider the impact of accelerated depreciation on financial statements, tax liabilities, and cash flow before selecting a depreciation method. Example of accelerated depreciation Let's say a company purchases a piece of machinery for R100,000 with an...
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### Software as a service (SaaS)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/software-as-a-service/
Definition Software as a service (SaaS) is a cloud-based software distribution model in which applications are hosted by a third-party provider and made available to customers over the internet.   What is software as a service? SaaS is a type of cloud computing service that allows users to access and use software applications hosted on remote servers, eliminating the need for local installation and maintenance. Users access the software via the internet, usually through a web browser, from any device with an internet connection. Some of the key characteristics in SaaS are: Subscription-based pricing: SaaS applications are typically offered on a subscription basis, where customers pay a recurring fee for access to the software.   Centralised hosting: SaaS applications are hosted on remote servers maintained by the service provider. This centralized hosting model allows for easy accessibility and ensures that users always have access to the latest version of the software. Automatic updates and maintenance: Service providers are responsible for maintaining and updating the software. Users benefit from seamless updates without the need for manual intervention. Scalability and flexibility: SaaS solutions are designed to scale with the needs of the user, allowing for easy expansion or reduction of resources and features as required.   One of the advantages included in SaaS is that it eliminates the need for upfront hardware and software investments, reducing capital expenditures. Users pay only for what they use on a subscription basis, resulting in predictable and manageable costs. Additionally, SaaS solutions can easily scale up...
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### Small and medium enterprise (SME)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/small-and-medium-enterprise/
Definition Small and medium enterprise (SME) refers to businesses that typically have a relatively small number of employees and generate modest levels of revenue compared to larger corporations.   What is a small and medium enterprise? SMEs are characterised by their smaller scale compared to large corporations. The exact criteria defining an SME can vary, but parameters such as the number of employees, annual revenue, or balance sheet total are often used to categorise businesses as small or medium-sized. Furthermore, SMEs are typically independently owned and operated. They may be sole proprietorships, partnerships, or privately owned companies. This independence allows SMEs to be more flexible in their operations compared to larger, more bureaucratic organisations. SMEs play a crucial role in driving economic growth and development. They contribute to job creation, innovation, and competition in various sectors. In many economies, SMEs are considered the backbone of the economy, as they make up a significant portion of total businesses and employment. A downside for SMEs are that they may face challenges in accessing resources such as capital, skilled labor, and technology, particularly in their early stages of development. However, advancements in technology and changes in business models have facilitated greater access to resources for SMEs. Example of a small and medium enterprise A small enterprise might be a local bakery owned by a family, employing a handful of staff, and generating revenue primarily from local customers. It could have a modest storefront, a small production area, and annual revenues of around R500,000....
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### Service-level agreement (SLA)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/service-level-agreement/
Definition A service-level agreement (SLA) is a formal contract or agreement between a service provider and its customer that outlines the level of service that the provider is obligated to deliver.   What is a service-level agreement? A service-level agreement serves as a documented commitment to the quality and performance standards expected from the service provider and defines the rights, responsibilities, and expectations of both parties. The agreement will outline specific measurable objectives that define the desired performance levels for the services, such as uptime, response time, resolution time, availability, and reliability. Additionally it will include quantifiable metrics used to assess and monitor the performance of the services, which may include key performance indicators (KPIs), benchmarks, and targets. Furthermore, a clear definition of the roles and responsibilities of both the service provider and the customer will be outlined. This includes any third-party vendors or stakeholders involved in service delivery. The agreement will also define service availability, scheduled maintenance windows, and acceptable downtime thresholds, along with procedures for handling service disruptions and outages. Terms and conditions related to contract termination, renewal, modification, or renegotiation, including notice periods, termination clauses, and renewal options are also always included in a service-level agreement. SLAs are commonly used in various industries to formalise service agreements and establish clear expectations between service providers and customers. By defining service levels, performance standards, and accountability measures upfront, SLAs help ensure customer satisfaction, reduce risks, and maintain the quality and reliability of services delivered. Example of a service-level agreement...
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### Search engine optimisation (SEO)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/search-engine-optimisation/
Definition Search engine optimisation (SEO) is a digital marketing strategy aimed at improving a website's visibility and ranking on search engine results pages for relevant keywords and phrases.   What is search engine optimisation? SEO involves optimising various aspects of a website and its content to align with the algorithms used by search engines to determine the relevance and authority of web pages. Some key components of SEO include: Keyword research: Identifying and targeting the most relevant keywords and search queries that potential visitors use to find products, services, or information. On-page optimisation: Optimising various elements within individual web pages to make them more search engine-friendly. This includes optimising meta tags, headings, URL structure, and content optimisation. Technical SEO: Addressing technical aspects of a website to improve its crawlability, indexability, and overall performance in search engines.   Content creation and marketing: Producing high-quality, relevant, and engaging content that satisfies user intent and provides value to the target audience. Link building: Getting high-quality backlinks from authoritative and relevant websites to improve a site's authority, credibility, and search engine rankings. Monitoring and analytics: Tracking and analysing website performance, keyword rankings, traffic sources, user behaviour, and other key metrics using tools.   Example of search engine optimisation Imagine a small local bakery, "Sunrise Bakery," located in a bustling city. The bakery wants to increase its online visibility and attract more customers to its website. They decide to implement some basic SEO tactics to improve their search engine rankings and drive more organic traffic....
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### Revenue
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/revenue/
Definition Revenue refers to the total amount of money earned by a company from its normal business activities over a specific period.   What is revenue? Revenue, also known as "sales" or "income," represents the top line of a company's income statement and is calculated by multiplying the quantity of goods sold or services sold by their respective selling prices. It does not include any deductions for costs or expenses associated with producing or delivering the goods or services. Revenue is typically recorded on an accrual basis, meaning it is recognised when goods are delivered, regardless of when payment is received. Revenue can also be measured on a cash basis, where it is recognised only when cash is received from customers. Types of revenue: Operating revenue: This is the revenue generated from a company's primary business activities, such as selling products or providing services. Non-operating revenue: This includes income generated from sources other than the company's core business operations, such as interest income, dividends, or gains from the sale of assets. Components of revenue: Product sales: Revenue generated from the sale of tangible goods produced or purchased by the company. Service revenue: Revenue generated from providing services to customers, such as consulting, maintenance, or subscription-based services. Other revenue streams: This may include licensing fees, royalties, rental income, advertising revenue, or any other sources of income not directly related to product sales. Revenue is a key indicator of a company's financial health and performance. Higher revenue typically signifies growth and success...
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### Quote
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quote/
Definition A quote serves as an official offer outlining the terms and conditions under which the seller is willing to supply the requested products or services. What is quote? A quote outlines the proposed price, terms, specifications, and other relevant details for the products or services being offered. Quotes are typically issued in response to a customer's request for pricing information and serve as a key step in the sales process. Contents of a quote: Price: The quote includes the total cost of the products or services being offered, broken down into individual line items if necessary.   Terms and conditions: The quote outlines the terms of the proposed transaction, including payment terms, delivery or service timelines, warranties, guarantees, and any applicable taxes or fees. Specifications: For product quotes, detailed specifications or descriptions of the goods being offered are provided. For service quotes, it may include a description of the services to be performed, deliverables, and project milestones. Validity period: Quotes often have an expiration date or validity period, indicating the timeframe within which the customer can accept the offer at the specified price and terms. Contact information: The quote includes the seller's contact information, including name, address, phone number, email, and any relevant business details. The primary purpose of a business quote is to provide potential customers with detailed information about the products or services offered by a business and the associated costs. They are typically issued in response to customer inquiries, requests for proposals, or formal bidding processes....
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### Quarter to date (QTD)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quarter-to-date/
Definition Quarter to date (QTD) refers to the period starting from the beginning of the current quarter up to the current date.   What is quarter to date? QTD allows businesses to monitor their performance and compare it to previous quarters or targets. It provides a snapshot of how well the company is performing within the current quarter, helping to identify areas of strength and weakness. Understanding QTD allows businesses to assess their performance and progress within the ongoing quarter. It provides valuable insights into trends, patterns, and fluctuations in key metrics over time, enabling companies to make informed decisions, adjust strategies, and manage resources effectively. By analysing QTD data, businesses can make timely and informed decisions to optimise operations, allocate resources efficiently, and address any challenges or opportunities that arise during the quarter. The data can also be compared to previous quarters or the same period in previous years to assess growth, trends, and seasonality. This comparative analysis helps businesses identify long-term patterns and make strategic decisions accordingly. QTD figures are often included in financial reports and presentations to stakeholders, investors, and management. They provide a clear overview of the company's financial health and progress during the quarter. Example of quarter to date Let’s say today's date is February 21st, and we're in the first quarter of the year (Q1). XYZ Corporation began tracking its sales from January 1st. As of February 21st, the quarter to date sales figures for XYZ Corporation are as follows: January sales: R500,000 February...
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### Quarter over quarter (QoQ)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quarter-over-quarter/
Definition Quarter over quarter (QoQ) is a financial metric used to analyse changes in a company's performance or a particular variable over successive quarters, typically within a fiscal year. What is quarter over quarter? Quarter over quarter provides insights into the growth or decline within a relatively short timeframe. In QoQ analysis, data from one quarter is compared to the data from the previous quarter. This comparison helps stakeholders to assess the changes in key business indicators, including revenue, earnings, expenses and other operational metrics. The formula to calculate QoQ change is: QoQ % change = ( (Current quarter − Previous quarter) / Previous quarter) x 100 A positive QoQ percentage indicates growth or improvement, while a negative percentage indicates decline. Analysing QoQ trends helps stakeholders understand the pace of change in a company's performance, identify seasonal patterns, assess the effectiveness of strategic initiatives, and make informed decisions regarding investments, resource allocation, and business planning. It's important to note that while QoQ analysis provides valuable insights into short-term trends, it should be complemented with other financial and operational metrics for a comprehensive understanding of a company's overall performance and prospects.   Example of quarter over quarter Let's say a company measures its revenue growth on a quarterly basis. In quarter 1 (Q1) of the year, the company earns R1 million in revenue. In quarter 2 (Q2), the company's revenue increases to R1. 2 million. Now we can calculate the change in revenue from Q1 to Q2: QoQ revenue growth =...
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### Public relations (PR)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/public-relations/
Definition Public relations (PR) is the strategic practice of managing communication between an organisation and its various stakeholders, including the public, media, investors, customers, employees, and government entities.   What is public relations? The primary goal of PR is to build and maintain a positive reputation for the organisation, enhance its credibility and trustworthiness, and foster mutually beneficial relationships with its target audiences. PR professionals listen to stakeholders' concerns, gather feedback, and engage in two-way communication to build trust and goodwill. PR professionals engage with journalists, editors, and other media professionals to generate positive media coverage for their organisation. They pitch story ideas, arrange interviews, and distribute press releases to convey key messages and news updates to the media and the public. They develop compelling content, such as press releases, articles, blog posts, social media posts, and multimedia materials, to communicate the organisation's messages effectively.   In times of crisis, PR professionals play a key role in managing the organisation's response, providing timely and transparent communication, and reduce reputational damage. They develop crisis communication plans, coordinate with internal and external stakeholders, and monitor public sentiment to address issues swiftly and effectively. Lastly, PR professionals promote the organisation's CSR initiatives, such as sustainability efforts, philanthropy, and community engagement, to demonstrate its commitment to social and environmental responsibility. CSR activities contribute to building a positive corporate image and strengthening stakeholder relationships. Example of public relations Let's say a new tech startup has just launched a revolutionary app that helps people manage their...
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### Platform as a service (PaaS)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/platform-as-a-service/
Definition Platform as a service (PaaS) is a cloud computing model that provides a platform allowing customers to develop, run, and manage applications without the complexity of building and maintaining the underlying infrastructure.   What is platform as a service? PaaS offers a complete development and deployment environment in the cloud, including tools, libraries, middleware, databases, and runtime environments, enabling developers to focus on building and delivering applications rather than managing hardware and software infrastructure. PaaS platforms are designed to scale automatically to handle fluctuations in application demand. They offer features such as auto-scaling, load balancing, and elastic storage to ensure that applications can scale up or down seamlessly in response to changing workload requirements.   PaaS platforms typically support multi-tenancy, allowing multiple users or organisations to share the same underlying infrastructure and resources while maintaining isolation and security. Additionally, PaaS platforms support various deployment models, including public, private, and hybrid clouds, as well as on-premises environments. This flexibility allows organisations to choose the deployment model that best meets their requirements for security, compliance, performance, and data sovereignty. A pay-as-you-go pricing model are typically used by PaaS platforms, where customers pay only for the resources and services they consume on a usage basis. This allows organisations to align their costs with actual usage and avoid upfront capital investments in infrastructure. Example of platform as a service Imagine a software development company, "Tech Solutions Inc. ," that is building a new web application. Instead of setting up and managing their own...
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### Pay per click (PPC)
- Published: 2024-02-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/pay-per-click/
Definition Pay per click (PPC) is an online advertising model in which advertisers pay a fee each time their ad is clicked by a user.   What is pay per click? Pay per click is a method of buying visits to a website rather than earning those visits organically through search engine optimisation (SEO) or other forms of digital marketing. PPC is commonly used in search engine advertising, social media advertising, and display advertising to drive traffic to websites and generate leads or sales. PPC ads are typically displayed on search engine results pages (SERPs), social media platforms, websites, and other digital channels where users are likely to encounter them. Advertisers select relevant keywords related to their products or services and bid on them to have their ads displayed when users search for those keywords. With PPC advertising, advertisers only pay when their ads are clicked by users, hence the name "pay per click. " The cost per click (CPC) is determined by the bidding process and can vary based on factors such as keyword competitiveness, ad relevance, and ad position. PPC offers several benefits for advertisers, including immediate visibility and traffic generation, precise targeting options, measurable results, and the ability to control ad spend and budgets in real-time. It is a highly scalable and cost-effective advertising channel for businesses of all sizes and industries. Example of pay per click Let's say you own a small online shoe store and want to increase traffic to your website. You decide to...
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### Pay as you earn (PAYE)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/pay-as-you-earn/
Definition Pay as you earn (PAYE) is a system of income tax withholding used by employers to deduct tax from employees' wages or salaries in real-time, as they are earned.   What is pay as you earn? Pay as you earn is a common method of collecting income tax in many countries and it ensures that individuals pay their taxes throughout the year, rather than in a lump sum at the end of the tax year, making it easier to manage their tax obligations. Under the PAYE system, employers are responsible for deducting income tax from employees' paychecks based on their earnings and tax code. These deductions are then remitted to the tax authority on behalf of the employee. Employers are required to report PAYE deductions to the tax authority in real-time, usually on or before each payday. This ensures that tax payments are accurately recorded and reconciled with employees' earnings, providing transparency and accountability in the tax collection process. Employers have several responsibilities under the PAYE system, including registering with the tax authority as an employer, deducting and paying taxes from employees' pay, providing employees with pay statements detailing their earnings and deductions, and submitting payroll reports to the tax authority. PAYE provides employees with the convenience of having their taxes deducted automatically from their paychecks, eliminating the need to make separate tax payments or calculate tax liabilities. It also facilitates budgeting and financial planning by spreading tax payments evenly throughout the year. Example of pay as you earn...
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### On-demand computing (ODC)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/on-demand-computing/
Definition On-demand computing (ODC), also known as utility computing or pay-as-you-go computing, is a cloud computing model in which computing resources are provided and accessed dynamically over the internet on an as-needed basis. What is on-demand computing? On-demand computing allows organisations to access and use computing resources quickly and efficiently without the need for significant upfront investment in hardware or infrastructure. Resources are allocated dynamically based on demand, allowing users to scale up or down to meet changing workload requirements. On-demand computing follows a pay-as-you-go pricing model, where users are billed based on their actual usage of computing resources. This eliminates the need for upfront capital investment in hardware or long-term contracts and provides cost transparency and predictability for organisations. Furthermore, on-demand computing leverages the internet to deliver computing resources to users anywhere in the world with an internet connection. This enables organisations to access and use computing resources from multiple geographic locations, improving accessibility, collaboration, and scalability. Lastly, on-demand computing providers often offer a wide range of managed services, including infrastructure management, security, compliance, monitoring, and support. These services help organisations offload operational tasks, reduce complexity, and focus on core business activities. Example of on-demand computing Let's say a small software development startup, "Tech Innovations Inc. ," needs computing resources to deploy and test their new application. Instead of purchasing and maintaining physical servers, they decide to use on-demand computing services from a cloud provider. Using on-demand computing, Tech Innovations Inc. can quickly provide virtual servers, storage, and networking...
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### Net foreign income
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-foreign-income/
Definition Net foreign income refers to the total income earned by a country's residents from foreign sources, minus the income earned by foreign residents within that country. What is net foreign income? Net foreign income is a measure of the net flow of income between a country and the rest of the world, reflecting the earnings from international trade, investment, and other economic activities. Net foreign income consists of various components, including: Exports and imports: Income earned from exporting goods and services to foreign countries and income paid for importing goods and services from foreign countries. Foreign investment: Income earned from foreign direct investment, portfolio investment, and other financial transactions with foreign organisations. Remittances: Income received from foreign workers sending money back to their home country (remittances) and income paid to foreign workers within the country. Interest, dividends, and royalties: Income earned from interest on foreign loans, dividends from foreign investments, and royalties from the use of intellectual property rights abroad. The formula for calculating net foreign income is: Net Foreign Income = Total income from foreign sources − Income earned by foreign residents Net foreign income is an important indicator of a country's economic relationship with the rest of the world. A positive net foreign income indicates that a country is earning more from its international activities than it is paying out. Conversely, a negative net foreign income suggests that a country is paying out more income to foreign organisations than it is earning. Example of net foreign income...
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### Month to date (MTD)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/month-to-date/
Definition Month to date (MTD) is a financial metric used to track and analyse the performance of a particular measure or variable from the beginning of the current month up to the present date. What is month to date? Month to date provides insight into how a certain metric has performed within the current month relative to previous months or specific targets. MTD measures the performance of a metric, such as revenue, expenses, sales, or other key performance indicators (KPIs), from the first day of the current month up to the present date. It is typically calculated on a daily basis and provides a real-time snapshot of performance throughout the month. MTD is calculated by summing up the values of the metric from the first day of the month to the current date. For example, to calculate MTD revenue, you would add up the daily revenue figures from the first day of the month to the present day. Furthermore, MTD serves as a tool for monitoring progress towards monthly goals, objectives, or budgets. It enables businesses to track their performance in real-time and take corrective actions if performance deviates from expectations. MTD can be applied to various metrics and performance indicators across different industries and sectors, making it a handy and widely used tool for performance tracking and analysis. Example of month to date ABC Corporation is tracking its sales performance for the current month, which is January. Today's date is January 15th. To calculate the month to date sales,...
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### Month over month (MoM)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/month-over-month/
Definition Month over month (MoM) is a financial metric used to compare the performance of a particular variable or indicator between two consecutive months. What is month over month? Month over month is commonly employed in business and finance to analyse trends, identify patterns, and monitor changes over time. MoM compares data from one month to the previous month and analyses can be applied to various types of data, including revenues, expenses, profits, sales volume, customer acquisition, website traffic, and other key performance indicators (KPIs). The primary measure used in MoM analysis is the percentage change between the two months. This is calculated using the formula: MoM % change = ( (Current month value − Previous month value) / Previous month value) x 100% A positive MoM percentage change indicates growth or improvement, while a negative MoM percentage change indicates a decline or deterioration. It's important to consider seasonal factors and cyclical patterns when interpreting MoM changes, as certain months may exhibit consistent seasonal variations due to factors such as holidays, weather, or industry-specific trends. Example of month over month ABC Retail Corporation analyses its monthly sales data for the first quarter of the year. They observe the following sales figures for January and February: January sales: R100,000 February sales: R120,000 To calculate the MoM percentage change in sales from January to February: MoM % change = ( (February sales - January sales) / January sales) x 100% MoM % change = ( (R120,000 - R100,000) / R100,000) x 100%...
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### Monthly recurring revenue (MRR)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/monthly-recurring-revenue/
Definition Monthly recurring revenue (MRR) is a key metric used by businesses, particularly in subscription-based models, to measure the predictable and recurring revenue generated from subscription services or products on a monthly basis.   What is monthly recurring revenue? MRR is based on the recurring billing cycle for subscription services, which is usually monthly, although it can vary depending on the subscription model. Each month, customers are billed for their subscription, resulting in a predictable stream of revenue for the business. It provides insight into the stability and growth path of a company's revenue stream, making it a valuable indicator for financial planning, performance evaluation, and investor analysis. MRR is affected by customer churn (cancellation of subscriptions) and expansion (upgrades or add-ons to existing subscriptions). Churn reduces MRR, while expansion increases MRR. Net MRR provides a more accurate measure of revenue growth. To calculate MRR you sum up the monthly subscription fees from all active customers. This includes revenue generated from both new and existing customers, excluding one-time fees, discounts, and non-recurring revenue. Monitoring MRR growth over time is crucial for assessing the health and performance of a subscription-based business. Positive MRR growth indicates increasing revenue, while negative MRR growth suggests declining revenue. Example of monthly recurring revenue ABC Software Company offers a subscription-based project management tool. They have three subscription plans: Basic, Pro, and Premium, priced at R10, R25, and R50 per month respectively. At the beginning of the month, ABC Software has the following number of active subscribers...
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### Market value
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/market-value/
Definition Market value, also known as fair market value, refers to the current price at which an asset, security, or goods can be bought or sold in a competitive market. What is market value? Market value represents the price that a willing buyer and a willing seller would agree upon in an open and unrestricted transaction, assuming both parties have reasonable knowledge of the asset's characteristics and current market conditions. In financial markets, market value is commonly used to assess the worth of various types of assets, including stocks, bonds, real estate properties, goods, and derivatives. It serves as a key metric for investors, analysts, and policymakers to make informed decisions regarding investment strategies, asset allocation, and risk management. Market value can fluctuate over time in response to changing market conditions, investor perceptions, and external factors. It is not static and can vary from one moment to the next. Additionally, market value allows for comparisons between different assets or investments within the same market or asset class. Investors can assess the relative attractiveness of various opportunities based on their market values. It's important to note that market value may not always accurately reflect the core value of an asset, especially in cases of market inefficiency. Example of market value ABC Corporation, a manufacturing company, is considering buying a competitor, XYZ Inc. As part of the due diligence process, ABC Corporation assesses the market value of XYZ Inc. To determine the market value of XYZ Inc. , ABC Corporation analyses various...
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### Infrastructure as a service (IaaS)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/infrastructure-as-a-service/
Definition IaaS providers offer virtualised computing resources, including virtual machines (VMs) or containers, which enable clients to run applications and workloads without managing physical hardware. What is infrastructure as a service? In an IaaS model, a third-party provider hosts and manages the hardware infrastructure, including servers, storage, networking, and virtualisation technology, while clients rent these resources on a pay-as-you-go basis. Clients can then scale computing resources up or down based on demand, allowing for flexibility and cost-efficiency. IaaS providers offer networking services, such as virtual networks, load balancers, firewalls, and VPNs, to enable connectivity between different components of the infrastructure and to the internet. Clients can configure network settings and security policies to meet their specific requirements. Furthermore, IaaS providers offer management tools and dashboards that allow clients to provision, monitor, and manage their infrastructure resources easily. Clients can deploy and configure virtual machines, manage storage, and monitor performance metrics through a centralised interface. Benefits of Infrastructure as a service include: Scalability: Clients can scale computing resources up or down quickly to accommodate changing workload demands. Flexibility: Clients have the flexibility to choose the specific computing, storage, and networking resources they need based on their unique requirements. Cost savings: IaaS eliminates the need for upfront capital expenditures on hardware infrastructure and reduces ongoing operational costs. Reliability: IaaS providers offer robust infrastructure with high availability and fault tolerance to ensure reliable service delivery. Example of infrastructure as a service ABC Corporation, a software development company, needs to host its application on...
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### Human resources (HR)
- Published: 2024-02-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/human-resources/
Definition Human resources (HR) refers to the department within an organisation responsible for managing and coordinating all aspects related to the organisation's employees. What are human resources? HR encompasses a wide range of functions aimed at optimising the organisation's workforce to achieve its strategic objectives while ensuring compliance with employment laws and regulations. HR plays a crucial role in fostering a positive work environment, supporting employee development, and driving organisational success. HR facilitates the onboarding process for new employees, ensuring they receive the necessary training, resources, and support to integrate into the organisation effectively. This includes orientation sessions, introductions to company policies and procedures, and assistance with completing required paperwork. Furthermore, HR serves as a connection between management and employees, handling issues related to workplace conflicts, complaints, and disciplinary actions. HR professionals provide guidance, mediation, and resolution strategies to promote a harmonious work environment and maintain positive employee morale. HR manages the organisation's compensation and benefits programs, including salary structures, bonus incentives, health insurance, retirement plans, and other employee perks. HR ensures competitive and equitable compensation practices to attract and retain top talent. Lastly, HR ensures the organisation's employment practices comply with federal, state, and local labor laws and regulations. This includes overseeing adherence to anti-discrimination laws, wage and hour regulations, workplace safety standards, and employment eligibility verification requirements. Example of human resources ABC Corporation's HR department is responsible for managing the company's employees. They oversee recruitment, hiring, and onboarding processes. For instance, when a new position opens up in...
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### Gross national product
- Published: 2024-02-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/gross-national-product/
Definition Gross national product (GNP) is a macroeconomic measure of the total value of all goods and services produced by the residents of a country, including both domestic and foreign production, within a specific time period, typically a year. What is the gross national product? GNP measures the total economic output generated by the citizens and businesses of a country, regardless of where the production occurs. It includes the value of goods and services produced domestically, as well as the income earned by citizens and businesses from their investments and activities abroad. GNP consists of several components, including: Gross domestic product (GDP): The value of all goods and services produced within the borders of a country, regardless of the nationality of the producers. Net foreign income: The difference between income earned by a country's residents from investments and activities abroad and income earned by foreign residents from investments and activities within the country. GNP can be calculated using the following formula: GNP = GDP + Net foreign income Changes in GNP over time can indicate trends in economic growth, development, and prosperity. Like any economic indicator, GNP has limitations. It may not fully capture the distribution of income within a country, as it focuses on aggregate output rather than individual welfare. Additionally, GNP does not account for factors such as environmental sustainability, social welfare, or income inequality, which are important considerations for assessing overall well-being and development. Example of gross national product Let's consider a hypothetical country called "Econland. "...
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### Earnings per click (EPC)
- Published: 2024-02-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/earnings-per-click/
Definition Earnings per click (EPC) is a metric used in online advertising to measure the effectiveness of an advertising campaign. What is earnings per click? Earnings per click represents the average revenue generated for each click on an ad or affiliate link. The formula for EPC is as follows: EPC = Total earnings / Total clicks This metric is important to advertisers as it provides insights into the profitability and effectiveness of their marketing efforts. A higher EPC indicates that the advertising campaign is generating more revenue per click, suggesting better performance and return on investment. Several factors can influence EPC, including the quality and relevance of the advertising creatives, the targeting and segmentation of the audience, the competitiveness of the market, the pricing and commission structure, and the conversion rate of the landing page or offer. While EPC provides valuable insights into the revenue generated per click, it may not provide a complete picture of overall campaign performance. Advertisers should consider other metrics such as conversion rate, return on ad spend (ROAS), and customer lifetime value (CLV) to assess the total impact of their marketing activities. Example of earnings per click Company ABC runs an affiliate marketing campaign where it pays affiliates a commission for each sale generated. During the campaign period, Company ABC earns R2,000 in revenue from sales. Throughout the campaign, there were a total of 500 clicks on affiliate links. Now the earnings per click can be calculated for the campaign: EPC = R2,000 / 500...
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### Debit
- Published: 2024-02-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/debit/
Definition A debit refers to an entry made on the left side of an accounting ledger or financial statement, representing an increase in an asset account or a decrease in a liability or equity account. What is debit? Debits are one of the fundamental principles of double-entry bookkeeping, which is used to maintain accurate records of financial transactions. In double-entry bookkeeping, every financial transaction involves at least two accounts - a debit and a credit.   Debits and credits must always balance, ensuring that the accounting equation (Assets = Liabilities + Equity) remains in balance. Debits can affect different types of accounts in various ways: Assets: Debits increase asset accounts. For example, when a business receives cash from a customer, it records a debit to the cash account, reflecting an increase in cash on hand. Expenses: Debits increase expense accounts. For instance, when a business pays for office supplies, it records a debit to the supplies expense account, indicating a decrease in assets and an increase in expenses. Drawings (Owner's withdrawals): Debits increase the drawings account, which represents withdrawals made by the owner(s) from the business for personal use. Losses: Debits increase loss accounts, such as bad debt expense or losses on the sale of assets. When recording a transaction, the double-entry system requires that every debit entry be accompanied by a corresponding credit entry, ensuring that the total debits equal the total credits. This principle helps maintain the accuracy and integrity of financial records and enables businesses to track...
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### Customer relations management (CRM)
- Published: 2024-02-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/customer-relations-management/
Definition Customer relationship management (CRM) is a strategic approach and technology-enabled process that businesses use to manage interactions and relationships with current and potential customers.   What is customer relations management? CRM includes various strategies, practices, and tools designed to improve customer satisfaction, loyalty, and retention, ultimately driving business growth and profitability. Furthermore, CRM systems capture, store, and organise customer data from multiple sources, such as interactions, transactions, demographics, preferences, and behavioural patterns.   By logging and analysing these interactions, businesses can identify customer needs, preferences, and pain points, enabling more effective communication and relationship-building. Marketers can leverage CRM data to create targeted campaigns, deliver personalised content, and measure the effectiveness of marketing efforts, optimising ROI and customer acquisition. CRM systems streamline the sales process by automating tasks such as lead management, opportunity tracking, pipeline management, and sales forecasting. By providing sales teams with access to real-time customer data and insights, CRM enhances efficiency, collaboration, and decision-making, leading to improved sales performance and conversion rates. Additionally, CRM systems offer robust analytics and reporting capabilities, allowing businesses to analyse customer data, track key performance indicators (KPIs), and measure the effectiveness of sales, marketing, and customer service initiatives. Example of customer relations management Company XYZ, an e-commerce retailer, uses a CRM system to manage its interactions with customers and improve their overall experience. Customer data collection: When customers visit Company XYZ's website, they create accounts and provide information. This data is stored in the CRM system. Personalised marketing: Based on the data...
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### Non-amortisation loan
- Published: 2024-02-08
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/non-amortisation-loan/
Definition A non-amortising loan, also known as a bullet loan or interest-only loan, is a type of loan where the borrower is required to repay only the interest on the principal amount borrowed throughout the loan term. What is a non-amortisation loan? Unlike traditional loans, which require periodic payments that include both principal and interest, non-amortising loans typically involve making interest payments over the loan term, with the principal amount due in full at the end of the loan term. Non-amortising loans are commonly used for short-term financing needs or as bridge loans to finance projects or investments with expected cash flows or refinancing options in the future. They are often favoured by borrowers who expect to have sufficient funds available to repay the principal amount by the end of the loan term. These types of loans typically carry higher risk for lenders compared to traditional amortising loans since the entire principal amount is due at maturity. Lenders may require borrowers to meet specific criteria or provide collateral to reduce this risk. Non-amortising loans offer flexibility for borrowers who may prefer lower monthly payments during the loan term, allowing them to allocate funds for other purposes or investments. The interest rate on non-amortising loans may be fixed or variable, depending on the terms negotiated between the borrower and the lender. Borrowers may benefit from lower initial interest rates compared to traditional loans, but they should be aware of potential interest rate risk if rates rise during the loan term. Example...
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### Green finance
- Published: 2024-02-08
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/green-finance/
Definition Green finance refers to financial products, services, and investments that support environmentally sustainable projects, businesses, and initiatives. What is green finance? Green finance focuses on financing activities that have positive environmental outcomes, such as renewable energy projects, energy efficiency improvements, sustainable agriculture, waste management, clean transportation, and conservation initiatives. These investments aim to reduce climate change, reduce pollution, conserve natural resources, and promote biodiversity. Governments worldwide are implementing policies and regulations to promote green finance and incentivise sustainable investments. These frameworks may include tax incentives, subsidies, grants, mandates, disclosure requirements, and sustainability standards to encourage financial institutions, investors, and businesses to integrate environmental considerations into their decision-making processes. The green finance market is experiencing rapid growth and innovation, driven by increasing awareness of environmental issues, shifting consumer preferences, technological advancements, and regulatory developments. Financial institutions, asset managers, and other market participants are launching new green financial products and services to meet growing demand for sustainable investment opportunities. Green finance initiatives often incorporate impact measurement and reporting mechanisms to assess the environmental and social outcomes of investments. Metrics such as carbon footprint, energy efficiency improvements, greenhouse gas emissions reductions, and social co-benefits are used to evaluate the effectiveness and sustainability of green finance initiatives and communicate their impact to stakeholders. Example of green finance A renewable energy company, SolarTech, seeks funding to install solar panels on residential rooftops to generate clean energy. SolarTech approached a bank that specialises in green finance for a loan to finance the project. The bank...
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### Prime rate
- Published: 2024-02-07
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/prime-rate/
Definition In South Africa, the term "prime rate" refers to the interest rate that commercial banks charge their most creditworthy customers for short-term loans. What is a prime rate? The prime rate serves as a benchmark for various lending rates offered by financial institutions in the country. The prime rate is typically influenced by the monetary policy decisions of the South African Reserve Bank (SARB). Changes in the repo rate, which is the rate at which the SARB lends money to commercial banks, often impact the prime rate. Additionally, economic conditions, inflationary pressures, and global market trends also play a role in determining the prime rate. Borrowers with a strong credit history and financial standing may qualify for loans at interest rates close to the prime rate. Conversely, borrowers with less favourable credit profiles may be offered loans at higher interest rates, with the margin above the prime rate reflecting the level of risk. Overall, the prime rate plays a significant role in the South African financial system, serving as a key determinant of borrowing costs for individuals and businesses. Its movements reflect broader economic trends and policy decisions, making it an important indicator for stakeholders across the economy. Example of a prime rate Let's say the prime rate in South Africa is currently 7. 25%. A commercial bank offers a personal loan to a creditworthy business at a rate of prime plus 2%, meaning the interest rate on the loan would be calculated as follows: Prime rate (7. 25)...
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### Cost per unit
- Published: 2024-02-07
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cost-per-unit/
Definition Cost per unit is a financial metric used to measure the average cost incurred by a company to produce a single unit of a product or service. What is cost per unit? Cost per unit is a fundamental concept in accounting and is key for assessing the profitability and efficiency of production processes. The formula to calculate cost per unit is: CPU = Total cost / Total units produced  Cost per unit can vary depending on factors such as economies of scale, production volume, efficiency of operations, and fluctuations in input costs. Generally, as production volume increases, the cost per unit tends to decrease due to the spreading of fixed costs over a larger number of units. Furthermore, cost per unit serves as a basis for setting product prices. Understanding the cost structure allows businesses to establish pricing strategies that ensure profitability while remaining competitive in the market. By comparing the cost per unit with the selling price per unit, businesses can determine the profitability of their products or services. This analysis enables them to identify high-margin products or areas where costs need to be reduced to improve profitability. Example of cost per unit Let's consider a manufacturing company that produces widgets. In a given month, the company incurs total production costs of R10,000, including raw materials, labour, and overhead expenses. During the same month, the company produces 1,000 widgets. Using the formula for cost per unit: CPU = R10,000 / 1,000 = R10 In this example, the cost...
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### Cost per lead (CPL)
- Published: 2024-02-07
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cost-per-lead/
Definition Cost per lead (CPL) is a marketing metric that measures the cost incurred by a company or marketer to get a single lead. What is cost per lead? CPL is an essential metric for marketers and businesses as it helps them evaluate the efficiency and effectiveness of their lead generation efforts. By comparing the CPL across different marketing channels or campaigns, companies can determine which channels or campaigns are delivering the most cost-effective results. . The formula to calculate CPL is: CPL= Total costs / Number of leads generated A low CPL indicates that a marketing campaign or channel is efficient in getting leads at a relatively low cost, whereas a high CPL suggests that the cost of getting leads is high compared to the value those leads may bring to the business.   Ultimately, while CPL is a crucial metric for assessing the cost-effectiveness of lead generation efforts, it should be considered alongside other performance indicators to gain a comprehensive understanding of ROI and overall business success. Example of cost per lead Let's say a company runs an online advertising campaign on social media platforms to generate leads for its new product. The total cost of the campaign amounts to R1,000. Over the duration of the campaign, the company manages to generate 100 leads. Using the formula for CPL, it can be calculated as: CPL = R1,000 / 100 = R10 In this example, the cost per lead is R10. This means that on average, the company spent...
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### Cost of goods sold
- Published: 2024-01-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cost-of-goods-sold/
Definition Cost of goods sold (COGS) is a key accounting metric that represents the direct costs incurred by a company in the production or purchase of the goods or services it sells during a specific period. What is the cost of goods sold? COGS is a key component in calculating a company's gross profit, and is a crucial figure in the income statement as it is deducted from revenue to calculate gross profit. Calculation of COGS: COGS = Opening inventory + Purchases or production costs − Closing inventory Different industries may have different methods for calculating and presenting COGS. For example, a manufacturing company's COGS will include costs like raw materials and direct labour, while a retail company's COGS may include the cost of purchasing goods for resale. COGS is a deductible expense when calculating taxable income. The lower the COGS, the higher the potential taxable income and tax liability. Example of cost of goods sold Suppose ABC Electronics is a company that manufactures smartphones. Here's how you might calculate COGS for a specific period, such as a quarter: Opening inventory (Beginning of the quarter): ABC Electronics had R500,000 worth of smartphones in inventory at the beginning of the quarter. Purchases or production costs (During the quarter): During the quarter, ABC Electronics incurred direct costs associated with manufacturing smartphones, including raw materials, labour, and manufacturing overhead. Let's say these costs amounted to R1,000,000. Closing Inventory (End of the quarter): At the end of the quarter, ABC Electronics had R300,000 worth...
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### Scrap value
- Published: 2024-01-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/scrap-value/
Definition Scrap value is the estimated value of an asset's components or materials when the asset is no longer in use or at the end of its useful life. What is scrap value? Scrap value is a key consideration in asset depreciation, accounting, and financial decision-making. It represents the amount that can be obtained from selling the parts or materials of an asset after it has been fully depreciated or is no longer useful for its intended purpose. In the context of depreciation, scrap value is an essential component in calculating the depreciation expense of an asset. The formula for straight-line depreciation is: Depreciation expense = (Cost of asset − Scrap value) / Useful life Some assets may have a scrap value of zero, indicating that they are expected to have no residual worth after being fully depreciated. Scrap value affects the tax implications of an asset. If the scrap value is substantial, it can impact the total depreciation claimed over an asset's life. Residual value vs. scrap value: While the terms are often used similarly, there can be nuances. Residual value may imply some remaining usefulness, while scrap value specifically refers to the value obtained by selling the materials as scrap. Example of scrap value ABC Manufacturing Company purchases a machine for R30,000, which it anticipates using for production over the next 10 years. The machine is estimated to have a scrap value of R2,000 at the end of its useful life. Using straight-line depreciation, the annual depreciation expense...
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### Salvage value
- Published: 2024-01-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/salvage-value/
Definition Salvage value, also known as residual value or scrap value, is the estimated monetary worth of an asset at the end of its useful life.   What is salvage value? Salvage value represents the amount that an asset is expected to be worth after it has been fully depreciated or used up. Salvage value is an important concept in accounting, finance, and asset management, influencing decisions related to depreciation, asset valuation, and overall financial planning. In the context of depreciation, salvage value is a key component in calculating the depreciation expense of an asset. The formula commonly used is straight-line depreciation: Depreciation expense = (Cost of asset − Salvage value) / Useful life Some assets may have a salvage value of zero, indicating that they are expected to have no residual worth after being fully depreciated. In the case of damaged or totaled assets, the salvage value may be considered in insurance claims to determine the overall loss or value of the asset. Residual value vs. scrap Value: While salvage value, residual value, and scrap value are often used similarly, there can be nuances. Residual value may imply some remaining usefulness, while scrap value specifically refers to the value obtained by selling the materials as scrap. Example of salvage value ABC Manufacturing Company purchased a specialised machine for R50,000, with an estimated useful life of 10 years. The salvage value is estimated to be R10,000. Using straight-line depreciation, the annual depreciation expense would be  R50,000 / 10 years =...
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### Liquidation value
- Published: 2024-01-30
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/liquidation-value/
Definition Liquidation value refers to the estimated cash value that an asset or a business would gain if it were to be sold or liquidated. What is liquidation value? Liquidation value is the amount of money that could be realised from the sale of assets, typically in a relatively short time frame. It’s crucial in various financial contexts, such as bankruptcy proceedings, mergers and acquisitions, and investment analysis. Liquidation value can be calculated using the formula: Liquidation value = Total assets − Total liabilities In bankruptcy cases, the liquidation value becomes relevant when a company is unable to meet its financial obligations. Creditors may receive distributions based on the liquidation value of the company's assets. Investors may consider the liquidation value when evaluating the worth of a company's assets. This analysis provides a downside risk assessment. Example of liquidation value XYZ Electronics, a struggling electronics manufacturer, is facing financial difficulties and is considering liquidation. Assets: XYZ Electronics has assets, including manufacturing equipment, inventory, and intellectual property, with a total estimated value of R5 million. Liabilities: The company has outstanding debts and obligations, including loans and payables, totaling R3 million. The liquidation value can now be calculated as: Liquidation Value = R5 million - R3 million = R2 million If XYZ Electronics were to go through a liquidation, the estimated proceeds would be approximately R2 million. This amount would be distributed among creditors, with any remaining funds going to equity holders.
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### Corporate social responsibility (CSR)
- Published: 2024-01-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/corporate-social-responsibility/
Definition Corporate social responsibility (CSR) is a concept that refers to a company's voluntary commitment to operating ethically and responsibly, going beyond its primary goal of profit maximisation. What is corporate social responsibility? CSR involves integrating social and environmental concerns into a company's business operations and interactions with stakeholders. The core idea is that businesses should contribute positively to society and the environment while balancing the interests of various stakeholders. This can involve initiatives such as reducing carbon emissions, conserving energy, minimising waste, and using sustainable resources. Engaging with local communities is a significant aspect of CSR. Companies may support community development projects, education initiatives, healthcare programs, or other activities that benefit the communities in which they operate. Companies committed to CSR often focus on providing safe, high-quality products or services. Transparency in marketing and communication is also emphasised to ensure consumers can make informed choices. Companies also consider the interests of other stakeholders such as suppliers and investors. Maintaining open communication and addressing stakeholder concerns are essential components of CSR. Example of corporate social responsibility ABC Corporation embraces CSR initiatives to contribute to the well-being of the communities where it operates. As part of its CSR program: Environmental sustainability: ABC Corporation invests in renewable energy sources, reduces its carbon footprint by implementing energy-efficient practices in its offices and manufacturing facilities, and promotes the use of eco-friendly materials in its products. Community engagement: ABC Corporation establishes partnerships with local schools to enhance educational opportunities for underprivileged children. The company sponsors...
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### Conversion rate
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/conversion-rate/
Definition Conversion rate measures the percentage of website visitors or users who take a desired action, often referred to as a "conversion. " What is a conversion rate? Conversion rate is a key performance indicator (KPI) used to evaluate the effectiveness of a website or marketing campaign in achieving its objectives. A higher conversion rate generally indicates that a larger percentage of visitors are taking the desired action. The action could be making a purchase, filling out a form, signing up for a newsletter, or any other goal. The formula for calculating conversion rate is: Conversion rate = (Number of conversions / Number of visitors) x 100 Marketers often use conversion rate data to optimise their websites or landing pages. Changes to website design, copywriting, call-to-action buttons, and other elements are made to improve the likelihood of conversions. Factors such as website usability, page load times, and the overall user experience significantly impact conversion rates. Improving these aspects can positively influence conversion rates. Marketers often conduct A/B testing (split testing) to compare the performance of different variations of a webpage or marketing campaign. Conversion rate data helps determine which variations are more successful in driving conversions. While a high conversion rate is desirable, it's essential to consider the quality of conversions. Not all conversions are equal, and marketers may need to assess the value of each type of conversion in relation to business objectives. Example of conversion rate Let's consider an example of conversion rate for an e-commerce website: Number...
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### Click through rate (CTR)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/click-through-rate/
Definition Click through rate (CTR) is a metric used in online advertising and digital marketing to measure the effectiveness of a particular advertising campaign or the success of an individual advertisement. What is a click through rate? CTR is a key performance indicator in digital advertising. It provides insights into how well an ad aligns with its target audience. A higher CTR generally indicates that the ad is engaging and compelling to users.   Formula for click through rate (CTR): CTR = (Number of clicks / Number of impressions) x 100 A low CTR may suggest that the ad is not relevant for the target audience. Advertisers may need to reassess the ad content, targeting parameters, or placement to improve performance. By analysing CTR data, advertisers can make informed decisions about refining ad creative, adjusting targeting criteria, or experimenting with different ad formats. CTR benchmarks vary across different advertising platforms and industries. Understanding the typical CTR for a specific platform helps advertisers set realistic expectations and assess the competitiveness of their campaigns. While a high CTR is generally positive, it's important to consider the context. For example, a high CTR may not necessarily indicate success if the overall conversion rate is low. Example of click through rate Let's consider an example of click through rate for an online advertising campaign: Number of Clicks: 500 Number of Impressions: 10,000 CTR = (500 / 10,000) x 100 = 5% This means that, out of the total 10,000 impressions, 5% of users clicked...
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### Chief technology officer (CTO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-technology-officer/
Definition A chief technology officer (CTO) is a high-ranking executive within an organisation who is responsible for overseeing the development and implementation of technology strategies that align with the company's business objectives. What is a chief technology officer? The CTOs contribute to the formulation of the organisation's technology strategy and vision. They align technology initiatives with overall business goals, ensuring that technology investments support long-term growth and competitiveness. CTOs often lead or collaborate with R&D teams to explore new technologies, conduct studies, and experiment with innovative ideas. They play a key role in driving research initiatives that can lead to breakthrough innovations. Furthermore, CTOs are responsible for the overall management of technology infrastructure, including servers, networks, and cloud services. They make decisions regarding the adoption of new infrastructure technologies to improve efficiency and performance. Lastly, CTOs collaborate closely with IT teams to ensure the effective implementation and maintenance of technology systems. They provide guidance on best practices, technology standards, and project management methodologies. Example of chief technology officer TechCommerce Solutions is a multinational e-commerce platform that connects buyers and sellers across various industries. Alex serves as the CTO of TechCommerce Solutions and plays a key role in driving the company's technological innovation. Innovation leadership: Alex leads efforts to explore emerging technologies. Under her guidance, the company adopts AI algorithms to increase product recommendations, VR for shopping experiences, and blockchain for secure transactions. Research and development (R&D): Alex leads the R&D team in exploring cutting-edge technologies and conducting studies. Recent initiatives...
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### Chief security officer (CSO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-security-officer/
Definition A chief security officer (CSO) is a senior executive within an organisation responsible for developing and implementing strategies to protect the organisation's assets, information, and personnel from security threats and risks. What is a chief security officer? The role of a CSO is to develop and lead the implementation of comprehensive security strategies aligned with the organisation's goals. They assess security risks, define priorities, and create strategic plans to safeguard people, assets, and information. CSOs conduct thorough risk assessments to identify potential threats and vulnerabilities. They evaluate the likelihood and impact of various risks, allowing them to prioritise security measures and allocate resources effectively. CSOs are responsible for safeguarding the organisation's sensitive information and data. They develop and enforce information security policies, implement encryption and access controls, and oversee measures to prevent data breaches or unauthorised access. Furthermore, CSOs develop incident response plans and lead crisis management efforts in the event of security incidents or emergencies. They coordinate with relevant stakeholders, law enforcement, and external partners to manage and mitigate the impact of incidents. Additionally, they establish security standards for external partners and conduct regular audits to verify compliance. Example of chief security officer SecureBank International is a leading multinational financial institution providing a wide range of banking and financial services. Jennifer serves as the CSO of SecureBank International and is responsible for overseeing the security measures. Risk assessment and mitigation: Jennifer conducts regular risk assessments to identify potential vulnerabilities and threats to the bank's operations. She collaborates with...
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### Chief operating officer (COO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-operating-officer/
Definition A chief operating officer (COO) is a high-ranking executive within an organisation who is responsible for overseeing the day-to-day operations and ensuring that business strategies are effectively implemented. What is a chief operating officer? COOs provide leadership and direction to various operational functions within the organisation. They collaborate with other executives to define and execute operational strategies aligned with broader business objectives. They work closely with the CEO and other key stakeholders to ensure that operational plans support the company's mission, vision, and long-term goals. Furthermore, COOs collaborate with leaders from different departments to foster a collaborative organisational culture. They facilitate communication and coordination between departments to achieve common goals. Additionally, they monitor performance metrics, analyse data, and provide insights to guide decision-making and continuous improvement. COOs assess operational risks and develop strategies to mitigate potential challenges. They implement risk management processes to ensure business continuity and resilience in the face of unforeseen events. Example of chief operating officer David serves as the COO of LogiTech Solutions. He plays a crucial role in ensuring the seamless functioning of the company's global operations. Process streamlining: Recognising the importance of streamlined processes, David initiates process improvement initiatives. He collaborates with department heads to identify bottlenecks, implement best practices, and enhance overall operational workflows, resulting in cost savings and improved service delivery. Resource allocation and management: David is responsible for effective resource allocation, including personnel, technology, and capital. He ensures that resources are deployed efficiently to support ongoing operations and strategic initiatives....
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### Chief marketing officer (CMO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-marketing-officer/
Definition A chief marketing officer (CMO) is a senior executive within an organisation who is responsible for overseeing and managing all aspects of the marketing strategy. What is a chief marketing officer? CMOs provide strategic leadership for the marketing function, developing and executing marketing strategies that align with the organisation's overall goals and objectives. They play a key role in shaping the company's brand identity and positioning in the market. This includes developing a compelling brand narrative, establishing brand guidelines, and ensuring consistent messaging across all marketing channels. Furthermore, CMOs focus on driving customer acquisition through targeted marketing campaigns and initiatives. They also develop strategies to enhance customer retention, loyalty, and lifetime value by creating engaging customer experiences. CMOs leverage digital marketing channels and technologies to reach target audiences effectively. This includes online advertising, social media marketing, content marketing, and marketing automation to optimise customer engagement. In addition, CMOs oversee public relations efforts, managing relationships with media outlets and ensuring positive coverage. They also lead internal and external communications to maintain a consistent and positive brand image. Example of chief marketing officer TechVision Electronics is a leading multinational company known for its innovative consumer electronics. Sophie serves as the CMO of TechVision Electronics and she plays a pivotal role in shaping the company's marketing strategy. Digital marketing excellence: Recognising the importance of digital channels, Sophie focuses on enhancing TechVision's online presence. She implements effective digital marketing campaigns, leverages social media platforms, and optimises e-commerce strategies to reach and engage the...
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### Chief information officer (CIO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-information-officer/
Definition A chief Information Officer (CIO) is a senior executive within an organisation who is responsible for the overall management and strategic use of information technology (IT) and digital resources. What is a chief information officer? CIOs are responsible for developing and executing the organisation's IT strategy. This involves aligning technology initiatives with business objectives and ensuring that technology investments support the overall goals of the company. Furthermore, CIOs oversee the design, implementation, and maintenance of the organisation's IT infrastructure. This includes networks, servers, hardware, and software systems required for day-to-day operations. CIOs prioritise cybersecurity measures to protect the organisation's digital assets from cyber threats and breaches. They implement security protocols, conduct risk assessments, and stay informed about evolving cybersecurity trends. Additionally, CIOs work closely with other business units to understand their technology needs and challenges. They collaborate with department heads to implement IT solutions that enhance operational efficiency and support business functions. CIOs lead change management efforts related to technology implementations. They communicate changes, address employee concerns, and ensure a smooth transition to new technologies or processes. Example of chief information officer TechBazaar Global is a prominent e-commerce platform that connects buyers and sellers worldwide, offering a wide range of technology products. Alex serves as the CIO of TechBazaar Global, and plays a key role in shaping and executing the company's technology strategy. Digital transformation: Alex implements innovative technologies to improve the customer experience. This includes the introduction of a personalised recommendation engine and the integration of augmented reality...
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### Chief financial officer (CFO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-financial-officer/
Definition A chief financial officer (CFO) is a high-ranking executive within an organisation who is primarily responsible for managing the financial aspects of the company. What is a chief financial officer? The CFO is responsible for developing and executing the financial strategy of the organisation. This involves aligning financial goals with the overall business objectives and contributing to long-term planning. They communicate financial results to internal and external stakeholders, including shareholders, analysts, and regulatory bodies. CFOs lead the budgeting and forecasting processes, collaborating with other executives and department heads to develop realistic financial plans. They monitor financial performance against budgets and forecasts, making adjustments as needed. Furthermore, CFOs oversee the company's treasury function, managing cash flow, liquidity, and investments. They ensure that the organisation has funds to meet its obligations and capitalise on strategic opportunities. CFOs are responsible for controlling costs and improving operational efficiency. They work with operational teams to identify cost-saving opportunities and implement measures to enhance cost-effectiveness. Example of chief financial officer Global Manufacturing Solutions Inc. is a leading company specialising in the production of automotive components, with operations spanning multiple countries. Emily serves as the CFO of Global Manufacturing Solutions Inc. , and she plays a key role in managing the financial aspects of the company. Financial strategy: Emily develops and executes the financial strategy of the company, aligning financial goals with the overall business objectives. She contributes to the development of a robust international expansion strategy. Financial reporting: Emily oversees the preparation of accurate and...
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### Chief executive officer (CEO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-executive-officer/
Definition A chief executive officer (CEO) is the highest-ranking executive within an organisation, responsible for overall leadership, strategic decision-making, and the successful operation of the company.   What is a chief executive officer? The CEO plays a key role in shaping the organisation's vision, setting goals, and ensuring that the company achieves its objectives in alignment with its mission and stakeholders' interests. Furthermore, the CEO is responsible for providing strategic direction to the organisation. This involves formulating long-term plans, defining goals, and establishing a vision that guides the company's growth and development. CEOs make critical decisions that impact the organisation's present and future. They analyse market trends, assess risks, and make informed choices to achieve financial success and sustain the company's competitive advantage. In addition, CEOs oversee the allocation of resources, including finances, personnel, and technology, to maximise efficiency and achieve organisational objectives. They prioritise investments and initiatives that align with the company's strategic goals. CEOs are effective communicators, expressing the company's vision and strategy to internal and external audiences. They represent the organisation in public forums and media, improving the company's brand and reputation. Example of chief executive officer John serves as the CEO of ABC Tech Innovations. He is responsible for steering the company's overall direction and ensuring its continued growth and success. Strategic vision: John formulates a strategic vision for ABC Tech Innovations, emphasising innovation, market leadership, and customer-centric solutions. Stakeholder engagement: John regularly engages with stakeholders, including the board of directors, employees, investors, and clients. He...
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### Chief data officer (CDO)
- Published: 2024-01-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-data-officer/
Definition A chief data officer (CDO) is a high-level executive within an organisation responsible for managing and leveraging data as a strategic asset. What is a chief data officer? CDOs are responsible for developing and executing the organisation's data strategy. This involves aligning data initiatives with business goals, ensuring data quality, and establishing policies for data management. This involves determining how data is collected, stored, processed, and accessed across the business. Ensuring the accuracy, reliability, and consistency of data is a primary responsibility of CDOs. They implement measures to improve data quality, conduct audits, and establish protocols for data cleansing. CDOs collaborate with different business units to understand their data needs and align data initiatives with specific business objectives. This involves working closely with departments such as marketing, finance, operations, and IT. Furthermore, they work with data analysts to extract meaningful patterns, trends, and predictions that inform business decision-making. CDOs are effective communicators, advocating for the strategic importance of data within the organisation. They educate stakeholders about the value of data, promote a data-driven culture, and ensure that data-related insights are accessible to decision-makers. Example of chief data officer In a large e-commerce company, the CDO plays a key role in harnessing the power of data to drive business strategies and improve customer experiences.   For example, the CDO may lead a project to analyse customer purchase patterns and preferences using advanced analytics. By collaborating with the marketing team, the CDO helps create personalised recommendations for customers, improving the overall...
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### Chief analytics officer (CAO)
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/chief-analytics-officer/
Definition A chief analytics officer (CAO) is a senior executive within an organisation responsible for leading and overseeing the strategic use of data analytics and data-driven insights to drive business decision-making and enhance overall performance. What is a chief analytics officer (CAO)? CAOs are key in developing and executing the organisation's data strategy. This involves establishing policies, procedures, and governance frameworks to ensure the quality, security, and ethical use of data across the enterprise. A CAO works closely with business leaders to understand organisational goals and challenges. By aligning analytics initiatives with business objectives, this person makes sure that data-driven insights contribute directly to strategic decision-making and business success. Some CAOs focus on identifying opportunities to monetise data assets. This may involve developing new data products, exploring partnerships, or leveraging data to create revenue streams for the organisation. Effective communication is crucial for CAOs. They translate complex analytics findings into actionable insights for non-technical stakeholders, fostering a data-driven culture within the organisation. Example of chief analytics officer (CAO) Let's consider an example of a chief analytics officer (CAO) in a technology company: XYZ Tech Solutions is a rapidly growing technology firm specialising in developing software solutions for various industries. Sarah serves as the CAO at XYZ Tech Solutions. She plays a crucial role in leveraging analytics to drive strategic decisions within the organisation. Data strategy: Sarah developed a comprehensive data strategy for XYZ Tech Solutions, outlining the ways in which data would be collected, processed, and used to enhance business...
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### Business-to-business (B2B)
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/business-to-business/
Definition Business-to-business (B2B) refers to a type of commerce or transaction that occurs between two businesses rather than between a business and individual consumers. What is business to business? B2B transactions involve the sale of goods, services, or products from one business to another. These transactions often involve larger quantities, higher values, and more complex negotiation processes compared to business-to-consumer (B2C) transactions. B2B relationships are often characterised by long-term partnerships and a focus on building strong, mutually beneficial relationships. Trust, reliability, and consistent delivery of quality products or services are key elements in B2B interactions. These transactions frequently involve customisation and personalisation of products or services to meet the specific needs and requirements of the buying business. This can include tailored solutions, negotiated contracts, and specialised offerings. Marketing strategies focus on reaching businesses through targeted channels such as industry events, trade shows, business publications, and digital platforms. Marketing messages emphasise the value, efficiency, and business impact of the products or services being offered. Example of business to business An example of a business-to-business (B2B) transaction is a manufacturer of electronic components selling its products to a smartphone production company. In this scenario: Manufacturer (Seller): A company that specialises in producing electronic components. Smartphone production company (Buyer): A business engaged in the manufacturing of smartphones. Transaction: The smartphone production company places an order with the electronic component manufacturer to purchase a specific quantity of microchips for their latest smartphone model. Negotiation and customisation: The two businesses may negotiate terms and any...
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### Application service provider (ASP)
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/application-service-provider/
Definition An application service provider (ASP) is a business that delivers software applications or services over the internet or a network to its customers. What is an application service provider? Instead of users installing and maintaining software on their individual devices or servers, ASPs host and manage these applications centrally, providing access to users through web browsers or dedicated interfaces. Users can access the hosted applications over the internet, usually through web browsers or dedicated client software. This allows for remote access and collaboration, making it convenient for users regardless of their location. ASPs often operate on a subscription or pay-as-you-go model, where users pay for the services they use rather than making upfront software purchases. This can be cost-effective for businesses as it eliminates the need for significant initial investments. ASPs offer scalable solutions, allowing users to easily scale up or down based on their needs. This is particularly beneficial for businesses experiencing growth or changes in demand. Example of an application service provider Common examples of services offered by ASPs include customer relationship management (CRM) software, enterprise resource planning (ERP) systems, email services, and collaboration tools.
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### Capital gains tax
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/capital-gains-tax/
Definition Capital gains tax is a type of tax levied on the profit or gain realised from the sale or disposition of certain types of assets, known as capital assets.   What are capital gains tax? The tax is applicable when the selling price of the asset exceeds its original purchase price, resulting in a capital gain. Capital assets typically include long-term investments held for a certain period, such as stocks, real estate, and other securities.   Different tax rates apply to short-term and long-term capital gains. Short-term gains are typically taxed at the individual's ordinary income tax rates, while long-term gains may qualify for preferential tax rates, which are generally lower than ordinary income tax rates. Investors may consider various strategies to manage capital gains tax, such as tax-loss harvesting, where capital losses are intentionally released to offset gains, or holding investments for the long term to qualify for lower tax rates. Capital gains tax rates and regulations can vary significantly between countries, and they may be subject to change based on legislative decisions and economic conditions. Example of capital gains tax Let's consider a simple example to illustrate capital gains tax: Purchase of stock: Investor A purchases 100 shares of a company's stock for R50 per share, resulting in a total investment of R5,000. Holding period: After holding the stock for more than one year, Investor A decides to sell the shares when the stock price has increased to R70 per share. Calculation of capital gain: Selling price:...
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### Preferential rates
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/preferential-rates/
Definition Preferential rates refer to reduced or favourable tariff rates granted to certain goods when traded between countries that have established preferential trade agreements.   What are preferential rates? Preferential rates contribute to the facilitation of trade by reducing the cost of imported goods, promoting market access, and encouraging economic cooperation among participating countries. Preferential rates are typically lower than the standard or most-favoured-nation (MFN) rates that would apply in the absence of such agreements. Preferential trade agreements (PTAs) are agreements between two or more countries that involve the reduction or elimination of trade barriers such as tariffs for certain goods.   To qualify for preferential rates, goods must meet specific origin criteria outlined in the trade agreement. These criteria ensure that the benefits of preferential treatment are extended only to goods originating from the countries that are parties to the agreement. Some preferential trade agreements allow for cumulation, which means that inputs or components sourced from one or more participating countries can be considered as originating from the exporting country. This facilitates the use of inputs from different countries while still qualifying for preferential rates. Example of preferential rates Let's consider an example of preferential rates between Country A and Country B. The trade agreement outlines that certain goods traded between these countries are eligible for preferential tariff rates. In this scenario: Standard tariff rate: The standard or most-favoured-nation (MFN) tariff rate for a specific product, let's say bicycles, is 10%. Preferential tariff rate: Under the terms of the...
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### Customs value
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/customs-value/
Definition Customs value refers to the monetary worth of goods as assessed by customs authorities for the purpose of calculating duties, taxes, and other charges when these goods cross international borders. What is the customs value? Customs value is the actual transaction value of the goods being imported. This includes all payments made by the buyer to the seller, or on behalf of the seller, for the goods. The determination of customs value is crucial in customs clearance processes and is governed by international standards  The primary method for determining customs value is the transaction value method, which is based on the price actually paid or payable for the goods when sold for export. This value includes all costs incurred up to the point of delivery to the country of importation. In transactions involving related parties, customs authorities may evaluate the declared value to make sure it reflects a fair market value. Adjustments may be made if the relationship between the buyer and seller has influenced the price. If the buyer provides any assistance, materials, or services for the production of the imported goods without charge or at reduced cost, the value of such assists may be added to the customs value. The customs value must be expressed in the currency of the country of importation. Exchange rates are applied for converting the value if the transaction is conducted in a currency other than that of the importing country. Example of customs value  Let's consider the importation of a shipment...
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### Commodity code
- Published: 2024-01-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/commodity-code/
Definition A commodity code is a standardised numerical code assigned to specific products or goods for international trade.   What is a commodity code? Commodity codes are part of the Harmonised System, which is an internationally standardised system of names and numbers to classify traded products. The purpose of commodity codes is to simplify the systematic classification and identification of traded goods, ensuring consistency and accuracy in customs procedures and trade statistics. Commodity codes are typically composed of a series of digits that represent different levels of classification. The first few digits provide a broad categorisation, while additional digits offer more detailed information about the product. The longer the code, the more specific the classification. Importers and exporters use commodity codes when completing customs declarations and other trade-related documents. These codes help customs authorities identify the nature of the goods being imported or exported, enabling them to apply the correct duties, taxes, and regulations. The use of commodity codes promotes efficiency and transparency in global trade by providing a standardised language for classifying products. This facilitates smoother customs procedures, reduces the risk of misclassification, and improves communication between trading partners. Example of commodity code Commodity code: 8471. 30. 1000 Breaking down the code: The first two digits, "84," broadly classify the product as machinery and mechanical appliances. The next two digits, "71," provide further categorisation, indicating that the product falls under the heading of automatic data processing machines and units. The following two digits, "30," specify a subcategory within automatic...
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### Bounce rate
- Published: 2024-01-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bounce-rate/
Definition Bounce rate is a web analytics metric that measures the percentage of visitors who navigate away from a website after viewing only one page, without interacting with any other pages on the site. What is a bounce rate? Bounce rate is calculated using the following formula: Bounce rate = (Number of bounces / Total entries) x 100 A high bounce rate typically indicates that visitors are not finding what they expected or that the page does not meet their needs or expectations. A low bounce rate suggests that visitors are exploring the site further, navigating to other pages, and engaging with the content. Factors influencing bounce rate: Relevance of content: If the content on the page is not relevant or does not meet the visitor's expectations, they may leave without exploring further. Page load time: Slow-loading pages can contribute to higher bounce rates, as users may lose patience and leave the site. Mobile responsiveness: With the increasing use of mobile devices, a site that is not mobile-friendly may lead to higher bounce rates among mobile users. User experience: Poorly designed websites or confusing navigation can contribute to higher bounce rates. Bounce rate should be considered in context. For certain types of content or pages, a high bounce rate might be expected and not necessarily a cause for concern. Example of bounce rate Imagine a small online store called XYZ Gadgets selling electronic devices. User A: User A visits the XYZ Gadgets website to buy a smartphone. They land on...
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### Annual percentage yield (APY)
- Published: 2024-01-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/annual-percentage-yield/
Definition Annual percentage yield (APY) is a financial metric used to represent the total return on an investment or deposit over a one-year period, expressed as a percentage. What is the annual percentage yield? It provides a more accurate reflection of the true earnings on an investment than other interest rate measures because it takes compounding into account.   APY allows investors to compare the potential returns of different investment options more accurately. It considers not only the nominal interest rate but also how frequently the interest is compounded, providing a more realistic representation of the overall return. While APY reflects the interest earned, it's important to consider the impact of inflation on the purchasing power of the returns. If you want to calculate your annual percentage yield, try our free calculator today. Example of annual percentage yield 1. Investment details: Emily decides to invest R10,000 in a 1-year CD with an annual interest rate of 4% 2. Compound frequency: The CD compounds interest quarterly, meaning that the interest is calculated and added to the principal every three months. 3. End of the investment period After one year, Emily's CD matures. the total amount she receives is calculated based on the APY Total amount = R10,000 x (1 = APY) = R10,406 Emily receives approximately R10,406 at the end of the investment period, including both the initial principal en the interest earned.
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### Net expenditure
- Published: 2024-01-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-expenditure/
Definition Net expenditure refers to the total amount of money spent by an organisation after accounting for any offsetting revenues, refunds, or recoveries. What is net expenditure? Net expenditure represents the actual cost incurred, taking into consideration both expenditures and any incoming funds that reduce the overall financial outlay. To calculate net expenditure you can use the following formula: Net expenditure = Gross expenditure - Revenues and recoveries  Net expenditure is often considered in budgeting and financial management to assess the true cost of operations. It provides a more accurate picture of the financial impact on an organisation’s resources. In business, net expenditure is essential for evaluating the financial health of a company. It allows for a more comprehensive assessment of costs and revenues, helping management make informed decisions. Furthermore, net expenditure is reflected in financial statements, providing stakeholders with a clear understanding of the actual financial impact of operations. It contributes to transparency and accountability in financial reporting. Example of net expenditure Let's consider a manufacturing company called "ABC Industries. " In a particular month, ABC Industries generates total revenue of R100,000. However, the company incurs various expenses during the same period totalling R80,000. Now, net expenditure for ABC Industries can be calculated: Net expenditure = R100,000 - R80,000 = R20,000 In this example, the net expenditure for ABC Industries is R20,000. This represents the difference between the total revenue generated by the company and the total expenses incurred during the month.
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### Subcontractor
- Published: 2024-01-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/subcontractor/
Definition A subcontractor is an individual or a company that is hired by a primary contractor to perform a specific portion of work or services on a larger project. What is a subcontractor? Subcontractors are typically specialists in a particular field or trade, and their expertise is enlisted to contribute to the completion of a more extensive project led by the primary contractor. The relationship between a subcontractor and a contractor is generally governed by a subcontract agreement, outlining the scope of work, terms, conditions, and compensation for the subcontractor's services. While subcontractors perform important tasks, they usually have an indirect relationship with the client or project owner. The primary contractor remains the main point of contact for the client and is responsible for coordinating and managing the entire project. The subcontractor's scope of work is well-defined within the subcontract agreement. This document outlines the specific tasks, responsibilities, and deliverables assigned to the subcontractor. It may also include details about the timeline, quality standards, and compensation. Subcontractors are typically required to comply with relevant laws, regulations, and safety standards in performing their work. Compliance is often outlined in the subcontract agreement, and subcontractors may be required to provide insurance and other documentation. On larger projects, there may be multiple subcontractors working concurrently. Coordination and collaboration among subcontractors become important to make sure the entire project is successfully completed. Example of a subcontractor ABC Construction Company specialises in general construction work and doesn't have the expertise or resources to complete all...
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### Indirect cost
- Published: 2024-01-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/indirect-cost/
Definition Indirect costs, commonly referred to as overhead costs, are expenses that are challenging to directly assign to a specific product, project, or activity. What are indirect costs? Unlike direct costs, which can be directly tied to a specific cost object, indirect costs are incurred for the overall operation of a business and are shared among various cost objects. Indirect costs are often considered fixed costs as they do not vary directly with production levels and are incurred regardless of the volume of goods or services produced. Understanding and properly allocating indirect costs is important for businesses to determine the true cost of production, set pricing strategies, and assess overall profitability. It helps in making informed decisions about resource allocation and budgeting. Examples of indirect costs Overhead costs: Costs associated with the general operation of a business, including rent, utilities, insurance, and property taxes. Administrative salaries: Salaries of employees who provide administrative support but may not be directly involved in production or service delivery. Depreciation: The gradual loss of value of long-term assets like machinery or buildings over time. Maintenance costs: Costs incurred to maintain and repair equipment or facilities that support overall business operations. Indirect labour: Wages of employees who contribute to the overall functioning of the business but are not directly involved in production.
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### Direct cost 
- Published: 2024-01-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/direct-cost/
Defintion Direct cost refers to expenses that can be specifically and easily linked to a particular product, project, or activity. What are directs costs? These costs are directly tied to the production or creation of a specific good or service and can be traced back to a particular cost object. Direct costs are typically variable, meaning they vary in proportion to the level of production or activity. Examples of direct costs: Direct materials: The cost of raw materials that can be directly traced to the production of a specific product. Direct labour: The wages and benefits of employees directly involved in the production of goods or the provision of services.   Direct expenses: Other costs that can be directly attributed to a specific product or project, such as specific equipment costs, subcontractor fees, or travel expenses. Direct costs are a component of the total cost of producing a product or delivering a service. The total cost also includes indirect costs, which are not easily traceable to a specific cost object. Understanding and accurately accounting for direct costs is important for businesses in determining the true cost of producing goods or services. It helps in setting appropriate pricing, assessing profitability, and making informed business decisions. Example of direct cost Imagine a company purchases steel, rubber, and gears to manufacture bicycles. The cost of these materials can be easily attributed directly to the production of each bicycle. Suppose the company buys R500 worth of raw materials to manufacture 10 bicycles. Direct cost...
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### SIC code
- Published: 2024-01-08
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/sic-code/
Definition A Standard Industrial Classification (SIC) code is a numerical code used to classify and categorise businesses based on their primary economic activities. What are SIC codes? The purpose of assigning SIC codes is to provide a standardised system for organising and analysing data related to different industries. SIC codes are particularly useful for statistical agencies, government bodies, researchers, and businesses seeking to understand economic trends, and conduct industry analysis. SIC codes are typically four-digit numerical classifications that represent different sectors and industries. The first two digits broadly indicate the major industry group, while the third and fourth digits offer more detailed information about the specific activity or specialisation within that group. In some jurisdictions, businesses are required to report their SIC codes when registering or filing official documents. This information helps regulatory authorities track and monitor economic activities within their jurisdiction. Different countries may have their own variations of industry classification systems, such as the International Standard Industrial Classification (ISIC) used globally. These systems serve similar purposes but may have unique structures and coding schemes. Example of a SIC code Let's consider a company, XYZ Furniture Manufacturing Co. , which primarily manufactures and sells furniture. The SIC code for furniture manufacturing would typically fall under code 2511. So, the SIC code for XYZ Furniture Manufacturing Co. would be 2511. This code indicates that the primary activity of XYZ Furniture Manufacturing Co. is in the industry of manufacturing wood household furniture.
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### Sell rate  
- Published: 2024-01-04
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/sell-rate/
Definition Sell rate typically refers to the exchange rate at which a financial institution, such as a bank, sells foreign currency to its customers. What is a sell rate? The sell rate is an important component of currency exchange transactions and plays a significant role in international trade and finance.   Businesses involved in international trade often need to deal with multiple currencies. The sell rate becomes relevant when these businesses convert their local currency into a foreign one. Financial institutions, acting as intermediaries, provide sell rates to customers looking to buy foreign currency. The sell rate includes a markup, which represents the profit margin for the financial institution in the currency exchange deal. The difference between the sell rate and the buy rate is known as the spread. It serves as the expense for customers, representing the convenience of exchanging currency at that specific financial institution. Financial institutions make a profit on currency exchange by offering sell rates that are slightly higher than the current market rates. The markup helps cover the institution's operating costs and generates revenue. The sell rate directly affects the cost of conducting international business for companies involved in cross-border transactions. If the sell rate is higher, businesses end up paying more in their local currency to obtain foreign currency, which can affect their overall costs and potentially impact profit margins. Financial institutions consider various risk factors when determining sell rates, including currency market volatility and geopolitical risks. These considerations help manage potential risks associated...
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### Buy rate  
- Published: 2024-01-04
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/buy-rate/
Definition The term "buy rate" typically refers to the interest rate at which a financial institution, such as a bank, can borrow money from another financial institution or central bank. This rate is essential in various financial transactions and can affect businesses looking for funding. What is a buy rate? The buy rate directly affects the cost of funds for financial institutions. This cost, in turn, influences the interest rates at which businesses can borrow money. When buy rates are low, it's usually cheaper for businesses to borrow money, which is good for the economy. On the other hand, higher buy rates may result in increased borrowing costs for businesses. The buy rate is closely tied to the credit markets. Changes in the buy rate set off a chain reaction, affecting interest rates on different financial tools, like bonds and loans. As a result, it influence the financing options available to businesses The buy rate also reflects the risk in the financial markets. Financial institutions with higher credit risk may face higher buy rates. This shows that lenders want extra compensation for taking on more risk. Example of buy rate XYZ Motors, a car dealership, partners with ABC Bank to offer financing options to its customers. 1. Buy rate negotiation: ABC Bank provides a "buy rate" to XYZ Motors, which is the interest rate at which the bank is willing to lend money to the dealership for each car loan. In this case, the buy rate is 4% 2. Customer...
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### Wall street
- Published: 2023-12-28
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/wall-street/
A symbolic term referring to the financial district in New York City
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### Write down
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/write-down/
Definition In business and finance, a "write down" refers to the accounting practice of reducing the book value of an asset on a company's balance sheet. What is a write down? This adjustment is made when the fair market value of the asset has declined below its carrying amount, or the amount at which it is currently recorded on the books. A write down is a recognition that the asset's recoverable value has decreased, and it provides a more accurate representation of the asset's true economic value. The primary reason for a write down is that the carrying amount of an asset exceeds its recoverable amount. This can happen due to factors such as a decline in market value, technological obsolescence, or changes in economic conditions. Impairment triggers a write down, and the assessment of impairment is typically conducted for assets like goodwill, intangible assets, long-term investments, or property, plant, and equipment. The write down is recorded as an expense on the income statement, reducing the company's net income. At the same time, the value of the impaired asset on the balance sheet is adjusted downward. Write downs may have tax implications. In some jurisdictions, the decrease in the value of assets can lead to tax deductions, reducing the company's taxable income. Companies are required to disclose significant write downs in financial statements to provide transparency to investors and stakeholders. Example of a write down ABC Corporation, a technology company, holds inventory of electronic components that have become obsolete due...
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### Withdrawal
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/withdrawal/
Definition A withdrawal refers to the act of removing funds from a business account or using business resources for personal or non-business purposes. What is a withdrawal? The term "withdrawal" is commonly associated with business structures, where the business and the business owner's personal finances are closely intertwined. It's essential to distinguish between business and personal finances to maintain accurate accounting records and financial transparency. In accounting terms, a withdrawal affects the owner's equity in the business. Owner's equity represents the owner's interest in the business and is influenced by factors such as investments, profits, and withdrawals. Business owners may need to report withdrawals as taxable income, and the tax treatment can vary based on the business structure and local tax regulations. In partnerships, withdrawals are often associated with changes in partners' capital accounts. The partners' capital accounts reflect their ownership interests and are adjusted for contributions, profits, and withdrawals. Business owners need to be aware of legal and regulatory requirements related to withdrawals. Some jurisdictions may have specific rules governing the distribution of profits and the treatment of withdrawals. Proper documentation is essential when making withdrawals. Business owners should keep records of transactions, clearly indicating whether funds are withdrawn for personal use or legitimate business expenses. Business owners should incorporate withdrawal plans into their overall business planning. This involves considering the impact on cash flow, budgeting for personal and business expenses separately, and aligning withdrawals with the business's financial goals. Example of a withdrawal ABC Company's CFO, Jane, decides...
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### Term loan
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/term-loan/
Definition A term loan is a type of loan that provides a specific amount of capital to a business for a predetermined period, or term, with a fixed or variable interest rate. What is a term loan? This form of financing is widely used by businesses for various purposes, including expansion, equipment purchase, working capital, or other long-term investments. Term loans provide businesses with a lump sum amount, and the borrower is required to repay the loan over a set period through regular instalments. Term loans can have fixed or variable interest rates. A fixed interest rate remains constant throughout the term of the loan, providing predictability for the borrower's monthly payments. On the other hand, a variable interest rate may change over time based on fluctuations in a reference interest rate, such as the prime rate. Term lengths can vary widely, ranging from a few years to several decades, depending on the purpose of the loan and the agreement between the borrower and the lender. Term loans can be secured or unsecured. Secured loans require collateral, such as business assets, to secure the loan, providing the lender with a source of repayment in case of default. Unsecured loans do not require collateral but may have higher interest rates to compensate for the increased risk for the lender. Lenders typically assess the creditworthiness of the business before approving a term loan. This evaluation considers factors such as the business's financial health, credit history, cash flow, and the purpose of the...
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### Tax credit
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/tax-credit/
Definition In a business context, a tax credit refers to a financial incentive provided by the government to encourage certain activities or behaviours that are considered beneficial to the economy, the environment, or specific industries. What is tax credit? Business tax credits work similarly to individual tax credits but are designed to stimulate business investment, research and development, environmental sustainability, and other activities that contribute to economic growth. Various types of business tax credits exist, addressing different aspects of business activities. Common types include: Research and development tax credit: Encourages businesses to invest in research and development activities. Investment tax credit: Provides incentives for businesses to invest in qualifying assets, such as machinery, equipment, or renewable energy systems. Work opportunity tax credit: Offers incentives to hire individuals from specific target groups facing barriers to employment. Renewable energy tax credits: Promote the use of renewable energy sources, such as solar, wind, and biomass. Each business tax credit has specific qualification criteria that businesses must meet to be eligible. These criteria may include the type of activity, the industry, the amount of investment, or other factors. Business tax credits are typically calculated as a percentage of eligible expenses or investments. The specific calculation method varies depending on the type of credit. Businesses engaged in international activities may benefit from tax credits related to foreign taxes paid or incentives for specific international investments. Claiming business tax credits often requires thorough record keeping and documentation to substantiate eligibility and support credit calculations. Businesses should...
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### Stock
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/stock/
Definition In business and finance, a stock refers to a type of financial instrument that represents ownership in a business and constitutes a claim on part of the company's assets and earnings. What is a stock? When an individual purchases stocks, they are essentially buying a share of ownership in the issuing company. This ownership stake is also known as equity. Stocks are typically issued by publicly traded companies that have decided to raise capital by selling ownership stakes to the public. However, some stocks can also be issued by private companies in certain circumstances. There are different types of stocks, including: Common stocks: Represent ownership with voting rights in the company. Preferred stocks: Carry certain privileges, such as priority in receiving dividends, but often lack voting rights. Investors can profit from stocks through capital gains. Capital gains occur when the market value of a stock increases, allowing investors to sell the stock at a higher price than the purchase price. Investing in stocks carries risks, including market fluctuations and the potential for loss of capital. Stock prices can be volatile, influenced by various factors, including economic conditions, company performance, and market sentiment. Stocks are often considered as long-term investments, allowing investors to benefit from the potential growth of the company over time. Example of a stock ABC Corp is a publicly traded company and manufactures and sells smartphones and other consumer electronics. As of today, ABC Corp's stock is trading at R100 per share. Investors can purchase shares of...
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### Sales tax
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/sales-tax/
Definition Sales tax is a consumption-based tax imposed by governments on the sale of goods and, in some cases, services. What is sales tax? Sales tax is a form of indirect tax that is typically collected by the seller at the point of sale and then paid to the government. The tax is usually calculated as a percentage of the retail price of a product or service and is added to the total amount paid by the consumer. Sales tax rates vary widely depending on the jurisdiction. Different levels of government may impose their own sales tax rates, and within a country or state, local jurisdictions may have their own rates. Sales tax systems can be destination-based or origin-based. In a destination-based system, the tax rate is determined by the location where the goods are consumed, while in an origin-based system, it is based on the location of the seller. Sellers are responsible for paying the collected sales tax to the relevant tax authority. This involves periodic reporting and payment, and failure to do so can result in penalties. If you want to find out how much sales tax you are supposed to be paying, try our sales tax calculator today. Example of sales tax Let's say Sarah goes to a local electronics store to purchase a new smartphone. The price of the smartphone is R800, and the sales tax rate in her area is 8%. Calculating sales tax: Sarah needs to calculate the sales tax on the smartphone. She...
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### Repayment
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/repayment/
Definition Repayment refers to the process of returning borrowed funds or fulfilling a financial obligation according to the terms. What is a repayment? A repayment is a key aspect of financial transactions and involves the repayment of both principal and interest associated with loans or credit arrangements. Repayments are fundamental to maintaining financial integrity, establishing creditworthiness, and fostering trust between borrowers and lenders. Types of repayments: Principal repayment: Refers to the repayment of the original amount borrowed or the outstanding balance of a loan. Interest repayment: Involves the payment of interest charges accrued on the borrowed amount. Repayment terms are set in loan agreements and include details such as: Repayment schedule: Specifies the timing and frequency of repayments (e. g. , monthly, quarterly). Interest rate: Determines the cost of borrowing and the amount of interest payable. Loan term: The duration over which the loan is to be repaid. Amortisation is a common method of loan repayment where borrowers make regular payments that include both principal and interest. Over time, a larger portion of the payment goes toward reducing the principal. Loan repayments are reflected in a company's financial statements. The cash flow statement, in particular, shows the movement of cash related to loan repayments. Some loans may allow for early repayment, enabling borrowers to pay off the loan before the scheduled maturity date. However, this may involve prepayment penalties or fees. Consistent and timely repayments positively impact a company's credit rating, demonstrating reliability and creditworthiness. Failure to make timely repayments...
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### Quarterly report
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quarterly-report/
Definition A quarterly report is a financial document made by a publicly traded company every quarter, typically at the end of each fiscal quarter. What is a quarterly report? It provides detailed information about the company's financial performance, operational activities, and overall business conditions during the three-month period covered by the report. Quarterly reports are a key communication tool between a company and its investors, analysts, regulators, and other stakeholders. The financial statements included in a quarterly report typically consist of: Income statement (profit and loss statement): Provides information on revenues, expenses, and profits or losses during the quarter. Balance sheet: Summarises the company's assets, liabilities, and shareholders' equity at the end of the quarter. Cash flow statement: Details the company's cash inflows and outflows from operating, investing, and financing activities. Companies often include operational highlights and key performance indicators (KPIs) to provide additional context on business activities, market trends, product launches, and other relevant developments. Some companies use the quarterly report to provide guidance or outlook for future quarters. This may include projections related to financial performance, market conditions, or strategic initiatives. The report typically includes a discussion of risks and uncertainties that could impact the company's performance. This helps investors and stakeholders understand the potential challenges and strategies. Investors often compare a company's current quarterly results with those of previous quarters and with analysts' expectations. Analysing trends over multiple quarters can reveal insights into a company's overall performance.
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### Net asset value
- Published: 2023-12-19
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-asset-value/
Definition Net asset value (NAV) is a financial metric that represents the per-share market value of a mutual fund, exchange-traded fund (ETF), or a similar investment company. What is net asset value? Net asset value is a key indicator used by investors to assess the value of their holdings. The calculation of NAV is a fundamental part of the daily operations of open-end mutual funds. The formula for calculating net asset value is: NAV = (Total assets - total liabilities) / Number of outstanding shares NAV is calculated at the end of each trading day and represents the value per share that investors would receive if the fund's assets were sold and liabilities paid off. In the context of mutual funds, NAV is used to determine the purchase and redemption price of shares. Investors buy shares at the offering price (NAV plus sales charges) and sell shares at the redemption price (NAV minus any applicable redemption fees). NAV is a crucial metric for assessing the performance of an investment fund. Changes in NAV over time reflect the gains or losses in the value of the fund's underlying assets. NAV provides transparency to investors regarding the current value of their investments. It is a critical tool for evaluating the financial health of an investment fund. Monitoring changes in NAV helps investors and fund managers assess the risks associated with the underlying assets and market conditions. Example of net asset value Let's consider a mutual fund called "ABC Equity Fund. " The...
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### Negative equity
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/negative-equity/
Definition Negative equity refers to a situation where the total liabilities of a company exceed its total assets, resulting in a net deficit in shareholders' equity. What is negative equity? In other words, the business has more financial obligations and debts than the value of its assets. Negative equity can pose significant challenges for a company and may indicate financial distress. Equity is calculated using the following formula: Equity = assets − liabilities If the result is negative, it indicates negative equity. Several factors can contribute to negative equity, including: Accumulated losses: A history of financial losses that reduces retained earnings. High debt levels: Excessive borrowing that results in a substantial amount of liabilities. Asset depreciation: A decline in the value of assets, particularly if the market value is lower than book value. Negative equity can have several implications for a business: Financial distress: It may signal financial distress, indicating that the company is struggling to cover its financial obligations. Reduced borrowing capacity: Lenders may be hesitant to extend credit or loans to a company with negative equity. Shareholder concerns: Negative equity is a cause for concern among shareholders, as it degrades the book value of their investment. Companies with negative equity may implement turnaround strategies to improve their financial position. This may involve cost-cutting, restructuring, debt renegotiation, or other measures to increase profitability and reduce liabilities. Negative equity can adversely affect how the market perceives a company. Investors and stakeholders may view it as a sign of financial instability,...
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### Money flow
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/money-flow/
Definition Money flow in business generally refers to the movement or circulation of funds within a company. What is money flow? Money flow involves the inflow and outflow of money and is a critical aspect of financial management. Understanding and effectively managing money flow is essential for businesses to maintain liquidity, meet financial obligations, invest in growth opportunities, and sustain day-to-day operations. Inflows of money into a business can come from various sources, including: Sales revenue: Money generated from the sale of goods or services. Investments: Capital injections from investors or shareholders. Loans: Borrowed funds from financial institutions. Grants and subsidies: Financial support from government programs or other organisations. Interest and dividends: Income earned from investments or financial instruments. Outflows represent the expenditures and payments made by a business, including: Operating expenses: Day-to-day costs of running the business, such as rent, utilities, and salaries. Capital expenditures: Investments in long-term assets, like equipment or facilities. Loan repayments: Payments towards principal and interest on loans. Taxes: Payment of taxes owed to government authorities. Dividends: Distributions of profits to shareholders. Effective money flow management involves optimising working capital, which is the difference between a company's current assets and current liabilities. Maintaining an appropriate level of working capital ensures the business has enough liquidity to meet short-term obligations. Businesses often create cash flow forecasts to project future money flows based on expected revenues and expenses. This proactive approach helps in anticipating and addressing potential cash flow challenges. Money flow considerations play a key role...
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### Long-term liabilities
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/long-term-liabilities/
Definition Long-term liabilities, also known as non-current liabilities, are financial obligations and debts that a company is expected to settle over an extended period, typically longer than one year. What are long-term liabilities? These liabilities represent the portion of a company's total liabilities that is not due for payment in the short term. Long-term liabilities play a key role in a company's capital structure and financial stability. Types of long-term liabilities: Long-term debt: Such as bonds and loans with maturities extending beyond one year. Deferred tax liabilities: Future tax obligations that will be paid over an extended period. Lease obligations: Long-term commitments arising from lease agreements. Pension liabilities: Commitments related to employee pension plans. Long-term provisions: Reserves set aside for expected future expenses. Long-term liabilities, along with equity and short-term liabilities, contribute to a company's capital structure. The composition of a company's capital structure influences its financial risk, cost of capital, and overall financial health. Long-term liabilities are disclosed in a company's financial statements, specifically in the balance sheet under the liabilities section. They are categorised separately from short-term liabilities to provide a clear picture of a company's financial obligations over different time horizons. Investors and analysts closely examine a company's long-term liabilities when conducting financial analysis. The composition, terms, and conditions of long-term liabilities provide insights into a company's financial strategy, risk tolerance, and future financial obligations. Example of a long-term liability ABC Company decides to expand its operations and constructs a new manufacturing facility. To finance the construction,...
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### Leasehold
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/leasehold/
Definition Leasehold in business refers to the rights held by a tenant or lessee to use and occupy a property for a specified period under the terms of a lease agreement. What is a leasehold? This arrangement is prevalent in commercial real estate and is a key aspect of business operations, allowing companies to secure a physical space without the need for outright property ownership. Key elements and considerations related to leasehold in business include: Lease agreement: A leasehold is established through a formal lease agreement between the property owner (lessor) and the business renting the space (lessee). The lease agreement outlines the terms and conditions of the lease. Duration of lease: The leasehold period is the duration for which the lessee has the right to occupy and use the premises. Lease terms can vary widely, ranging from short-term leases of a few months to long-term leases spanning several years. Rental payments: The lessee typically pays rent to the lessor in exchange for the right to use the property. The rental amount, frequency of payments, and any provisions for rent increases are specified in the lease agreement. Improvements and customisation: Depending on the terms negotiated in the lease, businesses may have the right to make improvements or customise the leased space to better suit their operational needs. Maintenance and repairs: The lease agreement defines the responsibilities for property maintenance and repairs. While some leases place the responsibility on the lessor to maintain the property, others may require the lessee to...
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### Insider trading
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/insider-trading/
Definition Insider trading in business refers to the illegal practice of buying or selling a company's securities (such as stocks, bonds, or options) based on material, non-public information about the company. What is insider trading? This act involves individuals within the company, known as insiders, who have access to confidential information that, if disclosed, could significantly impact the company's stock value. Insider trading undermines fair market practices, as it gives certain individuals an unfair advantage over other investors who do not have access to the same information. Types of insider trading: Traditional insider trading: Buying or selling a company's securities based on material nonpublic information. Tipper-tippee trading: An insider (the tipper) provides material information to someone else (the tippee), who then trades on that information. Front-running: A broker trades on advance knowledge of future orders from their clients. Misappropriation: Outsiders gain access to confidential information and use it for securities trading. Individuals found guilty of insider trading face severe legal consequences, including fines, imprisonment, disgorgement of profits, and civil lawsuits. Companies may also face legal action if they are found to have facilitated or failed to prevent insider trading within their organisation. Companies often implement strict corporate governance measures and codes of conduct to prevent insider trading within their organisations. This includes blackout periods during which insiders are restricted from trading to avoid potential conflicts. Example of insider trading XYZ Corporation is a publicly traded company, and John, an executive within the company, has access to confidential information about an...
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### Import duty
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/import-duty/
Definition Import duty is a tax imposed by a government on goods that are imported into a country. It is a source of revenue for the government and serves various economic and trade policy purposes. What is import duty? Import duties are charged at the border when goods cross into a country, and they are a form of indirect taxation on imported products. The duty is calculated based on the customs value of the imported goods, which includes the cost of the goods, shipping, and insurance. Import duties are often used as a tool in trade policy. Governments may adjust import duty rates to protect domestic industries, encourage or discourage certain types of imports, or address trade imbalances. Import duties are commonly referred to as tariffs. Countries may negotiate and enter into trade agreements to reduce or eliminate tariffs on specific goods, promoting free trade and economic cooperation. Importers are required to declare the value and nature of the goods being imported to customs authorities. The declared value serves as the basis for calculating the import duty. Governments may provide exemptions or preferential treatment for certain goods, especially those deemed essential or in line with specific policy objectives. These exemptions can be based on trade agreements or domestic policies. Example of import duty XYZ Auto Parts is a company based in the US that specialises in manufacturing automotive components. They decide to import a shipment of specialised machinery parts from a manufacturer in Germany. XYZ Auto Parts provides a detailed...
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### Greenwashing
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/greenwashing/
Definition Greenwashing in business refers to the practice of misleadingly communicating a false or exaggerated impression of environmental responsibility, sustainability, or eco-friendliness in order to attract environmentally conscious customers or present a positive public image. What is greenwashing? Companies engaging in greenwashing may use misleading marketing tactics or make misleading claims about their products, services, or overall business practices to create the illusion of environmental administration. Some companies engage in greenwashing by highlighting symbolic or superficial gestures, such as minimal changes in packaging or marketing materials, rather than implementing substantive and meaningful sustainability practices throughout their operations. Greenwashing often thrives in situations where companies lack transparency about their environmental practices. Genuine eco-friendly businesses are typically transparent about their efforts and are willing to provide verifiable information about their sustainability initiatives. Greenwashing can be evident when a company's overall business practices are inconsistent with the eco-friendly image it promotes. For example, a company may market a specific product as sustainable while its overall business operations contribute significantly to environmental degradation. One of the primary consequences of greenwashing is consumer deception. Consumers who prioritise environmentally friendly products and practices may make purchasing decisions based on misleading information, ultimately undermining their ability to support genuinely sustainable businesses. Legal actions may be taken against those found to be making false or deceptive environmental claims. Example of greenwashing XYZ Electronics launches a new advertising campaign claiming that their latest line of smartphones is "100% eco-friendly" and "made from sustainable materials. " They prominently display images...
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### Fixed cost
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/fixed-cost/
Definition Fixed costs are expenses that remain constant within a certain range of production or sales volume over a specific period. These costs do not vary with the level of production or business activity and remain stable regardless of changes in output. What are fixed costs? Fixed costs are associated with the basic operation and existence of a business, and they must be paid even if production or sales decrease. Common examples of fixed costs include rent or lease payments for facilities, salaries of permanent staff, insurance premiums, property taxes, and certain administrative expenses. These costs do not vary with the number of units produced or sold. Fixed costs are typically considered within a specific time horizon, such as a month, quarter, or year. Over shorter periods, some costs that appear fixed, like rent, may be subject to change in the longer term. Understanding the fixed cost component of the overall cost structure is important for businesses. It helps in determining the break-even point—the level of production or sales at which total revenue equals total costs, including both fixed and variable costs. Since fixed costs remain constant, changes in production levels can impact the profitability of a business. As production increases, fixed costs are spread over a larger number of units, reducing the fixed cost per unit and potentially improving profit margins. Many fixed costs involve long-term commitments, such as leasing agreements or salaries for permanent employees. Businesses must carefully evaluate these commitments and consider the implications on their financial...
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### First-year allowance (FYA)
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/first-year-allowance/
Definition First-year allowance (FYA) refers to a tax incentive that allows businesses to deduct the full cost of qualifying capital expenditures from their taxable income in the year the assets are first used. What is first-year allowance? It is a method used by governments to encourage businesses to invest in specific types of assets by providing a more immediate tax benefit. First-year allowance typically applies to specific categories of capital expenditures, such as qualifying plant and machinery. These assets are essential for business operations and can include items like machinery, equipment, and certain types of vehicles. Instead of spreading the deduction over several years through depreciation, businesses can deduct the entire cost of qualifying assets in the year of purchase. This provides an immediate tax benefit and improves cash flow. To qualify for first-year allowance, assets must meet specific criteria outlined by tax authorities. The criteria may include the type of asset, its intended use, and the industry in which the business operates. Not all capital expenditures may be eligible for first-year allowance. Qualifying assets for first-year allowance may include energy-efficient equipment, certain types of machinery, environmentally beneficial technologies, and other assets that fit government priorities. Businesses can strategically plan their capital expenditures to maximise the benefits of first-year allowances. Timing the purchase of qualifying assets can have significant implications for a company's overall tax liability. Example of first-year allowance Company ABC decided to invest in new machinery to enhance its production capabilities. They purchased machinery worth R200,000 that qualifies...
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### Financial year
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/financial-year/
Definition A financial year, also known as a fiscal year or accounting year, is a 12-month period that businesses use for financial reporting and accounting purposes. What is a financial year? A financial year serves as the basis for preparing financial statements and evaluating the financial performance of an organisation. It typically spans 12 months, but the start and end dates can vary. The financial year may align with the calendar year (January 1 to December 31), but organisations often adopt alternative fiscal years based on operational or regulatory considerations. The primary purpose of having a financial year is to provide a standardised timeframe for financial reporting and performance assessment. It allows businesses to organise and analyse financial data, track revenues and expenses, and prepare financial statements such as the income statement, balance sheet, and cash flow statement. The financial year is divided into accounting periods, usually months or quarters, to simplify regular financial reporting and analysis. Quarterly reports are common, and they provide stakeholders with timely updates on the organisation's financial health. The financial year is integral to the budgeting and planning process. Businesses set financial goals, allocate resources, and plan expenditures based on their fiscal year. Budgets help guide financial decisions and measure actual performance against anticipated outcomes. Example of financial year Let's assume a company's financial year runs from January 1 to December 31. January 1, 2023, to December 31, 2023: During this period, the company conducts its business operations, generates revenue, incurs expenses, and engages in...
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### Exit strategy
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/exit-strategy/
Definition An exit strategy in business refers to a planned approach by business owners or investors to sell or transfer their ownership stake in a company. It is a strategic plan designed to allow entrepreneurs or investors to gracefully and profitably exit their involvement in a business. What is an exit strategy? Exit strategies are key components of business planning, providing a clear path for realising returns on investments or transitioning out of the business. Types of exit strategies: IPO (Initial public offering): Going public through an IPO involves listing a company's shares on a stock exchange, allowing the public to buy and sell them. This is a common exit strategy for successful startups with significant growth potential. Acquisition or merger: Selling the business to another company. This can provide financial returns and may also offer synergies with the buying company. Management buyout (MBO): In an MBO, the existing management team buys the business from its current owners, often with the support of external financing. Strategic sale: Selling to a strategic buyer, often a competitor or a company in the same industry, can lead to synergies and improved market positioning. Private equity or venture capital exit: Investors may exit a business by selling their stake to other private equity firms or venture capitalists. Liquidation: If other options are not viable, liquidation involves selling off assets and winding down the business, with the proceeds distributed to stakeholders. Determining the right time to exit is key. Factors such as market conditions, business...
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### Entrepreneur
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/entrepreneur/
Definition An entrepreneur is an individual who takes on the initiative and risk to start, develop, and manage a new business. What is an entrepreneur? Entrepreneurs are characterised by their innovative ideas, ability to identify opportunities in the market, and willingness to take calculated risks to bring their vision to life. They play a key role in economic development by creating new businesses, generating employment opportunities, and contributing to overall innovation and growth. Entrepreneurship involves a degree of risk, as individuals invest their time, money, and effort into a startup with an uncertain outcome. Successful entrepreneurs are often calculated risk-takers, carefully assessing potential challenges and rewards. The business landscape is dynamic, and entrepreneurs must be adaptable to changes in market conditions, technology, and consumer preferences. Successful entrepreneurs are quick to adapt their strategies and business models as needed. Entrepreneurs need effective leadership skills to guide their teams and inspire confidence. They must make strategic decisions, manage resources efficiently, and create a positive and productive work environment. Entrepreneurs often leverage their networks to gain support, resources, and partnerships. Building relationships with other professionals, investors, and mentors can be crucial for the success of their startups. In addition, some entrepreneurs are motivated by a desire to make a positive impact on society. Social entrepreneurship involves addressing social or environmental challenges through business solutions. Successful entrepreneurs are lifelong learners. They stay informed about industry trends, market changes, and emerging technologies, continually seeking knowledge to grow their business. Example of entrepreneur Meet Sarah, an...
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### Discount mortgage
- Published: 2023-12-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/discount-mortgage/
Definition A discount mortgage is a type of mortgage where the interest rate is set at a certain percentage below the lender's standard variable rate (SVR) for a specified period. What is discount mortgage? The discount is usually expressed as a percentage, and the discount rate determines the actual interest rate charged on the mortgage for the period. For example, if the SVR is 5% and the discount is 1%, the borrower would pay an interest rate of 4%. The discount period is a fixed timeframe during which the borrower enjoys the discounted interest rate. This period can vary, typically lasting for a few years, such as two, three, or five years. Once the discount period expires, the mortgage interest rate typically goes back to the lender's SVR. At this point, the borrower will pay the standard variable rate unless they choose to switch to a different mortgage deal. Since the interest rate is linked to the lender's SVR, it can vary. If the SVR increases, the borrower's mortgage payments may rise after the discount period ends. Some discount mortgages may offer flexibility, allowing borrowers to make overpayments or pay off the mortgage early without incurring significant penalties. Example of discount mortgage Let's say a lender has a standard variable rate (SVR) of 5%, and they offer a discount mortgage with a 1% discount for the first two years. In this case, the borrower would pay an interest rate of 4% during the initial discount period. For instance, if a...
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### Cost per click
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cost-per-click/
Definition Cost per click (CPC) is a digital advertising metric that represents the amount an advertiser pays each time a user clicks on their online advertisement. What is cost per click? It is a common pricing model used in online advertising campaigns, particularly in pay-per-click (PPC) advertising, where advertisers only pay for actual clicks on their ads rather than for the display or impressions. Key features and aspects of cost per click include: Auction-based systems: Advertisers bid on keywords or placements, and the ad platform determines the ad's placement based on the bid amount and other factors. The advertiser with the highest bid typically gets a higher ad placement. Bid strategies: Advertisers set a maximum bid amount they are willing to pay for a click. The actual cost per click can be lower than the maximum bid, as the ad platform aims to deliver value to users and encourages competitive bidding. Quality score: Ad platforms often factor in the quality of the ad and the relevance of the landing page to determine the ad's position and cost per click. A higher-quality ad and landing page experience may result in a lower CPC. Targeting options: Advertisers can use various targeting options to refine their audience and reach specific demographics, locations, or user behaviours. This allows for more precise control over where ads are displayed and who sees them. Conversion tracking: Advertisers often implement conversion tracking to measure the effectiveness of their campaigns. By tracking conversions resulting from ad clicks, advertisers can...
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### Copyright
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/copyright/
Definition Copyright is a legal concept that grants exclusive rights to the creators of original works, allowing them to control the use and distribution of their creations. What is copyright? It is a form of intellectual property protection that safeguards the rights of creators in relation to their work. Copyright protection is automatic upon the creation of a qualifying work and provides the creator with the right to determine how their work is used, reproduced, and distributed. Copyright grants the creator or copyright owner exclusive rights to: Reproduce the work Distribute copies of the work Perform the work publicly (in the case of literary, musical, and dramatic works) Display the work publicly (in the case of visual arts and certain other works) Create derivative works based on the original work The duration of copyright protection varies depending on the jurisdiction and the type of work. In many countries, copyright protection lasts for the life of the author plus a certain number of years. For works created by or for corporations, the duration may be based on the date of creation or publication. While copyright protection is automatic upon the creation of a work, some jurisdictions allow creators to register their works with a government office. Registration can provide additional benefits, such as evidence of ownership and the ability to pursue legal remedies more easily in case of violation. Copyright owners have the right to take legal action against individuals or organisations that violate their exclusive rights. This may involve seeking...
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### Checking account
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/checking-account/
Definition A checking account is a financial account held at a bank or credit union that is designed for everyday transactions and easy access to funds. What is a checking account? A checking account allows account holders to deposit money, make withdrawals, write checks, and conduct various electronic transactions. It serves as a central hub for managing day-to-day financial activities. Deposits and withdrawals: Deposits: Account holders can deposit money into their checking accounts through various methods, such as cash, checks, direct deposits, or electronic transfers. Withdrawals: Funds can be withdrawn from a checking account using methods such as checks, ATM withdrawals, electronic transfers, or debit card transactions. Checking accounts typically include a checkbook, allowing account holders to write checks as a form of payment. Checks are written to specific payees and can be used for various transactions, including bill payments and purchases. Furthermore, many checking accounts come with a debit card, which can be used to make purchases, withdraw cash from ATMs, and conduct point-of-sale transactions. Debit card transactions are directly linked to the checking account balance. Some checking accounts offer overdraft protection, a service that helps prevent transactions from being declined if the account balance is insufficient. Overdraft protection may involve linking the checking account to a savings account or a line of credit. While checking accounts traditionally do not offer high-interest rates compared to savings accounts or other investment options, some financial institutions provide interest-bearing checking accounts that offer modest interest on the account balance. Checking accounts often...
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### Capital expenses
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/capital-expenses/
Definition Capital expenses, often referred to as capital expenditures, represent significant financial investments made by a business or an organisation to buy, upgrade, or extend the life of long-term assets. What is capital expenses? These assets typically have a long useful life and contribute to the company's ability to generate revenue or improve its operational efficiency. Capital expenses are capitalised on the balance sheet, meaning their costs are spread over the useful life of the asset rather than expensed in the period of purchase. Businesses carefully evaluate and plan capital projects as these investments have long-term implications for the company’s financial health and operational capabilities. Businesses incorporate capital expenses into their budgeting and strategic planning processes. Accurate forecasting and financial planning are important to make sure the availability of funds for capital projects without negatively impacting day-to-day operations. Example of capital expenses YZ Manufacturing Inc. is a company that specialises in producing precision machinery. The existing manufacturing equipment at XYZ Manufacturing is becoming outdated, impacting efficiency and product quality. To maintain competitiveness, the company decides to invest in new, state-of-the-art machinery. Purchase of new machinery: XYZ Manufacturing identifies a cutting-edge CNC (Computer Numerical Control) machine that will significantly improve production processes. The cost of the CNC machine is R500,000. Installation and training: In addition to the cost of the machine, XYZ incurs additional expenses for the installation of the CNC machine and training for the employees who will operate it. These costs are part of the total capital expenditure. Accounting...
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### Buy-to-let mortgage
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/buy-to-let-mortgage/
Definition A buy-to-let mortgage is a financial product designed for individuals or investors who wish to purchase residential property for the specific purpose of renting it out to tenants. What is a buy-to-let mortgage? Unlike a standard residential mortgage, a buy-to-let mortgage is tailored to the unique characteristics of rental property investment. The primary purpose of a buy-to-let mortgage is to finance a property with the intention of generating rental income. Borrowers typically seek to build a property portfolio or earn a return on their investment. Lenders evaluate buy-to-let mortgage applications based on the potential rental income of the property, the borrower's financial situation, and their ability to manage the investment. The borrower's personal income may be considered, but the emphasis is often on the property's income-generating potential. Buy-to-let mortgages often require a higher deposit or down payment compared to residential mortgages. The loan amount is typically expressed as a percentage of the property's value. Interest rates on buy-to-let mortgages can vary, and they may be higher than those for residential mortgages. The rates may be fixed or variable, and the choice depends on the borrower's preference and risk tolerance. Like any investment, buy-to-let carries risks, including varies in property values, economic conditions, and changes in rental demand. Investors should carefully consider these factors and conduct due diligence before entering the buy-to-let market. Example of buy-to-let mortgage Sarah, an investor interested in real estate. She identifies a residential property in a popular neighbourhood with high rental demand. Property purchase: Sarah...
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### Business cycle
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/business-cycle/
Definition A business cycle refers to the recurring pattern of expansion and contraction in economic activity that occurs over time. What is a business cycle? The business cycle is a natural feature of market economies, driven by a combination of various factors, including changes in consumer spending, investment, government policies, and external economic conditions. Phases of the business cycle: Expansion: This phase is marked by increasing economic activity, rising production, employment, and consumer spending. Businesses experience growth, and optimism prevails in the economy. Peak: The peak is the highest point of economic activity during an expansion. It represents the climax of growth, and it is often characterised by high employment rates and robust economic indicators. Recession: Following the peak, the economy enters a recession phase, marked by declining economic activity. This phase is characterised by falling production, rising unemployment, and a decrease in consumer spending. Trough: The trough is the lowest point of economic activity during a recession. It represents the bottom of the cycle, and economic indicators are at their lowest. Unemployment is typically high during this phase. Business cycles vary in terms of duration, intensity, and the factors influencing them. Some cycles are short-lived, while others can extend over several years. Businesses often experience the effects of the business cycle through changes in consumer demand, access to credit, and overall economic conditions. During expansions, businesses may thrive, while recessions can pose challenges such as reduced sales and financial pressures. Example of business cycle Expansion (Boom): Imagine a scenario...
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### Benchmark
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/benchmark/
Definition A benchmark is a reference point or standard used for comparison and evaluation, serving as a measure against which the performance, quality, or characteristics of something else can be assessed. Benchmarks are widely employed across various fields, including finance, business, technology, and performance measurement, to assess the relative success or effectiveness of a company or process. What is a benchmark? In finance, a benchmark is often used to assess the performance of investment portfolios, funds, or financial instruments. Benchmarks are frequently established based on industry norms or recognised best practices. This allows organisations to align their performance with industry standards and identify areas for improvement. Types of benchmarks: Market benchmarks: Reflect overall market performance. Competitive benchmarks: Involve comparing performance against direct competitors in a specific industry. Operational benchmarks: Focus on processes and efficiency within an organisation. Financial benchmarks: Include metrics like interest rates or inflation rates that influence financial decisions. Benchmarks play a key role in continuous improvement efforts. Organisations use benchmarking results to set performance goals, track progress, and make informed decisions to improve efficiency and effectiveness. While benchmarks are valuable for comparison, it's essential to recognise their limitations. Differences in context, goals, and methodologies can impact the validity of comparisons. Additionally, benchmarks may not capture all relevant factors influencing performance. Example of benchmark Imagine XYZ Retail, a company operating in the clothing retail industry. Benchmark selection: XYZ Retail wants to assess its profitability compared to industry standards. They choose the industry average profit margin as their benchmark....
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### Base rate
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/base-rate/
Definition A base rate, in the context of finance and banking, refers to a benchmark interest rate that serves as a reference point for determining the interest rates on various financial products. What is a base rate? Central banks or monetary authorities typically set the base rate as a tool to influence economic conditions, particularly to control inflation. The base rate is often set by a country's central bank. Central banks use the base rate as a monetary policy tool to regulate borrowing costs and money supply in the economy. The interest rates on loans and other financial products are commonly linked to the base rate. When the base rate changes, financial institutions adjust their interest rates accordingly. For example, a rise in the base rate may lead to higher borrowing costs for consumers and businesses. The base rate also affects interest rates on savings accounts and other interest-bearing deposits. When the base rate increases, savers may see higher returns on their deposits, while a decrease in the base rate could result in lower interest earnings. Changes in the base rate are often seen as indicators of the central bank's stance on monetary policy. A higher base rate may indicate a desire to lower inflationary pressures, while a lower base rate is typically employed to stimulate economic activity and lending. Central banks periodically review and adjust the base rate based on economic conditions, inflation targets, and other relevant factors. These adjustments are communicated to the public and financial institutions. Example...
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### Accounts receivable
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accounts-receivable/
Definition Accounts receivable refers to the outstanding amounts that a business is yet to collect from its customers or clients for goods sold or services provided on credit. It represents the short-term financial obligations owed to the company. What is accounts receivable When a business extends credit to customers, it essentially allows them to defer payment for a later date, creating an accounts receivable. Some key points about accounts receivable include: Credit transactions: Accounts receivable arise from credit transactions where a company provides goods or services to customers with an agreement for deferred payment. Recorded as asset: In financial statements, accounts receivable are recorded as assets on the balance sheet. They represent a claim that the company has on the payment from its customers. Terms and conditions: The terms and conditions for payment, including the credit period and any interest or discounts, are usually specified in the sales agreement or invoice. Working capital impact: Accounts receivable impact a company's working capital. While they are assets, a high level of receivables may indicate potential liquidity issues. Monitoring and collections: Businesses closely monitor their accounts receivable to ensure timely collection. This involves tracking overdue payments, sending reminders or statements to customers, and implementing collection strategies if necessary. Bad debt provision: Recognising that not all accounts receivable may be collected, companies often establish a provision for bad debts. This is an estimate of the portion of receivables that may not be collected due to customer defaults. Financial analysis: Analysts and investors may assess...
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### Accounting period
- Published: 2023-12-14
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accounting-period/
Definition An accounting period, also referred to as a fiscal period or financial period, is a defined span of time during which a business records its financial transactions and prepares financial statements. What is an accounting period? This period serves as the basis for reporting the organisation's financial performance and position. The duration of an accounting period can vary and is typically chosen based on the specific needs and practices of the business. Common periods include a month, a quarter, or a year. The primary reason for establishing an accounting period is to systematically organise financial data, enabling accurate and meaningful presentation of a business's economic activities. Financial statements, such as the income statement, balance sheet, and cash flow statement, are generated at the conclusion of each accounting period. These statements offer a consolidated view of revenue, expenses, assets, liabilities, and cash flows during the specified timeframe. Beyond financial reporting, accounting periods play an important role in budgeting and planning. Businesses align their budgets with specific periods to monitor and evaluate performance against predetermined expectations. For tax reporting, it's usually necessary to follow a specific accounting period that lines up with the fiscal year. Example of accounting period Let's consider a short example of a monthly accounting period for a small business, XYZ Services: During January, XYZ Services provides consulting services and invoices clients for R10,000. Incurs monthly operating expenses, including rent and utilities, totaling R5,000. At the end of January, the financial summary for reporting purposes is: Revenue =...
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### Discount rate
- Published: 2023-10-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/discount-rate/
Definition A discount rate in business and finance refers to the interest rate used to determine the present value of future cash flows or financial instruments. What is a discount rate? A discount rate plays a crucial role in various financial calculations, including the valuation of investments, assessing the worth of a business, and making decisions about capital budgeting and project feasibility. The concept of a discount rate is rooted in the principle of the time value of money. It recognises that a pound received in the future is worth less than a pound received today due to the opportunity to invest and earn a return. The discount rate also reflects the opportunity cost of capital. It represents the return that could be earned by investing the same amount of money in an alternative opportunity with similar risk. Example of discount rate Let's say you are considering an investment that is expected to generate R1,000 one year from now. If the discount rate is 5%, the present value of that future cash flow would be calculated as follows: Present value = Future cash flow / (1 + Discount rate) = R1,000 / (1 + 0. 05) = R952. 38 So, the present value of receiving R1,000 one year from now, with a discount rate of 5%, is R952. 38.
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### Export
- Published: 2023-10-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/export/
Definition Export refers to the process of selling goods or services produced in one country to customers or businesses located in another country. This activity plays a crucial role in the global economy, allowing businesses to expand their markets beyond their domestic borders and tap into international opportunities. What is export? By exporting, businesses can reach a diverse range of customers with varying preferences, needs, and purchasing power. This diversification can help mitigate risks associated with economic fluctuations in a single market. Engaging in international trade can provide a competitive advantage by allowing businesses to leverage their unique products, technologies, or services in markets where they may have a comparative advantage. Before entering a new market, businesses need to conduct thorough market research to understand the local demand, competition, and cultural nuances. They also need to develop effective entry strategies. International trade involves various risks, including political instability, economic fluctuations, and changes in trade regulations. Businesses engaging in exporting need to develop strategies to mitigate these risks. Exporting often involves dealing with customers from different cultural backgrounds and languages. Effective communication and providing excellent customer support are critical for building trust and long-term relationships. Example of export Imagine a clothing manufacturer, "Fashion Trends Inc. ," based in the US. The company produces high-quality denim jeans and decides to sell its products internationally. Fashion Trends Inc. enters into agreements with retailers in Europe and Asia to distribute and sell its jeans in those markets. In this scenario: Fashion Trends Inc. is...
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### Competitive advantage
- Published: 2023-10-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/competitive-advantage/
Definition A competitive advantage refers to a specific attribute or set of attributes that allows a business or organisation to outperform its rivals in a market or industry. It gives the entity an edge over competitors, enabling it to generate higher revenues, capture market share, or achieve superior profitability. What is a competitive advantage? Competitive advantages can be derived from various factors and strategies, and they play a pivotal role in a company's success and sustainability. Key types of competitive advantages: Cost advantage: Achieving lower production costs or operational expenses than competitors, allowing the company to offer products or services at a lower price while maintaining profitability. Differentiation advantage: Providing unique or distinctive products, services, or features that are valued by customers and are not easily replicated by competitors. Focus strategy: Concentrating on a specific market segment, niche, or geographic area, and tailoring products or services to meet the specific needs and preferences of that target market. Technological edge: Being a leader in technology, innovation, or proprietary knowledge that provides a distinct advantage in product development, production processes, or service delivery. Brand and reputation: Having a strong brand image and reputation in the market, which can lead to customer loyalty, trust, and preference over competitors. Companies can achieve competitive advantage not only domestically but also in the global market by leveraging factors like economies of scale, international brand recognition, and access to diverse markets. Example of competitive advantage XYZ Electronics invests heavily in research and development, leading to the creation...
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### Cash flow statement
- Published: 2023-10-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cash-flow-statement/
Definition A cash flow statement is a financial statement that provides a summary of how a company manages its cash position over a specific period of time. It shows the inflows and outflows of cash and cash equivalents, categorising them into operating, investing, and financing activities. What is a cash flow statement? The primary purpose of a cash flow statement is to provide a detailed account of how changes in a company's balance sheet and income statement affect its cash and cash equivalents. It helps stakeholders, including investors, creditors, and management, understand how the company generates and uses cash. There are three main categories: Operating activities: This section includes cash flows from the core business operations of the company. Investing activities: This section covers cash flows from activities that involve long-term assets. Financing activities: This section focuses on cash flows from transactions with the company's owners and creditors. The cash flow statement is a vital analytical tool for financial analysts, as it helps in evaluating the quality of a company's earnings and its capacity to generate sustainable cash flows, and it provides insights into a company's ability to withstand economic downturns or unforeseen financial challenges by showing its liquidity and cash flow management. Example of cash flow statement Inflows:Software licensing fees:Sale of equipment:Issuance of new shares:Outflows:Payments to suppliers and expenses:Employee salaries:Utilities and rent;Investment in R&D project:Purchase of computer servers:Repayment of loan:Payment of dividends:R500,000____R30,000R150,000R270,000R50,000R20,000R100,000R40,000R50,000R30,000Net increase in cash:R190,000Beginning cash balance:R300,000Ending cash balance:R490,000 This simplified cash flow statement demonstrates how cash is generated...
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### Year to date
- Published: 2023-10-31
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/year-to-date/
Definition Year to date (YTD) in business and finance refers to the period beginning from the first day of the current calendar year up to the present date. It is a commonly used term to analyse and report financial performance over a specific time frame within a fiscal year. What is year to date? YTD always starts on January 1st and extends up to the current date and is often used for comparative analysis. By comparing the YTD performance of the current year with the same YTD period of previous years, businesses can assess trends and make informed decisions. YTD figures play a crucial role in budgeting and forecasting. They provide insights into how well a company is performing relative to its budgeted targets for the year. It's important to note that YTD figures may not provide a complete picture of a business's financial health. Depending on the industry and specific circumstances, other time frames or metrics may also be crucial for a comprehensive assessment. Example of year to date ABC Corporation, a retail company, is reviewing its financial statements at the end of the third quarter. The company's income statement shows that its year-to-date (YTD) revenue is R2. 5 million. This YTD revenue figure represents the total sales revenue generated by ABC Corporation from January 1st up to the end of the third quarter, which is typically September 30th.
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### Vision
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/vision/
Definition A vision in business and finance refers to a forward-looking statement that expresses the long-term aspirations, goals, and aspirations of a company. What is a vision? A vision is a concise and inspiring description of what the organisation aims to achieve in the future, often serving as a guideline for its strategic direction and decision-making. A vision focuses on the long-term outlook of the company, typically spanning several years or even decades. It provides a sense of direction and purpose for the organisation's future. A vision often embodies the core values and guiding principles of the organisation. It reflects the company's beliefs, ethics, and the way it intends to conduct business. Furthermore, a compelling vision sets the company apart from competitors. It articulates what makes the organisation distinct and what it aspires to achieve that others may not. The vision is closely related to the company's mission statement, which outlines its purpose and reason for existence. Additionally, it should align with specific goals and objectives set by the organisation. While the core principles of a vision remain relatively stable, it should be flexible enough to adapt to changing market conditions, technological advancements, and shifts in the business environment. Example of a vision Imagine a technology startup founded by a group of entrepreneurs passionate about revolutionising the renewable energy sector. Their vision statement could be: "To become the leading provider of innovative renewable energy solutions, transforming the way the world generates and consumes energy. We envision a future where clean,...
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### Vertical integration
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/vertical-integration/
Definition Vertical integration is a business strategy in which a company expands its operations across different stages of the same industry's value chain. What is vertical integration? This means the company takes control over multiple aspects of the production and distribution process, often including activities such as sourcing raw materials, manufacturing, distribution, and retail. Types of vertical integration: Backward integration: This occurs when a company moves "backwards" in the production process by acquiring or controlling businesses that supply the inputs or raw materials needed for its own production. Forward integration: This involves moving "forward" in the production process by acquiring or controlling businesses involved in the distribution or sale of the company's products or services. Vertical integration allows a company to have greater control over its supply chain, ensuring a consistent and reliable supply of inputs. By internalising certain stages of production or distribution, a company may be able to reduce costs associated with external suppliers or distributors. With direct control over various stages of production, a company can maintain higher quality standards and ensure that its products meet specific criteria. Furthermore, vertical integration can create a unique advantage in the market, making it harder for competitors to replicate the same level of control and efficiency. On the other hand, operating multiple stages of the value chain can be complex and requires strong management capabilities to oversee diverse functions. Vertical integration often requires significant investment, both in terms of acquiring or building new facilities and in ongoing operational costs. If...
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### Variable cost
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/variable-cost/
Definition Variable costs are expenses that vary in direct proportion to the level of production or business activity. What are variable costs? In other words, they are costs that change with the quantity of goods or services a business produces. As production increases, variable costs also rise, and as production decreases, variable costs decrease. Examples of variable costs: Raw materials: The cost of raw materials needed to manufacture products is a classic example of a variable cost. Labour: In some industries, especially those with a piece-rate payment system, labour costs are considered variable. Utilities: In many cases, the cost of utilities is tied to production levels. A factory using more energy to produce more goods is an example. Direct labour: For industries where labour costs are directly tied to production, the wages of production workers can be considered a variable cost. Sales commissions: In businesses where salespeople receive commissions based on the number of units sold, this is a variable cost. Since variable costs are directly tied to production levels, they are often considered more controllable in the short term. This means that a business can adjust its production levels to manage variable costs. Variable costs are typically accounted for in a company's income statement as direct costs of goods sold. They are matched with revenue to determine gross profit. Example of variable costs Let's consider a company that manufactures bicycles. Some of the variable costs associated with producing bicycles include: Raw materials: The cost of steel, rubber, and other...
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### Value-added tax (VAT)
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/value-added-tax/
Definition Value-added tax (VAT) is a tax imposed at each stage of the production and distribution process. What is value-added tax? It is designed to tax the value added to a product or service at each stage of its production or distribution. VAT is a significant source of government revenue in many countries around the world. Businesses are typically allowed to claim a credit for the VAT paid on goods and services purchased for business use. This ensures that the tax is not applied at each stage, which would result in double taxation. VAT is considered a consumption tax because it is ultimately paid by the end consumer. It is embedded in the final price of goods or services and is borne by the consumer. VAT is a significant source of revenue for governments. It provides a steady stream of income that can be used to fund public services, infrastructure, and other government initiatives. Businesses are responsible for accurately calculating, collecting, and remitting the VAT to tax authorities. This involves maintaining proper records, filing periodic VAT returns, and ensuring compliance with tax regulations. In international trade, VAT can be applicable on imports and exports. Various countries have mechanisms to account for VAT on cross-border transactions, which may involve reverse charges, import VAT, or special schemes for international trade. VAT can affect the final price of goods and services, potentially influencing consumer behaviour and market dynamics. Businesses often factor in the VAT when setting prices. Example of value-added tax Let's say...
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### Value proposition
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/value-proposition/
Definition A value proposition is a clear statement that outlines the unique benefits and value that a product, service, or solution provides to its customers or target audience. What is a value proposition? It answers the fundamental question of "Why should a customer choose this product or service over alternatives in the market? " A well-defined value proposition articulates the specific problem or need the offering addresses, highlights the distinctive features or advantages it offers, and emphasises how it stands out from competitors. It is a critical element of a company's marketing and positioning strategy. It addresses a specific need or pain point that the target audience experiences. It also distinguishes the offering from alternatives in the market, making it stand out. A value proposition focuses on the benefits and outcomes that the customer will receive from using the product or service, rather than just listing features. Furthermore, a value proposition should be consistent with the overall brand promise and messaging of the company. It should reflect the core values and mission of the business and adapt to changing market dynamics, customer preferences, or technological advancements. Ultimately, a value proposition must be supported by the actual performance and quality of the product or service. Consistency between the promised value and the delivered value is crucial for building trust and customer satisfaction. Example of a value proposition? XYZ Company is a software development firm specialising in customised business solutions for SMEs. Their value proposition focuses on addressing the specific needs of...
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### Value chain
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/value-chain/
Definition A value chain is a concept in business that describes the series of activities and processes a company undertakes to create, deliver, and provide value to its customers. What is a value chain? A value chain encompasses the entire journey a product or service goes through, from its inception as raw materials to its delivery to the end consumer. Here's a detailed breakdown of the components of a value chain: Primary activities: These are the core activities directly involved in the creation and delivery of a product or service. There are five primary activities: Inbound logistics: This involves receiving, storing, and managing raw materials and components that are necessary for production. Operations: It involves converting raw materials into finished goods, assembling products, and providing services. Outbound logistics: This involves the processes required to get the finished product to the end consumer. Marketing and sales: This involves activities aimed at promoting and selling the product or service to customers. Service: This involves providing after-sales service and support to customers. It includes activities like customer support, maintenance, repairs, and warranties. Support activities: These activities are necessary to support the primary activities and contribute to the overall value creation process: Procurement: This involves the process of sourcing and acquiring the necessary inputs, including raw materials, supplies, and services, to support the primary activities. Technology development: This encompasses activities related to research, development, and implementation of technology and systems that enhance the production process and create competitive advantages. Human resource management: This involves...
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### Unlimited liability
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/unlimited-liability/
Definition Unlimited liability in business and finance refers to a legal and financial structure where the owners are personally responsible for all the debts and liabilities of the business. What is unlimited liability? Unlimited liabbility means that if the business incurs debts or legal obligations that it cannot repay, the owners' personal assets may be used to cover these obligations. Unlimited liability is most commonly associated with sole traderships and general partnerships. In these business structures, there is no legal distinction between the business and its owners. Unlike in limited liability entities, unlimited liability provides no such protection. In the event of business failure, personal assets can be used to satisfy business debts. Unlimited liability businesses may face challenges in raising capital and expanding operations, as potential investors or lenders may be hesitant to become involved due to the heightened personal risk for owners. Passing on an unlimited liability business can be complex, as it may involve personal liabilities and require careful planning for business continuity or succession. Example of unlimited liability John and Alice decide to start a small bakery business together as equal partners. They operate the bakery as a partnership. Unfortunately, the bakery encounters financial difficulties, and it builds up significant debts to suppliers, creditors, and landlords. Despite their best efforts to turn the business around, the bakery continues to struggle financially. As a result of the unlimited liability associated with their partnership, John and Alice are personally liable for the bakery's debts and obligations. This means...
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### Turnover
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/turnover/
Definition In business and finance, "turnover" encompasses both employee turnover and financial turnover. Both concepts are crucial for understanding and managing different aspects of business performance. What is a turnover? Employee turnover, refers to the rate at which employees leave a company and are replaced by new hires. It is a critical metric for businesses to monitor as it impacts productivity, morale, and performance. There are two main types of employee turnover: Voluntary turnover: This occurs when employees choose to leave the organisation, often for reasons like better job opportunities, career advancement, dissatisfaction with current roles, or personal reasons. Involuntary turnover: This happens when employees are terminated or laid off by the employer, typically due to performance issues, restructuring, or downsiszng. Managing employee turnover is important for organisations to maintain a stable and motivated workforce. High turnover rates can be costly in terms of recruitment, training, and lost productivity. Financial turnover, also known as "business turnover," refers to the total value of sales made by a company within a specific period. It is a key indicator of a company's performance and is used to assess its turnover-generating capabilities. Financial turnover is an essential metric for evaluating a company's sales performance, market presence, and overall business health. It is often used in financial analysis, benchmarking, and comparing the performance of different companies or industries. Example of a turnover ABC Company, a retail chain, has 50 employees at the beginning of the year. Over the course of the year, 10 employees resign...
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### Triple bottom line
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/triple-bottom-line/
Definition The triple bottom line is a framework that evaluates a company's performance and impact on three key dimensions: economic, social, and environmental. What is the triple bottom line? It is often used as an approach to measure a company's sustainability and corporate social responsibility. Here's a breakdown of each component of the triple bottom line: Economic bottom line: This aspect focuses on the financial performance of a company. The economic bottom line assesses whether a company is economically viable and profitable, which is essential for its survival and growth. Social bottom line: The social bottom line assesses a company's impact on people and communities, including employees, customers, suppliers, and the broader society. Companies that prioritise their social bottom line aim to create positive societal outcomes and contribute to the well-being of stakeholders. Environmental bottom line: This dimension evaluates a company's impact on the natural environment. It includes factors like resource conservation, pollution prevention, carbon footprint, and sustainability practices. Companies that focus on their environmental bottom line seek to operate in a way that minimises harm to the environment. Companies that consider all three bottom lines are better prepared to identify and mitigate risks associated with economic, social, and environmental challenges. Furthermore it can enhance businesses reputation, and attract socially conscious consumers and investors. Example of the triple bottom line Imagine a manufacturing company called "GreenTech Innovations" that produces eco-friendly solar panels: Social dimension: GreenTech Innovations prioritises the well-being of its employees and local communities. The company provides fair wages,...
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### Trademark
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/trademark/
Definition A trademark is a legally protected symbol, name, word, phrase, logo, design, or combination of these elements that identifies and distinguishes a product, service, or brand from others in the marketplace. What is a trademark? It serves as a recognisable symbol of the source and quality of goods or services associated with a particular company. A trademark is a crucial element of a company's brand identity. It helps consumers identify and distinguish products or services associated with a particular business or source. Trademarks are protected by intellectual property laws to prevent others from using a similar mark in a way that could cause confusion among consumers. This protection helps maintain the distinctiveness and integrity of a brand. Types of trademarks: Word marks: Consist of one or more words or letters. Design marks: Include logos, symbols, or graphical elements. Slogans and taglines: Short phrases or mottos associated with a brand. Product shapes and packaging: In some cases, unique product shapes or packaging designs can be registered as trademarks. Trademarks can be renewed indefinitely as long as they continue to be used in commerce and the necessary renewal fees are paid. This is in contrast to patents, which have a limited duration. Trademark protection is typically granted within specific jurisdictions. However, some international treaties and agreements allow for the extension of trademark rights across multiple countries. Example of a trademark Imagine a new company called "ZapTech" that specialises in innovative electronic gadgets. They have developed a unique logo featuring a lightning...
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### Total debt to total assets ratio
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/total-debt-to-total-assets-ratio/
Definition The total debt to total assets ratio is a financial metric used to evaluate the financial leverage of a company. What is a total debt to total assets ratio? It provides insight into the proportion of a company's assets that are financed by debt, as opposed to equity. Here's how to calculate the total debt to total assets ratio: Total debt to total assets ratio = total debt / total assets A higher ratio indicates a greater portion of a company's assets are funded by debt, which can be an indicator of higher financial risk. Conversely, a lower ratio suggests that a company relies less on borrowed funds and is potentially less leveraged. Lenders and investors use this ratio to assess the risk associated with a company's debt load. A higher ratio may lead to higher interest rates for borrowing or may make it more challenging to secure credit. It's essential to compare this ratio with industry peers and historical performance to gain a more meaningful perspective on a company's financial position. Example of total debt to total assets ratio Let's consider Company XYZ, a manufacturing firm, which has the following financial information: Total debt: R500,000 Total assets: R1,000,000 To calculate the total debt to total assets ratio for Company XYZ, we use the formula listed above: Total debt to total assets ratio = R500,000 / R1,000,000 = 0. 5 In this example, Company XYZ's total debt to total assets ratio is 0. 5, or 50%. This means that...
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### Total shareholder return (TSR)
- Published: 2023-10-26
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/total-shareholder-return/
Definition Total shareholder return (TSR) is a financial metric that measures the total return an investor receives from an investment in a company's stock over a specified period. What is total shareholder return? It provides a comprehensive view of the overall performance of an investment. Total shareholder return is calculated using the following formula: TSR = capital gain (or loss) + dividends TSR provides a holistic view of how an investment in a particular stock has performed, considering both changes in stock price and income from dividends. Furthermore, TSR allows investors to compare the performance of a particular stock or investment portfolio with a chosen benchmark index or with other investments in the same industry or sector. High TSR may indicate high returns, but it could also be associated with higher risk or volatility. On the other hand, low TSR may suggest lower returns but could be linked to lower risk. Have in mind that TSR doesn't consider what an investor could have earned by investing the same capital in an alternative opportunity. Example of total shareholder return Let's consider an investor, John, who purchased 100 shares of Company XYZ's stock at R50 per share one year ago. Over the past year, Company XYZ's stock price has increased to R60 per share, and the company has paid dividends of R2 per share. Using the provided information: Ending stock price = R60 per share Beginning stock price = R50 per share Dividends per share = R2 TSR = ((R60 - R50...
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### The 4 p's
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/the-4-ps/
Definition The 4 p's in business, also known as the marketing mix, are a set of fundamental elements that form the foundation of a company's marketing strategy. What are the 4 p's? These four elements represent key decisions that marketers need to make in order to successfully promote a product or service. Product: This refers to the tangible or intangible offerings that a company provides to meet a specific need or want of its target market. Key considerations include product differentiation, positioning in the market, and ensuring that the product aligns with the needs and preferences of the target audience. Price: This relates to the monetary value assigned to the product or service. Pricing strategies can vary widely. Factors influencing pricing decisions include production costs, competitor pricing, and overall pricing strategy of the company. Place: Place, also known as distribution, pertains to the methods and channels used to make the product or service available to the customer. The goal is to ensure that the product is accessible to the target market when and where they want it. Promotion: Promotion involves the activities and methods used to communicate the value of the product or service to the target market. The aim is to create awareness, generate interest, and ultimately persuade customers to make a purchase. Effective promotion also involves considerations of messaging and branding. The 4 p's framework provides a structured approach to help businesses address key aspects of their marketing efforts, ensuring that they effectively deliver value to their target...
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### Sole trader
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/sole-trader/
Definition A sole trader is a type of business structure where an individual operates and owns a business independently. In a sole trader business, there is no legal distinction between the owner and the business entity itself.   What is a sole trader? One of the key characteristics of a sole trader business is that the owner has unlimited liability. This means that the owner is personally responsible for all debts, liabilities, and legal obligations of the business. In the event of business debts or legal issues, the owner's personal assets may be used to cover these obligations. The owner of a sole trader business is entitled to all the profits generated by the business. However, they are also personally responsible for any losses incurred. This contrasts with other business structures where profits and losses are shared among multiple owners or shareholders. Sole traders have a high degree of flexibility and autonomy in managing their business. They have the freedom to make decisions without the need for approval from partners or shareholders. Depending on the jurisdiction, there may be specific legal requirements and regulations that sole traders must adhere to. This can include business registration, licensing, and compliance with industry-specific regulations. Example of a sole trader John Smith decides to start a freelance graphic design business. He operates the business under his own name, "John Smith Design. " As a sole trader, John is the sole owner of the business and is personally responsible for all aspects of its operations....
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### Supply chain
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/supply-chain/
Definition A supply chain is a network of organisations, individuals, activities, resources, and information involved in the creation, production, distribution, and delivery of goods and services to end consumers. What is a supply chain? A supply chain encompasses all the stages and processes from raw material extraction to the final delivery of a product or service.   Supply chain participants: Suppliers: These are the entities that provide raw materials, components, or services needed for the production of goods or services. Suppliers can range from local vendors to global partners. Manufacturers/producers: These are the companies or entities responsible for transforming raw materials into finished products. Distributors/wholesalers: Distributors buy products from manufacturers in bulk and then sell them in smaller quantities to retailers. They play a crucial role in moving products closer to the end consumer. Retailers: These are the businesses that sell products directly to consumers. They can be physical stores, e-commerce platforms, or any other channels. Transportation and logistics companies: They handle the movement of goods within the supply chain. This includes transportation, warehousing, and inventory management. Customers/consumers: These are the ultimate end users of the products or services. Recognising and preparing for potential disruptions, such as natural disasters, geopolitical events, or supplier issues, to ensure continuity in the supply chain is a crucial part of supply chain management. Example of a supply chain Let's consider a company, XYZ Electronics, that manufactures and sells smartphones: Raw materials suppliers: XYZ Electronics sources raw materials from various suppliers around the world. These...
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### Startup
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/startup-definition/
Definition A startup in business refers to a newly established company or organisation that is in the early stages of its development. What is a startup? Startups are typically characterised by their focus on creating and scaling innovative products, services, or technologies to address a specific market need or problem. These companies often operate in dynamic and rapidly evolving industries, and they usually have a high growth potential. Unlike traditional small businesses, startups are designed with the intent of achieving rapid growth and scaling their operations. This is often accompanied by the pursuit of significant market share and potentially global expansion. Since startups are newly established, they have a limited operating history. This means they may not have a track record of financial performance or established customer base. Startups typically operate with lean teams and resources, seeking to accomplish as much as possible with limited capital. They often prioritise efficiency and cost-effectiveness. Furthermore, startups aim to create business models that can be scaled quickly and efficiently. This means that the potential for growth is a fundamental consideration in their strategy. Startups often employ an iterative approach to product development and business strategy. They build, measure, and learn from customer feedback to refine their offerings and business models. Example of a startup John and Sarah have an idea for a mobile application that helps users track their daily water intake and stay hydrated. They decide to turn their idea into a startup called "HydraTrack. " Concept development: John and Sarah conduct...
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### Stakeholder value
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/stakeholder-value/
Definition Stakeholder value is a management principle that emphasises the importance of creating value not only for shareholders, but also for all parties with an interest, or stake, in a company. These stakeholders include employees, customers, suppliers, communities, and the broader society.   What is stakeholder value? Stakeholder value involves identifying and understanding the various groups and individuals who are affected by or can affect the company's operations, decisions, and performance. Stakeholder value management seeks to balance the often conflicting interests of different stakeholder groups. This involves considering the needs, concerns, and aspirations of each group. Recognising the impact of business operations on the environment and taking measures to minimise negative effects, such as reducing waste, conserving resources, and adopting sustainable practices is also a part of stakeholder value. By considering the interests of all stakeholders, companies can better anticipate and manage risks related to reputational damage, legal issues, and other potential challenges. Companies committed to stakeholder value often measure and report on their performance in relation to various stakeholder groups. This can include metrics related to employee satisfaction, customer feedback, environmental impact, and community engagement. Example of stakeholder value Let's consider a multinational corporation, XYZ Corp, that manufactures consumer electronics. Customers: XYZ Corp focuses on producing high-quality products that meet the needs and expectations of its customers. Employees: XYZ Corp prioritises the well-being and professional development of its employees. It offers competitive wages, benefits, and opportunities for career advancement. Shareholders: XYZ Corp generates shareholder value by delivering strong financial...
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### Social responsibility
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/social-responsibility/
Definition Social responsibility in business and finance refers to the ethical and moral obligations that organisations have towards society and the environment, beyond their primary goal of making profits. What is social responsibility? Social responsibility encompasses a commitment to act in a way that benefits not only shareholders but also the broader community, including employees, customers, suppliers, local communities, and the environment. Socially responsible businesses strive to minimise their negative impact on the environment. This may involve reducing pollution, conserving resources, and adopting sustainable practices in production and operations. This also involves contributing resources, whether financial or in-kind, to support social or environmental causes. It may include donations to charities, community development projects, or disaster relief efforts. Socially responsible businesses actively engage with local communities. This could involve supporting local schools, sponsoring events, or participating in initiatives that benefit the community. Furthermore, businesses committed to social responsibility invest in the well-being and development of their employees. This includes providing fair wages, safe working conditions, opportunities for growth, and a healthy work-life balance. Businesses that focus on social responsibility value diversity and inclusion in the workplace and respect human rights and adhering to international labour standards. Socially responsible organisations may measure and report on their social and environmental impacts. This can include metrics related to carbon emissions, community development, employee satisfaction, and more. Example of social responsibility Let's consider a fictional company, ABC Clothing Co. , which specialises in manufacturing clothing. Ethical sourcing: ABC Clothing Co. ensures that all its clothing...
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### Shareholder value
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/shareholder-value/
Definition Shareholder value refers to the total worth of a company as determined by the market value of its outstanding shares of stock. What is shareholder value? Shareholder value represents the monetary value that shareholders would receive if the company were to be liquidated or sold. Maximising shareholder value is a fundamental goal for many corporations, as it reflects the company's ability to generate returns for its investors. Shareholder value is calculated by multiplying the current market price of one share by the total number of outstanding shares. This provides an estimate of the total value of the company from the perspective of its shareholders. Factors affecting shareholder value: Financial performance: Factors like revenue growth, profitability, and efficient use of capital can directly impact shareholder value. Market conditions: External factors such as economic conditions, industry trends, and competitive forces can influence the market value of a company's shares. Management decisions: Effective management decisions regarding capital allocation, investments, and operational efficiency can significantly impact shareholder value. Dividend policy: The company's dividend policy can affect shareholder value, as consistent and increasing dividends are often viewed positively by investors. Maximising shareholder value should be pursued ethically and responsibly, considering the impact on all stakeholders and avoiding activities that may be detrimental to society or the environment. Example of shareholder value Let's consider a publicly traded company, XYZ Inc. , that manufactures and sells consumer electronics. Financial performance: Over the past year, XYZ Inc. has successfully increased its revenues and profits through effective marketing...
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### Sector
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/sector/
Definition In business and finance, a sector refers to a distinct category or grouping of companies, organisations, or industries that share similar characteristics, products, or services. What is a sector? Sectors are used to classify and analyse various parts of the economy based on commonalities such as the nature of the business, target market, and production methods. Understanding sectors is crucial for investors, analysts, policymakers, and business leaders as it provides insights into economic trends, investment opportunities, and risk assessment. Characteristics of a sector: Common attributes: Sectors typically consist of businesses that share similar characteristics, such as production processes, customer demographics, and market dynamics. Market focus: Sectors are defined by the markets they serve. For example, the technology sector focuses on products and services related to information technology. Businesses and investors assess the performance and prospects of specific sectors to make informed decisions about where to allocate resources or investments. Some sectors may be more sensitive to economic conditions or regulatory changes. Example of sectors Here's a short example illustrating different sectors: Technology sector: This sector includes companies involved in the development and manufacturing of technology products and services. Healthcare sector: This sector comprises companies involved in providing healthcare products and services. Financial sector: This sector encompasses companies involved in providing financial services. Consumer goods sector: This sector includes companies that produce goods consumed by individuals. Energy sector: This sector comprises companies involved in the production and distribution of energy.
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### Scalability
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/scalability/
Definition Scalability in business and finance refers to the ability of a company or financial model to handle increased demands, growth, or expansion without compromising performance, efficiency, or profitability. What is scalability? Scalability implies that as a business grows, it can accommodate higher volumes of operations or transactions without a proportional increase in costs or a significant drop in productivity. Factors contributing to scalability: Processes and systems: Efficient and streamlined processes and systems allow a business to handle higher volumes without proportional increases in resources. Technology and automation: Effective use of technology, automation, and software solutions can enhance scalability by reducing manual efforts and increasing efficiency. Scalable business model: A business model designed to accommodate growth without incurring significant incremental costs is inherently scalable. Scalable businesses can grow without a linear increase in costs, leading to improved profitability and the businesses often have a competitive edge as they can handle growth more effectively than less scalable counterparts. Example of scalability Let's consider a software company, TechSolutions Inc. , that develops and sells a project management software. Initially, TechSolutions operates with a small team of developers and a limited customer base. Early stage: In the early stages, TechSolutions experiences moderate success, attracting a few hundred customers. Increased demand: As TechSolutions gains popularity, the demand for their project management software grows rapidly. Scalability: To accommodate the increased demand, TechSolutions invests in scalable infrastructure and technologies. Efficient operations: With the scalable infrastructure in place, TechSolutions can efficiently manage the stream of new customers...
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### Revolving credit
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/revolving-credit/
Definition Revolving credit refers to a type of credit arrangement that allows individuals or businesses to borrow money up to a predetermined limit, repay it, and then borrow again. What is revolving credit? Unlike a traditional loan, revolving credit provides a continuous line of credit that can be used and repaid repeatedly, as long as it stays within the established credit limit. The credit limit is the maximum amount a borrower can access through the revolving credit arrangement. It is determined by the lender based on the borrower's creditworthiness, financial situation, and other factors. Borrowers are charged interest only on the outstanding balance that they carry from one billing cycle to the next. The interest rate can be variable or fixed, depending on the terms of the credit agreement. Unlike traditional loans with a fixed repayment schedule, revolving credit does not have a set timeline for repayment. Borrowers have the flexibility to repay the outstanding balance at their own pace. Revolving credit provides a high level of flexibility and convenience, as it allows borrowers to have access to funds when needed without the need to reapply for a new loan. Example of revolving credit Let's consider a manufacturing company, XYZ Corp, that has a revolving credit facility with a bank for R1,000,000. This credit line allows XYZ Corp to borrow funds up to the specified limit whenever they need additional working capital. In January, XYZ Corp faces a cash flow shortage due to delayed payments from customers. They borrow R500,000...
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### Return on invested capital (ROIC)
- Published: 2023-10-25
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/return-on-invested-capital/
Definition Return on invested capital (ROIC) is a financial metric used to evaluate the efficiency and profitability of a company in utilising its invested capital to generate income. What is return on invested capital? Return on invested capital provides insight into how effectively a company is deploying its capital to generate returns for its investors. Return on invested capital is calculated using the following formula: ROIC = Net operating profit after tax / Invested capital ROIC specifically focuses on the return generated from the company's core operations, excluding any financial leveraging or tax advantages. If ROIC is higher than the cost of capital, it suggests that the company is generating returns in excess of its expenses, indicating positive value creation. Companies with lower ROIC may have room for improvement in capital allocation, operational efficiency, or profitability. This metric can highlight areas for strategic focus. Ultimately, a high ROIC is indicative of a company's ability to generate value for its shareholders, which is a fundamental objective of any business. Example of return on invested capital XYZ Corporation reported a net operating profit after taxes (NOPAT) of R700,000 for the year ending December 31, 2023. Their invested capital at the beginning of the year was R4,000,000, and at the end of the year, it was R4,500,000. To calculate ROIC we use the formula from above with R4,250,000 in invested capital: ROIC = R700,000 / R4,250,000 = 0. 1647 or 16. 47% This means that XYZ Corporation generated approximately 16. 47% return for...
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### Return on equity (ROE)
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/return-on-equity/
Definition Return on equity (ROE) is a key financial ratio that measures the profitability of a company in relation to its shareholders' equity. It provides insight into how effectively a company is utilising the investment made by its shareholders to generate profits. What is return on equity? ROE is expressed as a percentage and is widely used by investors, analysts, and managers to assess a company's financial performance. Return on equity can be calculated using the following formula: ROE = (net income / shareholder’s equity) x 100% A higher ROE indicates that a company is generating more profits relative to the amount of equity invested by shareholders. It suggests that the company is effectively using shareholders' capital to generate returns. On the other hand, a lower ROE may indicate that the company is less efficient in generating profits from shareholders' equity. This could be due to various factors, including lower profit margins or inefficient use of resources. ROE is often used for comparing the performance of companies within the same industry. It provides a relative measure of how well a company is utilising shareholders' equity compared to its peers. ROE does not provide insights into the absolute size of profits or the level of risk involved in generating those profits. A company with a high ROE may have lower absolute profits than a larger, lower ROE company. Example of return on equity XYZ Corporation reported a net income of R500,000 for the year ending December 31, 2023. Their shareholders' equity...
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### Return on assets (ROA)
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/return-on-assets/
Definition Return on assets (ROA) is a financial metric that measures a company's efficiency in generating profits from its total assets. It provides insight into how effectively a company is utilising its resources to generate earnings. What is return on assets? ROA is expressed as a percentage and is widely used by investors, analysts, and managers to assess a company's financial performance. To calculate return on asset, the following formula can be used: Return on assets = (net income / total assets) x 100% A higher ROA indicates that a company is using its assets more efficiently to generate profits. It suggests that the company is effectively managing its resources to generate returns for its shareholders. On the other hand, a lower ROA may indicate that the company is less efficient in generating profits from its assets. This could be due to various factors, including high operating costs or underutilisation of assets. Monitoring ROA over time can provide insights into a company's operational efficiency and management effectiveness. Improving ROA over time is often a positive sign of a company's financial health. ROA does not account for differences in financing or capital structure. A company might achieve a higher ROA by using more debt, which can also increase financial risk. Furthermore, it does not provide insights into the absolute size of profits. A company may have a high ROA but still generate relatively low profits if it has a small asset base. Example of return on assets Let's consider a fictional...
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### Residual value
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/residual-value/
Definition Residual value, also known as salvage value or scrap value, is a financial term used in various contexts, particularly in asset management and finance. What is a residual value? A residual value refers to the estimated value of an asset at the end of its useful life or a specific period. There are different methods used to estimate residual value, depending on the type of asset and industry. Common methods include straight-line depreciation, declining balance depreciation, and sum-of-years-digits depreciation. Residual value is essential for financial planning and budgeting. It helps businesses and individuals estimate the total cost of owning an asset over its useful life. Accurately estimating the residual value of an asset is crucial for businesses to mitigate financial risks associated with asset ownership, such as potential losses in case of asset disposal. Example of residual value Let's say you purchase a car for R30,000. After three years of use, the car's estimated residual value is R15,000. This means that after three years, the car is expected to retain R15,000 worth of value. So, if you were to sell the car after three years, its value would be R15,000.
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### Research and development (R&D)
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/research-and-development/
Definition Research and development (R&D) is a crucial component of business and innovation, encompassing activities aimed at creating and improving products, services, processes, and technologies. What is research and development? It involves systematic investigation, experimentation, and innovation with the goal of advancing knowledge, capabilities, and the development of new or improved products and services. Types of R&D: Basic research: This is focused on expanding scientific knowledge without any immediate commercial application in mind. Applied research: This involves using existing scientific knowledge to address specific problems or develop practical solutions. Development: This involves further refining applied research findings into tangible products, processes, or technologies. R&D activities are prominent in various sectors and they allocate resources to R&D based on their specific needs and objectives, but R&D often requires significant financial resources, particularly in industries with high technological demands. Depending on the industry and the nature of the research, R&D activities may be subject to regulatory oversight to ensure ethical standards, safety, and compliance with legal requirements. R&D investments often have long time horizons. Breakthroughs may not yield immediate returns, and companies must have a strategic vision and commitment to innovation. Example of research and development Company XYZ, a pharmaceutical company, allocates resources to research and develop a new drug to treat a specific medical condition. The company invests in laboratory facilities, hires scientists and researchers, and purchases necessary equipment and materials to conduct experiments and clinical trials. Over several years, the R&D team works tirelessly to identify potential drug candidates, test...
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### Refinancing
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/refinancing/
Definition Refinancing in business and finance refers to the process of replacing or restructuring existing debt or financial instruments with a new arrangement. What is refinancing? Refinancing is a strategic financial decision often undertaken to optimise a company's capital structure and enhance its overall financial health. Purpose of refinancing: Lowering interest rates: One common reason for refinancing is to secure a lower interest rate, which can lead to reduced interest expenses and increased cash flow. Extending maturity: Refinancing can involve extending the maturity of existing debt, allowing a company more time to repay its obligations. Changing terms and conditions: Refinancing may allow a company to negotiate more favourable terms, such as lower covenants or improved flexibility. Consolidating debt: It can involve combining multiple debts into a single, more manageable instrument, simplifying the company's financial obligations. Risk management: Refinancing can be used to convert variable interest rates to fixed rates, providing protection against potential interest rate hikes. Raising additional capital: In some cases, a company may use refinancing to raise additional capital by leveraging its existing assets or securing new funding sources. Types of refinancing: Debt refinancing: This involves replacing existing debt with new debt, often with more favourable terms. Mortgage refinancing: In the context of real estate, this involves replacing an existing mortgage with a new one. Equity refinancing: This involves restructuring equity ownership in a company, which might include issuing new shares or buying back existing ones. Refinancing can involve various costs such as origination fees, legal fees, and...
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### Rate of return
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/rate-of-return/
Definition The rate of return (RoR) is a financial metric used to evaluate the profitability or performance of an investment over a specific period of time. What is rate of return? Rate of return is expressed as a percentage and provides insight into the gain or loss generated from an investment relative to the initial amount invested. There are several types of rates of return, each serving different purposes: Simple rate of return: The simple rate of return is the most basic form of measuring investment performance. It is calculated using the following formula:Simple RoR = (net profit / initial investment) x 100% Annualised rate of return: The annualised rate of return accounts for the time value of money and is useful for comparing investments with different time horizons Total rate of return: The total rate of return encompasses all forms of return from an investment, including capital appreciation, dividends, interest, and other income. It is expressed as a percentage and is calculated using the following formula:Total RoR = (total gain / initial investment) x 100% If you want to calculate your rate of return, try our calculator today. Risk-adjusted rate of return: This metric factors in the level of risk associated with an investment. It's important because higher returns often come with higher risk. Understanding the rate of return is crucial for investors, as it allows them to assess the performance of their investments, compare different investment opportunities, and make informed decisions about where to allocate their capital. Example...
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### Quick ratio
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quick-ratio/
Definition The quick ratio, also known as the acid-test ratio, is a financial metric used to evaluate a company's short-term liquidity position. What is a quick ratio? A quick ratio measures the firm's ability to cover its immediate or short-term liabilities using its most liquid assets. This ratio is a crucial indicator of a company's ability to meet its immediate financial obligations without relying on the sale of inventory or other potentially less liquid assets. The formula for calculating the quick ratio is: Quick ratio = quick assets / current liabilities A quick ratio of 1 or higher indicates that a company has enough quick assets to cover its current liabilities, which is generally considered a sign of good short-term financial health. On the other hand, a quick ratio below 1 suggests that the company may face difficulty in meeting its short-term obligations with its readily available liquid assets alone. The quick ratio is a valuable tool for investors, creditors, and analysts when assessing a company's financial health, particularly in industries or situations where short-term cash flow management is critical. However, it's important to use this ratio in conjunction with other financial metrics for a comprehensive evaluation of a company's overall financial condition. Example of a quick ratio Company ABC has the following assets and liabilities: Quick assets: Cash: R20,000 Marketable securities: R10,000 Accounts receivable: R15,000 Current liabilities: Accounts payable: R12,000 Short-term debt: R8,000 To calculate the quick ratio we use the formula from above: Quick ratio = (R20,000 +...
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### Quick assets
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quick-assets/
Definition Quick assets, also known as liquid assets or current liquid assets, refer to a company's most readily convertible and easily marketable assets into cash within a short period, typically within one year or less. What are quick assets? They are a subset of current assets. The main components of quick assets typically include: Cash: This is the most liquid asset, representing physical currency and funds held in bank accounts. Cash equivalents: These are highly liquid investments that are easily convertible to known amounts of cash and have a short maturity period Accounts receivable: These are amounts owed to a company by customers for products or services that have been delivered but not yet paid for. Quick assets are essential in assessing a company's liquidity and ability to meet its short-term obligations. Example of quick assets Company XYZ's balance sheet shows the following assets: Cash: R50,000 Marketable securities: R30,000 Accounts receivable: R20,000 Inventory: R40,000 Prepaid expenses: R10,000 To calculate the quick assets, we exclude inventory and prepaid expenses since they are not easily convertible into cash: Quick assets = R50,000 + R30,000 + R20,000 = R100,000 In this example, Company XYZ's quick assets total R100,000, which represents the amount of assets that can be quickly converted into cash to meet short-term obligations or unexpected expenses.
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### Quality of earnings
- Published: 2023-10-24
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quality-of-earnings/
Definition Quality of earnings is a term used in finance and accounting to assess the reliability and sustainability of a company's reported earnings. What is quality of earnings? Quality of earnings is crucial for investors, analysts, and stakeholders because it provides insights into the underlying factors that contribute to a company's profitability. Quality earnings are often associated with cash flow. They reflect the actual cash generated or used by a business, rather than just accounting entries based on accruals. Here are some key aspects to consider when discussing the concept of quality of earnings: Sustainability and persistence: High-quality earnings are sustainable and likely to continue in the foreseeable future. Consistency: Quality earnings should exhibit consistency over time. Non-recurring items: Quality earnings exclude one-time gains or losses, which can distort the true operational performance of a company. Revenue recognition policies: Conservative and consistent revenue recognition policies tend to result in higher-quality earnings. Expense recognition: Delaying expenses or using aggressive accounting methods can temporarily inflate reported earnings. Quality of assets: The composition and quality of a company's assets can affect its earnings. Management's credibility and integrity: A reputable management team is key to reliable financial statements. Regulatory compliance: Companies that comply with accounting standards and regulatory requirements are more likely to have higher quality earnings. Example of quality of earnings Company XYZ reports R1 million in net income for the year. Upon closer examination, analysts discover that a significant portion of this income comes from one-time gains, such as the sale of...
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### Quality control
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/quality-control/
Definition Quality control (QC) is a systematic process implemented by businesses to ensure that products or services meet specified standards and comply with predefined criteria. What is a quality control? A quality control involves a series of procedures and practices designed to monitor, assess, and improve the quality of output, ultimately aiming to satisfy customer expectations and requirements. Quality control is a crucial aspect of manufacturing, production, and service industries, as it helps maintain consistency, reduce defects, and uphold brand reputation. Here’s a list of the key components of quality control: Standards and specifications: QC starts by establishing clear and precise standards and specifications that products or services must meet. Inspection and testing: This involves systematically examining and evaluating products or services against the established standards. Documentation and record-keeping: Proper documentation of inspection results, non-conformities, corrective actions, and other relevant data is crucial for traceability and compliance. Corrective actions: When deviations from the set standards are identified, corrective actions are taken to rectify the issues and bring the output back into compliance. Training and skill development: Quality control personnel must be adequately trained and skilled to perform inspections and tests accurately and effectively. Feedback and continuous improvement: Feedback loops are established to gather insights from the quality control process, which can be used to make necessary improvements. Consistently delivering high-quality products or services leads to increased customer satisfaction and loyalty. Quality control also helps identify and rectify defects early in the process, reducing the cost of rework or product recalls....
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### Pricing strategy
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/pricing-strategy/
Definition Pricing strategy is a fundamental component of a business's overall marketing and financial strategy. What is a pricing strategy? A pricing strategy involves the method and approach a company uses to set the prices of its products or services. A well-considered pricing strategy is essential for achieving profitability, remaining competitive, and maximising the value offered to customers. One of the primary goals of a pricing strategy is to maximise profit margins, ensuring that the revenue generated exceeds the costs of production and operation. Some businesses go for lower initial prices to quickly gain market share and establish a foothold in a competitive industry. Setting prices that offer perceived value can help build customer loyalty and retention, leading to long-term profitability. Common pricing strategies: Cost-plus pricing: This involves setting prices by adding a markup to the cost of production, ensuring that costs are covered and a profit margin is achieved. Market-oriented pricing (value-based pricing): Prices are determined based on the perceived value of the product or service in the eyes of the customer. Competitive pricing: Prices are set based on what competitors are charging for similar products or services. Penetration pricing: Initially setting prices lower than competitors to gain market share rapidly. Skimming pricing: Setting high initial prices for unique or innovative products, then gradually lowering prices as competition increases. Dynamic pricing: Prices are adjusted in real-time based on market demand, competitor pricing, or other relevant factors. Bundle pricing: Offering products or services together at a combined price, often at...
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### Personal liability
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/personal-liability/
Definition Personal liability in business and finance refers to the legal responsibility of an individual, often the owner or operator of a business, for the debts, obligations, and liabilities of that business. What is personal liability? Personal liability means that the individual's personal assets, such as their home, savings, and other possessions, may be at risk if the business is unable to meet its financial obligations. Choosing the right legal structure for the business is crucial for achieving personal liability protection. Also, following legal and regulatory requirements, maintaining accurate financial records, and adhering to corporate governance practices are essential for maintaining personal liability protection. Example of personal liability John, a small business owner, guarantees a loan for his business using his personal assets as collateral. If the business fails to repay the loan, John is personally liable, meaning his personal assets, such as his home or savings, could be seized to satisfy the debt.
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### Profit
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/profit/
Definition Profit, in a business context, is the financial gain or positive difference between total revenue and total expenses over a specific period of time. What is profit? Profit is a fundamental measure of a business's financial performance and is a key indicator of its viability and success. Formula for calculating profit: Profit = total revenue - total expenses Types of profit: Gross profit: This is the profit calculated before accounting for operating expenses. It reflects the profitability of the core business operations. Operating profit (operating income): This is the profit derived after accounting for operating expenses. It provides an indication of the profitability of the company's core operations. Net profit (net income): This is the final profit figure after all expenses, including taxes and interest, have been subtracted from total revenue. It represents the overall profitability of the business. Profitability is a primary measure of a business's success. It indicates whether a company is generating sufficient income to cover costs and generate a return on investment. Profit allows a business to provide returns to its shareholders through dividends, reinvestment, or share buybacks and will attract investors and lenders Example of profit A bakery sells cupcakes for R3 each. The cost to make each cupcake, including ingredients and labor, is R1. After selling 100 cupcakes, the bakery's total revenue is R300 (R3 x 100) and the total cost to make the cupcakes is R100 (R1 x 100). Therefore, the bakery's profit is R200.
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### Peer-to-peer lending (P2P)
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/peer-to-peer-lending/
Definition Peer-to-peer lending is a decentralised form of lending that enables individuals or businesses to borrow money directly from other individuals or investors through online platforms, bypassing traditional financial institutions like banks. What is peer-to-peer lending? Peer-to-peer lending creates a marketplace where borrowers are connected with lenders. Key elements of peer-to-peer lending: Online platforms: P2P lending operates through online platforms that serve as intermediaries, connecting borrowers with potential lenders. Diverse borrowers: Borrowers can range from individuals seeking personal loans to small businesses in need of funding for various purposes. Lender pool: Lenders in P2P lending can be individuals, institutions, or a combination of both. They provide funds to borrowers in exchange for interest payments. Risk assessment and credit scoring: P2P platforms typically assess the creditworthiness of borrowers through various means. The P2P platform assesses the credit risk of the borrower and assigns an interest rate based on their creditworthiness. Borrowers with higher creditworthiness may receive lower interest rates. Once the loan is fully funded, the funds are transferred to the borrower. The borrower repays the loan, typically on a monthly basis, including both principal and interest. Lending to individuals or businesses carries the risk of default. Even with credit assessments, there is a chance that borrowers may fail to repay the loan. Unlike bank deposits, funds in P2P lending platforms are not typically insured by government agencies, so there is no guarantee against loss. Example of peer-to-peer lending Imagine a small business owner, John, needs a loan to purchase new...
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### Patent
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/patent/
Definition In business and finance, a patent is a legally granted property right that provides exclusive ownership and protection to an inventor or assignee for a novel and useful invention or innovation. What is a patent? A patent grants the holder the exclusive right to use, make, sell, or licence the patented invention. This exclusivity allows the patent owner to prevent others from using or profiting from the invention without their permission. A patent has a defined lifespan, typically 20 years from the date of filing. After this period, the patent expires, and the invention enters the public domain. Types of patents: Utility patents: These cover new and useful processes, machines, manufactures, or compositions of matter. Design patents: These protect the ornamental design or aesthetic appearance of a functional item. They do not cover the item's function. Plant patents: These are granted for new and distinct varieties of reproduced plants. To obtain a patent, the inventor must file a patent application with the relevant national or regional patent office. This application includes a detailed description of the invention, along with any necessary drawings or diagrams. Patents can enhance a company's attractiveness to investors and lenders, as they provide a tangible asset that can be valued and used as collateral. Obtaining and maintaining a patent can be expensive and involve legal complexities. Businesses must weigh the costs against the potential benefits. Holding a patent also means defending it. This can lead to legal battles if others dispute the validity or infringement...
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### Partnership
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/partnership/
Definition A partnership in business and finance is a legal and economic arrangement where two or more individuals or entities collaborate to jointly own and manage a business. What is a partnership? Partnerships are a common form of business structure, allowing participants to combine their resources, skills, and expertise to pursue a shared business goal. There are various types of partnerships, each with its own characteristics and legal implications: General partnership (GP): All partners share equal responsibility for the management and liabilities of the business. Profits, losses, and decision-making authority are typically divided equally among partners. General partners have unlimited personal liability for the debts and obligations of the business. Limited partnership (LP): A limited partnership has both general partners and limited partners. General partners have management authority and unlimited personal liability, while limited partners contribute capital but have limited involvement in management and liability. Limited liability partnership (LLP): An LLP is a hybrid form of partnership that provides limited personal liability to all partners. Each partner is protected from personal liability for the actions or debts of the partnership, but they may still be personally liable for their own professional negligence or misconduct. Limited liability limited partnership (LLLP): An LLLP is a variation of a limited partnership where all partners, including general partners, have limited personal liability. A partnership is typically established through a formal written agreement that outlines the roles, responsibilities, and rights of each partner. Advantages of partnerships: Pooling of resources and expertise: Partnerships allow individuals or...
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### Operational effectiveness
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/operational-effectiveness/
Definition Operational effectiveness refers to the degree to which an organisation can execute its core activities and processes efficiently and proficiently to achieve its strategic goals and objectives. What is operational effectiveness Operational effectiveness involves optimising the use of resources, minimising waste, and consistently delivering high-quality products or services. Operational effectiveness is a critical aspect of overall business performance and competitiveness. It measures the output generated from a given set of inputs. A highly operationally effective organisation maximises productivity by efficiently utilising its resources. Here’s a list of key components when talking about operational effectiveness: Processes and procedures: Effective organisations have well-defined and streamlined processes and procedures. Resource allocation: Proper allocation of human, financial, and material resources is crucial. Quality management: Maintaining high standards of quality in products or services is essential for operational effectiveness. Technology and automation: Technology and automation tools can reduce manual effort, minimise errors, and speed up processes. Operational effectiveness should be aligned with the overall strategic goals of the organisation. This ensures that day-to-day activities contribute directly to achieving the broader mission and vision. Being operationally effective can be a significant competitive advantage. It allows an organisation to offer high-quality products or services at competitive prices. Furthermore, delivering products or services in a timely and reliable manner enhances customer satisfaction and builds trust. Example of operational effectiveness Company ABC, a manufacturing firm, focuses on improving its operational effectiveness by streamlining its production processes. Through the implementation of lean manufacturing principles and the adoption of advanced...
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### Obligations
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/obligations/
Definition Obligations in a business context refer to the legal, financial, and ethical responsibilities that a company or organisation has towards various stakeholders. What are obligations? These obligations encompass a range of duties and commitments that a business is required to fulfil in order to operate ethically and in compliance with laws and regulations. Types of business obligations: Legal obligations: These are requirements imposed by local, state, federal, and international laws and regulations that businesses must adhere to. Contractual obligations: Businesses enter into contracts with various parties. These contracts outline specific duties and commitments that each party must fulfil. Ethical and moral obligations: These pertain to the business's responsibility to conduct operations with integrity, honesty, and fairness. Financial obligations: Businesses have financial responsibilities towards their stakeholders as well as fulfilling tax obligations. Employee obligations: Employers must ensure a safe workplace, fair compensation, benefits, and professional growth opportunities. They are also legally bound by employment contracts, labour laws, and workplace safety regulations. Customer obligations: Businesses are obliged to provide products or services that meet specified quality standards and to address customer concerns or complaints promptly and fairly. Environmental and social obligations: This includes practices related to sustainable sourcing, waste reduction, and community development. Fulfilling obligations helps build trust with stakeholders. It enhances the company's reputation and credibility in the market. Furthermore, meeting financial obligations, such as paying debts and taxes, is essential for the financial health and long-term sustainability of the business. Ethical and socially responsible practices can serve as a...
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### Overdraft
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/overdraft/
Definition An overdraft is a financial arrangement provided by a bank or financial institution that allows an account holder to withdraw or spend more money than is currently available in their account, up to a specified limit. What is overdraft? Overdraft essentially provides short-term credit to cover temporary shortfalls in funds. Overdrafts can be a useful financial tool, but they come with associated fees and interest charges. When an account is set up, the bank may offer an overdraft facility with a predetermined limit. If the account holder withdraws or spends more money than is available in their account, the overdraft comes into effect. The account balance goes below zero, but the overdraft covers the shortfall, up to the agreed-upon limit. The bank typically charges interest on the overdrawn amount, often at a higher rate than for other loans or credit products. The overdraft is expected to be repaid within a specified period, which may vary depending on the bank's policies. An advantage of overdraft is that it provides quick access to additional funds, which can be crucial in emergencies or for covering unexpected expenses. Furthermore, An overdraft can prevent checks from bouncing, which could result in additional fees or damage to the account holder's credit score. When considering overdraft it’s important to consider the risk associated with it. Overdrafts can be expensive due to high interest rates and associated fees. Furthermore, the account holder is responsible for repaying the overdraft according to the terms agreed upon with the bank....
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### Outsourcing
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/outsourcing/
Definition Outsourcing is a business practice in which a company contracts out certain tasks, functions, or processes to external third-party service providers rather than handling them internally. What is outsourcing? Outsourcing is typically done to reduce costs, increase efficiency, focus on core competencies, and gain access to specialised expertise or resources. Types of outsourcing: Business process outsourcing (BPO): Involves contracting out specific business processes or functions. Information technology outsourcing (ITO): Focuses on outsourcing IT-related functions like software development and technical support. Knowledge process outsourcing (KPO): Involves outsourcing high-level knowledge-based tasks, often requiring specialised skills or expertise. Manufacturing outsourcing: This involves outsourcing the production of goods to third-party manufacturers. Outsourcing can lead to significant cost savings, particularly when labour or operational costs are lower in the outsourcing destination. By outsourcing non-core functions, companies can allocate more resources and attention to their core business activities, which may lead to greater competitive advantage. Furthermore, outsourcing provides the flexibility to scale operations up or down based on business needs, without the long-term commitments associated with hiring full-time employees. Maintaining quality standards can be challenging when tasks are outsourced, necessitating clear performance metrics and monitoring mechanisms. Also, over-reliance on external vendors can pose risks if the service provider experiences disruptions, quality issues, or financial instability. Example of outsourcing Imagine a small accounting firm, ABC Accounting, that decides to outsource its IT support services to a specialised IT company, TechSupport Solutions. ABC Accounting used to handle its IT needs in-house, but it found that managing IT...
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### Organisational structure
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/organisational-structure/
Definition Organisational structure in business and finance refers to the formal framework that outlines how an organisation is organised, including its hierarchy, roles, reporting relationships, and coordination mechanisms. What is organisational structure? It establishes the foundation for how various functions within a business, such as accounting, finance, operations, and marketing, interact and collaborate. Key components in organisational structure: Hierarchy and levels of authority: This outlines the chain of command and establishes who reports to whom within the organisation. Roles and responsibilities: Each position or department within the organisation has defined roles, responsibilities, and tasks. Reporting relationships: Specifies the lines of communication and accountability, indicating to whom each employee or department reports. Functional areas: Identifies the different functions or departments within the organisation. Types of organisational structures in business and finance: Functional structure: Departments are organised based on functions. This structure is common in smaller businesses or organisations with a narrow focus. Divisional structure: Organised based on product lines, services, or geographical regions. Each division operates as a separate entity with its own functional areas. Matrix structure: Combines elements of both functional and divisional structures. Employees have dual reporting relationships - one to their functional manager and another to a project or product manager. Flat structure: Characterised by few levels of hierarchy and a broad span of control. Hierarchical structure: Has a clear chain of command with multiple levels of management. Organisational structure guides how resources, including financial resources, are allocated and managed across different functions and departments. Furthermore, clearly defined...
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### Operating margin
- Published: 2023-10-23
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/operating-margin/
Defintion Operating margin is a financial metric that measures the profitability of a company's core operations. What is operating margin? Operating margin represents the percentage of revenue that remains after deducting the direct costs. In essence, it shows how much profit a company generates from its primary business activities. Operating margin is calculated using the following formula: Operating margin = (operating Income / revenue) x 100 A higher operating margin indicates that a company is better at managing its costs and generating profit from its core operations. Conversely, a lower margin may indicate inefficiencies or a highly competitive industry. Check out our handy operating margin calculator to make the calculation easier. It is a key metric for comparing the financial performance of different companies within the same industry, as it provides insights into how efficiently companies manage their costs. Factors affecting operating margin: Pricing strategy: The prices at which a company sells its products or services can significantly impact operating margin. Cost of goods sold (COGS): Managing the cost of producing or acquiring goods and services is crucial for profitability. Operating expenses: Efficient management of these costs can lead to higher operating margins. Economies of scale: Larger companies often have the potential to achieve economies of scale, which can positively impact operating margin. Industry and market conditions: Different industries have varying average operating margins. Investors often analyse operating margin to assess a company's ability to generate profit from its core operations. A consistent and healthy operating margin can be a...
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### Operating lease
- Published: 2023-10-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/operating-lease/
Definition An operating lease is a type of lease agreement in which a lessee gains access to and uses an asset from a lessor for a specified period of time. What is operating lease? An operating lease is akin to a rental arrangement. It allows the lessee to use the asset without taking on the risks and responsibilities of ownership. Key characteristics: Shorter term: Operating leases are usually short-term agreements, often covering a significant portion of the asset's useful life but not its entire lifespan. No ownership transfer: At the end of the lease term, the lessee typically has the option to return the asset, renew the lease, or potentially purchase the asset. Risk and rewards of ownership: In an operating lease the lessor is responsible for maintenance, repairs, and risks associated with the asset's value. Off-balance sheet financing: They are often considered off-balance sheet financing, meaning the leased asset and associated liability may not be included on the lessee's balance sheet. Operating leases typically require lower upfront payments or even no down payment, making it a more accessible option for businesses with limited capital. Furthermore, they offer flexibility as they allow businesses to use the latest and best equipment without committing to ownership. Example of operating lease Suppose Company A wants to expand its operations and needs additional space to accommodate its growing inventory. Instead of purchasing a new building, Company A decides to enter into an operating lease agreement with a property owner for a warehouse space. The...
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### Operating costs
- Published: 2023-10-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/operating-costs/
Definition Operating costs, often referred to as "operational expenses", are the ongoing expenses that a business incurs in order to maintain its day-to-day operations. What are operation costs? Operating costs encompass a wide range of expenditures necessary for the regular functioning of a business. This includes costs associated with production, administration, sales and marketing, research and development, and other activities central to the core operations. Categories of operating costs: Direct costs (variable costs): These are expenses directly tied to the production or provision of goods or services. They tend to vary with the level of production. Indirect costs (fixed costs): These are expenses that are not directly linked to the production of a specific product or service. They exist regardless of the level of production and are necessary for the general operation of the business. Semi-variable costs: These costs have elements of both variable and fixed costs. Operating costs are a crucial component in financial statements and performance metrics. They impact metrics like gross profit margin, operating profit margin, and net profit margin, which provide insights into a company's profitability and efficiency. Example of operating costs A small bakery incurs various operating costs to produce and sell its goods. These costs may include: Rent for the bakery premises. Wages for bakers and other staff. Cost of ingredients such as flour, sugar, and butter. Utility bills for electricity, water, and gas. Packaging materials for products. Maintenance and repair costs for equipment like ovens and mixers. Marketing and advertising expenses. Insurance premiums...
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### Non-disclosure agreement (NDA)
- Published: 2023-10-20
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/non-disclosure-agreement/
Definition A non-disclosure agreement (NDA) in business and finance is a legally binding contract used to protect sensitive information shared between parties involved in commercial transactions, negotiations, or partnerships. What is a non-disclosure agreement? It is a crucial tool for safeguarding knowledge, trade secrets, financial data, and other confidential information. The primary purpose of an NDA in business and finance is to establish a framework for maintaining confidentiality. This is particularly critical when sharing information that could have a significant impact on the parties involved, such as business strategies, financial projections, proprietary technology, or merger and acquisition discussions. When startups or established companies seek investments, NDAs can be used to protect business plans, financial forecasts, and other proprietary information shared with potential investors or venture capitalists. In the employment context, NDAs are often used to ensure that employees or contractors do not disclose sensitive information about the company, its clients, or its operations, even after their employment or contract ends. The agreement sets a specific time frame during which the receiving party is obligated to keep the information confidential. This period is determined by mutual agreement and can vary depending on the nature of the information. In international business and finance, NDAs may need to address cross-border issues, such as differing legal systems, languages, and regulations. Example of a non-disclosure agreement Here's a simplified non-disclosure agreement: This non-disclosure agreement ("agreement") is entered into on between , located at , and , located at . Confidential Information: The term "confidential information"...
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### Non-current liabilities
- Published: 2023-10-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/non-current-liabilities/
Definition Non-current liabilities, also known as long-term liabilities, are obligations or debts that a company expects to settle or fulfil beyond the normal operating cycle, typically extending over a period longer than one year. What are non-current liabilities? These liabilities play a vital role in a company's financial structure and reflect its long-term financial commitments. Types of non-current liabilities: Long-term debt: This includes loans, bonds, and other financial instruments with repayment schedules spanning several years. Deferred tax liabilities: These arise due to temporary differences between accounting and tax rules. Deferred revenue: This is revenue received in advance for goods or services that will be provided in the future. Pension obligations: Liabilities related to employee retirement benefits, including pensions and post-retirement healthcare. Lease obligations: Long-term lease agreements for assets like real estate or equipment. Contingent liabilities: These are potential obligations that arise from past events and will be confirmed only if certain future events occur. Non-current liabilities often involve the payment of interest. For instance, long-term debt incurs periodic interest payments in addition to the repayment of the principal. Companies may choose to refinance or roll over their non-current liabilities by obtaining new loans or issuing new securities to repay existing ones. This is a common practice to manage long-term debt. Non-current liabilities must be disclosed in a company's financial statements, usually in the notes to the financial statements. This includes details about the nature, terms, and conditions of these liabilities. Example of a non-current liability Let's consider a manufacturing company...
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### Non-current assets
- Published: 2023-10-18
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/non-current-assets/
Definition Non-current assets, also known as long-term assets or fixed assets, are a category of assets listed on a company's balance sheet. They represent valuable resources that are expected to provide economic benefits to the company for more than one year. What are non-currents assets? Non-current assets play a crucial role in a company's operations and are typically essential for its long-term success. Non-current assets can be broadly categorised into two main types: Tangible assets: These have a physical form and can be touched or seen. Examples include property, plant, equipment, vehicles, and machinery. Intangible assets: These lack a physical presence but hold significant value for a company. Examples include patents, copyrights, trademarks and goodwill. Tangible non-current assets are subject to depreciation, which reflects the gradual reduction in their value over time. Intangible assets are typically amortised, which is the process of allocating the cost of the asset over its useful life. Non-current assets can serve two primary purposes: Investment: They can be assets held for capital appreciation or for generating rental income. Production: These assets are used in the production or provision of goods and services. Non-current assets are recorded on the balance sheet at their original cost. Over time, their value may be adjusted through depreciation, impairment, or revaluation. If there is a significant decline in the value of a non-current asset below its carrying amount and this decline is expected to be permanent, the asset is said to be impaired. In such cases, the asset is written...
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### Net present value (NPV)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-present-value/
Definition Net present value (NPV) is a financial metric used to evaluate the profitability of an investment or project. What is net present value? It represents the difference between the present value of cash inflows and the present value of cash outflows over a specified period of time. NPV is a crucial tool for decision-making in finance and investment, as it helps determine whether an investment is likely to generate a positive return. Components of net present value: Cash flows: NPV considers all cash inflows and outflows associated with an investment, taking into account the timing of these cash flows. Discount rate: The discount rate is a critical component as it accounts for the time value of money. It reflects the opportunity cost of capital and adjusts future cash flows to their present value. A positive NPV indicates that an investment is expected to generate more cash inflows than outflows, suggesting that it is potentially profitable. A negative NPV indicates that the investment is expected to result in a net loss. In general, investments with negative NPVs are not considered financially viable. NPV allows for the comparison of different investment opportunities. The option with the highest NPV is generally the most financially attractive. Choosing the appropriate discount rate is crucial. It should reflect the opportunity cost of capital and the specific risks associated with the investment. NPV analysis may not capture all uncertainties or unexpected events. Sensitivity analysis or scenario modelling can help address some of these concerns. Example of...
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### Net operating income (NOI)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-operating-income/
Definition Net operating income (NOI) is a key financial metric used in real estate investment and property management. What is net operating income? Net operating income measures the profitability and operating efficiency of a real estate asset, excluding certain non-operating expenses like financing costs and income taxes. NOI is a critical indicator for investors, lenders, and property owners as it provides a clear picture of a property's income-generating potential. The formula for calculating net operating income is: NOI = total revenue − operating expenses Lenders may assess a property's NOI to determine its ability to generate sufficient income to cover debt service. Investors and property owners use NOI to compare the financial performance of different properties or to track the performance of a single property over time. A consistent or growing NOI over time can indicate a stable and potentially lower-risk investment. Conversely, a declining NOI may signal operational challenges. Factors influencing net operating income: Rental rates: The level of rental income directly impacts the total revenue and, consequently, the NOI. Higher rental rates lead to increased revenue. Occupancy rates: A higher occupancy rate means more units are rented, leading to higher total revenue and NOI. Operating efficiency: Effective property management and efficient operations can lead to lower operating expenses, which in turn increases NOI. Property improvements and upgrades: Investments in property improvements can lead to increased rental income and higher property value, positively affecting NOI. Market conditions: External factors like changes in supply and demand for rental properties in...
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### Net loss
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-loss/
Definition Net loss is a financial metric that represents the amount by which total expenses and costs exceed total revenues or income during a specific period of time. What is net loss? In other words, net loss indicates a negative result in a company's financial statement, reflecting that the company incurred more expenses than it generated in revenue. A net loss is an important indicator of a company's financial health and can have various implications for its operations and stakeholders. The formula for calculating net loss is: Net loss = total expenses − total revenue Sustained periods of net losses can be concerning, as they may indicate underlying issues with a company's business model, pricing strategy, or operational efficiency. A net loss may negatively impact investor confidence, especially if it continues over an extended period. Investors may be concerned about the company's ability to generate profits and meet its financial obligations. Reasons for net loss: Operational inefficiencies: Inefficient operations, high production costs, or poor resource management can lead to increased expenses and result in a net loss. Market conditions: Economic downturns, changes in consumer preferences, or increased competition can negatively impact revenue, contributing to a net loss. Investment and expansion: Companies may incur significant upfront costs in anticipation of future growth, which can result in temporary net losses. Restructuring or write-offs: One-time expenses related to restructuring, asset impairments, or write-offs can contribute to a net loss. Interest and debt payments: High interest payments or debt service obligations can contribute to...
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### Mission
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/mission/
Definition In business and finance, a mission statement is a concise declaration that outlines the fundamental purpose and reason for existence of a company or organisation. What is a mission? A mission serves as a guiding principle that directs the company's actions, decisions, and strategies. A well-defined mission statement reflects the organisation's values, objectives, and its commitment to stakeholders. A mission statement provides clarity about the core purpose of the organisation. It succinctly states what the company aims to achieve, whom it serves, and how it plans to accomplish its goals. A well-articulated mission statement helps in communicating the company's purpose to various stakeholders, including employees, customers, investors, and the broader community. It offers a clear understanding of the organisation's direction and priorities. The mission statement plays a pivotal role in setting the strategic direction of the company. It influences business decisions, resource allocation, and long-term planning by providing a clear framework for what the company aims to achieve. A unique and well-crafted mission statement can set the company apart from competitors. It can highlight what makes the organisation distinctive and demonstrate its commitment to providing value in a particular way. While a mission statement provides a stable foundation, it should also be adaptable to changing market conditions and business environments. It should allow for evolution and growth in response to new challenges and opportunities. Example of a mission Company XYZ, a financial services firm, develops the following mission statement to guide its operations and strategic decisions: "Our mission is...
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### Marketing strategy
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/marketing-strategy/
Definition A marketing strategy is a plan or approach that outlines how a company will promote, advertise, and sell its products or services to its target audience. What is a marketing strategy? A marketing strategy encompasses a set of coordinated actions and tactics designed to achieve specific business goals, such as increasing market share, revenue, brand awareness, or customer loyalty. A well-defined marketing strategy is essential for guiding the company's marketing efforts, allocating resources effectively, and achieving sustainable competitive advantage in the market. Components of a marketing strategy: Target market identification: Identifying and understanding the specific group(s) of consumers or businesses that the company aims to reach and serve. Value proposition: Defining the unique value or benefits that the company's products or services offer to customers. Positioning: Determining the perception or position the company wants to establish in the minds of its target audience. Market segmentation: Dividing the target market into distinct segments based on shared characteristics or behaviours. Marketing channels: Selecting the channels through which the company will reach its target audience. This includes both online channels and offline channels. Budget and resource allocation: Determining the financial resources and human capital required to execute the marketing strategy effectively. Metrics and KPIs: Defining the key performance indicators (KPIs) and metrics that will be used to measure the success and effectiveness of the marketing efforts. Types of marketing strategies: Market penetration: Focuses on increasing market share within existing markets by attracting more customers or increasing the frequency of purchases. Market development:...
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### Market share
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/market-share/
Definition Market share refers to the portion or percentage of total sales or revenue that a particular company or product captures within a specific industry or market. What is market share? Market share is a key performance indicator used to assess a company's competitive position and its relative strength in relation to other players in the market. The formula for calculating market share is: Market Share = (company’s sales or revenue / total market sales or revenue) x 100 This formula provides a percentage that represents the company's share of the total market. Market share is a crucial metric for assessing a company's competitive position within its industry. A higher market share indicates a stronger presence and influence in the market. It allows companies to compare their performance with the competitors. A company with a higher market share may be seen as the industry leader. A high market share can be an indication of brand strength and customer loyalty. Customers may perceive a company with a large market share as more trustworthy and reliable. Types of market share: Overall market share: This refers to the company's share of the entire market, encompassing all competitors and products within a specific industry. Segment market share: Companies can also analyse their market share within specific segments or subcategories of the market. Geographic market share: Companies may evaluate their market share within specific geographic regions or countries, especially if they operate in multiple markets. A high market share does not necessarily guarantee profitability. It's...
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### Market leader
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/market-leader/
Definition A market leader is a company or organisation that holds a dominant position within a particular industry or market segment. What is a market leader? A market leader is characterised by having the largest market share, which means it controls a significant portion of the total sales or revenue within that market. Market leaders often have a strong brand presence, extensive distribution networks, and a loyal customer base. They are typically recognised for their innovation, product quality, and overall influence on industry trends. Characteristics of a market leader: Strong brand identity: Market leaders are often associated with well-known and trusted brands. Extensive distribution network: They typically have established and widespread distribution channels, allowing them to reach a broad customer base. Product innovation: Market leaders are often at the forefront of innovation, regularly introducing new products or services that set industry standards. Customer loyalty: They tend to have a large and loyal customer base. Customers trust the quality and reliability of their products or services. Economies of scale: This means market leaders can produce goods or offer services at a lower per-unit cost, giving them a competitive advantage. Market influence and trendsetting: They have the ability to shape industry trends, influence customer preferences, and set benchmarks. Financial strength: Market leaders typically have strong financial positions, which allow them to invest in research and development, marketing, and expansion efforts. To retain their market leadership, companies must continuously innovate and adapt to changing consumer preferences and technological advancements. Startups and disruptive technologies...
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### Management buyout (MBO)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/management-buyout/
Definition A management buyout (MBO) is a transaction in which the existing management team of a company, often in collaboration with external investors or a private equity firm, acquires a significant ownership stake or complete control of the business from its current owners, which may include shareholders, founders, or a parent company. What is a management buyout? In a management buyout, the management team becomes the principal owner and operator of the company, taking on the responsibilities of ownership and decision-making. Motivations for an MBO: Entrepreneurial aspirations: Members of the existing management team may have a strong desire to own and run their own business. Alignment of interests: Managers intimately know the company's operations and growth potential. An MBO aligns their interests with shareholders. Strategic direction: The management team may have a specific vision or strategy for the company that they believe is in the best interest of its long-term success. Market conditions: Favourable market conditions, such as a low interest rate environment or a seller's willingness to divest, can create opportunities for a MBO. After the MBO, the management team takes over the day-to-day operations of the business. This may involve a transition period during which the outgoing owners provide support and knowledge transfer. Benefits of a MBO: Continuity and stability: A MBO can provide continuity in the company's operations and strategic direction. Employee morale: Employees may feel more secure when the existing management team takes over, as they are already familiar with the leadership. Incentives for performance: The...
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### Lean management
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/lean-management/
Definition Lean management is a systematic approach to business management that focuses on creating value for the customer while minimising waste and maximising efficiency. What is lean management? Lean management emphasises continuous improvement, customer-centricity, employee involvement, and the elimination of non-value-added activities. Principles of lean management: Customer value: The primary focus of lean management is to identify and deliver what customers value most. Value stream mapping: Lean management involves mapping out the entire value stream, which is the sequence of steps required to deliver a product or service. Flow: Lean management aims to create a smooth, uninterrupted flow of work through the value stream. This minimises delays, bottlenecks, and interruptions. Pull system: Instead of producing based on forecasts or inventory levels, lean management promotes a pull system where products or services are produced in response to actual customer demand. Continuous improvement: Continuous improvement is a core tenet of lean management. It involves making small, incremental changes to processes on an ongoing basis Respect for people: Lean management places a strong emphasis on respecting and involving employees. It recognises that employees are the best source of knowledge about their work processes. Standardisation: Standardised work procedures are established to ensure consistency and quality in processes. Visual management: Visual tools and techniques are used to make information and processes easily understandable and accessible to all employees. Implementing lean management can lead to numerous benefits, including increased productivity, improved quality, reduced lead times, enhanced customer satisfaction, higher employee engagement, cost savings, and increased profitability....
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### Limited company
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/limited-company/
Definition A limited company is a type of business structure in which the owners' liability is limited to the amount they have invested in the company. This means that the personal assets of the shareholders are generally protected in case the company incurs debts, faces legal issues, or becomes insolvent. What is a limited company? Limited companies are distinct legal entities from their owners, which provides several advantages, including easier access to capital, perpetuity of existence, and increased credibility. The key characteristic of a limited company is the limited liability of its shareholders. This means that the personal assets of the shareholders are generally protected from the company's debts or legal liabilities. In the event of insolvency, shareholders are typically only liable for the unpaid amount of their shares. Ownership in a limited company is determined by shares. Shareholders hold shares that represent their ownership stake in the company. The ownership and control of the company are based on the number of shares a person or entity holds. Limited companies are required to comply with various legal obligations, including filing annual financial statements, maintaining proper records, and conducting annual general meetings. These requirements vary by jurisdiction. Operating as a limited company can enhance a company's credibility and perceived stability, which may be important for attracting investors, clients, and business partners. Setting up and maintaining a limited company involves certain costs, including registration fees, legal fees, and ongoing compliance costs. Additionally, there are administrative responsibilities associated with running a limited company....
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### Liquidity ratios
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/liquidity-ratios/
Definition Liquidity ratios are financial metrics that measure a company's ability to meet its short-term financial obligations with its readily available assets. What are liquidity ratios? These ratios provide insight into a company's liquidity, which is its ability to convert assets into cash quickly without significant loss in value. Liquidity ratios are crucial for assessing a company's short-term financial health, as they indicate whether the company has enough liquid resources to cover its immediate liabilities. Factors affecting liquidity ratios: Industry differences: Different industries have varying levels of acceptable liquidity due to differences in business models, capital requirements, and inventory revenue. Business life cycle: Companies at different stages of their life cycle may have different optimal levels of liquidity. Economic conditions: Economic conditions, including interest rates and access to credit, can affect a company's liquidity position. Creditors, such as banks and suppliers, use liquidity ratios to assess a company's ability to repay its debts. Investors may also analyse these ratios to evaluate a company's short-term financial health and stability. Liquidity ratios do not provide information about a company's long-term financial health or its ability to generate profits. Therefore, they should be used in conjunction with other financial metrics. Example of a liquidity ratio Let's consider Company ABC, which has the following financial information: Current assets: R300,000 Current liabilities: R200,000 Using this information, we can calculate the current ratio: Current ratio = Current assets / Current liabilities Current Ratio = R300,000 / R200,000 = 1. 5 In this example, Company ABC has...
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### Liquidity coverage ratio (LCR)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/liquidity-coverage-ratio/
Definition The liquidity coverage ratio (LCR) is a financial metric used in the banking industry to assess a bank's short-term liquidity risk. What is a liquidity coverage ratio? A liquidity coverage ratio measures the adequacy of a bank's liquid assets to cover its potential net cash outflows over a 30-day period under stressed conditions. The liquidity coverage ratio is calculated as follows: Liquidity coverage ratio = (high−quality liquid assets / net cash outflows) x 100 The LCR serves as a safeguard to ensure that a bank has sufficient liquid assets to cover its short-term cash outflows in case of a severe financial or economic stress event. This reduces the risk of a bank facing a liquidity crisis. As per standards, banks are required to maintain a minimum LCR of 100%, meaning that they should hold enough high-quality liquid assets to cover their net cash outflows over a 30-day stress period. Example of liquidity coverage ratio Let's say Bank XYZ has the following: High-quality liquid assets worth R100 million Net cash outflows over the next 30 days amounting to R80 million Using these numbers, we can calculate the Liquidity Coverage Ratio: LCR = R100 million / R80 million = 1. 25 In this example, Bank XYZ has an LCR of 1. 25, indicating that it holds 125% of its net cash outflows in high-quality liquid assets, which meets the regulatory requirement. This means the bank has sufficient liquidity to cover its short-term obligations over the next 30 days, providing a buffer...
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### Limited liability
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/limited-liability/
Definition Limited liability is a legal concept that protects the personal assets of business owners, shareholders, or members from the debts and liabilities of the business entity. What is limited liability? Limited liability means that in the event of financial losses, creditors can only go after the business's assets and not the personal assets of the owners or shareholders. Limited liability provides a significant level of protection for individuals involved in a business, and it is a fundamental principle in various forms of business entities. Limited liability allows entrepreneurs and investors to take on business risks without risking their personal financial well-being. This encourages entrepreneurship and investment in the economy. A business with limited liability is considered a separate legal entity from its owners. This distinction is important for legal purposes, allowing the business to enter contracts, own property, and be involved in legal actions. While limited liability generally protects personal assets, there are exceptions. Personal guarantees or co-signing on loans, commingling personal and business finances, fraudulent or illegal activities, and failure to meet legal requirements can potentially expose owners to personal liability. Limited liability is a key factor that attracts investors to businesses. It provides a level of protection that encourages individuals and institutions to invest capital in the company. Example of limited liability XYZ Consulting Group is a management consulting firm that provides strategic advice to businesses. The founders decide to structure the company as a limited liability company (LLC). The company has three owners, referred to as...
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### Life cycle
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/life-cycle/
Definition In business and finance, a "life cycle" refers to the stages and phases that a product, business, or industry goes through from its inception to its decline or transformation. What is a life cycle? Understanding the life cycle of a product or business is essential for making informed decisions about resource allocation, marketing strategies, and investment opportunities. Stages of the life cycle: Introduction phase: This is the initial stage where a new product or business enters the market. It is characterised by slow growth, high marketing expenses, and low sales volume. Growth phase: In this stage, the product or business experiences rapid sales growth. Profits increase, and competition may begin to intensify. Maturity phase: The maturity phase is marked by stable sales. Competition is fierce, and companies may focus on cost efficiency, market segmentation, and customer retention. Decline phase: This is the stage where sales and profits start to decline. The product or business may face obsolescence, changing consumer preferences, or increased competition from newer offerings. Renewal or transformation phase: In some cases, a product or business can be renewed through innovation, rebranding, or entering new markets. . Understanding the life cycle is crucial for financial planning, budgeting, and resource allocation. Different stages require different financial strategies. For instance, startups may prioritise securing funding, while mature businesses may focus on profitability and cost management. Investors use life cycle analysis to evaluate potential investments. Early-stage startups may offer high growth potential but come with higher risk, while mature businesses may...
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### Liability
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/liability/
Definition In business and finance, a liability refers to an obligation or debt that a company owes to external parties, which can include individuals, other companies, or governmental entities. What are liabilities? A liability represents a claim on the company's assets and is a crucial aspect of the company's financial structure. Liabilities are recorded on the balance sheet and are an essential component in evaluating a company's financial health. Types of liabilities: Current liabilities: These are obligations that are expected to be settled within one year or within the company's normal operating cycle. Non-current liabilities: These are obligations that are not expected to be settled within one year or the company's normal operating cycle. Liabilities are recorded on the balance sheet, under the headings of current liabilities and non-current liabilities, depending on their expected settlement date. They affect a company's equity and liquidity. For example, high levels of debt can result in higher interest expenses, which can impact profitability. Example of a liability ABC Electronics, a small electronics retailer, plans to expand its product offerings and open a new store location to increase its market presence. To fund the expansion, ABC Electronics determines that it requires additional capital beyond its current resources. The company decides to apply for a business loan from XYZ Bank. The bank approves a business loan of R100,000 for ABC Electronics. The business loan represents a liability for ABC Electronics. While the funds provide the necessary capital for expansion, the company is now obligated to repay...
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### Leverage ratio
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/leverage-ratio/
Defintion A leverage ratio is a financial metric that assesses the extent to which a company relies on debt to finance its operations and investments compared to its equity. What is a leverage ratio? A leverage ratio is a crucial measure of a company's financial risk and stability. Leverage ratios are commonly used by investors, creditors, and analysts to evaluate a company's financial health and its ability to meet its debt obligations. The leverage ratio is typically expressed as a proportion or percentage and is calculated using the following formula: Leverage ratio = total equity / total debt A high leverage ratio indicates that a company has a significant proportion of debt in its capital structure, which can amplify returns when business is good but also increases financial risk if the business faces challenges. Conversely, a low leverage ratio suggests that a company relies more on equity financing and is considered to have a lower financial risk profile. Factors influencing leverage ratio: Industry norms: Different industries have varying levels of acceptable leverage due to differences in capital intensity, risk profiles, and regulatory environments. Business life cycle: Companies at different stages of their life cycle may have different optimal levels of leverage. Economic conditions: Economic conditions, including interest rates and access to credit, can affect a company's leverage decisions. It's important for companies to strike a balance between debt and equity financing to avoid excessive risk. A high leverage ratio can lead to financial distress if the company encounters difficulties in...
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### Letter of intent (LOI)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/letter-of-intent/
Definition A letter of intent (LOI) in business and finance is a formal document that outlines the preliminary understanding between parties involved in a potential transaction or business arrangement. What is a letter of intent? The document serves as an initial expression of interest, indicating the key terms and conditions that the parties intend to negotiate further before finalising a formal contract or agreement.   Generally, an LOI is considered non-binding, meaning that it does not create legal obligations on its own. Instead, it serves as a precursor to a formal agreement and provides a foundation for further negotiations. Key elements of an LOI: Identification of parties: An LOI clearly identifies the parties involved, including their names, roles, and contact information. Purpose of the LOI: It specifies the purpose or subject matter of the intended business arrangement or transaction. Terms and conditions: An LOI outlines the key terms and conditions that the parties wish to negotiate further. This may include financial terms, timelines, deliverables, and any other critical aspects. Confidentiality: An LOI may include provisions regarding the confidentiality of information shared during negotiations. Exclusivity or non-compete: In some cases, an LOI may contain clauses that restrict the parties from negotiating or engaging with other potential partners during the negotiation period. Termination or expiry: It may specify circumstances under which the LOI will terminate or expire. An LOI serves as a starting point for negotiations. It provides a structured framework for discussions, helping parties understand each other's expectations and requirements. While...
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### Letter of credit
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/letter-of-credit/
Definition A letter of credit (LC) is a financial instrument commonly used in international trade transactions. It serves as a guarantee from a bank that a buyer's payment to a seller will be received on time and for the correct amount. What is a letter of credit? A letter of credit provides a level of security for both parties involved in the transaction, particularly when they may not have an established business relationship or trust each other's financial credibility. Parties involved: Applicant (buyer): The party that initiates the issuance of the LC. Beneficiary (seller): The party to whom the LC is issued. Issuing bank: The bank that issues the LC on behalf of the buyer. Types of LCs: Revocable LC: Can be modified or cancelled by the issuing bank without the consent of the parties involved. Irrevocable LC: Cannot be modified or cancelled without the consent of all parties involved. For the buyer, an LC provides assurance that payment will only be made when the seller meets the agreed-upon conditions. For the seller, it guarantees that they will receive payment as long as they fulfil their obligations. Both the buyer and the seller may incur fees related to the issuance and processing of the LC. These fees can include application fees, confirmation fees, and handling charges. Example of a letter of credit Let's consider a scenario involving a letter of credit in an international trade transaction: Parties involved: Buyer: XYZ Electronics (based in the United States) Seller: Tech Components Ltd...
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### Law of supply
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/law-of-supply/
Definition The law of supply is a fundamental principle in economics that describes the relationship between the price of a good or service and the quantity that producers are willing and able to sell in a given period. What is law of supply? Law of supply states that, assuming all other factors remain constant, when the price of a good or service rises, the quantity that producers are willing and able to supply also increases. Conversely, when the price falls, the quantity supplied decreases. Producers aim to maximise their profits. When the price of a good rises, producers have an incentive to supply more of it to the market because they can earn higher revenues. Conversely, when the price falls, producers are less inclined to supply large quantities because they would earn lower revenues. The relationship described by the law of supply is typically illustrated on a supply curve. The supply curve slopes upward from left to right, indicating that as price increases, the quantity supplied increases, and as price decreases, the quantity supplied decreases. Changes in factors other than price can lead to shifts in the entire supply curve. For instance, changes in input costs, technology, or government regulations can alter the quantity supplied at all price levels. These are called shifts in supply. The law of supply is a universal economic principle applicable in markets around the world. It is a crucial concept for understanding producer behaviour and market dynamics in both domestic and international contexts. Example of...
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### Law of demand
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/law-of-demand/
Definition The law of demand is a fundamental principle in economics that describes the relationship between the price of a good or service and the quantity demanded by consumers. What is law of demand? Law of demand states that, assuming all other factors remain constant, when the price of a good or service rises, the quantity demanded of that good or service decreases. Conversely, when the price falls, the quantity demanded increases. The relationship described by the law of demand is typically illustrated on a demand curve. The demand curve slopes downward from left to right, indicating that as price decreases, the quantity demanded increases, and as price increases, the quantity demanded decreases. Changes in factors other than price can lead to shifts in the entire demand curve. For instance, changes in consumer preferences, income levels, or the prices of related goods can alter the quantity demanded at all price levels. These are called shifts in demand. While the law of demand holds true for most goods, there are exceptions. Giffen goods are rare examples where an increase in price can lead to an increase in quantity demanded. This is typically seen in very specific circumstances where the good is considered a necessity and there are no close substitutes. The law of demand is a universal economic principle applicable in markets around the world, regardless of cultural or regional differences. Example of law of demand Let's consider the law of demand in the context of smartphones. The current market price...
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### Just in time (JIT)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/just-in-time/
Definition "Just in time" (JIT) is a business and production strategy aimed at optimising efficiency and reducing waste in the production and delivery of goods or services. What is just in time? Just in time involves receiving goods or materials just as they are needed in the production process, minimising inventory levels, and eliminating excess holding costs. JIT is a key component of lean manufacturing and supply chain management. Here's an explanation of how "Just in time" is used in business and finance: Inventory management: JIT is achieved by ordering and producing goods or materials only as they are needed for the production process. This reduces the costs associated with holding excess inventory. Supply chain efficiency: JIT requires close coordination with suppliers to ensure that materials and components are delivered promptly and in the quantities required. This reduces the risk of stockouts or overstocking. Cost reduction: By reducing inventory levels and associated holding costs, JIT can lead to significant cost savings for businesses. Waste reduction: JIT aims to eliminate waste from the production process. This leads to a more streamlined and efficient operation. Quality control: In JIT, quality control is paramount. High-quality production from the outset minimises costly rework or scrap due to defects. Flexibility and responsiveness: JIT allows businesses to be more responsive to changes in customer demand and market conditions. Lower inventory enables swift adaptation to market shifts or supply chain disruptions. Just in time in services: JIT principles can also be applied in service industries, where the...
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### Just in case (JIC)
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/just-in-case/
Definition "Just in case" in the context of business and finance refers to a strategic approach where companies take precautionary measures or implement contingency plans to prepare for potential future events or uncertainties. What is just in case? This mindset involves proactively establishing safeguards and resources to address unforeseen challenges, even if they may not necessarily occur. It is a fundamental aspect of risk management and operational planning in various industries. Here's an explanation of how "just in case" is used in business and finance: Risk management: Adopting a "just in case" approach in business involves identifying and assessing potential risks that could impact operations, profitability, or strategic objectives. Supply chain management: In supply chain operations, the "just in case" strategy involves maintaining safety stock or buffer inventory. This extra inventory is held in anticipation of unforeseen disruptions in the supply chain. Financial planning and contingency funds: Companies often maintain contingency funds or reserves. These funds act as a financial cushion to help cover operational costs during difficult times. Business continuity planning: "Just in case" planning includes creating business continuity and disaster recovery plans. These plans outline steps to be taken in unforeseen events to ensure that business operations can resume as quickly as possible. Diversification and portfolio management: In investment and portfolio management, diversification is a "just in case" strategy. Spreading investments across different asset classes and industries helps reduce the risk associated with a single investment or sector. Technology and IT infrastructure: Maintaining backup systems, data redundancy, and...
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### Inventory turnover
- Published: 2023-10-17
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/inventory-turnover/
Definition Inventory revenue is a financial metric used to evaluate how efficiently a company manages its inventory. It measures the number of times a company's inventory is sold and replaced over a specific period. What is inventory revenue? Inventory revenue is a key indicator of operational effectiveness, and the inventory revenue ratio is calculated using the following formula: Inventory revenue = cost of goods sold (COGS) / average inventory A high inventory revenue ratio suggests that a company is efficiently managing its inventory. This can lead to reduced holding costs, lower risk of obsolete goods, and increased cash flow. Efficient inventory revenue contributes to effective working capital management. It allows companies to free up capital that would otherwise be tied up in inventory. While high inventory revenue is generally positive, it's important to balance it with maintaining adequate product availability for customers. Overly aggressive inventory management can lead to stockouts, potentially impacting sales and customer satisfaction. A low inventory revenue ratio may indicate that a company is holding excess inventory, which can lead to increased holding costs and a higher risk of obsolescence. Monitoring changes in inventory revenue over time can provide valuable insights into a company's performance and its ability to adapt to shifting market conditions. Example of inventory revenue XYZ Clothing Store is a retail business specialising in apparel. At the beginning of the year, the store had an inventory value of R200,000. Throughout the year, XYZ Clothing Store made additional inventory purchases amounting to R500,000. During the...
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### Internal rate of return (IRR)
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/internal-rate-of-return/
Definition The internal rate of return (IRR) is a financial metric used to evaluate the potential profitability of an investment or project. What is an internal rate of return? An internal rate of return represents the discount rate at which the net present value (NPV) of all cash flows associated with the investment becomes zero. In simpler terms, IRR is the rate at which an investment breaks even in terms of its initial outlay and future cash flows. If the calculated IRR is higher than the required rate of return (or the cost of capital), it implies that the investment is expected to generate a return higher than the minimum acceptable level, which is typically viewed as favourable. Conversely, if the IRR is lower than the required rate of return, it suggests that the investment may not meet the minimum required threshold for profitability. IRR does not explicitly account for the risk associated with an investment. It is important to conduct sensitivity analysis to assess how changes in assumptions or cash flow estimates impact the IRR. IRR can be used to compare the potential returns of different investment opportunities. When comparing projects, the one with the highest IRR may be preferred, provided it aligns with the company's risk tolerance. IRR does not account for the opportunity cost of funds tied up in the investment. This can be a significant factor in decision-making. Example of internal rate of return ABC Company is considering an investment in a new project that requires...
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### Interest coverage ratio
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/interest-coverage-ratio/
Definition The interest coverage ratio (ICR) is a financial metric used to assess a company's ability to meet its interest payments on outstanding debt. What is interest coverage ratio? The ratio measures the extent to which a company's operating income can cover its interest expenses. A higher ICR indicates a stronger ability to fulfil interest obligations, which is an important consideration for creditors and investors. The interest coverage ratio is calculated using the following formula: Interest coverage ratio = operating income / interest expenses A ratio of 1 or lower suggests that a company's operating income is just enough to cover its interest expenses. This is often seen as a red flag, as it indicates a lower margin of safety for debt servicing. On the other hand, a ratio greater than 1 indicates that a company generates more operating income than is required to cover its interest expenses, which is generally viewed as a positive sign. Be aware that a significantly high ICR can indicate that a company may not be efficiently using its debt to generate returns, as it has an excess capacity to cover interest costs. For investors, the ICR is an important indicator of a company's financial stability. A healthy ICR suggests that the company has the capacity to meet its financial obligations, which can enhance investor confidence. While the ICR provides valuable information about a company's debt-servicing capacity, it does not provide a complete picture of its overall financial health. It does not account for other...
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### Income statement
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/income-statement/
Definition An income statement, also known as a profit and loss statement (P&L), is a financial document that provides a summary of a company's revenues, expenses, and profits or losses over a specific period of time, typically on a monthly, quarterly, or annual basis. What is an income statement? Here's a list of key components included in an income statement: Revenue or sales: This represents the total income generated from the sale of goods or services. Cost of goods sold (COGS): This includes all the direct costs associated with producing or providing the goods or services sold by the company. Gross profit: It represents the profit generated from the core business operations before considering other expenses. Operating expenses: These include costs related to sales, marketing, research and development, administrative expenses, and other operating costs. Operating income: This reflects the profitability of the company's normal business operations. Other income and expenses: This section includes any non-operating revenues or costs. Income before taxes: This is the total income or profit before accounting for income taxes. Income tax expense: This represents the amount of taxes owed by the company based on its taxable income. Net income: Net income is the final result after deducting taxes from income before taxes. Income statements are used for comparative analysis over different periods. This helps in evaluating performance trends and identifying areas of improvement or concern. Publicly traded companies are required to prepare and publish income statements as part of their financial reporting obligations to regulatory authorities...
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### Import
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/import/
Definition Import refers to the act of bringing goods or services into a country from abroad for the purpose of trade or consumption. What is import? Import is a fundamental component of international commerce and plays a crucial role in a nation's economy by allowing access to products and services that may not be readily available or produced domestically. Imports can encompass a wide range of items, including tangible goods like electronics, clothing, raw materials, and machinery. They can also include intangible services such as consulting, tourism, and software. Importing goods or services requires the payment of foreign currencies. This involves currency exchange, which affects exchange rates and has implications for a country's monetary policy. Modern production often involves global supply chains, where components and materials are sourced from different countries. This interconnectedness relies heavily on the ability to import and export goods. Importing goods often involves compliance with various regulatory requirements, including customs procedures, quality standards, safety regulations, and sometimes import quotas or restrictions. Imports can influence domestic industries and employment. While increased imports may lead to job displacement in certain sectors, they can also create opportunities in industries that rely on imported inputs. Some countries may restrict the import of certain goods or technologies due to national security concerns, particularly in industries like defence and telecommunications. Example of import ABC Electronics is a retail company based in the US that specialises in consumer electronics. They decide to expand its product offerings by importing a new line of high-quality...
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### Horizontal integration
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/horizontal-integration/
Definition Horizontal integration is a business strategy in which a company expands its operations or acquires similar businesses at the same level of the value chain. What is horizontal integration? It involves the acquisition of businesses that operate in the same industry and offer similar products or services. These companies are often direct competitors in the market. By acquiring competitors, a company can rapidly increase its market share. This can lead to a stronger competitive position and greater influence in the industry. Horizontal integration allows a company to diversify its product or service offerings within the same industry. This can lead to a broader range of choices for customers and potentially capture a larger share of the market. Through horizontal integration, companies can often achieve economies of scale. This means that as production or service levels increase, the average cost per unit decreases, leading to increased profitability. Horizontal integration can provide a competitive advantage by reducing the number of competitors in the market. It can also enhance the company's ability to negotiate with suppliers and exert pricing power. Example of horizontal integration XYZ Corporation is a well-established company in the electronics manufacturing sector, specialising in the production of smartphones and other consumer electronics. They identify a key competitor, ABC Electronics, which also manufactures smartphones and has a significant market share. XYZ Corporation decides to pursue a strategy of horizontal integration by acquiring ABC Electronics. As a result of the acquisition, XYZ Corporation now owns both its original operations and those...
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### Holding company
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/holding-company/
Definition A holding company is a type of business entity that exists primarily to own and control other companies, either through the ownership of their stocks or equity interests. What is a holding company? A holding company does not engage in day-to-day operations, production, or the delivery of services. Instead, their activities primarily involve strategic planning, decision-making, and oversight of their subsidiaries. Holding companies are often used as a strategy for diversification and risk management. By owning a portfolio of subsidiaries across different industries or sectors, a holding company spreads its risk. Subsidiary companies typically retain their legal and financial independence even though they are owned by a holding company. This separation helps protect the holding company from the liabilities and risks of its subsidiaries. Holding companies can sometimes achieve tax advantages through various legal and financial structures. They may benefit from tax incentives, reduced tax liabilities on intercompany transactions, or lower capital gains taxes. The holding company's board of directors and executive team are responsible for making strategic decisions that affect the entire corporate group. This includes decisions about mergers, acquisitions, divestitures, and capital allocation. Example of a holding company Imagine ABC Holdings Inc. , a holding company, which owns several subsidiary companies operating in different industries: Subsidiary A - Technology solutions: a technology solutions company specialising in software development and IT services. Subsidiary B - Renewable energy: a company focused on renewable energy projects, such as solar and wind farms. Subsidiary C - Real estate development: is engaged...
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### High street bank
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/high-street-bank/
Definition A high street bank, also known as a retail bank or a commercial bank, is a financial institution that provides a wide range of banking services to individual consumers, small and medium-sized businesses, and sometimes larger corporations. What is a high street bank? High street banks are typically distinguished by their physical presence in prominent locations, often on the main commercial streets of towns and cities. High street banks offer a comprehensive suite of financial services, including but not limited to: Depository services: This includes savings accounts, checking accounts, certificates of deposit, and other types of deposit accounts. Lending services: This encompasses various types of loans Payment services: High street banks facilitate electronic funds transfers, issue debit and credit cards, and offer services like bill payment. Investment services: Some high street banks provide investment advice, brokerage services, and products like mutual funds and annuities. Foreign exchange services: They offer services for exchanging currencies for travel or international transactions. Insurance services: Many high street banks also provide insurance products Wealth management: High street banks offer specialised services for high-net-worth clients, including asset management and estate planning. High street banks have expanded their services to include robust online and mobile banking platforms. This allows customers to conduct transactions, access account information, and perform various banking activities remotely. High street banks operate extensive networks of ATMs which allow customers to withdraw cash, deposit checks, and perform other basic banking functions outside of regular branch hours. Example of a high street bank Imagine...
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### Guarantor
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/guarantor/
Definition A guarantor is an individual or entity that agrees to take on the responsibility of fulfilling a financial obligation if the primary borrower defaults or is unable to meet their contractual obligations. What is a guarantor? A guarantor's primary role is to offer assurance to a lender or creditor that a financial obligation will be met, even if the primary borrower is unable to fulfil it. They serve as a form of financial security for the lender. Types of guarantees: Loan guarantees: In the context of loans, a guarantor agrees to repay the loan if the borrower defaults. This is common in situations where the borrower may not have a strong credit history or sufficient collateral. Lease guarantees: In rental agreements, a guarantor may guarantee the lease payments on behalf of the tenant. Performance guarantees: In business contracts, a guarantor may provide assurance that a certain project will be completed or a service will be delivered according to the terms of the contract. Lenders or creditors typically assess the creditworthiness and financial stability of a potential guarantor. They should have a strong credit history, stable income, and the capacity to cover the financial obligation if necessary. Being a guarantor can potentially impact the creditworthiness and financial stability if the primary lender does not fulfil their obligations. Becoming a guarantor often involves a high level of trust between the guarantor and the borrower. It's important for both parties to have a clear understanding of the responsibilities involved. Example of a...
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### Gross profit
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/gross-profit/
Definition Gross profit is a financial metric that represents the revenue a company earns from its core operations minus the direct costs associated with producing or providing the goods or services sold. What is gross profit? This metric provides a measure of the profitability of a company's primary business activities before accounting for indirect expenses such as operating costs, interest, and taxes. Gross profit is calculated using the following formula: Gross profit = revenue - cost of goods sold (COGS) The gross profit can also be expressed as a percentage, known as gross profit margin. It is calculated using the formula: Gross profit margin = (gross profit / revenue) x 100% This provides a standardised measure of profitability, making it easier to compare companies of different sizes and industries. A higher gross profit indicates that a company is retaining a larger portion of its revenue after accounting for direct production costs. This suggests strong operational efficiency in producing or providing goods and services. On the other hand, a lower gross profit may indicate higher production costs relative to revenue, which can potentially impact overall profitability. Gross profit does not take into account all expenses, and thus, it provides an incomplete view of a company's overall profitability. Example of gross profit Let's consider Company ABC, a clothing retailer, for a specific quarter. In this period, the company has the following financial information: Total revenue: R800,000 Cost of goods old (COGS): R400,000 Using the formula, gross profit can be calculated as: Gross...
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### Gross margin
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/gross-margin/
Definition Gross margin, also known as gross profit margin, is a financial metric that measures the profitability of a company's core operations, specifically its ability to generate revenue after deducting the direct costs associated with producing or providing goods and services. What is gross margin? Gross margin is expressed as a percentage and is a critical indicator of a company's operational efficiency and pricing strategy. Gross margin is calculated using the following formula: Gross margin = (revenue - cost of goods sold) x 100% A higher gross margin percentage indicates that a company is able to retain a larger portion of its revenue after accounting for the costs directly associated with production. This suggests strong operational efficiency. On the other hand, a lower gross margin may indicate higher production costs relative to revenue, which can potentially impact profitability. Factors impacting gross margin: Pricing strategy: Higher prices can lead to increased gross margin if it doesn't significantly impact sales volume. Cost efficiency: Efficient procurement, production, and inventory management can help reduce cost of goods sold, positively affecting gross margin. Economies of scale: Larger production volumes can lead to lower per-unit production costs, potentially increasing gross margin. Quality control: Maintaining high product quality can reduce defects and waste, positively impacting gross margin. While gross margin provides insight into core operational profitability, it does not account for other operating expenses such as marketing, research and development, and administrative costs. Example of gross margin Let's say Company XYZ is a retail business that sells...
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### General data protection regulation (GDPR)
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/general-data-protection-regulation/
Definition The General Data Protection Regulation (GDPR) is a comprehensive data protection and privacy regulation enacted by the European Union (EU) in 2018. What is GDPR? It is designed to safeguard the privacy and personal data of EU citizens by regulating how organisations collect, process, store, and share this information. The GDPR applies to any organisation, regardless of its location, that processes the personal data of individuals residing in the EU The primary objective of the GDPR is to give individuals greater control over their personal data and to harmonise data protection laws across the EU member states. It aims to create a consistent framework for data protection while also addressing the challenges posed by the digital age. Key principles of the GDPR: Lawfulness, fairness, and transparency: Personal data must be processed lawfully, fairly, and transparently. Individuals must be informed about how their data is being used. Purpose limitation: Data should only be collected for specific, explicit, and legitimate purposes. Data minimisation: Only the minimum amount of personal data necessary for a specific purpose should be collected. Accuracy: Data should be accurate, and steps should be taken to ensure it remains up-to-date. Storage limitation: Data should be kept only for as long as necessary for the purposes for which it was collected. Integrity and confidentiality: Data should be securely processed to prevent unauthorised access, unlawful actions, and accidental loss or damage. The GDPR grants individuals several rights regarding their personal data, including the right to access, correct, and erase their...
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### Gearing
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/gearing/
Definition Gearing, in financial terms, refers to the proportion of a company's capital that is financed by debt compared to equity. What is gearing? Gearing is a measure of financial leverage and indicates the extent to which a company relies on borrowed funds for its operations and expansion. Gearing is expressed as a ratio and is used by investors, analysts, and lenders to assess a company's financial risk and stability. The formula for gearing ratio is: Gearing ratio = (total debt / total capital) x 100% A high gearing ratio indicates a significant reliance on debt for financing, which can lead to higher financial risk due to interest payments and potential difficulties in meeting debt obligations. On the other hand, a low gearing ratio suggests a lower reliance on debt, which can lead to lower financial risk, but may also indicate underutilisation of financial leverage. The optimal level of gearing depends on various factors, including the industry, business model, and risk tolerance of the company. Some industries naturally have higher levels of gearing due to their capital-intensive nature. Example of gearing Let's consider an example for a company called Company XYZ Total capital: R1,000,000 Equity: R600,000 (60% of total capital) Debt: R400,000 (40% of total capital)) In this example, Company XYZ has a gearing ratio of 40%. This means that 40% of the company's total capital comes from debt, and the remaining 60% is equity.
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### Free market
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/free-market/
Definition A free market is an economic system characterised by voluntary exchange and competition in which individuals and businesses operate with limited government intervention. What is a free market? In a free market, prices, production, and distribution of goods and services are determined by supply and demand. A hallmark of a free market is competition. Multiple sellers and buyers exist in the market, leading to competitive pricing, innovation, and efficiency. Competition incentivises businesses to offer better products, services, and prices. Consumer preferences and choices play a central role in shaping the market. Consumers have the power to influence production and investment decisions through their purchasing decisions. In a free market, businesses have strong incentives to be efficient and innovative in order to remain competitive and attract customers. This drive for efficiency leads to improved productivity and economic growth. Free markets are known for their adaptability and responsiveness to changing circumstances. Prices and production levels can adjust quickly to shifts in supply and demand. Critics of free markets argue that they can lead to income inequality, market failures, and externalities (unintended consequences of economic activity). They also emphasise the need for some government intervention to address these issues. Example of free market Imagine a country with a free-market economy where the agricultural sector operates without heavy government regulation. Farmers: Farmers have the freedom to decide which crops to grow based on market demand, climate conditions, and their own assessment of profitability. Consumers: Consumers are free to choose the agricultural products they...
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### Franchise
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/franchise/
Definition A franchise is a business arrangement in which one party, known as the franchisor, grants another party, known as the franchisee, the right to operate a business using the franchisor's established brand, business model, and support systems. What is a franchise? This arrangement allows the franchisee to replicate a proven business concept, leveraging the franchisor's brand recognition and operational expertise. In return, the franchisee typically pays fees or royalties to the franchisor for ongoing support and the right to use their brand. The franchise model allows for the replication of a successful business concept. The franchisee benefits from the franchisor's proven system, including operational processes, marketing strategies, and product or service offerings. Franchisors often provide comprehensive training and ongoing support to franchisees. This may include initial training on business operations, marketing strategies, and ongoing assistance with day-to-day challenges. The franchise model allows a brand to expand quickly and reach new markets without the capital investment required for opening company-owned locations. Types of franchises: Product or trade name franchises: These involve the distribution of products or services under the franchisor's brand, with the franchisee typically providing a specific product or service. Business format franchises: These include a complete business format, including the product or service, branding, operational processes, and support. While franchising offers a proven business concept, success is not guaranteed. Factors such as location, market conditions, and the franchisee's management skills play a significant role. Example of franchise Imagine XYZ Corporation is a well-established fast-food chain with a successful...
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### Fixed asset
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/fixed-asset/
Definition A fixed asset, also known as a tangible or non-current asset, refers to a long-term, physical asset held by a company for use in its operations and not intended for sale in the normal course of business. What are fixed assets? Fixed assets are vital for a company's day-to-day operations and are not expected to be converted into cash within one year. Examples of fixed assets: Property, plant, and equipment (PPE): This category includes buildings, land, machinery, vehicles, and other physical assets used in the production process. Furniture and fixtures: Items like office furniture, fixtures, and equipment that are necessary for business operations. Intangible assets (in some cases): Some are classified as fixed assets if they have a finite useful life and meet specific accounting criteria. Fixed assets play a direct or indirect role in revenue generation. For instance, machinery in a manufacturing plant directly contributes to production, while an office building indirectly supports the organisation's operations. Fixed assets are subject to depreciation, which is the systematic allocation of their cost over their estimated useful life. This process reflects the gradual wear and tear or obsolescence of the asset. Fixed assets are a significant component of a company's financial position and are disclosed in the balance sheet. The accurate valuation and proper accounting of fixed assets are crucial for financial reporting and analysis. Example of fixed assets Company ABC, a manufacturing company, has the following fixed assets on its balance sheet as of December 31: Land: R500,000 - The...
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### First mover
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/first-mover/
Definition A "first mover" refers to a company or entity that is the initial entrant into a new market or industry with a particular product, service, or innovation. What is a first mover? Being a first mover offers advantages such as establishing brand recognition, gaining market share, and setting industry standards. However, it also comes with risks, including the potential for unproven markets and the challenge of maintaining a competitive edge. Advantages of being a first mover: Market share: Early entrants often have the opportunity to capture a substantial portion of the market share before competitors arrive. Brand recognition: First movers can build strong brand recognition and customer loyalty. Establishing industry standards: They have the chance to set the industry standards and norms, influencing the trajectory of the market. Learning curve benefits: First movers gain insights from their initial market entry to refine their offerings, address shortcomings, and understand customer preferences. Risks and challenges of being a first mover: Market uncertainty: Being the first to enter a new market can be risky due to uncertainties about customer demand, competition, and potential regulatory issues. High costs: Developing and introducing a new product or service often involves significant research, development, and marketing expenses. Possible imitation: Competitors can learn from the first mover's experience and mistakes, potentially surpassing the initial offering. Example of a first mover Company XYZ recognised the growing demand for electric vehicles and decided to invest heavily in the development and production of electric cars. They successfully launched the first...
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### Equivalent annual cost (EAC)
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/equivalent-annual-cost/
Definition Equivalent annual cost (EAC) is a financial metric used to compare the costs of different investment projects or assets over a specified period, typically on an annual basis. What is equivalent annual cost? Equivalent annual cost helps in evaluating the total cost of ownership or investment allowing for easier comparison of projects with different lifespans, cash flow patterns, or initial costs. EAC allows for a direct comparison between projects or investments that have different time horisons, cash flow patterns, or initial costs. Furthermore, EAC is a valuable tool in capital budgeting, helping decision-makers evaluate which investment option provides the most cost-effective solution EAC assumes a constant annual cost, which may not always reflect the actual cash flows in real-world situations. It also assumes a constant discount rate, which may not hold in dynamic economic environments.
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### Enterprise value
- Published: 2023-10-16
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/enterprise-value/
Definition Enterprise value (EV) is a financial metric used to determine the total value of a company, taking into account both its equity and debt. What is enterprise value? This metric represents the theoretical takeover price a buyer would pay to acquire the entire business, including all outstanding debt and obligations. Here’s a list of the components of enterprise value: Market capitalisation (market cap): This is the total value of a company's outstanding shares of common stock. Total debt: This includes all forms of debt a company owes, including bonds, loans, and other financial liabilities. Minority interests and preferred equity: These represent ownership interests in subsidiaries and other special classes of stock. Cash and cash equivalents: This includes liquid assets that can be readily converted into cash. Enterprise value can be calculated using the following formula: Enterprise value = market cap + total debt + minority interests - cash and cash equivalents For potential investors, enterprise value can be a more accurate representation of the cost of a company, as it considers both the equity and debt involved in the transaction. Companies with high levels of debt tend to have higher enterprise values compared to their market capitalisations. This is because the debt increases the theoretical acquisition cost. While enterprise value provides a more detailed view of a company's value, it may not capture all aspects of a company's financial health. Other factors, such as off-balance sheet items and contingent liabilities, may need to be considered. Enterprise value is not...
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### EBITA
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/ebita/
Definition EBITA stands for earnings before interest, taxes, and amortisation. It is a financial metric used to assess a company's operating performance by excluding certain non-operating expenses. What is EBITA? EBITA provides a clearer view of a company's core operational profitability. Components of EBITA: Earnings: This refers to a company's revenue or income generated from its primary operations. Before interest: Interest expenses are excluded from EBITA. This is because they are considered a financial cost. Before taxes: EBITA excludes income taxes since they are influenced by various factors, which do not directly relate to the operational performance. Before amortisation: Since amortisation is a non-cash expense, it is excluded from EBITA. EBITA provides a clearer picture of a company's operational profitability, separate from financial decisions (interest) and non-operational expenses (taxes and amortisation). It is a useful metric for comparing the operational performance of different companies, especially those with varying capital structures or tax jurisdictions. Calculation of EBITA: EBITA = earnings + interest + taxes + amortisation Analysts, investors, and financial professionals may use EBITA to evaluate a company's core operational profitability and compare it to industry peers. While EBITA provides a clearer view of operational performance, it may not be suitable for all industries or situations. Different industries have varying capital structures and expense patterns. Companies may choose to disclose EBITA in their financial reports, alongside other key financial metrics. This provides transparency to stakeholders about the company's operational performance. Example of EBITA Let's use a fictional company, XYZ Enterprises, to...
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### Down payment
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/down-payment/
Definition A down payment is an upfront, initial payment made by a buyer as part of a larger transaction, typically for the purchase of a high-value item or property. What is a down payment? A down payment represents a percentage of the total cost and is paid at the outset of the transaction to secure the purchase. Purpose of a down payment: Risk reduction: For sellers, a down payment provides assurance that the buyer is committed to the purchase. Equity building: For buyers, a down payment represents the initial equity in the purchased item or property. The specific percentage required for a down payment varies depending on the nature of the purchase and the policies of the seller or lender. A larger down payment often leads to more favourable loan terms, such as lower interest rates or shorter loan durations. In some cases, the size and terms of a down payment may be negotiable between the buyer and seller. Buyers should carefully consider their financial situation and budget when determining the size of a down payment. It's important to strike a balance between making a substantial initial payment and ensuring they have sufficient funds for other financial priorities. Example of down payment Suppose you are buying a property valued at R200,000, and the lender requires a down payment of 20%. In this case, the down payment amount would be: Down payment = Purchase price × Down payment percentage Down payment = R200,000 x 0. 20 = R40,000 So, the down...
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### Debt ratio
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/debt-ratio/
Definition The debt ratio, also known as the debt-to-equity ratio, is a financial metric used to assess the proportion of a company's total liabilities in relation to its total equity. What is a debt ratio? A debt ratio provides insights into the extent to which a company is financed by debt versus equity. Calculation of debt ratio: Debt ratio = total liabilities / total equity A higher debt ratio indicates that a larger portion of a company's assets are financed by debt, while a lower debt ratio suggests that a company relies more on equity financing. Companies with higher debt ratios may be considered riskier to investors and creditors. There is no one-size-fits-all ideal debt ratio, as it depends on various factors including the industry, business model, and risk tolerance. What may be considered an acceptable debt ratio for one industry might be considered high for another. The debt ratio, along with other financial ratios, is typically disclosed in a company's financial statements. This provides transparency to stakeholders about the company's capital structure and financial risk. Example of debt ratio Let's consider an example for a fictional company, ABC Ltd. : Total Debt: ABC Ltd. has long-term debt (e. g. , bonds and loans) amounting to R500,000. Short-term debt (e. g. , short-term loans) totals R50,000. Total debt = R500,000 + R50,000 = R550,000 Total assets: ABC Ltd. 's total assets amount to R1,200,000. Now, using the formula for the debt ratio: Debt ratio = R550,000 / R1,200,000 ≈ 0....
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### Current ratio
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/current-ratio/
Definition The current ratio is a financial metric used to assess a company's short-term liquidity and its ability to cover immediate financial obligations with its current assets. What is a current ratio? The current ratio, along with other financial ratios, is typically disclosed in a company's financial statements, providing transparency to stakeholders about its short-term liquidity position. The current ratio is calculated using the following formula: Current ratio = total current assets / total current liabilities A current ratio greater than 1 indicates that a company has more current assets than current liabilities, while a current ratio of less than 1 implies that a company may have difficulty meeting its short-term obligations using its current assets alone. A higher current ratio indicates a healthier level of working capital. The ‘ideal’ ratio is between 1. 5 and 2. The current ratio provides a snapshot of a company's short-term liquidity, but it doesn't offer insight into the company's ability to generate cash in the future. Example of current ratio Let's consider an example for a fictional company, XYZ Inc. : Current assets: XYZ Inc. has R200,000 in cash and cash equivalents. Accounts receivable amount to R150,000. The inventory is valued at R100,000. Prepaid expenses stand at R20,000. Total current assets = R200,000 + R150,000 + R100,000 + R20,000 = R470,000 Current liabilities: Accounts payable total R80,000. Short-term loans amount to R50,000. Accrued liabilities are R30,000. The short-term portion of long-term debt is R40,000. Income taxes payable are R10,000. Total current liabilities =...
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### Current liabilities
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/current-liabilities/
Definition Current liabilities are financial obligations and debts that a company is expected to settle within one year or within the normal operating cycle of the business. What are current liabilities? This type of liabilities represent the portion of a company's liabilities that are due in the short term. Common examples of current liabilities include: Accounts payable: These are amounts owed by a company to its suppliers or vendors for goods or services received on credit. Short-term debt: This includes any loans, notes, or credit facilities that are due for repayment within one year. Accrued liabilities: These are expenses that have been incurred but have not yet been paid. Deferred revenue: This represents payments received from customers in advance of goods or services being delivered. It is a liability until the product or service is provided. Current liabilities, along with current assets, form a critical component of a company's working capital. Maintaining an appropriate balance between current assets and current liabilities is essential for managing cash flow and short-term financial obligations. Current liabilities are prominently featured in a company's balance sheet, providing a snapshot of its financial position at a specific point. Distinguishing between current and long-term liabilities is essential for understanding a company's financial health. Creditors and investors closely monitor a company's current liabilities as part of their assessment of its financial stability and ability to meet short-term obligations. Example of current liabilities Here's an example of current liabilities for a fictional company, ABC Corporation: Accounts Payable: ABC Corporation...
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### Current assets
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/current-assets/
Definition Current assets refer to a category of assets on a company's balance sheet that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business. What are current assets? Currents assets represent resources that are relatively liquid and can be used to meet short-term obligations and operational expenses. Furthermore, they are often used as collateral for short-term borrowing. Common examples of current assets include: Cash and cash equivalents: Physical cash, bank account balances, and highly liquid investments that can be converted to cash quickly. Accounts receivable: This represents amounts owed to the company by customers or clients for goods or services provided on credit. Inventory: This comprises goods held by the company for sale or production. Prepaid expenses: These are payments made in advance for goods or services that will be used or consumed in the future. Current assets are integral to a company's working capital. Effective management of working capital ensures that a company can cover its short-term financial obligations and operational expenses. A healthy proportion of current assets relative to current liabilities suggests a company's ability to meet its short-term obligations. Current assets are prominently featured in a company's balance sheet, which provides a snapshot of its financial position at a specific point. Example of currents assets Here's a short example of current assets for a fictional company, XYZ Corporation: Cash and cash equivalents: XYZ Corporation has R100,000 in its bank account. Accounts receivable: The company...
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### Crowdfunding
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/crowdfunding/
Definition Crowdfunding is a method of raising capital where a large number of individuals each contribute a relatively small amount of money to support a specific project or idea and is an alternative to traditional methods of financing. What is crowdfunding? Crowdfunding can be used to fund a wide array of projects and operates through specialised online platforms that connect project creators with potential backers. There are several crowdfunding models, including: Reward-based: Individuals receive non-equity rewards. Equity-based: Individuals receive a share of ownership or equity in the project or business. Donation-based: Individuals contribute without expecting any financial return. Debt-based (peer-to-peer lending): Individuals provide loans to the project creator, expecting to be repaid with interest. Project creators set a specific funding goal and determine a campaign duration. If the funding goal is not met within the set duration, the project may not receive any funds. Crowdfunding campaigns can operate on an "all-or-nothing" or "keep-what-you-raise" basis. In an all-or-nothing model, the project must meet or exceed its funding goal to receive any funds. In a keep-what-you-raise model, the project creator retains all funds raised, regardless of whether the goal is met. While crowdfunding offers opportunities for individuals to support innovative projects, there are risks involved. Projects may face delays, encounter unexpected challenges, or even fail to deliver on promised rewards. Example of crowdfunding Jane has a brilliant idea for a new eco-friendly product, but she lacks the funds to bring it to market. She decides to explore crowdfunding and creates a campaign...
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### Credit score
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/credit-score/
Definition A credit score is a numerical representation of your creditworthiness, which is used by lenders to assess the likelihood of a borrower repaying their debts. What is a credit score? A credit score is based on an analysis of your credit history, including your borrowing and repayment behaviour, and is a crucial factor in determining your eligibility for loans, credit cards, mortgages, and other forms of credit. Here's a list of key points related to credit score: Numerical representation: A credit score is typically expressed as a three-digit number, usually ranging from 300 to 850, with higher scores indicating better creditworthiness. Calculation factors: Several factors are taken into consideration when calculating a credit score. These commonly include payment history, credit utilisation, length of credit history, etc. . Payment history (35% of score): This assesses whether a borrower has a history of making payments on time. Late payments negatively impact this aspect. Credit utilisation (30% of score): This reflects the ratio of a person's current credit balances to their total available credit. A lower utilisation rate indicates better credit management. Length of credit history (15% of score): This considers how long a person has had credit accounts open. Longer credit histories tend to be viewed more favourably. Types of credit used (10% of score): Lenders prefer to see a mix of different types of credit, which demonstrates responsible credit management. New credit inquiries (10% of score): Opening several new credit accounts in a short period can be an indicator of...
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### Credit facility
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/credit-facility/
Definition A credit facility is a financial arrangement between a lender and a borrower that provides the borrower with access to a predetermined amount of money or credit for a specified period. What is a credit facility? A credit facility serves as a flexible source of funding that a borrower can draw upon as needed, up to a certain limit. Types of credit facilities: Revolving credit facility: This type allows borrowers to repeatedly draw and repay funds up to a specified limit. Interest is typically charged on the outstanding balance. Term loan facility: This provides a specific amount of funds for a predetermined period. Repayments are made over the term, often in instalments, until the loan is fully paid off. Credit facilities are versatile and can be used for various purposes. They may be utilised for working capital needs, financing projects, expanding operations, or even for emergency cash flow requirements. Borrowers may be asked to provide collateral as security. This ensures that the lender has a means of recovering the funds in case of default. Interest rates on credit facilities can be fixed or variable, depending on the terms of the agreement. The borrower is usually charged interest only on the outstanding balance. Lenders evaluate the creditworthiness of the borrower before extending a credit facility and for revolving credit facilities, borrowers are typically required to make minimum monthly payments, which cover interest. Credit facilities may come with associated fees, such as annual fees, arrangement fees, or penalty charges for late...
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### Corporate tax
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/corporate-tax/
Definition Corporate tax refers to a tax charged by governments on the profits earned by businesses, corporations, and other legal entities. It is a significant source of revenue for governments and is distinct from individual income tax. What is corporate tax? Corporate tax is applied to the net income or profits of a business entity. Net income is calculated by subtracting allowable business expenses, deductions, and credits from the total revenue generated by the company during a specific period. Corporations can often deduct certain expenses, such as costs associated with producing goods or services, employee wages, interest on loans, and depreciation of assets. These deductions serve to reduce the taxable income, thereby lowering the overall tax liability. One characteristic of corporate taxation is the potential for double taxation. This occurs when a corporation is taxed on its profits, and then the shareholders are also taxed on any dividends received. Governments may offer tax incentives and credits to encourage specific activities or industries. These could include research and development tax credits, incentives for investment in certain regions, or tax breaks for environmentally-friendly practices. Corporate tax policies can influence investment decisions, job creation, and the overall competitiveness of a country in attracting businesses. High corporate taxes may discourage investment, while low rates can stimulate economic growth. Use our handy corporate tax calculator to help you. Example of corporate tax ABC Corporation is a manufacturing company that operates in a country with a corporate tax rate of 20%. At the end of the...
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### Comparative advantage
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/comparative-advantage/
Definition Comparative advantage is an economic principle that describes the ability of a country, individual, or entity to produce a particular good or service at a lower opportunity cost than another. What is a comparative advantage? Here's a breakdown of comparative advantage: Opportunity cost: Refers to the value of what must be foregone in order to choose a particular option. In simpler terms, it's the benefits or value sacrificed by choosing one alternative over another. Absolute advantage vs. comparative advantage: Absolute advantage refers to the ability of a country or entity to produce a particular good or service with fewer resources (e. g. , less labour, capital, or time) than another. Comparative advantage, on the other hand, considers the opportunity cost of producing one good relative to another. Specialisation: The theory of comparative advantage asserts that nations, firms, or individuals should specialise in the production of goods or services in which they have the lowest opportunity cost. Mutually beneficial trade: When countries specialise in producing what they have a comparative advantage in, they can engage in trade with other nations. This leads to mutually beneficial outcomes. Enhances global welfare: The principle of comparative advantage contributes to overall global welfare. It allows resources to be allocated more efficiently across the world, leading to increased total production and a higher standard of living. Long-term economic growth: Embracing comparative advantage fosters economic growth through specialised industries, enabling investment in research, development, and infrastructure for innovation and competitiveness Comparative advantage is influenced by various...
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### Cash advance
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cash-advance/
Definition A cash advance refers to a financial service provided by banks, credit card companies, and some other financial institutions. It allows cardholders or account holders to withdraw a specific amount of money from an ATM or a bank branch using their credit card or debit card. What is cash advance? This withdrawal is typically a portion of the cardholder's credit limit (in the case of a credit card) or a portion of the available balance (in the case of a debit card). A cash advance provides quick access to cash, which can be useful in situations where physical currency is needed urgently, such as when travelling or during emergencies. Cash advances usually come with high fees and interest rates. Unlike regular card purchases, which may have a grace period before interest accrues, cash advances often start accumulating interest immediately. A cash advance is not the same as a loan. It's essentially a short-term borrowing against the credit limit of a card, and the terms and conditions are specific to the credit card issuer. Taking a cash advance can lead to debt accumulation if not managed carefully. Due to the high costs associated with cash advances, it's generally advisable to consider alternative options for obtaining cash, such as using a personal loan or savings. Some credit cards may have a separate cash advance limit, which may be lower than the overall credit limit. This is an important consideration to be aware of before attempting a cash advance. Example of cash...
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### Capital
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/capital-explained/
Definition Capital refers to the financial resources, assets, or wealth owned or controlled by an individual, business, or entity. It encompasses various forms, including money, property, machinery, investments, and other tangible or intangible assets that hold value. What is capital? There are different types of capital, each serving a specific purpose: Financial capital: This includes cash, funds, and other monetary instruments that a business or individual possesses. Human capital: This refers to the knowledge, skills, expertise, and capabilities of individuals in an organisation. Physical capital: This encompasses tangible assets like buildings, machinery, equipment, and infrastructure that are used in production or operations. Intellectual capital: This comprises intangible assets such as patents, trademarks, copyrights, and proprietary knowledge. Social capital: This refers to the networks, relationships, and social connections that individuals or organisations have. Natural capital: This encompasses the natural resources and environmental assets that provide value to businesses and society. It includes elements like land, water, minerals, and ecosystems. Capital plays a crucial role in the functioning and growth of businesses and economies. It allows businesses to invest in new ventures, expand operations, hire employees, and innovate.
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### Buyout
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/buyout/
Definition A buyout refers to an individual, group of individuals, or another company purchasing a majority stake in the target entity, giving the buyer substantial control over its operations, decision-making, and future direction. Buyouts can occur for various reasons. What is a buyout? Types of buyouts: Management buyout (MBO): In a MBO, the current management team of a company purchases a controlling share from the current owners. Private equity buyout (PEBO): Private equity firms take over a significant share of a company, aiming to improve its performance and eventually sell it for a profit. Leveraged buyout (LBO): In an LBO, a significant portion is financed through debt, often using the assets of the company as collateral. This can enhance the return on investment, but also increase financial risk. Employee buyout (ESOP): Employees of a company acquire a controlling interest in the company. Tender offer: In a tender offer, an entity offers to purchase shares directly from existing shareholders at a specific price. Prior to a buyout, extensive due diligence is conducted to assess the financial health, legal standing, market position, and potential risks of the target company. This helps to ensure that the purchase is made with full awareness of the entity's true value and potential challenges. Buyouts often require a significant amount of capital. After a buyout, the new owners take control of the company and may implement changes in management, operations, and strategy to achieve their specific goals and objectives. Example of a buyout ABC Manufacturing is a...
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### Business-to-consumer (B2C)
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/business-to-consumer/
Definition Business-to-consumer (B2C) refers to the type of commerce and business relationship in which companies sell products or provide services directly to individual consumers. In this model, the end customers are the ultimate target market for the goods or services offered. What is business-to-consumer? In a B2C model, businesses market and sell their products or services directly to individual consumers. This can be done through physical storefronts, online marketplaces, or other direct-to-consumer channels. B2C companies prioritise understanding and meeting the specific needs and preferences of individual consumers. Customer feedback and satisfaction are vital for building brand loyalty, which is crucial for success in this type of commerce. Example of business-to-consumer XYZ Electronics is a company that designs and manufactures consumer electronics, including smartphones, laptops, and smart home devices. Customer purchase: A consumer, let's call her Emily, visits XYZ Electronics' website, learns about SmartGadget X, and decides to make a purchase. She adds the smartphone to her online shopping cart and completes the transaction by providing her payment details. Delivery to customer: Emily receives the SmartGadget X at her doorstep. The product is exactly as described, and XYZ Electronics includes a user manual and customer support information in the package. In this B2C example, XYZ Electronics directly sells its consumer electronics product (SmartGadget X) to individual consumers through its online store.
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### Business valuation
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/business-valuation/
Definition Business valuation is the assessment of a company's economic worth, considering factors like assets, liabilities, cash flow, and market position. It's crucial for decisions in mergers, financial reporting, taxes, estate planning, and potential transactions. What is business valuation? Purpose of valuation: Mergers and acquisitions: Businesses may be valued to facilitate buying or selling decisions. Financial reporting: For accounting purposes, companies need to assign a value to their assets and liabilities. Tax planning and compliance: Valuation plays a role in estate planning, gift tax, and other tax-related matters. Litigation and dispute resolution: Valuations may be necessary in legal proceedings, such as shareholder disputes. Fundraising and investments: Investors often require a valuation of a company before deciding to invest. Methods of valuation: Market approach: This approach compares the subject company to similar businesses that have been sold recently. Income approach: This method evaluates the present value of expected future cash flows or earnings generated by the business. Asset-based approach: This approach focuses on the company's tangible and intangible assets. Factors considered in valuation: Financial statements: Income statements, balance sheets, and cash flow statements provide crucial data for valuation. Industry and market conditions: The industry in which the business operates and the overall economic climate can impact its value. Customer base and market share: A loyal customer base and a strong market position can add value. Intellectual property and brand equity: Patents, trademarks, copyrights, and brand recognition can contribute to a business's worth. Business valuation is an intricate process and can involve...
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### Business plan
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/business-plan/
Definition A business plan is a document that outlines a company's goals, objectives, strategies, and operational plans. It serves as a roadmap for the business, providing a detailed overview of how the company intends to achieve its mission and vision. What is a business plan? A well-structured business plan is crucial for attracting investors and ensuring that the business is on track to achieve its goals. Here are the key components in business plan: Executive summary: This is a concise overview of the entire business plan and summarises the key elements of the business. Company description: This section provides a thorough overview of the business, covering its history, mission, vision, legal structure, location, and significant achievements. Products or services: In this part, the business describes its offerings, including specifics about the products or services, their features, advantages, and how they meet the needs of the target market Market analysis: This involves an in-depth examination of the industry and market in which the business operates. It includes information on market trends, customer demographics, and competitor analysis. Marketing and sales strategy: This section outlines the company's approach to reaching and attracting customers. It covers marketing activities, advertising strategies, pricing strategies, and sales tactics. Organisational structure and management: This outlines the company's structure, including key roles, responsibilities, and qualifications of personnel. It also covers the board of directors, advisors, and external consultants. Product development and operations: This section discusses how the company plans to design, develop, and produce its products or deliver its...
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### Business model
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/business-model/
Definition A business model is a framework or plan that outlines how a company creates, delivers, and captures value. It encompasses all aspects of a business, from its products or services to its revenue streams and operational strategies. What is a business model? A well-defined business model is crucial for a company's success, as it provides a clear roadmap for how it will generate revenue and sustain its operations. Here are the key components in business model: Value proposition: This outlines the unique value that a company offers to its customers, how it differs from competitors, and addresses the specific customer needs. Customer segments: This identifies the specific groups of people or organisations that the company aims to serve. Revenue streams: This defines the ways in which a company generates income from its customers. It can include sales of products or services, subscription fees, licensing, advertising etc. Distribution channels: These are the various methods a company employs to deliver its products or services to customers. Channels can include direct sales, online platforms, wholesalers, retailers, and more. Customer relationships: This outlines the strategies and methods a company uses to build and maintain relationships with its customers. Key resources: These are the critical assets, skills, and capabilities a company needs to operate effectively. Key activities: This encompasses the core functions and processes that a company must perform to create and deliver value to its customers. It includes production, marketing, sales, and customer support, among others. Key partnerships: This involves collaborations with other...
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### Bridge loan
- Published: 2023-10-13
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bridge-loan/
Definition A bridge loan, also known as interim financing or a swing loan, is a short-term loan used to provide temporary financial assistance until a more permanent source of funding becomes available. What is a bridge loan? Usually, a bridge loan ranges from a few weeks to a few years, but is not intended for long-term financing. It's typically used in real estate transactions and business scenarios where there's a need for immediate cash flow to bridge a gap between two major financial events. Purpose of bridge loans: Real estate: In real estate, bridge loans are used to finance the purchase of a new property before the sale of an existing one. Business: In business, bridge loans can be used to cover operational expenses, fund working capital needs, or facilitate the acquisition of assets. Like many loans, bridge loans often require collateral. In real estate, the property being purchased and sometimes the property being sold serve as collateral. Bridge loans typically come with higher interest rates compared to traditional loans. This is because they are considered riskier due to the short-term nature and potential uncertainties regarding the timing of repayment. While bridge loans can provide crucial short-term funding, there is risk involved, particularly if the expected events (such as property sale or contract fulfilment) do not materialise as planned. Example of bridge loan A real estate developer, XYZ Properties, is planning to build a residential complex. Bridge loan application: XYZ Properties applies for a bridge loan from a financial institution....
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### Break-even analysis
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/break-even-analysis/
Definition Break-even analysis is a financial assessment tool used by businesses to determine the point at which total revenue equals total costs, resulting in neither profit or loss. What is a break-even analysis? It's a critical component of financial planning and decision-making for businesses of all sizes. The analysis helps companies understand the minimum level of sales to cover all fixed and variable costs. The break-even point is the point at which total revenue equals total costs. Below this point, the company is operating at a loss, and above it, it's making a profit. This is also important for decision-making as it helps setting sales targets and pricing strategies, assists in determining the impact of cost changes on profitability, and aids in evaluating the feasibility of new projects or business ventures. Try our break even calculator to find your break even point. Businesses may conduct sensitivity analyses to assess how changes in factors like pricing, costs, or sales volume impact the break-even point. Some of the limitations of the break-even analysis is that it assumes all costs are fixed or variable (which may not always be the case), assumes a linear relationship between costs and output, which may not hold true in all industries, and doesn't account for other important financial metrics like cash flow or return on investment. Example of break-even analysis Imagine a small coffee shop named Brew Haven. Costs and revenue: Fixed costs: Brew Haven has fixed costs of R2,000 per month. These include rent, utilities, and...
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### Bank statement
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bank-statement/
Definition A bank statement is an official document provided by a financial institution, such as a bank or credit union, that outlines the financial transactions and activities of an account over a specific period of time. It serves as a record of the account holder's financial interactions, including deposits, withdrawals, transfers, and other relevant details. What is a bank statement? Here are the key components in bank statement: Account information: A bank statement typically includes details about the account, such as the account holder's name, account number, and the period covered by the statement. Transaction history: It provides a comprehensive list of all financial transactions related to the account during the specified time period. Date of transactions: Each transaction is recorded with a date, allowing the account holder to track when specific activities occurred. Description of transactions: Alongside each transaction, there's typically a brief description or reference. This can include the payee's name, deposit source, or a transaction code indicating its nature. Interest and fees: Bank statements may also include information about interest earned on deposits or charged on loans, as well as any fees or charges associated with the account. Overdrafts and insufficient funds: If there are instances of overdrafts or insufficient funds, they will be clearly indicated on the statement, along with any associated fees. Bank statements are important documents for various financial and legal purposes. They can be used as proof of income, for tax reporting, in loan applications, and in legal proceedings. Example of a bank...
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### Average return
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/average-return/
Definition Average return refers to the mean rate of gain or loss on an investment over a specified period of time. It is a statistical measure used in finance to assess the performance of an investment or a portfolio. What is the average return? The average return is calculated using the following formula: Average return = ∑(Returns for each period) / number of periods It provides a single figure representing the typical return for a given investment. The time period used for calculating average return is crucial. It could be daily, monthly, annually, or any other relevant time frame depending on the nature of the investment. The average return does not provide information about the risk or volatility of an investment. Two investments with the same average return may have significantly different levels of risk. While average return provides a useful summary of historical performance, it does not indicate the sequence or timing of returns. Additionally, it does not account for compounding, which can significantly impact overall investment results. To get a more comprehensive view of investment performance, average return is often used in conjunction with other metrics. It's important to note that past average return is not necessarily indicative of future performance. Various external factors, market conditions, and economic events can significantly impact future returns. Example of average return Investment performance: Suppose an investor has invested in a stock over a period of five years. The annual returns for each year are as follows: 8%, 12%, -5%, 15%, and...
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### Asset-based lending
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/asset-based-lending/
Definition Asset-based lending is a form of business financing where a company secures a loan or line of credit using its assets as collateral. Unlike traditional loans that primarily rely on creditworthiness, asset-based lending is based on the value of the company's assets, such as accounts receivable, inventory, equipment, and real estate. What is asset-based lending? Here are the key components and points about asset-based lending: Collateral-centred: Asset-based lending centres on the value of a company's assets. Lenders evaluate their quality, liquidity, and marketability to determine the funding amount. Types of collateral: Accounts receivable: Unpaid invoices from customers are considered a common form of collateral. Lenders may advance a percentage of the total receivables' value. Inventory: Both finished goods and raw materials can be used as collateral. The lending amount is typically based on the inventory's current market value. Equipment and machinery: Tangible assets like machinery and equipment can be leveraged for financing. Real estate: Owned properties can be used as collateral, although this is more common in larger, long-term arrangements. Revolving line of credit: A common structure in asset-based lending is a revolving line of credit. This allows the borrower to take out funds up to a specified limit, repay, and use again, much like a business credit card. Interest rates and terms: Interest rates for asset-based lending tend to be higher than traditional loans, reflecting the risk involved. Flexibility and availability: Asset-based lending can be more flexible than other forms of financing. It is often used by companies...
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### Asset turnover ratio
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/asset-turnover-ratio/
Definition The asset revenue ratio is a financial metric used to evaluate a company's efficiency in generating revenue from its assets. It measures how effectively a company utilises its assets to generate sales or revenue. What is the asset revenue ratio? This ratio is calculated using the following formula: Asset revenue ratio = net sales or revenue / average total assets It indicates how much revenue is generated for every dollar invested in assets. The adequacy of the asset revenue ratio can vary significantly by industry. Different industries have different asset revenue norms, so it's important to compare a company's ratio to that of its peers. A high ratio may suggest that the company is effectively using its assets to generate sales, which is generally viewed positively. However, an extremely high ratio might indicate underutilised assets. Conversely, a low ratio could indicate inefficient use of assets, which may be a concern for investors and creditors. Investors look at this ratio to gauge the company's operational efficiency and effectiveness in utilising its resources. It can impact stock prices and influence investment decisions. While the asset revenue ratio is valuable, it's important to consider industry-specific factors and other financial metrics for a comprehensive evaluation of a company's operational efficiency. Example of asset revenue ratio Financial information: ABC Retail has the following financial information for the year: Net sales: R1,500,000 Beginning total assets: R800,000 Ending total assets: R1,200,000 Calculation of asset revenue ratio: The asset revenue ratio is calculated as: Average total assets...
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### Asset coverage ratio
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/asset-coverage-ratio/
Definition The asset coverage ratio is a financial metric used to assess a company's ability to cover its debts and obligations with its available assets. What is an asset coverage ratio? It's an important indicator of financial health, particularly for lenders and investors, as it provides insight into a company's capacity to meet its financial commitments. The asset coverage ratio is calculated using the following formula: Asset coverage ratio = total assets / total liabilities It measures how many times a company's assets could theoretically cover its liabilities. Lenders and creditors, such as banks or bondholders, are particularly interested in this ratio. It helps them assess the level of security they have in case the company faces financial difficulties. A higher asset coverage ratio indicates a stronger ability to cover liabilities. A ratio of 2 or higher is generally considered healthy, meaning the company's assets are at least twice the value of its liabilities. A lower ratio may signal higher financial risk, as it suggests that the company may have difficulty meeting its obligations if faced with financial challenges. While the asset coverage ratio is a valuable metric, it's important to use it in conjunction with other financial indicators for a comprehensive evaluation of a company's financial health. Additionally, it doesn't provide insight into the quality or liquidity of specific assets. Example of asset coverage ratio Financial information: XYZ Corporation has the following financial information on its balance sheet: Total assets: R2,000,000 Intangible assets: R200,000 Total debt: R800,000 Calculation of...
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### Asset
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/asset/
Definition An asset is a resource with economic value that is owned or controlled by an individual, corporation, or entity, and which is expected to provide future benefit. What is an asset? Assets can be physical, tangible items like real estate, vehicles, equipment, and inventory, or they can be intangible, representing non-physical rights or benefits, such as patents, trademarks, or goodwill. Here are some key characteristics and points about assets: Future benefits: Assets are expected to provide future benefits, either through generating revenue, reducing expenses, or increasing the value of the entity. Different types: Tangible Assets: Physical items like property, equipment, cash, and inventory. Intangible Assets: Non-physical rights, such as patents, copyrights, trademarks, and intellectual property. Current vs. non-Current: Assets are classified as either current (expected to be converted into cash or used up within one year) or non-current (expected to provide benefits over a longer period). Balance sheet representation: Assets are a crucial component of a company's balance sheet. They are listed on one side, with liabilities and equity on the other. Risk and return: Assets vary in risk and potential returns. Stocks can yield higher returns but are riskier than stable investments like government bonds. Importance in financial analysis: Knowing a company's assets is vital for assessing its financial health, ability to meet obligations, and overall value. Assets are fundamental to the financial health and operations of individuals, businesses, and organisations. They represent the resources that can be leveraged to generate income, fund operations, or support future growth...
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### Annual report
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/annual-report/
Definition An annual report is a document that provides a detailed overview of a company's financial performance, operations, and activities over the course of a year. What is an annual report Here are the key components of an annual report: Financial statements: These show the company's financial health, including income, expenses, assets, liabilities, and equity. Management discussion and analysis (MD&A): This part is written by the company's management and provides insights into financial results, trends, challenges, and future plans. Business overview: This section gives an in-depth look at the company's operations. It may cover its industry, products or services, market trends, competition, and strategic initiatives. Corporate governance: This part outlines the company's structure, policies, and procedures that guide its decision-making processes. Auditor's report: This is an external assessment of financial statements' accuracy and fairness. Letter to shareholders: Often written by the CEO or Chairman, this letter provides a summary of the company's performance, highlights key achievements, and outlines the strategic direction. Sustainability and corporate social responsibility (CSR): A section on the company's efforts related to environmental sustainability, social responsibility, and corporate citizenship. Market performance and stock information: This section includes data on the company's stock performance, trading volumes, and other relevant market data. Visuals and graphics: Annual reports often incorporate charts, graphs, and images to illustrate key points. Footnotes and disclosures: Offers extra context on specific financial figures and practices, including accounting methods and liabilities. Annual reports serve multiple purposes. They inform shareholders and potential investors about the company's financial...
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### Angel investors
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/angel-investors/
Definition An angel investor is an individual who provides capital to start-ups or small businesses in exchange for equity. What is an angel investor? These investors are typically entrepreneurs or retired business owners who are interested in investing in early-stage businesses with high growth potential, which may not be eligible for a traditional loan Many angel investors are not only sources of funding but also bring valuable industry experience, expertise, and networks to the businesses they invest in. Angel investing is considered high-risk, high-reward. Angel investors understand that a significant portion of their investments may not return, but they are willing to take the risk in a potentially successful startup. Many angel investments are made in businesses within the investor's local community or industry of expertise. Personal connections and local networks often play a significant role in angel investing. The amount invested by angel investors can vary widely, ranging from a few thousand dollars to several million, depending on the investor's wealth and the specific opportunity. Example of an angel investor InnovateTech's funding needs: InnovateTech, a technology startup, has developed a groundbreaking software application but requires additional funding to scale its operations. Angel investor's interest: Sarah, an experienced entrepreneur and investor, is interested in InnovateTech's potential and believes in the vision of the founders. She decides to become an angel investor and offers to invest R100,000 in exchange for a 10% equity stake in the company. Equity ownership: In return for her investment, Sarah now owns a 10% equity stake...
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### Advance payment
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/advance-payment/
Definition An advance payment, also known as a prepayment, is a financial transaction in which a payer provides funds to a payee before goods or services are delivered. This is typically done to secure a product or service in advance. What is an advance payment? The purpose is often to guarantee that a product or service will be provided by a specified date or to secure a spot in a queue for products or services in high demand. In financial statements, an advance payment is typically recorded as a liability for the payee until the goods or services are delivered. Overall, advance payments can be a mutually beneficial arrangement, as they provide assurance to both parties in a transaction. However, it's important for both parties to clearly understand and agree upon the terms and conditions related to the advance payment. Example of advance payment Service contract and advanced payment: On January 1st, XYZ Services enters into a service contract with ABC Corporation to provide consulting services throughout the year. The total agreed-upon fee for the services is R12,000, payable in advance. The accounting entry for the advanced payment is: Cash (Asset) = R12,000 Unearned revenue (Liability) = R12,000 This entry records the receipt of cash in advance from ABC Corporation and establishes a liability (Unearned Revenue) on XYZ Services' balance sheet, indicating that the company has an obligation to provide services in the future. Recognition of revenue: Throughout the year, XYZ Services provides consulting services to ABC Corporation in accordance...
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### Acid-test ratio
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/acid-test-ratio/
Definition The acid-test ratio, also known as the quick ratio, is a financial metric used to evaluate a company's ability to cover immediate financial obligations without relying on the sale of inventory. What is an acid-test ratio? The acid-test ratio is calculated using the following formula: Acid-test ratio = current asset - inventory / current liabilities Try our handy calculator today! Key points about the acid-test ratio: Focus on short-term liquidity: It specifically looks at a company's ability to meet its short-term obligations without relying on the sale of inventory. Stringent measure: By excluding inventory, the acid-test ratio provides a more conservative measure of a company's ability to cover its current liabilities. Ideal ratio: A ratio of 1 or higher is generally considered satisfactory. This means that the company has enough liquid assets to cover its current liabilities. Comparison and analysis: It's important to compare the acid-test ratio with industry benchmarks and the company's historical performance to get a sense of its financial health. Limitations: While the acid-test ratio provides valuable insights into short-term liquidity, it doesn't provide a complete picture of a company's overall financial health. Overall, the acid-test ratio is a valuable tool for assessing a company's ability to meet its short-term financial obligations, providing insights into its liquidity position and financial risk. Example of acid-test ratio Balance sheet information: ABC Retail's balance sheet, as of a specific date, shows the following relevant figures: Current assets: R100,000 Inventories: R20,000 Current liabilities: R40,000 Calculation of acid-test ratio: Using the...
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### Accrued revenue
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accrued-revenue/
Definition Accrued revenue refers to revenue that a company has earned but has not yet received in cash. It represents revenue that has been recognised on the books, but for which payment has not yet been received. This is an important concept in accrual accounting, where revenue is recognised when it is earned, not necessarily when it is received in cash. What is accrued revenue? A company records accrued revenue through an adjusting journal entry. It involves debiting (increasing) an accrued revenue asset account and crediting (increasing) a revenue account. Accrued revenue is important for accurate financial reporting. It ensures that financial statements reflect all revenue earned in a given period, even if cash hasn't been received yet. Accrued revenue is crucial for accurately representing a company's financial performance. It helps ensure that financial statements reflect the revenue the company has earned, even if the payment hasn't been collected yet. Example of accrued revenue Consulting services provided, not yet billed: On December 15th, XYZ Consulting provides consulting services to a client, ABC Corporation. The services are completed, but the invoice for the services, totalling R8,000, will be sent to the client in the next billing cycle. The accounting entry for the accrued revenue is: Accounts receivable (Asset) = R8,000 Consulting revenue (Revenue) = R8,000 This entry recognises the revenue for the consulting services even though the invoice has not been sent to the client. Billing the client: In January, XYZ Consulting sends the invoice to ABC Corporation for the consulting...
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### Accrued liability
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accrued-liability/
Definition Accrued liability refers to an expense that a company has incurred but has not yet paid. It represents an obligation to pay for goods or services that have been received, but for which payment has not yet been made. This is a common concept in accrual accounting. What is accrued liabilities? A company records an accrued liability through an adjusting journal entry. It involves debiting (increasing) an expense account and crediting (increasing) an accrued liabilities account. Accrued liabilities are important for accurate financial reporting. They ensure that financial statements reflect all expenses incurred in a given period, even if payments haven't occurred yet. Accrued liabilities are crucial for reflecting the true financial obligations of a company. They help ensure that financial statements accurately represent the company's financial position at any given point in time. Example of accrued liability Employee salaries accrual: At the end of the month, ABC Services has provided services to its clients, but the employees' monthly salaries, totalling R10,000, will be paid in the next month. The accounting entry for the accrued liability is: Salaries expense (Expense) = R10,000 Accrued liabilities (Liability) = R10,000 This entry recognises the expense of employee salaries in the current month, even though the actual payment will be made in the following month. Payment of accrued salaries: In the next month, ABC Services pays the employees their salaries of R10,000. The accounting entry for the payment is: Accrued Liabilities (Liability) = −R10,000 Cash (Asset) = R10,000 This entry reflects the reduction...
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### Accrued interest
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accrued-interest/
Definition Accrued interest refers to the interest that has been earned but not yet received or paid. It's an interest that has been recognised in the books but has not yet been physically exchanged between the parties involved. What is accrued interest? To record accrued interest, a company will typically make an adjusting journal entry, debiting (increasing) an interest expense account and crediting (increasing) an accrued interest liability account. Accrued interest is crucial for accurate financial reporting. It ensures that a company's financial statements reflect all the expenses incurred or revenue earned in a given period, even if cash transactions haven't taken place yet. Accrued interest is significant for both borrowers and lenders, as it helps ensure that financial statements accurately represent the financial position of a business at any given point in time. Example of accrued interest Loan issued: On January 1st, XYZ Loans issues a loan of R50,000 to a borrower. The loan has an annual interest rate of 6%, and interest is to be paid at the end of each quarter. The accounting entry for this transaction is: Loans receivable (Asset) = R50,000 At this point, there is no accrued interest recorded because it hasn't been earned yet. End of the first quarter: At the end of the first quarter, the borrower has not made an interest payment yet, but interest has been earned on the outstanding loan balance for the quarter. The accounting entry for the accrued interest is: Interest receivable (Asset) = R50,000 × (6%...
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### Accounting equation
- Published: 2023-10-12
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accounting-equation/
Definition The accounting equation, also known as the balance sheet equation, is a concept in accounting that forms the basis for recording financial transactions. It illustrates the relationship between a company's assets, liabilities, and owner's equity at any given point. What is accounting equation? To calculate accounting equation, use the following formula: Assets = liabilities + owner's equity The equation must always balance, meaning that the total value of the company's assets must equal the total of its liabilities plus owner's equity. This principle reflects the accounting principle of double-entry bookkeeping. The accounting equation is the foundation of financial accounting and is used to prepare the balance sheet, which is one of the three main financial statements that provide a snapshot of a company's financial health at a given time. Example of accounting equation Let's say a business, ABC Corporation, starts its operations. At the beginning, the company's financial position can be represented by the following transactions: ABC Corporation takes out a loan of R30,000 from a bank. Assets = R50,000 (Cash) + R20,000 (Equipment) Liabilities = R30,000 (Loan) Equity = R40,000 (Owner′sInvestment) The accounting equation is in balance: R70,000 = R30,000 + R40,000
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### Due diligence
- Published: 2023-09-05
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/due-dilligence/
Definition Due diligence is a comprehensive and systematic investigation or research process conducted by individuals, organisations, or businesses to gather relevant information and assess the risks and opportunities associated with a particular transaction, investment, or business decision. What is due diligence? The primary purpose of due diligence is to make informed and well-informed decisions while minimising potential risks. Due diligence can apply to various contexts, including business acquisitions, investments, legal matters, and financial transactions. Key aspects of due diligence typically include: 1. Information gathering: Collecting all relevant information related to the subject of the investigation. This may involve financial statements, contracts, legal documents, and other records. 2. Verification: Confirming the accuracy and authenticity of the information gathered. This can include verifying financial data, legal documentation, and the identities of individuals or entities involved. 3. Risk assessment: Evaluating the potential risks and liabilities associated with the transaction or decision. This involves identifying potential red flags, legal issues, financial risks, and operational concerns. 4. Financial analysis: Analysing the financial health and performance of a company or investment opportunity. This includes reviewing financial statements, cash flow projections, and financial ratios. 5. Legal review: Examining legal agreements, contracts, and any pending or historical legal disputes that may impact the decision. 6. Operational and strategic analysis: Assessing the operational aspects of a business, including its management, supply chain, technology, and market positioning. Strategic alignment with long-term goals is also considered. 7. Compliance check: Ensuring that the subject of due diligence complies with relevant laws, regulations,...
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### Zoning laws
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/zoning-laws/
Definition Zoning laws are local regulations that dictate how land and property can be used within a specific area or jurisdiction. What are zoning laws? These laws are established by municipal or local governments to manage urban planning and land development. Here are some key points about zoning laws: 1. Land use categories: - Zoning laws categorise land into different zones or districts, each with specific permitted uses and restrictions. Common zones include residential, commercial, industrial, and agricultural. 2. Purpose: - The primary purpose of zoning laws is to promote orderly and planned development within a community. They help prevent conflicting land uses and maintain the overall character of an area. 3. Regulation of activities: - Zoning laws govern various aspects of land use, including building heights, setbacks, lot sizes, parking requirements, and density limits. They may also address issues like noise levels, signage, and aesthetic standards. 4. Zoning boards and commissions: - Many municipalities have zoning boards or commissions responsible for administering and enforcing zoning regulations. These bodies may review applications for variances or special exceptions to zoning rules. 5. Zoning codes and ordinances: - Zoning laws are typically written in the form of codes or ordinances. These documents outline the specific regulations for each zoning district, including allowable uses, development standards, and any special conditions. 6. Zoning map: - Municipalities provide a zoning map that designates the zoning district for each parcel of land within their jurisdiction. Property owners can refer to this map to understand the applicable...
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### Zero-sum game
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/zero-sum-game/
Definition A zero-sum game is a situation in game theory and economics where one participant's gain or loss is exactly balanced by the losses or gains of other participants. What is zero-sum game? In other words, the total amount of wealth, resources, or utility remains constant, and any gain by one participant is offset by an equal loss by another participant. Here are some key points about zero-sum games: 1. Constant total value: - In a zero-sum game, the total value or wealth in the system remains the same before and after the interactions among participants. This means that any gain by one participant is matched by an equivalent loss by another. 2. Competitive nature: - Zero-sum games are typically characterised by competition, where one participant's success directly comes at the expense of another participant's failure. 3. Examples: - Some classic examples of zero-sum games include poker (where the total amount of money in play remains constant) and sports competitions (where one team's victory corresponds to another team's loss). 4. Zero-sum vs. non-zero-sum: - Contrastingly, in non-zero-sum games, it is possible for all participants to gain or lose collectively. Cooperative activities, trade, and negotiations often fall into this category. 5. Strict vs. non-strict zero-sum: - In a strict zero-sum game, the total gains and losses always add up to zero. In a non-strict zero-sum game, there can be slight variations due to factors like transaction costs or information asymmetry. 6. Application in economics: - In economics, the concept of a...
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### Zero-coupon bond
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/zero-coupon-bond/
Definition A zero-coupon bond is a type of bond that does not pay periodic interest (coupon payments) to the bondholder. Instead, it is sold at a discount to its face value, and the investor receives the face value of the bond when it matures. What are zero-coupon bonds? Here are some key points about zero-coupon bonds: 1. No periodic interest payments: - Unlike traditional bonds, zero-coupon bonds do not make regular interest payments to the bondholder. Instead, they are issued at a discount and pay out a lump sum at maturity. 2. Discounted purchase price: - Investors purchase zero-coupon bonds at a price below their face value. The discount represents the interest that would have been paid over the life of a traditional bond. 3. Face value at maturity: - When the bond reaches its maturity date, the issuer pays the bondholder the full face value, which is the amount the bond was originally intended to be worth. 4. Fixed maturity date: - Zero-coupon bonds have a fixed maturity date, at which point the bondholder receives the face value. The time to maturity is typically long-term, ranging from several years to several decades. 5. Implied yield: - The yield on a zero-coupon bond is implied by the difference between its purchase price and face value. This implied yield is the effective interest rate the investor earns over the life of the bond. 6. Less price volatility: - Zero-coupon bonds tend to have less price volatility compared to traditional bonds because...
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### Year-over-year (YOY)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/year-over-year-yoy/
Definition Year-over-year (YOY) is a financial metric used to compare a specific data point or performance measure in the current year to the same data point or measure in the previous year. What is year-over-year? Year-over-year is a useful tool for analysing trends and evaluating the growth or decline of various aspects of a business or economic activity over a one-year period. Here are some key points about year-over-year (YOY): 1. Comparison period: - YOY compares data from the same period in consecutive years. For example, comparing sales revenue for Q3 of this year to Q3 of the previous year. 2. Calculation: - The YOY percentage change is calculated as follows: YOY % change = ((current year data - previous year data) / previous year data) x 100 3. Positive and negative growth: - A positive YOY percentage indicates growth or an increase in the measured parameter compared to the previous year. Conversely, a negative YOY percentage indicates a decline or decrease. 4. Usage in business: - YOY comparisons are commonly used in various business metrics, including sales revenue, profit margins, customer acquisition, website traffic, and more. It provides a way to assess the effectiveness of strategies and initiatives. 5. Seasonal adjustments: - YOY comparisons can be adjusted for seasonal variations, especially in industries where there are significant seasonal fluctuations in business activity. This allows for a more accurate assessment of underlying trends. 6. Economic indicators: - YOY analysis is widely used in economic indicators, such as gross domestic product...
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### Working capital
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/working-capital-2/
Definition Working capital refers to the capital that a company uses in its day-to-day trading operations. It is the difference between a company's current assets and current liabilities. What is working capital? Here are some key points about working capital: 1. Current assets: - These are assets that are expected to be converted into cash or used up within one year. Examples include cash, accounts receivable, and inventory. 2. Current liabilities: - These are obligations or debts that are expected to be settled within one year. Examples include accounts payable, short-term debt, and accrued expenses. 3. Calculation: - Working capital is calculated using the formula: working capital = current Assets - current Liabilities. 4. Positive vs. negative working capital: - If a company's current assets exceed its current liabilities, it has positive working capital. This indicates that the company has enough liquid assets to cover its short-term obligations. Conversely, if current liabilities exceed current assets, the company has negative working capital, which may signal potential financial difficulties. 5. Importance: - Sufficient working capital is crucial for a company's day-to-day operations. It enables the company to meet its short-term obligations, pay bills, purchase inventory, and cover operating expenses. 6. Liquidity: - Working capital is a measure of a company's liquidity and its ability to cover short-term financial needs. A healthy level of working capital indicates that a company is well-positioned to handle its immediate financial commitments. 7. Cash flow management: - Effective management of working capital involves balancing the timing of...
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### Wealth management
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/wealth-management/
Definition Wealth management refers to the professional service of managing an individual's or a family's financial resources and investments. What is wealth management? It involves a comprehensive approach to financial planning and investment advisory, with the goal of achieving specific financial objectives and long-term wealth growth. Here are some key points about wealth management: 1. Holistic financial management: - Wealth management takes a comprehensive view of an individual's financial situation, including assets, liabilities, income, expenses, and long-term financial goals. 2. Personalised strategies: - Wealth managers work closely with clients to develop customised financial strategies that align with their specific goals, risk tolerance, and time horizon. 3. Investment advisory: - This is a central component of wealth management. It involves selecting and managing a diversified portfolio of investments, which may include stocks, bonds, real estate, alternative investments, and more. 4. Risk management: - Wealth managers assess and manage various types of risks, including market risk, credit risk, and liquidity risk. They aim to protect and preserve the client's wealth. 5. Estate planning: - This involves strategies for transferring wealth to heirs and beneficiaries while minimising taxes and ensuring the client's wishes are carried out. 6. Tax planning: - Wealth managers work to optimise tax efficiency in various financial transactions and investments, aiming to minimise tax liabilities. 7. Retirement planning: - Wealth management includes creating a plan to ensure a comfortable and secure retirement, considering factors like retirement age, income needs, and expected expenses. 8. Philanthropic giving: - Some clients engage in...
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### Warrant
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/warrant/
Definition A warrant is a financial instrument that gives the holder the right, but not the obligation, to buy a specific number of shares of a company's stock at a predetermined price before a certain expiration date. What is a warrant? Here are some key points about warrants: 1. Derivative security: - A warrant is a type of derivative security, meaning its value is derived from an underlying asset, which in this case is typically the stock of a company. 2. Issuer of warrants: - Warrants are often issued by companies as a way to raise additional capital. They can also be issued by financial institutions, governments, or other entities. 3. Exercise price: - The exercise price, also known as the strike price, is the price at which the warrant holder can buy the underlying stock. This price is predetermined and specified in the warrant. 4. Expiration date: - Warrants have a specified expiration date. This is the deadline by which the warrant must be exercised if the holder wishes to buy the underlying stock at the agreed-upon price. 5. Leverage: - Warrants provide leverage because they allow the holder to control a larger amount of stock for a relatively small initial investment. This means that the potential gains (or losses) from holding a warrant can be higher compared to owning the stock directly. 6. Call warrants vs. put warrants: - A call warrant gives the holder the right to buy the underlying stock, while a put warrant gives the...
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### Voluntary liquidation
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/voluntary-liquidation/
Definition Voluntary liquidation, also known as voluntary winding-up, is a formal process by which a company chooses to bring its operations to an end and distribute its assets among its creditors and shareholders. What is voluntary liquidation? This decision is typically made by the company's shareholders or directors when they believe that the company can no longer operate profitably or sustainably. Here are some key points about voluntary liquidation: 1. Initiation: - Voluntary liquidation can be initiated by a resolution passed by the company's shareholders or, in some cases, by the company's directors if allowed by the company's articles of association. 2. Reasons: - Companies may choose voluntary liquidation for various reasons, including financial insolvency, the completion of a specific project or venture, or a strategic decision to close down operations. 3. Liquidator appointment: - A liquidator is appointed to oversee the liquidation process. The liquidator can be a licensed insolvency practitioner or an individual with relevant qualifications and experience. 4. Notice to creditors and shareholders: - Notice of the liquidation must be given to both creditors and shareholders. This notification includes details about the liquidator's appointment and instructions for submitting claims. 5. Realisation of assets: - The liquidator's primary role is to identify, value, and realise the company's assets. This can involve selling physical assets, collecting outstanding debts, and winding down contracts. 6. Settlement of debts: - The proceeds from the sale of assets are used to settle the company's debts in a specific order of priority. This typically...
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### Volatility
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/volatility/
Definition Volatility, in finance, refers to the degree of variation or fluctuation in the price of a financial instrument, such as a stock, bond, commodity, or currency, over time. What is volatility? It is a measure of the level of uncertainty or risk associated with the investment. Here are some key points about volatility: 1. Price fluctuations: - Volatility reflects the extent to which the price of a financial asset moves up and down. High volatility implies that the price can change rapidly and dramatically, while low volatility suggests more stable price movements. 2. Standard deviation: - Volatility is often quantified using statistical measures, with one common metric being the standard deviation. It measures the dispersion of a set of data points from their mean. 3. Historical vs. implied volatility: - Historical volatility is calculated based on past price movements. Implied volatility, on the other hand, is derived from options prices and reflects market expectations for future volatility. 4. Market sentiment: - Volatility is influenced by various factors, including economic events, geopolitical developments, company news, and investor sentiment. Sudden changes in any of these factors can lead to increased volatility. 5. Risk and return: - Higher volatility is generally associated with higher risk, but it can also present opportunities for higher returns. Investors often weigh the potential for increased returns against the increased risk when making investment decisions. 6. Asset Classes: - Different types of financial instruments exhibit varying levels of volatility. For example, stocks are generally more volatile than...
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### Venture capital
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/venture-capital/
Definition Venture capital refers to a form of private equity investment that is provided to early-stage, high-potential companies with the aim of helping them grow and succeed. What is venture capital? Venture capital involves investors, often referred to as venture capitalists, providing funding to startups and small businesses in exchange for equity ownership or a stake in the company. Here are some key points about venture capital: 1. Early-stage financing: - Venture capital is typically provided to companies in their early stages of development, when they have innovative ideas or products but may not have generated substantial revenues yet. 2. High growth potential: - Venture capital is directed towards businesses that have the potential for rapid growth and expansion. These companies often operate in innovative or technology-driven industries. 3. Equity investment: - In exchange for their investment, venture capitalists receive equity or ownership shares in the company. This means they become partial owners and have a vested interest in the company's success. 4. Risk and return: - Venture capital investments are considered high-risk, high-reward. While there is a higher likelihood of failure for startups, successful ventures can offer substantial returns on investment. 5. Active involvement: - Venture capitalists often take an active role in the companies they invest in. They may provide strategic advice, industry contacts, and mentorship to help the business grow and succeed. 6. Exit strategy: - Venture capitalists typically aim for an exit strategy that allows them to realise a return on their investment. Common exit strategies...
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### Variable annuity
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/variable-annuity/
Definition A variable annuity is a type of retirement investment product offered by insurance companies. What is variable annuity? Annual annuity allows individuals to invest a lump sum or make periodic payments in exchange for a series of periodic payments in the future, typically during retirement. Here are some key points about variable annuities: 1. Investment component: - Unlike fixed annuities, which offer a guaranteed return, variable annuities allow individuals to invest in a range of underlying investment options, such as mutual funds or sub-accounts. 2. Market-linked returns: - The performance of a variable annuity's investments is tied to the financial markets. This means that the value of the annuity can fluctuate based on the performance of the chosen investment options. 3. Tax-deferred growth: - Earnings within a variable annuity grow tax-deferred. This means that individuals do not have to pay taxes on the gains until they begin withdrawing the funds. 4. Customisable investment choices: - Variable annuities typically offer a selection of investment options, allowing investors to choose a mix of stocks, bonds, and other assets based on their risk tolerance and investment goals. 5. Guaranteed minimum death benefit: - Many variable annuities come with a guaranteed minimum death benefit. This ensures that, in the event of the annuitant's death, a specified minimum amount will be paid out to the beneficiary. 6. Optional riders: - Variable annuities often offer optional riders (add-ons) for additional features, such as guaranteed income for life, enhanced death benefits, or long-term care benefits. These...
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### Value at risk (VaR)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/value-at-risk-var/
Definition Value at risk (VaR) is a statistical measure used in finance to estimate the potential loss that an investment portfolio, trading position, or a group of financial instruments may face over a specified time horizon for a given confidence interval. What is value at risk? Here are some key points about value at risk (VaR): 1. Definition: - VaR quantifies the level of financial risk within an investment portfolio. It represents the maximum amount of loss that can be expected over a defined period under normal market conditions. 2. Time horizon: - VaR is typically expressed over a specific time period, such as one day or one month. For example, a one-day VaR measures the potential loss over the next trading day. 3. Confidence interval: - VaR is associated with a confidence level, often expressed as a percentage (e. g. , 95% or 99%). A 95% VaR means there is a 5% chance that losses could exceed the estimated value. 4. Normal market conditions: - VaR assumes that market conditions follow a normal distribution, meaning it may not be as accurate in extreme or "tail" events that fall outside of this distribution. 5. Portfolio diversification: - VaR accounts for the diversification effect within a portfolio. A diversified portfolio with assets that do not move in perfect correlation will generally have a lower VaR. 6. Calculation methods: - There are various methods to calculate VaR, including historical simulation, variance-covariance, and Monte Carlo simulation. Each method has its own assumptions and...
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### Utility stocks
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/utility-stocks/
Definition Utility stocks refer to shares of companies that provide essential services to the public, such as electricity, water, and gas. What are utility stocks? These companies are typically regulated by government agencies and are known for their stable and predictable earnings. Here are some key points about utility stocks: 1. Essential Services: - Utility companies provide vital services that are considered necessities for households and businesses. These include the generation and distribution of electricity, gas, water, and sometimes even telecommunications. 2. Regulation: - Utilities are often subject to strict government regulation. This oversight helps ensure fair pricing, reliable service, and adherence to environmental and safety standards. 3. Monopoly or Oligopoly: - In many regions, utility services are provided by a limited number of companies, or even a single company, creating a regulated monopoly or oligopoly. This reduces competition but also helps maintain stable prices. 4. Steady Demand: - The demand for utility services tends to be stable and not highly sensitive to economic downturns. This makes utility stocks appealing to investors seeking more reliable income streams. 5. Income and Dividends: - Utility stocks are often known for their dividend-paying capabilities. Due to their stable cash flows, utility companies may distribute a significant portion of their earnings to shareholders in the form of dividends. 6. Defensive Investment: - Utility stocks are considered defensive investments. During economic downturns, consumers and businesses still require these essential services, providing a level of protection against economic volatility. 7. Capital Intensive: - The utility industry...
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### Unsecured loan
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/unsecured-loan/
Definition An unsecured loan is a type of loan that is not backed by collateral, such as a car or property. Instead, it is based solely on the borrower's creditworthiness and ability to repay. What is an unsecured loan? Here are some key points about unsecured loans: 1. No collateral requirement: - Unlike secured loans, which are backed by assets, unsecured loans do not require the borrower to provide any form of collateral. 2. Risk for lenders: - Since there is no collateral, unsecured loans are considered riskier for lenders. If the borrower defaults, the lender does not have a specific asset to seize as repayment. 3. Creditworthiness matters: - Lenders evaluate the borrower's credit history, credit score, income, employment status, and other financial factors to determine eligibility and interest rates. 4. Types of unsecured loans: - Common types of unsecured loans include personal loans, credit cards, student loans, and certain types of lines of credit. 5. Fixed or variable interest rates: - Unsecured loans can have either fixed or variable interest rates. A fixed rate remains constant over the life of the loan, while a variable rate may change based on market conditions. 6. Shorter loan terms: - Unsecured loans typically have shorter repayment periods compared to secured loans. They are often used for smaller, more immediate financing needs. 7. Higher interest rates: - Due to the increased risk for lenders, unsecured loans generally have higher interest rates compared to secured loans. 8. Flexible use of funds: - Borrowers...
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### Unit trust
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/unit-trust/
Definition A unit trust, also known as a mutual fund in some regions, is a collective investment scheme where investors pool their money together to invest in a diversified portfolio of assets, such as stocks, bonds, or other securities. What is a unit trust? The fund is managed by a professional fund manager or investment company. Here are some key points about unit trusts: 1. Collective investment: - A unit trust pools together funds from multiple investors to create a larger investment pool. This allows individuals to access a diversified portfolio that they might not be able to afford on their own. 2. Diversification: - Unit trusts invest in a wide range of assets, which helps spread risk. This diversification reduces the impact of poor performance by any single investment. 3. Professional management: - A dedicated fund manager or team of managers makes investment decisions on behalf of the investors. They conduct research, make asset allocations, and manage the portfolio to achieve the fund's objectives. 4. Liquidity: - Investors can typically buy or sell units (shares) in the fund on any business day. This provides liquidity and flexibility in managing investments. 5. Unitisation: - The fund's assets are divided into units, and investors purchase these units. The value of a unit is determined by the total value of the fund's assets divided by the total number of units outstanding. 6. Income distribution: - Unit trusts often distribute income earned from the underlying investments to unit holders, usually in the form...
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### Underwriting
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/underwriting/
Definition Underwriting is a financial process commonly used in insurance and securities industries. It involves assessing and assuming risk on behalf of a client, typically for a fee. What is underwriting? Here are some key points about underwriting: 1. Risk assessment: - Underwriting involves evaluating the risk associated with insuring a person, property, or providing financial coverage for a specific event. 2. Insurance industry: - In the insurance industry, underwriters evaluate insurance applications to determine the level of risk an insurer is willing to take on and the premium that should be charged. 3. Securities industry: - In the securities industry, underwriters assess the risk of issuing new securities, such as stocks or bonds, and set the terms and conditions for their sale. 4. Due diligence: - Underwriters conduct thorough due diligence to gather information about the entity or individual seeking coverage. This may include financial records, medical history, or other relevant data. 5. Setting premiums or pricing securities: - Based on the risk assessment, underwriters determine the appropriate premium for insurance policies or the initial offering price for securities. 6. Risk acceptance or rejection: - After assessment, underwriters decide whether to accept or reject an application for insurance coverage, or whether to proceed with the underwriting of securities. 7. Risk mitigation: - Underwriters may also recommend risk mitigation measures, such as higher premiums or specific conditions, to minimise potential losses. 8. Market conditions: - In the securities industry, underwriters consider market conditions, investor demand, and other factors when pricing...
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### Treasury bonds
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/treasury-bonds/
Definition A treasury bond, often referred to as a T-bond, is a type of debt security issued by a government, specifically the government's treasury department. What are treasury bonds? It is considered one of the safest investments because it is backed by the full faith and credit of the government. Here are some key points about treasury bonds: 1. Government debt instrument: - A treasury bond is a form of government debt where the investor lends money to the government for a specified period. 2. Fixed interest payments: - Treasury bonds pay periodic interest to bondholders, usually every six months, at a fixed interest rate known as the coupon rate. 3. Maturity date: - Each treasury bond has a specific maturity date, which is the date when the government agrees to repay the principal amount to the bondholder. 4. Long-term investment: - Treasury bonds typically have longer maturity periods, often ranging from 20 to 30 years. This makes them suitable for investors seeking long-term, stable returns. 5. Low risk: - Treasury bonds are considered very low risk because they are backed by the full faith and credit of the issuing government. This means the risk of default is extremely low. 6. Marketability: - Treasury bonds are highly marketable and can be bought and sold on the secondary market. This provides investors with liquidity if they need to sell before maturity. 7. No default risk: - Since they are backed by the government, there is no risk of the issuer defaulting...
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### Trading platform
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/trading-platform/
Definition A trading platform is a software or digital interface provided by financial institutions or brokers that allows investors and traders to execute transactions in financial markets. What is a trading platform? It serves as a virtual marketplace where various financial instruments, such as stocks, bonds, commodities, currencies, and derivatives, can be bought or sold. Here are some key points about trading platforms: 1. Digital interface: - A trading platform provides an online environment where users can access financial markets and execute trading orders. 2. Order execution: - It facilitates the process of placing, managing, and executing buy and sell orders for various financial instruments. 3. Real-time market data: - Trading platforms provide real-time information on market prices, including bid and ask prices, trading volume, and other relevant data. 4. Charting and analysis tools: - Many trading platforms offer tools for technical and fundamental analysis, including charts, indicators, and financial news feeds to assist traders in making informed decisions. 5. Security and authentication: - Trading platforms incorporate security measures to protect user accounts and ensure secure transactions, including encryption protocols and multi-factor authentication. 6. Order types: - They support various types of orders, such as market orders, limit orders, stop orders, and more complex strategies like trailing stops and conditional orders. 7. Accessibility: - Trading platforms can be accessed via desktop applications, web browsers, and mobile apps, allowing users to trade from different devices. 8. Asset classes: - They cover a wide range of asset classes, including equities, bonds, commodities,...
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### Time value of money (TVM)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/time-value-of-money-tvm/
Definition The time value of money (TVM) is a fundamental concept in finance that describes the idea that money available today is worth more than the same amount of money in the future. This is because money has the potential to earn returns or interest over time. Conversely, receiving a sum of money in the future is less valuable than receiving it in the present. What is time value of money? Here are some key points about the time value of money: 1. Future value (FV): - Future value is the value of an investment or sum of money after a specified period, assuming it earns interest or experiences growth. 2. Present value (PV): - Present value is the current value of a future sum of money, discounted at an appropriate interest rate. It represents what a future sum is worth in today's terms. 3. Interest rates: - Interest rates play a crucial role in TVM. Higher interest rates generally lead to higher future values and lower present values. 4. Compounding: - Compounding refers to the process of earning interest on both the initial amount of money (the principal) and the accumulated interest from previous periods. 5. Discounting: - Discounting is the process of reducing the value of a future sum of money to its present value. It involves applying an appropriate discount rate. 6. Time periods: - The length of time involved significantly affects the time value of money. The longer the time period, the more pronounced the effect...
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### Technical analysis
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/technical-analysis/
Definition Technical analysis is a method used in financial markets to evaluate and forecast the future price movements of securities, such as stocks, currencies, or commodities. What is a technical analysis? A technical analysis relies on the examination of historical price and volume data, as well as other market indicators, to identify trends and patterns that can provide insights into potential future price movements. Here are some key points about technical analysis: 1. Price data focus: - Technical analysis primarily focuses on studying historical price data, including open, high, low, and closing prices of a security. 2. Charting techniques: - Charts, such as line charts, bar charts, and candlestick charts, are commonly used tools in technical analysis. They visually represent price movements over a specific time period. 3. Patterns and trends: - Analysts look for recurring patterns and trends in the price data. These patterns may indicate potential buy or sell signals. 4. Support and resistance levels: - Support levels represent prices at which security tends to find buying interest, preventing it from falling further. Resistance levels, on the other hand, represent prices at which selling interest tends to emerge. 5. Moving averages: - Moving averages are calculated by averaging the past prices of a security over a specific period. They help smooth out short-term fluctuations and identify potential trend changes. 6. Technical indicators: - These are mathematical calculations based on historical price and volume data. Examples include relative strength index (RSI), moving average convergence divergence (MACD), and stochastic oscillator....
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### Target date fund
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/target-date-fund/
Defintion A target date fund, also known as a lifecycle or retirement fund, is a type of investment fund that is designed to provide a simple, long-term investment strategy for individuals planning for retirement. What is a target date fund These funds are structured to automatically adjust their asset allocation over time, becoming more conservative as the target date (usually a retirement year) approaches. Here are some key points about target date funds: Long-term investment strategy: Target date funds are intended for long-term investors, typically those saving for retirement. Asset allocation adjustments: The fund's asset allocation is initially more aggressive, with a higher proportion of equities (stocks) for potential growth. As the target date nears, the allocation shifts towards more conservative investments like bonds and cash. Diversification: These funds are diversified across various asset classes, such as domestic and international stocks, as well as bonds. Risk tolerance consideration: Target date funds are structured to match a typical investor's risk tolerance at different stages of their life. Younger investors with a longer time horizon have a higher risk tolerance, while those nearing retirement tend to prefer lower risk. Automatic rebalancing: The fund manager periodically adjusts the asset allocation to align with the target date's investment objectives. This rebalancing is done automatically, sparing investors from the need to make manual adjustments. Simplified approach: Target date funds offer a straightforward investment strategy, making them suitable for investors who may not have the expertise or desire to actively manage their investments. Customised target dates:...
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### Stock split
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/stock-split/
Definition A stock split is a corporate action in which a company divides its existing shares into multiple shares. What is a stock split? A stock split effectively increases the number of shares available in the market while reducing the price of each share proportionally. The total market capitalisation (value of the company) remains the same. Here are some key points about stock splits: Increase in Number of Shares: In a stock split, each existing share is divided into multiple shares. Common splits include 2-for-1 (each share becomes two shares), 3-for-1, or other ratios. Proportional Reduction in Share Price: As the number of shares increases, the price per share decreases proportionally. For example, in a 2-for-1 split, if a share was priced at R100 before the split, it will be priced at R50 after the split. Maintains Total Market Value: The total market capitalisation of the company (the total value of all shares) remains the same after a stock split. The split does not affect the overall value of investors' holdings. Liquidity and Accessibility: Stock splits can make shares more affordable to a wider range of investors. This can potentially increase liquidity and trading activity. Psychological Impact: Stock splits are often perceived positively by investors. Some may see it as a sign of confidence from the company's management in the future prospects of the business. No Impact on Company's Financials: A stock split does not change the fundamentals of the company. Earnings, assets, and liabilities remain the same on a...
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### Stock market
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/stock-market/
Definition The stock market, also known as the equity market, is a financial marketplace where buying, selling, and issuance of shares of publicly-held companies take place. What is a stock market? A stock market is a crucial component of the global financial system and serves as a platform for companies to raise capital and for investors to buy ownership stakes in those companies. Here are some key points about the stock market: Platform for trading: The stock market provides a platform for the trading of financial instruments, primarily shares or stocks. Ownership in companies: When individuals or institutional investors buy shares, they acquire partial ownership in the company. This ownership stake entitles them to a portion of the company's assets and profits. Primary and secondary markets: The stock market is divided into the primary market, where companies issue new shares to raise capital, and the secondary market, where previously issued shares are bought and sold between investors. Market participants: Participants in the stock market include individual investors, institutional investors (such as mutual funds, pension funds, and hedge funds), traders, and companies. Exchanges and over-the-counter (OTC) markets: Stock exchanges like the New York Stock Exchange (NYSE) and NASDAQ are physical or electronic platforms where shares are bought and sold. OTC markets are less formal and involve direct trading between parties. Market indices: Market indices, such as the S&P 500, FTSE 100, and Nikkei 225, track the performance of a select group of stocks and are used to gauge the overall health...
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### Short selling
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/short-selling/
Definition Short selling is a trading strategy used in financial markets where an investor, typically believing that the price of a particular asset will decline, borrows that asset (often stocks) from a broker and sells it on the open market. What is short selling? The goal of this strategy is to buy back the asset at a lower price, return it to the broker, and pocket the difference as profit. Here are some key points about short selling: Borrowing the asset: The investor borrows the asset from a broker, often paying a fee for this borrowing arrangement. Selling on the market: After borrowing, the investor immediately sells the asset in the stock market. Profit from price decline: The investor hopes that the price of the asset will decrease. If it does, they can buy it back at a lower price later. Buying back and returning: Once the price has fallen to the desired level, the investor repurchases the asset in the market. This is known as "covering" the short position. Return to broker: The investor returns the asset to the broker, effectively closing the short position. Potential for losses: Short selling can be risky because if the price of the asset rises instead of falling, the investor may incur losses. In theory, there's no limit to how high the price can go. Margin requirements: Brokers often require investors to maintain a certain level of funds in their account (known as margin) to cover potential losses. Regulatory oversight: Short selling is...
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### Securities and exchange commission (SEC)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/securities-and-exchange-commission-sec/
Definition The Securities and Exchange Commission (SEC) is a regulatory agency in the United States responsible for overseeing and enforcing federal securities laws. What is the Securities and Exchange Commission? It was established in 1934 as a response to the stock market crash of 1929 and the subsequent Great Depression. Here are some key points about the SEC: 1. Regulatory authority: - The SEC is tasked with regulating the securities industry, which includes stocks, bonds, and other financial securities. It aims to ensure fair and transparent financial markets. 2. Enforcement of laws: - The SEC enforces various securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require companies to disclose certain financial information to the public. 3. Investor protection: - One of the primary missions of the SEC is to protect investors. It does so by ensuring that investors receive accurate and complete information about securities, and by taking action against fraudulent or misleading practices. 4. Disclosure requirements: - The SEC mandates that companies provide detailed and regular financial reports to the public. This includes information about their financial condition, operations, and management. 5. Oversight of exchanges: - The SEC oversees securities exchanges like the New York Stock Exchange (NYSE) and the NASDAQ stock market. It sets rules and standards for these exchanges to maintain fair and orderly trading. 6. Registration of securities: - Companies looking to issue securities to the public are required to register with the SEC. This process involves...
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### Savings account
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/savings-account/
Definition A savings account is a type of bank account designed for individuals to securely deposit and store their money while earning a modest amount of interest. What is a savings account? A savings account is one of the most basic and common types of accounts offered by banks and financial institutions. Here are some key points about savings accounts: Purpose: The primary aim of a savings account is to provide a safe place for individuals to hold their money. It is well-suited for short to medium-term savings goals. Interest Earnings: Savings accounts generally yield interest on deposited funds. Although the interest rates are typically lower than other investment options, they offer a secure means to grow savings over time. Accessibility: Savings accounts offer easy access to deposited funds, allowing account holders to deposit and withdraw money with convenience. There are no fixed terms, making them suitable for emergency funds or immediate financial needs. Safety and Security: Savings accounts are protected by government-backed programs, providing safeguarding in the event of a bank failure. Minimum Balance: Some banks may require a minimum balance to open and maintain a savings account. This requirement can vary depending on the bank and type of account. No Risk of Loss: Unlike investments in stocks or other financial instruments, savings accounts do not carry any risk of loss of principal. The money deposited is protected. Withdrawal Limits: Savings accounts may have limits on the number of withdrawals or transfers that can be made within a certain...
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### Roth IRA
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/roth-ira/
Definition A roth individual retirement account (IRA) is a type of retirement savings account that offers tax advantages to individuals in the United States. It is named after Senator William Roth who was instrumental in creating this retirement savings option. What is Roth IRA? Here are some key points about roth IRAs: 1. Tax treatment:- Contributions to a roth IRA are made with after-tax dollars, meaning they are not tax-deductible. However, qualified withdrawals, including earnings, are tax-free. 2. Eligibility:- To contribute to a roth IRA, individuals must have earned income (e. g. , wages, salary, self-employment income). There are also income limits that determine eligibility for making contributions. 3. Contribution limits:- There are annual contribution limits set by the IRS. These limits may change over time due to inflation adjustments. 4. Withdrawal rules:- Contributions to a Roth IRA can be withdrawn at any time without penalty. However, earnings can be withdrawn tax-free only after meeting certain conditions, such as being at least 59 ½ years old and having the account open for at least five years. 5. No required minimum distributions (RMDs):- Unlike traditional IRAs, roth IRAs do not have required minimum distributions (RMDs) during the account holder's lifetime. This means you are not required to withdraw a certain amount each year after reaching a certain age. 6. Investment options:- Roth IRAs can hold a variety of investments including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and other assets. 7. Flexibility:- Roth IRAs offer more flexibility in terms of withdrawals...
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### Risk management
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/risk-management/
Definition Risk management is the process of identifying, assessing, and mitigating potential risks or uncertainties that could impact an organisation's objectives or projects. What is risk management? Risk management involves the systematic identification of risks, evaluation of their potential impact, and implementation of strategies to minimise or control them. The goal of risk management is to enable organisations to make informed decisions and navigate challenges effectively. Here are some key points about risk management: 1. Identification of risks: - This involves recognising and understanding potential events or situations that could have an adverse effect on an organisation. Risks can arise from various sources, including financial, operational, regulatory, environmental, and strategic factors. 2. Risk assessment: - Once risks are identified, they are evaluated based on their likelihood of occurrence and potential impact on the organisation. This assessment helps prioritise risks and allocate resources for mitigation. 3. Risk mitigation strategies: - Risk mitigation involves developing and implementing strategies to reduce the likelihood or impact of identified risks. This can include preventive measures, contingency plans, or transfer of risk through business insurance. 4. Monitoring and review: - Risk management is an ongoing process. It requires continuous monitoring of existing risks, as well as identifying new risks that may emerge over time. Regular reviews of risk management strategies are essential to ensure they remain effective. 5. Risk tolerance and appetite: - Organisations have varying levels of tolerance for risk. Some may be more risk-averse, while others may be more willing to take on higher...
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### Revenue recognition
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/revenue-recognition/
Definition Revenue recognition is an accounting principle that outlines the conditions under which a company can recognise revenue from the sale of goods or services. What is revenue recognition? Revenue recognition specifies when and how revenue should be recorded in a company's financial statements. Proper revenue recognition is crucial for providing an accurate representation of a company's financial performance. Here are some key points about revenue recognition: 1. Recognition criteria: - Revenue is typically recognised when it is earned and realisable, meaning that the product or service has been delivered or provided to the customer, and payment is reasonably assured. 2. Accrual basis accounting: - Revenue recognition is a fundamental aspect of accrual basis accounting, which records transactions when they occur rather than when cash changes hands. 3. Performance obligations: - In some cases, revenue recognition may be tied to the completion of specific performance obligations outlined in a contract with a customer. 4. Multiple performance obligations: - In complex transactions involving multiple goods or services, revenue recognition may be allocated to different components based on their individual standalone value. 5. Contract costs: - Costs incurred to fulfil a contract (such as production costs) are recognised separately from revenue and are expensed as incurred, unless they meet certain criteria for capitalisation. 6. Impact of uncertainty: - When there is uncertainty surrounding the collection of payment, revenue may be recognised only to the extent that it is probable the company will collect. 7. Long-term contracts: - For long-term contracts, revenue recognition...
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### Return on investment (ROI)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/return-on-investment-roi/
Definition ROI stands for return on investment. It is a financial metric used to evaluate the profitability or efficiency of an investment. What is return on investment? ROI measures the gain or loss generated from an investment relative to the amount of money invested. It is expressed as a percentage. Here's how ROI is calculated: ROI = (net profit from investment / cost of investment) x 100 Use our return on investment calculator to help you. Here are some key points about ROI: 1. Profitability measure: ROI assesses how effectively an investment is at generating profit. A higher ROI indicates a more profitable investment. 2. Versatility: ROI can be applied to various types of investments, including stocks, real estate, businesses, marketing campaigns, and more. 3. Relative metric: ROI is a relative metric, meaning it provides a comparison between the returns and the initial investment. It doesn't provide an absolute measure of profitability. 4. Time frame consideration: ROI calculations can be based on different time frames, depending on the nature of the investment. For example, it can be calculated annually, quarterly, or for the entire duration of the investment. 5. Risk consideration: ROI does not account for risk. It doesn't measure the potential level of risk or the likelihood of achieving the expected return. 6. Decision making Tool: ROI is a valuable tool for investors, businesses, and individuals to evaluate the potential returns of an investment and compare it to other opportunities. 7. Negative ROI: A negative ROI indicates that the...
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### Real estate investment trust (REIT)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/real-estate-investment-trust-reit/
Definition A real estate investment trust (REIT) is a type of investment vehicle that allows individuals to invest in a diversified portfolio of income-producing real estate assets. What is a real estate investment trust? REITs are companies or trusts that own, operate, or finance income-producing real estate across various sectors, such as residential, commercial, retail, or industrial properties. Here are some key points about real estate investment Trusts (REITs): 1. Income-generating properties: REITs primarily invest in properties that generate rental income, such as apartment buildings, office complexes, shopping centres, hotels, and warehouses. 2. Special tax status: To qualify as a REIT, a company or trust must meet specific criteria set by tax authorities. In return, they are generally not subject to federal income tax, provided they distribute at least 90% of their taxable income to shareholders in the form of dividends. 3. Liquidity and accessibility: REITs are traded on major stock exchanges, providing investors with a liquid way to invest in real estate without the need to directly buy and manage physical properties. 4. Diversification: Investing in a REIT provides exposure to a diversified portfolio of real estate assets, which can spread risk compared to owning a single property. 5. Types of REITs: - Equity REITs: These primarily own and operate income-producing real estate. They generate revenue from rental income and potentially capital appreciation. - Mortgage REITs (MREITs): These invest in mortgages or mortgage-backed securities, and their income comes from the interest on the loans. They may also benefit from...
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### Profit margin
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/profit-margin/
Definition Profit margin is a financial metric that represents the percentage of revenue a company retains as profit after all costs and expenses are deducted. What is a profit margin? A profit margin is a key indicator of a company's profitability and is used to assess its operational efficiency and financial health. Here are some key points about profit margin: 1. Calculation: - Profit margin = (net profit / revenue) x 100 - Net profit is the total revenue minus all expenses, including operating costs, taxes, interest, and other costs. 2. Types of profit margin: - Gross profit margin: This measures the profitability of a company's core operations by subtracting the cost of goods sold (COGS) from revenue, and then dividing it by revenue. - Operating profit margin: Also known as operating margin, this takes into account operating expenses such as salaries, rent, and utilities, in addition to COGS. - Net profit margin: This is the most comprehensive measure and includes all expenses, including taxes and interest. 3. Interpretation: - A higher profit margin indicates that a company is able to retain a larger portion of its revenue as profit. This is generally seen as a positive sign of financial health. 4. Comparison: - Profit margins are often compared within an industry or sector to evaluate a company's performance relative to its peers. 5. Trends and analysis: - Changes in profit margin over time can provide insights into a company's financial performance and management effectiveness. 6. Industry specifics: - Different...
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### Private equity
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/private-equity/
Definition Private equity refers to a form of investment in which funds are used to acquire, invest in, or provide financing for privately held companies or businesses. What is private equity? These investments are typically made by private equity firms, which are specialised financial institutions that manage funds dedicated to private equity investments. Here are some key points about private equity: 1. Investment in unlisted companies: Private equity involves investing in companies that are not publicly traded on stock exchanges. These companies may be in various stages of development, from startups to more established businesses. 2. Long-term investment horizon: Private equity investments often have a longer investment horizon compared to publicly traded stocks. Investors may hold their positions for several years before exiting the investment. 3. Active involvement: Private equity firms often take an active role in managing and overseeing the companies they invest in. This may involve implementing operational improvements, strategic planning, and other value-adding initiatives. 4. Types of investments: - Buyouts: Private equity firms may acquire a controlling stake in a company, often with the goal of restructuring or growing the business before eventually selling it for a profit. - Venture capital: This form of private equity focuses on providing early-stage funding to startups and small companies with high growth potential. - Mezzanine financing: This involves providing a combination of debt and equity to a company, often in the form of subordinated loans or preferred equity. 5. Risk and return: Private equity investments can be high-risk, high-reward. While...
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### Principal
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/principal/
Definition Principal refers to the original sum of money that is invested, borrowed, or lent. It is the initial amount before any interest, gains, or losses are factored in. What is a principal? In various financial contexts, "principal" can have different meanings: 1. Investments: In investments, the principal is the initial amount of money that is invested. For example, if you invest R1,000 in a stock, the R1,000 is the principal. 2. Loans and debt: When you borrow money, the principal is the original amount you borrowed. For example, if you take out a R5,000 loan, the R5,000 is the principal amount. 3. Bonds: In the context of bonds, the principal is the face value of the bond. It is the amount that will be repaid to the bondholder at the bond's maturity date. 4. Mortgages: In a personal or commercial mortgage loan, the principal is the initial amount borrowed to purchase a home. Over time, as you make mortgage payments, a portion of the payment goes towards reducing the principal, while the rest covers interest and possibly other costs. 5. Savings and investments: In savings accounts or investment products, the principal refers to the initial amount of money you deposit or invest. Any interest or returns earned are typically calculated based on this initial sum. 6. Derivatives: In the context of derivatives, such as options or futures contracts, the principal can refer to the amount of money required to establish a position. For example, in a futures contract, the...
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### Price-earnings ratio (P/E)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/price-earnings-ratio-p-e/
Defintion The price-earnings ratio (P/E ratio) is a financial metric used to evaluate the relative value of a company's stock in relation to its earnings. What is a price-earnings ratio? It is calculated by dividing the current market price of a company's stock by its earnings per share (EPS). The P/E ratio is a widely used tool for investors to assess how much they are paying for each dollar of earnings generated by the company. Here are some key points about the P/E ratio: 1. Calculation: - The P/E ratio is calculated using the following formula: P/E ratio = (market price per share) / (earnings per share) 2. Interpretation: - A high P/E ratio suggests that investors have high expectations for future earnings growth. This can indicate that the stock may be overvalued. - A low P/E ratio may suggest that the stock is undervalued, but it could also mean that the market has lower growth expectations for the company. 3. Earnings per share (EPS): - EPS is the portion of a company's profit allocated to each outstanding share of common stock. It is a measure of a company's profitability on a per-share basis. 4. Forward P/E vs. trailing P/E: - Trailing P/E uses the company's actual earnings over the past year. - Forward P/E uses projected or estimated earnings for the next year. 5. Comparative analysis: - Investors often compare the P/E ratio of a company to those of similar companies in the same industry or sector. This can...
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### Portfolio
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/portfolio/
Definition A portfolio refers to a collection of financial assets, investments, or holdings owned by an individual, institution, or entity. These assets can include a wide range of financial instruments, such as stocks, bonds, mutual funds, real estate, commodities, and more. What is a portfolio? The purpose of a portfolio is typically to achieve specific financial objectives, such as capital appreciation, income generation, or risk diversification. Here are some key points about portfolios: 1. Diversification: One of the primary goals of creating a portfolio is to spread investments across different asset classes, industries, or geographic regions. This helps to reduce risk by not being overly reliant on the performance of a single investment. 2. Asset allocation: Determining how to distribute investments among different types of assets is a crucial aspect of portfolio management. This decision is based on factors like risk tolerance, investment horizon, and financial goals. 3. Risk and return: Portfolios are constructed to balance the trade-off between risk and return. Some investments may offer higher potential returns but come with greater risk, while others may offer more stability but with potentially lower returns. 4. Active vs. passive management: Portfolios can be actively managed, meaning that investment decisions are actively made by a portfolio manager or investor. Alternatively, they can be passively managed, where the portfolio aims to replicate the performance of a specific index or benchmark. 5. Rebalancing: Over time, the performance of different assets in a portfolio may deviate from the original allocation. Periodic rebalancing involves adjusting...
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### Over-the-counter (OTC)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/over-the-counter-otc/
Definition Over-the-Counter (OTC) refers to the decentralised market for trading financial instruments directly between parties, without a centralised exchange or intermediary. What is over-the-counter? In an OTC market, buyers and sellers negotiate and execute transactions directly with each other, often using electronic trading platforms, phone calls, or other means of communication. Here are some key points about the OTC market: 1. Types of instruments: The OTC market encompasses a wide range of financial instruments, including stocks, bonds, derivatives, currencies, commodities, and other securities. 2. Lack of centralised exchange: Unlike exchanges like the New York Stock Exchange (NYSE) or NASDAQ, which have physical locations and standardised procedures for trading, the OTC market operates electronically or through direct communication between parties. 3. Customisation: OTC transactions can be highly customised to meet the specific needs of the parties involved. This allows for more flexibility in terms of contract terms, quantities, and other aspects. 4. Less regulation: OTC markets are generally subject to fewer regulatory requirements compared to centralised exchanges. This can lead to greater privacy and less transparency in OTC transactions. 5. Counterparty risk: Since OTC trades occur directly between parties, there is a higher level of counterparty risk. This is the risk that one party may default on their obligations, potentially leading to financial losses for the other party. 6. Market makers: In the OTC market, there are often market makers who facilitate trading by providing liquidity. These are typically financial institutions or brokers that stand ready to buy or sell a...
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### Options
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/options/
Defintion Options are financial instruments that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price (known as the strike price) on or before a certain date (known as the expiration date). The buyer of the option pays a premium to the seller for this right. What are options? There are two main types of options: 1. Call options: - A call option gives the holder the right to buy the underlying asset at the specified strike price before or on the expiration date. - Call options are typically used when the investor expects the price of the underlying asset to rise. 2. Put options: - A put option gives the holder the right to sell the underlying asset at the specified strike price before or on the expiration date. - Put options are usually used when the investor anticipates the price of the underlying asset to fall. Here are some key points about options: 1. Expiration date: Options have a specific expiration date. After this date, the option becomes worthless, and the holder loses the right to exercise it. 2. Strike price: This is the price at which the underlying asset can be bought (for a call option) or sold (for a put option) if the option is exercised. 3. Premium: The buyer of the option pays a premium to the seller (also known as the writer) for the rights provided by the option. This premium is the cost...
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### Operating income
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/operating-income/
Definition Operating income, also known as operating profit or operating earnings, is a key financial metric that represents the profit a company generates from its core business operations. What is an operating income? The operating income reflects the income derived from a company's primary activities before considering interest expenses and taxes. Here are some key points about operating income: 1. Core business activities: Operating income excludes income from non-operating sources, such as investments, interest, and one-time gains or losses. It focuses solely on the revenue and expenses directly related to the company's primary operations. 2. Calculation: Operating income is calculated by subtracting the operating expenses (such as cost of goods sold, selling, general and administrative expenses) from the gross income. The formula is: Operating income = gross income - operating expenses 3. Key component of income statement: Operating income is a prominent line item in a company's income statement (also known as profit and loss statement). It provides insight into the profitability of a company's core operations. 4. Margin analysis: Operating income margin is a useful ratio that expresses operating income as a percentage of total revenue. It indicates how efficiently a company is able to convert its sales into profit before interest and taxes. 5. Assessment of operational efficiency: A positive operating income indicates that a company's core operations are profitable. It's an important measure for evaluating the efficiency and profitability of a company's day-to-day business activities. 6. Use in financial analysis: Investors and analysts often use operating income...
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### Open market operations
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/open-market-operations/
Definition Open market operations (OMOs) are one of the tools used by central banks to influence and manage the money supply and interest rates in an economy. What are open market operations? Open market operations involve the buying and selling of government securities (such as bonds) in the open market. Here's how open market operations work: 1. Buying securities: When a central bank wants to increase the money supply in the economy, it conducts open market operations by buying government securities from banks and financial institutions. This injects money into the banking system. 2. Selling securities: Conversely, when a central bank wants to decrease the money supply, it conducts open market operations by selling government securities to banks and financial institutions. This removes money from the banking system. Key points about open market operations: 1. Targeting interest rates: Central banks often use OMOs to achieve a specific target for short-term interest rates, such as the federal funds rate in the United States. By adjusting the supply of money in the banking system, they can influence the interest rates at which banks lend to each other. 2. Control over monetary policy: Open market operations are a powerful tool for central banks to implement their monetary policy. They can adjust the level of reserves in the banking system, which, in turn, affects lending and borrowing activities. 3. Market-based transactions: Open market operations involve transactions conducted in the open market. This means that the central bank interacts directly with banks and financial institutions...
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### Offshore banking
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/offshore-banking/
Definition Offshore banking refers to the practice of opening and maintaining bank accounts and financial assets in a foreign country, often in a jurisdiction known as a "tax haven" or "offshore financial centre. " What is offshore banking? This is typically done by individuals or businesses seeking certain financial advantages, including tax benefits, privacy, asset protection, and diversification of assets. Key characteristics of offshore banking include: 1. Tax benefits: Many offshore jurisdictions offer favourable tax conditions, such as low or zero tax rates on interest income, capital gains, and dividends. Individuals and businesses may use offshore accounts to reduce their tax liabilities legally. 2. Privacy and confidentiality: Some offshore banks provide a higher degree of financial privacy and confidentiality compared to banks in onshore locations. This can be attractive to individuals or businesses looking to keep their financial affairs more discreet. 3. Asset protection: Offshore accounts can offer asset protection benefits. In certain cases, assets held offshore may be shielded from legal claims, creditors, or other potential threats. 4. Diversification: Offshore banking allows individuals and businesses to diversify their financial holdings by having accounts in multiple currencies and jurisdictions, potentially reducing risk. 5. International business: Offshore banking can be useful for international businesses, facilitating transactions and currency management in different regions. 6. Estate planning: Some individuals use offshore accounts as part of their estate planning to pass wealth to heirs with potential tax advantages. It's essential to note that while offshore banking can provide various financial advantages, it has also...
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### Notional value
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/notional-value/
Definition Notional value, in financial terms, refers to the theoretical or nominal value of a financial instrument or contract. What is notional value? Notional value represents the value of an asset or liability based on the face value or the stated amount, without considering factors like market conditions or risk. Notional value is commonly used in various financial contexts, including: 1. Derivatives: In derivatives markets, such as futures and options, the notional value is the value of the underlying asset that the contract is based on. For example, in a futures contract for 100 barrels of oil, the notional value would be the current market price of 100 barrels of oil. 2. Swaps: In financial swaps, the notional value is the specified principal amount on which the interest rate or cash flows are calculated. For example, in an interest rate swap with a notional value of R1 million, the interest payments are calculated based on this R1 million, but the actual exchange of principal doesn't occur. 3. Bonds: In the context of bonds, the notional value, also known as the face value or par value, is the amount of money that the bond will be worth at maturity. It is the amount that will be repaid to the bondholder when the bond reaches its maturity date. 4. Options contracts: In options trading, the notional value is the value of the underlying asset that the option gives the holder the right to buy (in the case of a call option) or...
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### Non-performing loan (NPL)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/non-performing-loan-npl/
Definition A non-performing loan (NPL) is a business loan that has stopped generating income for a lender because the borrower has failed to make the required interest or principal payments as per the agreed-upon terms. What is a non-performing loan? In other words, it's a loan where the borrower has fallen behind on their payments to the extent that it is considered in default. Key points about non-performing loans (NPLs) include: 1. Default status: When a loan becomes non-performing, it means the borrower is in default, which is a breach of the loan agreement. This can occur due to various reasons, such as financial hardship, insolvency, or business difficulties. 2. Accounting treatment: Financial institutions, such as banks, are required to classify loans as non-performing when borrowers miss payments for a specified period, typically 90 days or more. This classification affects the bank's financial statements, and they may need to set aside provisions for potential losses associated with NPLs. 3. Risk to lenders: Non-performing loans pose a risk to the lender's financial health because they may not recover the full amount of the loan, and there could be associated legal and administrative costs in the process of recovering the debt. 4. Loan recovery: Lenders typically take steps to recover NPLs, which may include negotiating new terms with the borrower, selling the loan to a collection agency, or initiating legal action to seize collateral or assets pledged as security for the loan. 5. Impact on creditworthiness: For borrowers, having a non-performing loan...
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### Nominal interest rate
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/nominal-interest-rate/
Definition The nominal interest rate, often simply referred to as the "interest rate," is the percentage of interest charged or earned on a loan or investment without adjusting for inflation or compounding. What is a nominal interest rate? In simple terms, a nominal interest rate represents the stated or announced rate of interest on a financial product or loan. For example, if you have a savings account with a nominal interest rate of 5%, it means that you'll earn 5% interest on your balance over a specified period. The nominal interest rate does not take into account the effect of inflation or the compounding of interest over time. Therefore, it provides a straightforward measure of the monetary return or cost associated with a financial transaction. To get a more accurate understanding of the true purchasing power or cost of borrowing, it's important to consider the real interest rate. The real interest rate takes into account the impact of inflation and provides a clearer picture of the actual increase or decrease in purchasing power over time. In summary, while the nominal interest rate is the stated rate before considering inflation or compounding, the real interest rate accounts for these factors and gives a more realistic representation of the financial impact of a transaction. Example of a nominal interest rate Let's say a business takes out a loan for R10,000 with an annual interest rate of 5%. This 5% is the nominal interest rate, expressed as a percentage of the loan amount....
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### Net income
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/net-income/
Definition Net income, often referred to as "profit" or "earnings," is a key financial metric that represents the amount of money a company has earned or lost after all expenses, taxes, and other costs have been deducted from its total revenue. What is net income? In simple terms, it is the company's total revenue minus all its operating expenses, interest, and taxes. It reflects the final amount of money that a company has earned or lost over a specific period, typically a quarter or a year. Net income is a critical measure of a company's profitability and financial performance. It is used by investors, analysts, and stakeholders to assess the overall health and success of a business. A positive net income indicates that the company is generating profits, while a negative net income signifies a loss. It's worth noting that net income can be influenced by various factors, including the company's revenue, operating costs, interest expenses, tax liabilities, and any extraordinary gains or losses. Additionally, net income is often reported on a per-share basis, known as earnings per share (EPS), which provides a measure of profitability on a per-unit basis for publicly traded companies. Understanding a company's net income is crucial for making informed investment decisions and evaluating its financial stability and growth potential. Example of net income Let's consider a retail company called "XYZ Mart. " In a particular quarter, XYZ Mart generates total revenue of R500,000. However, the company incurs various expenses during the same period totalling R400,000....
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### NASDAQ
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/nasdaq/
Definition The NASDAQ, short for the National Association of Securities Dealers Automated Quotations, is an American stock exchange based in New York City. It's one of the largest and most well-known electronic exchanges in the world. What is NASDAQ? Here are some key points about NASDAQ: 1. Electronic trading platform: Unlike traditional stock exchanges, which rely on a physical trading floor, NASDAQ operates entirely electronically. It uses a computerised system to facilitate the buying and selling of securities. 2. Technology and internet focus: NASDAQ is known for its emphasis on technology and internet-related companies. Many well-known tech giants like Apple, Amazon, Microsoft, and Google's parent company, Alphabet, are listed on NASDAQ. 3. High trading volume: NASDAQ is known for its high trading volumes, particularly in technology and internet-related stocks. It's a popular exchange for investors interested in these sectors. 4. Listing requirements: To be listed on NASDAQ, companies must meet specific financial and corporate governance requirements. This includes having a minimum level of shareholders' equity and meeting certain standards for trading activity. 5. Market indices: NASDAQ maintains several market indices, including the NASDAQ Composite Index, which tracks the performance of all the companies listed on the exchange. It also includes more specialised indices like the NASDAQ 100, which focuses on the 100 largest non-financial companies listed on NASDAQ. 6. Global reach: While NASDAQ is based in the United States, it is an international exchange. Many non-U. S. companies choose to list their shares on NASDAQ to access a global pool...
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### Mutual fund
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/mutual-fund/
Definition A mutual fund is a type of investment vehicle that pools money from multiple investors to collectively invest in a diversified portfolio of stocks, bonds, or other securities. What is a mutual fund? The fund is managed by a professional investment manager or team, who make decisions on behalf of the investors regarding which securities to buy, sell, and hold. Here are some key points about mutual funds: 1. Diversification: Mutual funds offer diversification by spreading investments across a wide range of assets. This helps to reduce the risk associated with investing in individual securities. 2. Professional management: The fund's manager(s) are responsible for making investment decisions based on the fund's objectives and investment strategy. They conduct research, analyse market trends, and monitor the performance of the investments. 3. Liquidity: Mutual funds are generally considered to be liquid investments. Investors can buy or sell fund shares on any business day, and the fund company is obligated to redeem shares at their current net asset value (NAV). 4. Variety of investment objectives: There are various types of mutual funds with different investment objectives, such as growth (aiming for capital appreciation), income (focus on generating regular income), balanced (mix of growth and income), and more specialised funds like sector funds or index funds. 5. Professional fund management: The expertise of the fund manager(s) can be particularly beneficial for investors who may not have the time, knowledge, or inclination to manage their investments directly. 6. Fees and expenses: Mutual funds typically charge...
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### Money market
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/money-market/
Definition A money market refers to the financial marketplace where short-term debt securities with high liquidity and low risk are bought and sold. What is a money market? It's a segment of the broader financial market where participants engage in borrowing and lending of funds for short periods, typically up to a year. The key features of a money market include: 1. Short-term nature: Money market instruments have relatively short maturities, ranging from a few days to one year. This distinguishes them from longer-term securities like bonds. 2. High liquidity: Money market instruments are highly liquid, meaning they can be easily bought or sold without significantly affecting their prices. This is crucial for investors who may need to access their funds quickly. 3. Low risk: These instruments are considered to be among the safest investments available. This is because they are typically issued by governments, financial institutions, or highly rated corporations, reducing the risk of default. 4. Low returns: Due to their low-risk profile, money market investments generally offer lower returns compared to riskier assets like stocks or long-term bonds. They are often used for capital preservation rather than significant wealth generation. Some common types of money market instruments include: - Treasury bills (T-bills): Short-term debt securities issued by governments, typically with maturities ranging from a few days to one year. - Commercial paper: Unsecured promissory notes issued by corporations to raise short-term funds directly from the market. - Certificates of deposit (CDs): Time deposits offered by banks with fixed...
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### Mergers and acquisitions (M&A)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/mergers-and-acquisitions-ma/
Definition Mergers and acquisitions (M&A) refer to the strategic business transactions involving the consolidation, combination, or transfer of ownership and control between two or more companies. What are mergers and acquisitions? Mergers and acquisitions (M&A) are two different but closely related processes in the world of corporate finance. 1. Mergers: A merger occurs when two separate companies combine to form a new, single entity. In a merger, both companies involved usually pool their assets, liabilities, and personnel. The aim is to create a stronger, more competitive company with enhanced market presence, increased efficiency, and potentially higher profitability. There are different types of mergers, such as horizontal mergers (between companies in the same industry), vertical mergers (between companies in different stages of the same industry's supply chain), and conglomerate mergers (between companies in unrelated industries). 2. Acquisitions: An acquisition takes place when one company, often referred to as the acquiring or parent company, purchases a majority stake in another company, known as the target company. This acquisition can either be friendly, where both parties agree to the deal, or hostile, where the acquiring company makes an offer without the target company's consent. The acquiring company gains control over the target company's operations, assets, and decision-making. Mergers and acquisitions are strategic business activities pursued for various reasons, including: - Growth and diversification: Companies might seek M&A opportunities to expand their product offerings, enter new markets, or diversify their business. - Cost synergies: Combining operations can lead to cost savings through economies of...
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### Market capitalisation
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/market-capitalisation/
Definition Market capitalisation, often abbreviated as "market cap," is a financial metric used to evaluate the size or value of a publicly traded company. What is market capitalisation? Market capitalisation is calculated by multiplying the current market price of a company's outstanding shares of stock by the total number of those shares. In simple terms, it represents the total value of a company's equity in the stock market. Companies with higher market capitalisations are generally considered larger and more established in comparison to those with lower market caps. Market capitalisation is often used to categorise companies into different size classes, such as large-cap, mid-cap, and small-cap. These classifications help investors and analysts assess the risk and growth potential of different investment opportunities. It's important to note that market capitalisation is just one factor to consider when evaluating a company's investment potential, and it should be used in conjunction with other financial metrics and analysis. Example of market capitalisation Company XYZ has 1 million shares outstanding, and its current stock price is R50 per share. To calculate the market capitalisation of Company XYZ, you use the formula: Market capitalisation = Number of shares outstanding × Stock price Market capitalisation = 1,000,000 shares × R50 per share = R50,000,000 In this example, the market capitalisation of Company XYZ is R50 million. This means that the total value of all outstanding shares of Company XYZ, as determined by the stock market, is R50 million.
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### Margin
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/margin/
Definition Margin, in finance, refers to the borrowed funds that an investor uses to purchase securities, such as stocks or bonds. What is a margin? A margin allows an investor to increase their buying power and potentially amplify their returns, but it also magnifies the potential losses. When an investor opens a margin account with a broker, they are essentially borrowing money against the value of their existing investments. The margin is the difference between the total value of securities held in the account and the amount borrowed. Trading on margin involves paying interest on the borrowed amount, and the securities held in the account serve as collateral. If the value of the investments in the account falls below a certain level, the broker may issue a margin call, requiring the investor to deposit more funds or sell some of the securities to cover the debt. It's important to note that trading on margin can be risky and is not suitable for all investors. It's crucial to have a good understanding of the risks involved and to use margin responsibly. Example of margin John wants to purchase 100 shares of Company XYZ, which are currently trading at R50 per share. However, John doesn't have enough cash to buy the shares outright. Instead, he decides to open a margin account with his broker. John deposits R2,500 into his margin account. With a margin account, John can borrow additional funds from his broker to purchase the shares. Assuming the broker's initial margin...
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### Long position
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/long-position/
Definition A long position in finance refers to the situation where an investor or trader owns an asset with the expectation that its value will increase over time. What is a long position? It involves buying a security, such as a stock, bond, or commodity, with the belief that its price will rise in the future, allowing the investor to sell it at a profit. For example, if someone buys shares of a company with the anticipation that the stock price will go up, they are said to have taken a long position. This strategy is often used by investors who have a positive outlook on the market or a particular asset. In contrast, a short position involves the sale of an asset that the seller does not actually own, with the intention of buying it back at a lower price in the future. This is a bet on the asset's price decreasing. Example of a long position Let's say an investor believes that the stock of Company XYZ will increase in value over the next few months. They decide to purchase 100 shares of Company XYZ at R50 per share, investing a total of R5,000. After a few months, the stock price of Company XYZ has indeed increased, reaching R60 per share. The investor decides to sell their shares at the new price. To calculate the profit from the long position, we use the formula: Profit = (Selling price − Purchase price) × Number of shares profit Profit =...
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### Liquidity
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/liquidity/
Definition Liquidity refers to the ease and speed at which an asset or investment can be converted into cash without significantly affecting its price. What is liquidity? Assets that are highly liquid can be quickly sold or traded in the market with minimal impact on their value. On the other hand, assets with lower liquidity may take more time to sell and could potentially incur a greater loss in value during the process. In the financial context, cash is considered the most liquid asset as it can be used immediately for transactions. Other highly liquid assets include stocks traded on major exchanges and government bonds. Real estate and certain types of investments, on the other hand, tend to have lower liquidity as they may take longer to sell or convert into cash. Example of liquidity XYZ Corporation is a manufacturing company that produces electronic components. The company operates in a dynamic industry with fluctuating demand and supply chain challenges. As part of its financial management strategy, XYZ Corporation ensures it maintains a healthy level of liquidity. XYZ Corporation keeps a portion of its assets in the form of cash reserves in its business accounts. This ensures the company has immediate access to funds for day-to-day operations. In addition to cash, XYZ Corporation holds marketable securities, such as short-term investments in stocks and bonds. The liquidity of XYZ Corporation provides operational flexibility. In the face of unexpected expenses, changes in market conditions, or opportunities for strategic investments, the company can quickly...
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### Line of credit
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/line-of-credit/
Definition A line of credit is a financial arrangement that allows an individual or a business to borrow a specific amount of money from a lender up to a predefined limit. What is a line of credit? Unlike a traditional business loan where you receive a lump sum amount upfront, a line of credit provides the flexibility to borrow and repay funds as needed. Interest is typically only charged on the amount borrowed, and once repaid, that portion of the credit becomes available for borrowing again. It's a useful financial tool for managing short-term expenses or unexpected costs. Example of a line of credit ABC Retailers is a local store that sells electronics and home appliances. The business experiences seasonal fluctuations in sales and occasionally faces challenges with cash flow. ABC Retailers is approved for a R50,000 line of credit. This means the business has access to a revolving credit facility with a maximum limit of R50,000. The funds can be drawn upon as needed to address short-term cash flow challenges. The line of credit provides flexibility in repayment. ABC Retailers can choose to repay the drawn amount in full or make minimum monthly payments based on the terms agreed upon with the bank.
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### Limited liability company (LLC)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/limited-liability-company-llc/
Definition A limited liability company (LLC) is a type of business structure that combines elements of both a corporation and a partnership or sole proprietorship. What is a limited liability company? It offers limited liability to its owners, which means that their personal assets are generally protected from the company's debts and liabilities. Here are some key characteristics and benefits of an LLC: Limited liability: As the name suggests, one of the primary benefits of an LLC is limited liability. This means that the personal assets of the LLC's members are generally protected from the company's debts and legal obligations. In the event of business debts or lawsuits, members' personal assets, such as their homes and savings, are typically not at risk. Flexibility in management: LLCs provide flexibility in how they are managed. Members can choose to manage the company themselves, known as a member-managed LLC, or appoint managers to run the business, known as a manager-managed LLC. This flexibility allows members to tailor the management structure to their preferences and needs. Pass-through taxation: LLCs are typically taxed as pass-through entities, which means that the company itself does not pay income taxes. Instead, the profits and losses "pass through" to the individual members, who report them on their personal tax returns. This can result in tax advantages for members, as they can often avoid double taxation that occurs with some other business structures. Ease of formation: Forming an LLC is usually straightforward and involves filing the necessary paperwork with the...
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### Leverage
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/leverage/
Definition Leverage refers to the use of borrowed funds or debt to amplify the potential returns or risks of an investment or financial transaction. It involves using borrowed capital to finance an investment or business activity with the aim of increasing the potential for higher returns on equity. What is leverage? Leverage can be a powerful tool for increasing profits, but it also comes with increased risk. Here are two common forms of leverage: 1. Financial leverage: Financial leverage involves borrowing money to invest in assets or operations. In business, this often takes the form of loans, bonds, or lines of credit. By using debt financing, a company can amplify its returns if the return on investment (ROI) from the borrowed capital exceeds the cost of borrowing (interest rate). However, it also increases the risk because if the ROI is lower than the cost of borrowing, it can lead to financial losses and financial distress. 2. Operating leverage: Operating leverage refers to the use of fixed operating costs, such as rent, salaries, and depreciation, to magnify the impact of changes in sales or revenue on a company's profits. Companies with high operating leverage have a higher proportion of fixed costs in their cost structure. When revenue increases, these companies can experience a significant increase in profits. However, during periods of declining revenue, they can also face more significant losses. Leverage can enhance returns in a rising market but can lead to substantial losses in a declining market or when investments...
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### Key performance indicator (KPI)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/kpi-key-performance-indicator/
Definition In the context of business and finance, a KPI, or key performance indicator, is a quantifiable metric used to assess and measure the performance of a specific aspect of a business's operations or financial health. What are key performance indicators? KPIs are crucial tools for monitoring progress toward business objectives and financial goals. They provide actionable insights into how well a company is performing in critical areas. Here are some common KPIs in the business and finance sectors: 1. Revenue growth rate: This KPI measures the percentage increase or decrease in a company's revenue over a specific period. It helps assess the company's ability to generate more income. 2. Profit margin: Profit margin KPIs evaluate the profitability of a business by calculating the percentage of profit generated from its revenue. Common profit margins include gross margin, operating margin, and net profit margin. 3. Return on investment (ROI): ROI measures the return a business earns on its investments, indicating the efficiency and effectiveness of those investments. 4. Customer acquisition cost (CAC): CAC is the cost incurred by a business to acquire a new customer. Monitoring this KPI helps assess the efficiency of marketing and sales efforts. 5. Customer lifetime value (CLV): CLV represents the total expected revenue a business can generate from a customer throughout their relationship with the company. It helps assess the long-term value of customers. 6. Debt-to-equity ratio: This financial KPI measures the proportion of a company's debt to its equity, indicating its financial leverage and risk....
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### Know your customer (KYC)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/know-your-customer-kyc/
Definition "Know your customer" (KYC) is a regulatory and due diligence process that financial institutions and businesses use to verify the identity of their customers. What is know your customer? The primary purpose of KYC is to prevent money laundering, fraud, terrorist financing, and other illegal activities by ensuring that individuals or entities engaging in financial transactions are who they claim to be. Key components of the KYC process typically include: 1. Customer identification: Gathering and verifying the identity information of customers, such as their name, date of birth, address, and government-issued identification (e. g. , passport, driver's license, or national ID card). 2. Risk assessment: Assessing the risk associated with each customer based on various factors, including their location, type of business, and the nature of their financial transactions. Higher-risk customers may require more stringent scrutiny. 3. Ongoing monitoring: Continuously monitoring customer transactions for any suspicious or unusual activity that may indicate illegal behaviour. This helps in detecting and reporting potentially illicit activities to relevant authorities. 4. Customer due diligence (CDD): Conducting thorough background checks and verifying the source of funds for high-risk customers, particularly in cases involving large financial transactions. 5. Compliance with regulations: Ensuring that the KYC process complies with local and international regulations and standards, which vary from one jurisdiction to another. Regulatory bodies often set guidelines for KYC procedures to combat financial crimes. 6. Record-keeping: Maintaining detailed records of customer information, transactions, and KYC documentation. These records are often subject to regulatory audits. Financial institutions,...
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### Kickback
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/kickback/
Definition In business and commerce, a kickback refers to a form of bribery or unethical practice where someone, typically an employee or a contractor, receives money, goods, or services in exchange for providing favourable treatment or business opportunities to another person or entity. What are kickbacks? Kickbacks are considered illegal and unethical because they involve corrupt practices that undermine fair competition and transparency in business transactions. Here's how a kickback typically works: 1. Offer: An individual or organisation offers a kickback to someone who holds a position of authority or decision-making power within a business transaction. This could be an employee, manager, contractor, or anyone with the ability to influence a decision. 2. Acceptance: The person in the position of power accepts the kickback, which could be in the form of cash, gifts, discounts, vacations, or other valuable items or services. 3. Favourable treatment: In return for the kickback, the person in power provides favourable treatment to the individual or organisation offering the kickback. This could include awarding them a contract, making purchasing decisions in their favour, or providing other business opportunities. Kickbacks are illegal in most countries and can have severe legal consequences for those involved. They are considered a form of corruption that distorts fair competition and can result in financial losses for businesses and harm the overall economy. Many countries have laws and regulations in place to prevent and punish kickbacks, and organisations often have strict anti-corruption policies and codes of ethics to deter such unethical practices...
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### Keynesian economics
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/keynesian-economics/
Definition Keynesian economics is an economic theory and approach to macroeconomics that was developed by the British economist John Maynard Keynes in the early 20th century. What is Keynesian economics? It became particularly influential during and after the Great Depression of the 1930s. Keynesian economics is characterised by several key principles: 1. Aggregate demand: Keynesians emphasise the role of aggregate demand in determining the level of economic activity. They argue that fluctuations in total spending by households, businesses, and the government have a significant impact on economic output and employment. 2. Government intervention: Keynesian economics advocates for active government intervention in the economy, especially during times of economic downturns. This intervention can take the form of fiscal policies (government spending and taxation) and monetary policies (control of the money supply and interest rates) to stimulate demand and stabilise the economy. 3. Counter-cyclical policies: Keynesian theory suggests that during a recession or depression, the government should increase its spending and reduce taxes to boost demand and create jobs. Conversely, during periods of high inflation and economic overheating, the government should reduce spending and increase taxes to cool down the economy. 4. Liquidity Trap: Keynes introduced the concept of a liquidity trap, where interest rates are so low that monetary policy alone is ineffective in stimulating demand. In such situations, fiscal policy (government spending) becomes more critical in boosting economic activity. 5. Short-Term Focus: Keynesian economics often focuses on the short-term management of the business cycle and aims to address immediate economic...
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### Keiretsu
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/keiretsu/
Definition A Keiretsu is a business term originating in Japan that refers to a group of interconnected companies or enterprises that have significant cross-shareholding relationships. What is keiretsu? These companies collaborate closely with each other, often in the same industry or related industries, to support each other's interests and maintain a competitive advantage. Keiretsu can take two primary forms: 1. Vertical keiretsu: In a vertical keiretsu, companies within the group are linked along the supply chain, from suppliers to manufacturers to distributors. This type of keiretsu ensures a stable and efficient flow of goods and services within the network. 2. Horizontal keiretsu: Horizontal Keiretsu consists of companies that operate in various industries but are connected through mutual shareholdings. These companies support each other in various ways, such as through financial assistance, business partnerships, or access to shared resources. Keiretsu arrangements are often seen as a way to maintain stability and control in Japanese business culture. Members of a keiretsu may cooperate on various levels, including joint ventures, technology sharing, and mutual financial support. This interconnectedness can help companies navigate economic challenges and maintain their competitiveness. However, it can also lead to criticisms of anti-competitive behaviour and reduced transparency in business operations. It's worth noting that the concept of keiretsu has influenced business practices in other countries, although it may not be as prevalent as it is in Japan. Example of keiretsu Two major companies, Car Manufacturer A and Auto Parts Supplier B, form the core of a keiretsu in the...
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### Junk bond
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/junk-bond/
Definition A junk bond, also known as a high-yield bond, is a type of corporate bond that is considered to have a higher risk of default compared to investment-grade bonds. What are junk bonds? These bonds are typically issued by companies with lower credit ratings or a less stable financial position. The term "junk" reflects the higher risk associated with these bonds. Investment-grade bonds are bonds issued by companies or governments with strong creditworthiness, meaning they are less likely to default on their debt payments. In contrast, junk bonds are issued by companies that may have a history of financial difficulties, higher debt levels, or lower credit ratings from credit rating agencies. Because of the higher risk involved, junk bonds offer investors higher interest rates or yields as compensation for taking on the added risk. Investors who are willing to accept this risk may be attracted to junk bonds as they can potentially provide higher returns. However, the trade-off is that there is a greater chance of the issuer failing to make interest payments or repay the principal when the bond matures. Investors in junk bonds should carefully assess the financial health of the issuer and consider their risk tolerance before investing, as the potential for higher returns comes with a higher level of risk. Example of junk bond Let's consider a fictional company, XYZ Corporation, in need of capital for expansion and growth. acing difficulties in obtaining favourable terms from traditional lenders, XYZ explores alternative financing options. The company...
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### Joint venture
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/joint-venture/
Definition A joint venture, in the context of business and commerce, is a strategic partnership between two or more companies or entities that come together to collaborate on a specific project or business activity. What is a joint venture? This collaboration involves sharing resources, risks, profits, and responsibilities for the mutual benefit of the parties involved. Joint ventures can take various forms, including the creation of a new company or a contractual agreement between existing entities. They are often used to leverage the strengths and expertise of each partner to achieve a common goal, such as entering a new market, developing a new product, or pursuing a specific business opportunity. Example of a joint venture Let's consider a joint venture between two companies, Company A and Company B, in the context of a technology project. They decide to collaborate on a joint venture to develop and launch a new smart home device. Both companies agree on the equity distribution for the joint venture. They decide that Company A will have a 60% stake, reflecting its substantial contribution in software development, while Company B will have a 40% stake. The teams from both companies collaborate closely to design, develop, and test the smart thermostat. Regular meetings and communication channels are established to ensure effective coordination. In this example, the joint venture between Company A and Company B allows them to combine their strengths and resources to create a successful product.
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### Joint account
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/joint-account/
Definition A joint account is a financial account, such as a bank account or investment account, that is owned and operated by two or more individuals. What is a joint account? In a joint account, each account holder has equal access to the account, including the ability to make deposits, withdrawals, and manage the account's transactions. Here are some key points about joint accounts: 1. Ownership: In a joint account, ownership is shared among the account holders. This means that each individual listed on the account has legal rights to the funds in the account. Typically, joint accounts are opened by spouses, partners, family members, or business partners who want to combine their financial resources for a specific purpose. 2. Equal access: All account holders have equal rights and access to the funds in the joint account. This includes the ability to write checks, make electronic transfers, and conduct other financial transactions on behalf of the account. 3. Survivorship: Many joint accounts include a "right of survivorship" clause. This means that if one account holder passes away, the remaining account holder(s) automatically inherit full ownership of the account and its assets without the need for probate. This can simplify the transfer of assets upon the death of one account holder. 4. Types of joint accounts: There are different types of joint accounts, including: Joint checking account: Used for everyday expenses and bill payments. Joint savings account: Used for saving money and earning interest. Joint investment account: Used for buying and...
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### Job costing
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/job-costing/
Definition Job costing is a cost accounting method used by businesses to track and allocate the costs associated with producing specific products or providing particular services. What is job costing? Job costing is a detailed and precise approach to cost accounting that is particularly useful in industries where products or services are custom-made or where each project or job is unique. Job costing helps businesses understand the costs and profitability of individual projects or jobs. Here's how it works: 1. Identification of jobs or projects: In job costing, each unique project, job, or order is identified and assigned a distinct job number or code. This could be anything from building a custom piece of furniture to providing legal services to a specific client. 2. Cost tracking: Once a job is identified, all relevant costs associated with that job are meticulously tracked. These costs can be categorised into two main types: - Direct costs: These are costs directly and specifically tied to the job. For example, direct materials (such as wood for furniture) and direct labour (wages of employees working on that particular job) are direct costs. - Indirect costs: These are costs that are not directly attributable to a single job but are incurred as part of general business operations. Indirect costs include items like rent, utilities, and administrative salaries. In job costing, these indirect costs are allocated to individual jobs using various allocation methods, such as overhead rates. 3. Record keeping: Businesses maintain detailed records of all costs related...
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### J-curve effect
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/j-curve-effect/
Definition The J-curve effect is an economic and financial concept that describes the short-term negative impact of a devaluation or depreciation of a country's currency on its trade balance, followed by a longer-term improvement in the trade balance. What is the J-curve effect? The name "J-curve" comes from the graphical representation of this phenomenon, which often resembles the shape of the letter "J. " Here's how the J-curve effect works: 1. Initial devaluation: When a country's currency devalues or depreciates, it becomes weaker relative to other currencies. This means that the country's exports become cheaper for foreign buyers, and imports become more expensive for domestic consumers. 2. Short-term trade deterioration: In the short term, after the currency devaluation, the trade balance often worsens. This is because the immediate increase in the prices of imported goods (due to the weaker currency) tends to outweigh the boost in exports. As a result, the country's trade deficit may widen. 3. Long-term trade improvement: Over time, the J-curve effect suggests that the situation will start to improve. The improvement occurs as foreign buyers take advantage of the cheaper exports, leading to increased demand for the country's goods and services abroad. Meanwhile, domestic consumers may reduce their consumption of more expensive imported goods. 4. Trade balance correction: As exports gradually rise and imports decrease, the country's trade balance begins to correct itself. This means that the trade deficit starts to narrow, and eventually, the country may achieve a trade surplus (where exports exceed imports). The...
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### IPO underwriter
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/ipo-underwriter/
Definition An IPO (initial public offering) underwriter is a financial institution or investment bank that plays a pivotal role in the process of taking a privately held company public by issuing its shares to the public for the first time. What is an IPO underwriter? The underwriter acts as an intermediary between the company seeking to go public (the issuer) and potential investors in the stock market. Here's how an IPO underwriter functions: 1. Due diligence: The underwriter begins by conducting thorough due diligence on the issuing company. This involves assessing the company's financial health, business model, management team, industry prospects, and any potential risks. The underwriter needs to have a comprehensive understanding of the issuer's business to accurately price and market its shares. 2. Pricing and valuation: The underwriter works with the issuer to determine the offering price for the shares. This is a critical step, as the price must be attractive enough to generate investor interest but also reflective of the company's true value. The underwriter uses various financial models and market analysis to arrive at an appropriate price. 3. Underwriting agreement: Once the pricing is determined, the underwriter enters into an underwriting agreement with the issuer. This agreement outlines the terms and conditions of the IPO, including the number of shares to be issued, the offering price, the underwriter's fee, and the timeline for the offering. 4. Marketing and distribution: The underwriter takes on the responsibility of marketing the IPO to potential investors. This involves promoting the...
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### Investor risk profile
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/investor-risk-profile/
Definition An investor risk profile, also known as a risk tolerance assessment, is an evaluation of an individual's willingness and ability to take on risk in their investment portfolio. What is an investor risk profile? An investor risk profile is a crucial step in financial planning and investment management, as it helps determine the most suitable investment strategy and asset allocation for an investor's specific needs and preferences. Here are the key components of an investor risk profile: 1. Willingness to take risk: This aspect of the risk profile assesses an individual's psychological and emotional comfort with risk. It's typically measured through questionnaires or discussions with a financial advisor. Questions might inquire about how an investor would react to market fluctuations, whether they have a preference for stability or are open to more significant potential gains (with accompanying volatility), and their past investment experiences. 2. Ability to take risk: This part of the risk profile evaluates an investor's financial capacity to absorb losses or withstand market downturns. Factors considered include the investor's financial goals, time horizon, income, expenses, and overall financial situation. For example, a younger investor with a long-term horizon and stable income may have a higher ability to take on risk compared to a retiree relying heavily on their investments for income. 3. Risk tolerance categories: Based on the assessment of willingness and ability to take risks, investors are typically categorised into different risk tolerance levels, such as conservative, moderate, or aggressive. These categories help guide investment recommendations....
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### Investment horizon
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/investment-horizon/
Definition An investment horizon refers to the length of time an investor expects to hold an investment or the duration over which they plan to achieve their financial goals through investing. What is an investment horizon? An investment horizon is a critical consideration when making investment decisions because it helps determine the appropriate investment strategy, asset allocation, and level of risk that an investor can tolerate. Here are some key points about investment horizons: 1. Short-term horizon: Investors with a short-term horizon typically plan to hold their investments for a relatively brief period, often a year or less. They may be looking for quick profits or have specific financial goals that need to be met in the near term, such as buying a car or funding a vacation. 2. Intermediate-term horizon: Investors with an intermediate-term horizon usually plan to hold their investments for a few years but not necessarily for the long term. This horizon is common among individuals saving for medium-term goals like paying for a child's education or a down payment on a house. 3. Long-term horizon: Long-term investors have a horizon that extends many years into the future, often decades. Their primary focus is typically on retirement planning, wealth accumulation, and achieving long-term financial objectives. Long-term investments are more likely to be in assets like stocks, real estate, or retirement accounts. 4. Risk tolerance: An investor's risk tolerance often aligns with their investment horizon. Short-term investors may prefer lower-risk, more stable investments to protect their principal, while...
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### Intrinsic value
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/intrinsic-value/
Definition In finance and investing, intrinsic value refers to the actual or inherent worth of an asset or investment, independent of its current market price. What is intrinsic value? Intrinsic value is a fundamental concept used in valuation and is especially relevant when evaluating stocks and other securities. The intrinsic value is often contrasted with the market price, and the goal of many investors is to find assets whose intrinsic value is higher than their market price, suggesting they are undervalued. Here are a few key points about intrinsic value: 1. Fundamental analysis: Determining intrinsic value typically involves conducting a fundamental analysis. This fundamental analysis considers various factors, including the company's financial health, earnings potential, growth prospects, and the overall economic environment. 2. Stocks: In the context of stocks, the intrinsic value of a company's shares is an estimate of what they are truly worth based on factors like the company's earnings, assets, and growth potential. Investors often use methods such as discounted cash flow (DCF) analysis or price-to-earnings (P/E) ratios to estimate intrinsic value. 3. Value investing: Value investors seek to identify stocks that are trading below their intrinsic value. They believe that over time, the market tends to correct such mispricings, and the stock's price will rise to reflect its intrinsic value. 4. Subjectivity: Calculating intrinsic value can be somewhat subjective because it depends on various assumptions and estimates. Different analysts may arrive at slightly different intrinsic value estimates for the same asset. 5. Long-term perspective: Intrinsic value...
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### Interest rate
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/interest-rate/
Definition 'Interest rate' refers to the cost of borrowing money or the return earned on an investment, typically expressed as a percentage. What is an interest rate? An interest rate is a fundamental concept in finance and economics. When you borrow money, such as taking out a business loan or using a credit card, the interest rate represents the extra amount you must pay back to the lender in addition to the principal amount borrowed. On the other hand, when you invest money in a savings account, bond, or other financial instrument, the interest rate determines how much you'll earn over time. For instance, if the interest rate is high, borrowing becomes more expensive, which can discourage spending and borrowing. Conversely, when interest rates are low, borrowing becomes cheaper, potentially encouraging people and businesses to borrow and spend more. Example of interest rate John, a small business owner, decides to expand his business and needs financial assistance. He approaches ABC Bank for a business loan, and applies for a loan of R50,000 to fund his business expansion ABC Bank, after evaluating John's creditworthiness and the business plan, offers him a loan at an annual interest rate of 6% and John will repay the loan amount plus interest rates over a period of 3 years. Interest = Loan amount x Interest rate = R50,000 x 0. 06 = R3,000 Total repayment = Loan amount + Interest rate = R50,000 = R3,000 = R53,000 In this example, the interest rate of 6%...
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### Initial public offering (IPO)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/initial-public-offering-ipo/
Definition An IPO, or initial public offering, is a significant financial event that marks the first time a private company offers its shares to the public on a stock exchange. What is an initial public offering? This process allows the company to raise capital by selling ownership stakes (shares) to individual and institutional investors. In return, investors become shareholders in the company and have the potential to benefit from its growth and success. Here's an overview of the IPO process and its key points: 1. Going public: When a company decides to go public through an IPO, it typically means that it has reached a stage of growth where it requires additional capital to fund its expansion, research, development, or other business activities. Going public also provides the company's founders and early investors an opportunity to cash out some of their investments. 2. Preparation: Before launching an IPO, the company needs to go through a thorough preparation process. This involves working with investment banks, lawyers, and financial experts to assess the company's financials, valuation, market positioning, and regulatory compliance. 3. Pricing and valuation: The company, along with its underwriting investment banks, determines the initial price at which its shares will be offered to the public. This price is often based on factors such as the company's financial performance, industry trends, and market demand. 4. Roadshow: Prior to the IPO, the company may engage in a roadshow, which involves presentations to potential investors to generate interest and educate them about the...
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### Inflation
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/inflation/
Definition Inflation refers to the sustained increase in the general price level of goods and services within an economy over a specific period of time. What is inflation In simpler terms, it means that over time, the cost of goods and services tends to rise, causing the purchasing power of money to decrease. This rise is commonly measured using the inflation rate, which indicates the percentage increase in prices over a given period, usually a year. Inflation can have a significant impact on various aspects of an economy and personal finances. Here's how it works and its effects: 1. Causes of inflation: Inflation can be caused by several factors, including increased demand for goods and services, rising production costs (such as wages and raw materials), and changes in the supply of money within the economy. Central banks play a role in managing inflation by adjusting interest rates and implementing monetary policies. 2. Effects on purchasing power: As prices rise, the purchasing power of money diminishes. This means that the same amount of money will buy fewer goods and services than it could in the past. Individuals and households might find that their savings and incomes don't stretch as far, impacting their ability to afford necessities and discretionary expenses. 3. Impact on investments: Inflation can affect investments and savings. Assets that don't keep pace with inflation can lose value in real terms. For instance, if your investments earn a lower return than the inflation rate, your purchasing power could erode over...
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### Holding period
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/holding-period/
Definition The holding period refers to the length of time an investor owns a particular investment or asset. It is the duration between the purchase of an investment and its sale or disposal. What is a holding period? The holding period of an asset is a crucial concept that affects various aspects of an investor's strategy, taxes, and overall investment performance. Let's delve deeper into some key points: Investment performance evaluation: The holding period is important for evaluating the performance of an investment. By tracking how the value of an asset changes over time, investors can assess whether their decision to hold onto the asset has been beneficial or not. For instance, a longer holding period might lead to a better understanding of an investment's volatility, growth potential, and overall market trends. Capital gains tax implications: The length of your holding period can impact the amount of tax you'll pay when you sell an asset. There are different tax rates for short-term and long-term capital gains. Assets held for more than a certain period may qualify for lower tax rates, encouraging longer-term investment strategies. Risk management: The holding period also plays a role in risk management. Short-term fluctuations in the market can impact the value of investments, potentially leading to losses if an asset is sold during a downturn. A longer holding period might provide a better chance for an investment to recover from market volatility. Investment strategy: The decision of whether to hold an asset for the short term...
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### High-frequency trading (HFT)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/high-frequency-trading-hft/
Definition High-frequency trading (HFT) is a form of algorithmic trading that involves the use of powerful computers and complex algorithms to execute a large number of trades at extremely high speeds. What is a high-frequency trading? The goal of HFT is to profit from tiny price discrepancies in financial markets that can occur in a matter of milliseconds or even microseconds. Here's how HFT generally works: 1. Speed and technology: HFT relies heavily on speed and technology. HFT firms invest in cutting-edge hardware and software to minimise the time it takes for their trading algorithms to receive market data, make decisions, and execute trades. 2. Market data: HFT algorithms continuously monitor real-time market data, including price quotes, order book data, and other relevant information. These algorithms analyse the data to identify patterns, trends, and potential trading opportunities. 3. Algorithmic strategies: HFT strategies can vary widely, but they often involve making a large number of small trades in a short period of time. Some strategies involve taking advantage of arbitrage opportunities, where the same asset is priced differently across different markets or exchanges. 4. Co-location: HFT firms often place their trading servers in close proximity to the exchanges' servers to reduce network latency and gain a speed advantage. 5. Market making: Some HFT firms act as market makers. They provide liquidity to the market by continuously posting both buy and sell orders for a wide range of assets. This helps ensure that there are always willing buyers and sellers in the...
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### Hedge fund
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/hedge-fund/
Definition A hedge fund is a type of investment fund that pools capital from accredited or high-net-worth investors to invest in a diverse range of assets with the goal of generating high returns. What are hedge funds? Hedge funds often employ various strategies and techniques to attempt to achieve positive returns regardless of market conditions, aiming to "hedge" against potential losses. Key characteristics of hedge funds include: 1. Investment strategies: Hedge funds use a wide range of investment strategies, which can include long and short positions, leverage, derivatives, arbitrage, and more. These strategies are designed to take advantage of market inefficiencies and generate returns that are not solely dependent on overall market performance. 2. Alternative investments: Hedge funds often invest in alternative assets beyond traditional stocks and bonds. These assets might include currencies, commodities, real estate, private equity, and more. 3. Flexibility: Unlike mutual funds, hedge funds typically have more flexibility in their investment choices and can take both long and short positions. This allows them to potentially profit from both rising and falling markets. 4. Leverage: Some hedge funds use leverage, which involves borrowing money to amplify potential returns. While this can increase gains, it also increases the risk of losses. 5. Performance fees: Hedge fund managers often charge performance-based fees in addition to management fees. Performance fees are usually a percentage of the fund's gains, which can incentivise managers to generate positive returns for their investors. 6. Limited regulation: Hedge funds are subject to less regulatory oversight compared...
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### Growth stocks
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/growth-stocks/
Definition Growth stocks are shares of companies that are expected to experience above-average increases in revenue, earnings, and overall profitability compared to other companies in the market. These companies typically reinvest their earnings back into the business to fuel expansion and innovation rather than distributing large dividends to shareholders. What are growth stocks? Key characteristics of growth stocks include: 1. High growth potential: Growth stocks are associated with companies that are projected to grow at a faster rate than the broader market or their industry peers. This growth can result from various factors, such as technological innovation, expanding market share, or strong consumer demand for their products or services. 2. Low or no dividends: Unlike value stocks, which often provide consistent dividends to shareholders, growth companies tend to reinvest their profits to fuel further expansion. This means growth stocks might offer lower or no dividends but aim to generate capital appreciation through stock price appreciation. 3. Higher valuations: Due to their potential for above-average growth, growth stocks often trade at higher price-to-earnings (P/E) ratios compared to the overall market or value stocks. Investors are willing to pay a premium for the anticipated future earnings and growth prospects. 4. Volatility: Growth stocks can be more volatile than other types of stocks due to the market's high expectations for their future performance. While they have the potential for significant gains, they can also experience steep declines if they fail to meet growth expectations. 5. Technology and innovation: Many growth stocks are associated...
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### Gross domestic product (GDP)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/gross-domestic-product-gdp/
Definition Gross domestic product (GDP) is a fundamental economic indicator that measures the total value of all goods and services produced within a country's borders over a specific period, usually a quarter or a year. What is gross domestic product? Gross domestic product is often used as a gauge of a country's economic health and the overall size of its economy. Key points related to GDP include: 1. Production and output: GDP quantifies the economic output of a country by summing up the value of all final goods and services produced within its territory. This includes goods like cars, electronics, and agricultural products, as well as services like healthcare, education, and financial services. 2. Measurement approaches: There are three primary approaches to calculating GDP: the production approach, the income approach, and the expenditure approach. These approaches provide consistent ways to estimate GDP from different perspectives. 3. Components of GDP: GDP can be divided into several components, including consumption (personal spending), investment (business spending and capital formation), government spending (public sector expenditures), and net exports (exports minus imports). 4. Economic performance: Changes in GDP over time can indicate the direction and strength of an economy's growth. A rising GDP often suggests economic expansion, while a declining GDP may indicate economic contraction. 5. International comparison: GDP is commonly used to compare the economic size and performance of different countries. It helps identify the world's largest economies and assess their relative strengths. 6. Real GDP vs. nominal GDP: Real GDP accounts for inflation...
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### Government bond
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/government-bond/
Definition A government bond, often referred to as a "sovereign bond," is a debt security issued by a government to raise funds for various purposes, such as financing public projects, covering budget deficits, or managing economic activities. What are government bonds? Government bonds are considered one of the safest investment options because they are backed by the full faith and credit of the issuing government. Key features of government bonds include: 1. Issuer: Government bonds are issued by national governments, such as the government of the United Kingdom or the United States. They can also be issued by local governments or government agencies. 2. Interest payments: When an investor purchases a government bond, they are essentially lending money to the government. In return, the government promises to pay interest to the investor at regular intervals (usually semiannually or annually) until the bond matures. 3. Maturity: Government bonds have a predetermined maturity date when the government repays the principal amount (the initial investment) to the bondholder. Maturities can range from a few months to several decades. 4. Fixed income: Government bonds are a form of fixed-income investment, as they provide a fixed interest rate and predictable cash flow to the bondholder over the life of the bond. 5. Safety and creditworthiness: Government bonds are considered low-risk investments because they are backed by the government's ability to tax, print money, and raise funds. However, the creditworthiness of different governments can vary, and bonds issued by stable and economically strong countries are generally...
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### Goodwill
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/goodwill/
Definition Goodwill, in business and accounting, refers to the intangible asset that represents the value of a company's reputation, brand recognition, customer loyalty, and other non-physical attributes that contribute to its overall success and competitive advantage. What is goodwill? Goodwill is an important concept in valuing a company, particularly during mergers and acquisitions. Key points related to goodwill include: 1. Intangible asset: Goodwill is considered an intangible asset because it doesn't have a physical presence like buildings or equipment. It's the intangible value that arises from factors such as a company's strong customer base, established brand name, skilled workforce, favourable location, and positive relationships with suppliers and distributors. 2. Mergers and acquisitions: Goodwill often comes into play during mergers and acquisitions (M&A) when one company acquires another. The purchase price of the acquired company might exceed the value of its tangible assets and liabilities. The excess amount is recorded as goodwill on the acquiring company's balance sheet. 3. Valuation and impairment: Goodwill is initially recognised as an asset, but it's subject to potential impairment tests. If the value of the acquired business or the underlying factors contributing to goodwill declines, the company might need to write down or impair its goodwill on the balance sheet. 4. Amortisation: Prior to changes in accounting rules, companies used to amortise goodwill over a specific period. However, modern accounting standards (such as IFRS and GAAP) do not allow amortisation of goodwill but require periodic assessments for impairment. 5. Disclosure: Companies are required to disclose...
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### Going concern
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/going-concern/
Definition A going concern, in accounting and business terms, refers to a company's ability to continue its operations and meet its financial obligations in the foreseeable future. What is a going concern? When a company is considered a "going concern," it is assumed that it will continue its business activities without the intention of liquidation or significant disruption. Key points related to a going concern include: 1. Operational continuity: A going concern assumption assumes that the company will continue its normal operations, generate revenue, and meet its financial commitments, such as paying its debts, employees, and suppliers. 2. Financial statements: In financial reporting, the assumption of a going concern is fundamental. When preparing financial statements, companies typically assume that they will remain a going concern unless there is evidence to the contrary. 3. Assessment and disclosure: Company management and auditors are responsible for assessing the company's ability to continue as a going concern. If there are doubts about the company's ability to continue, these doubts must be disclosed in the financial statements along with the potential implications. 4. Disclosure impact: If there are significant doubts about a company's ability to continue as a going concern, it can have an impact on financial statements and decision-making. For example, it might affect how assets and liabilities are valued and disclosed. The going concern assumption is essential for accurate financial reporting. It helps users of financial statements, such as investors, creditors, and other stakeholders, understand the company's financial health and make informed decisions....
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### Fundamental analysis
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/fundamental-analysis/
Definition Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, such as stocks, bonds, or currencies, by analysing the underlying factors that affect its value. What is a fundamental analysis? It involves studying the fundamental economic, financial, and qualitative factors that can influence the asset's price over the long term. Key aspects of fundamental analysis include: 1. Financial statements: Analysing the financial statements of a company, such as the income statement, balance sheet, and cash flow statement, to assess its financial health, profitability, and overall performance. 2. Economic indicators: Examining economic indicators and data, such as GDP growth, inflation rates, unemployment figures, and consumer sentiment, to understand the broader economic environment and its potential impact on the asset. 3. Industry analysis: Evaluating the industry or sector in which the asset operates. This involves understanding industry trends, competitive dynamics, and factors that could affect the asset's performance within its sector. 4. Company performance: Assessing the company's management team, competitive advantages, market share, growth prospects, and overall business strategy. 5. Valuation methods: Using various valuation methods, such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, discounted cash flow (DCF) analysis, and others, to estimate the asset's fair value. 6. Qualitative factors: Considering qualitative factors like brand reputation, market positioning, regulatory environment, and geopolitical influences that could impact the asset's value. Fundamental analysis is often used by long-term investors who aim to identify assets that are undervalued or overvalued based on their intrinsic characteristics. By assessing the fundamental...
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### Forward contract
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/forward-contract/
Definition A forward contract is a financial agreement between two parties to buy or sell a specific asset, such as commodities, currencies, or financial instruments, at a predetermined price on a future date. What is a forward contract? A forward contract is a type of derivative contract where the terms, including the price and delivery date, are established at the outset of the agreement. Forward contracts are commonly used to hedge against price fluctuations or to speculate on future price movements. The key features of a forward contract are: 1. Customisation: Forward contracts are customisable to meet the specific needs of the parties involved. They can be tailored in terms of the asset being traded, the contract sise, the delivery date, and the agreed-upon price. 2. Private agreement: Forward contracts are private agreements negotiated directly between the parties. They are not traded on exchanges, which means the terms are not standardised and can vary between contracts. 3. Obligation to fulfill: Both parties are legally obligated to fulfil the terms of the contract at the agreed-upon future date. This means the buyer must buy and the seller must sell the asset at the specified price, regardless of market conditions at that time. Regarding regulation, the level of regulation for forward contracts can vary depending on the jurisdiction, the type of asset involved, and the parties engaged in the transaction. In some cases, forward contracts may not be as heavily regulated as other financial derivatives like futures contracts. However, regulations surrounding derivatives...
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### Fixed income
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/fixed-income/
Definition Fixed income, in financial terms, refers to an investment category characterised by regular and predictable payments of interest or income over a specified period. What is fixed income? Fixed income is often associated with investments like bonds and other debt securities issued by governments, municipalities, corporations, and other entities. The term "fixed income" originates from the fact that these investments offer a fixed interest rate or coupon payment to investors at regular intervals, typically semiannually or annually. The interest payments remain constant throughout the life of the investment, regardless of changes in market conditions. Bonds are the most common type of fixed-income investment. When an investor buys a bond, they are essentially lending money to the issuer in exchange for periodic interest payments and the return of the principal amount at maturity. The interest rate offered by the bond is predetermined and provides investors with a predictable income stream. Fixed-income investments are often favoured by those seeking stable and relatively low-risk returns. They are considered less volatile compared to other investments like stocks, making them attractive to risk-averse investors and those looking to preserve capital. However, it's important to note that while fixed-income investments offer stability, they may have a lower potential for capital appreciation compared to higher-risk assets. In summary, fixed income refers to investments that provide a predictable stream of income through regular interest payments, commonly associated with bonds and debt securities. It offers stability and is commonly chosen by investors seeking steady returns and income. Example...
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### Fiscal year
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/fiscal-year/
Definition A fiscal year, often abbreviated as "FY," is a 12-month period that a company or organisation uses for financial reporting and planning purposes. Unlike the calendar year, which begins on January 1st and ends on December 31st, a fiscal year can start on any date and end 12 months later. The choice of when the fiscal year starts and ends is typically based on the company's operational and reporting needs. What is a fiscal year? A company's fiscal year may align with the calendar year, running from January 1st to December 31st. However, many companies choose different fiscal year start dates, such as April 1st to March 31st or July 1st to June 30th. Government entities, nonprofits, and businesses in various industries might opt for fiscal years that correspond to their specific business cycles. The use of a fiscal year allows organisations to track financial performance, create budgets, and report results without being confined to the calendar year. This can be especially important for businesses that experience seasonal fluctuations in their operations or for those whose accounting needs differ from traditional calendar periods. In summary, a fiscal year is a 12-month period chosen by a company or organisation for financial reporting and planning, providing flexibility to align with their operational patterns and financial requirements. Example of a fiscal year Company XYZ, a retail company, has chosen a fiscal year that runs from April 1 to March 31. During this fiscal year, the company conducts its business operations, generates revenue,...
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### Financial statement
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/financial-statement/
Definition A financial statement is a formal record of a company's financial activities and position. It provides a snapshot of the company's financial performance and health over a specific period, usually a quarter or a year. What are financial statements? Financial statements are essential tools for assessing a company's financial status, making informed investment decisions, and evaluating its overall viability. There are three primary types of financial statements: 1. Income statement (profit and loss statement): This statement summarises a company's revenues, expenses, and profits (or losses) over a given period. It shows how much money the company generated from its operations and the costs incurred to generate that revenue. The difference between total revenue and total expenses yields the net income (or net loss) for the period. 2. Balance sheet (statement of financial position): The balance sheet provides a snapshot of a company's financial position at a specific point in time. It lists the company's assets (what it owns), liabilities (what it owes), and shareholders' equity (the residual interest in the company's assets after deducting liabilities). The balance sheet follows the fundamental accounting equation: Assets = Liabilities + Shareholders' Equity. 3. Cash flow statement: This statement details the inflows and outflows of cash and cash equivalents during a specified period. It categorises cash flows into operating activities (day-to-day business operations), investing activities (acquiring or disposing of assets), and financing activities (raising capital or repaying debt). The cash flow statement provides insights into a company's liquidity and cash management. Financial statements...
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### Exponential moving average (EMA)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/exponential-moving-average-ema/
Definition An exponential moving average (EMA) is a widely used technical analysis tool in the field of finance. It's a type of moving average that gives more weight to recent price data, making it more responsive to recent price changes compared to a simple moving average (SMA). What is exponential moving average? In essence, the EMA emphasises recent trends and price movements. To calculate the EMA, you start with a given period of price data (for example, a certain number of days or time intervals). The EMA places more weight on the most recent prices while factoring in older prices as well. This is achieved through a mathematical formula that incorporates a smoothing factor. As a result, the EMA tends to react more quickly to sudden price changes, making it useful for identifying short-term trends and potential trading opportunities. Traders and analysts often use EMAs in combination with other technical indicators to make informed decisions about buying or selling financial instruments like stocks, currencies, or commodities. In summary, the exponential moving average (EMA) is a tool that helps traders and analysts assess recent price trends and potential market movements by giving more weight to recent data points. It's a valuable tool in technical analysis for understanding short-term price dynamics.
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### Expense ratio
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/expense-ratio/
Defintion An expense ratio, in financial terms, refers to the percentage of a mutual fund or an exchange-traded fund's (ETF) assets that are used to cover the fund's operating expenses. What is an expense ratio? These operating expenses include various costs associated with managing and administering the fund, such as management fees, administrative fees, custodian fees, marketing expenses, and other operational costs. The expense ratio is expressed as a percentage and is calculated by dividing the total expenses of the fund by its average assets under management (AUM) over a specific period, usually a year. This ratio is important for investors because it reflects the proportion of their investment that goes towards covering the fund's ongoing costs. A lower expense ratio is generally preferred by investors, as it means a larger portion of their investment is working to generate returns rather than being used to cover expenses. Expense ratios can vary significantly between different funds and investment products, so it's important for investors to consider this factor when choosing where to invest their money. Example of expense ratio Let's consider the "XYZ Equity Fund," a mutual fund that manages a diversified portfolio of stocks. The total assets under management for the fund are R100 million, and the annual operating expenses incurred by the fund, including management fees and administrative costs, amount to R1 million. Expense ratio = (Total operating expenses / Total assets under management ) × 100 Using the numbers provided: Expense ratio = (R1,000,000 / R100,000,000) × 100...
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### Exchange-traded fund (ETF)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/exchange-traded-fund-etf/
Definition An exchange-traded fund (ETF) is a type of investment fund that is traded on stock exchanges, similar to individual stocks. What is an exchange-traded fund? This is designed to track the performance of a specific index, sector, commodity, or asset class. ETFs offer investors a convenient way to gain exposure to a diversified portfolio of assets without directly owning each individual asset. ETFs can contain a mix of stocks, bonds, commodities, or other assets, and their value fluctuates throughout the trading day as they are bought and sold on the exchange. They provide investors with an opportunity to invest in a broad market or a specific investment theme without having to buy and manage the underlying assets themselves. One of the key advantages of ETFs is their liquidity and flexibility – they can be bought or sold at any point during trading hours, and their prices are updated in real time. Additionally, ETFs often have lower fees compared to traditional mutual funds. In summary, an ETF is a type of investment vehicle that combines the characteristics of a stock and a mutual fund, offering investors a way to diversify their portfolio and gain exposure to various markets or assets with relative ease. Example of exchange-traded fund Consider the "ABC Technology ETF," which is an ETF that aims to track the performance of a technology stock index. This ETF may hold a diversified portfolio of technology stocks. Investors can buy and sell shares of the ABC Technology ETF on a...
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### Equity
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/equity/
Definition Equity, in financial terms, refers to the ownership interest or residual value that remains in a company after deducting its liabilities from its assets. What is equity? It represents the portion of a company's assets that belongs to its owners or shareholders. Essentially, equity is the value that shareholders hold in a company, and it can be thought of as the difference between a company's total assets and its total liabilities. Equity provides a measure of the company's net worth and is a key component of the company's balance sheet. It can also be referred to as "shareholders' equity" or "stockholders' equity. " Example of equity Let's consider a fictional company, XYZ Inc. , with the following financial information: Total assets: R1,000,000 Total liabilities: R400,000 Equity = Total assets − Total liabilities Equity = R1,000,000 − R400,000 = R600,000 In this case, the equity of XYZ Inc. is R600,000. This amount represents the ownership interest that shareholders have in the company after accounting for all its liabilities.
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### Earnings per share (EPS)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/earnings-per-share-eps/
Definition Earnings per share (EPS) is a financial metric that calculates the portion of a company's profit allocated to each outstanding share of its common stock. What is earnings per share? It is often used as an indicator of a company's profitability and is calculated by dividing the company's net earnings by the number of outstanding shares. EPS provides insight into how much profit a company generates for each share of its stock, which can be useful for investors and analysts evaluating a company's financial performance. Earnings per share is calculated using the formula: ESP = Net income / Number of outstanding shares Example of earnings per share Let's consider a fictional company, XYZ Corporation, to illustrate earnings per share (EPS). XYZ Corporation has a net income of R1 million for the fiscal year. The company has 500,000 outstanding shares of common stock. ESP = R1,000,000 / 500,000 = R2 So, the earnings per share for XYZ Corporation would be R2. This means that for each share of common stock, the company earned R2 in profit during that fiscal year.
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### Dividend
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/dividend/
Definition A dividend is a payment made by a company to its shareholders out of its earnings or profits. It represents a distribution of a portion of the company's financial success to those who hold its shares. What are dividends? Dividends are typically paid in cash, although they can also be paid in the form of additional shares of stock or other property. Dividends are a way for companies to reward their shareholders for their investment and ownership in the company. When a company earns a profit, it has the option to reinvest those earnings back into the business to fuel growth or to distribute a portion of the earnings as dividends to shareholders. The decision to pay dividends and the amount of dividends paid are determined by the company's board of directors. Dividends can be a source of regular income for investors, especially those who rely on their investments for financial stability. They are particularly attractive to income-focused investors, such as retirees, who seek consistent returns without having to sell their shares. Dividend payments can also indicate financial strength and stability on the part of the company, as consistent dividends suggest that the company is generating steady profits. Companies that consistently pay dividends are often referred to as "dividend-paying stocks" or "dividend stocks. " The dividend yield is a common metric used to assess the income potential of a dividend-paying stock. It's calculated by dividing the annual dividend payment by the stock's current price. It's important to note that...
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### Diversification
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/diversification/
Definition Diversification is a fundamental principle in finance that involves spreading investments across a variety of different assets or sectors in order to reduce risk. What is diversification? This strategy aims to mitigate the impact of potential losses from any one investment by ensuring that the overall portfolio is not overly concentrated in a single area. By diversifying, investors seek to achieve a balance between risk and potential return. Investing in a single asset or sector exposes an investor to specific risks associated with that particular asset class or industry. For example, if an investor puts all their funds into stocks of a single company or sector, their portfolio's performance becomes highly dependent on the performance of that company or sector. If adverse events affect that company or sector, the investor's entire portfolio could suffer significant losses. However, by diversifying their investments, investors can spread their risk across a range of different assets or sectors that may respond differently to market changes. For instance, a well-diversified portfolio might include a mix of stocks, bonds, real estate, and commodities, along with exposure to various industries like technology, healthcare, and energy. Diversification offers several potential benefits: 1. Risk reduction: Spreading investments across different assets reduces the impact of poor performance in any single investment. Losses in one area can be offset by gains in another, potentially stabilising overall portfolio returns. 2. Enhanced return-risk profile: Diversification can lead to a more efficient balance between potential returns and risk. While it might not eliminate...
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### Derivative
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/derivative/
Definition A derivative is a financial instrument whose value is derived from an underlying asset or set of assets. The underlying assets can include commodities, stocks, bonds, currencies, interest rates, market indices, and more. What is derivative? Derivatives are used for various purposes, such as managing risk, speculating on price movements, and hedging against potential losses. Derivatives derive their value from changes in the value of the underlying asset. They are essentially contracts between two parties, where one party agrees to buy the asset (going "long") and the other party agrees to sell the asset (going "short") at a specified price and date in the future. The most common types of derivatives include options, futures contracts, forwards, and swaps. 1. Options: Options give the holder the right, but not the obligation, to buy (call option) or sell (put option) the underlying asset at a predetermined price within a specified time frame. Options are often used for hedging and speculative purposes. 2. Futures contracts: Futures contracts obligate both parties to buy or sell the underlying asset at a predetermined price on a specific date in the future. These contracts are commonly used by producers and consumers to manage price volatility and by speculators to profit from price movements. 3. Forwards: Forwards are similar to futures contracts but are not standardised or traded on an exchange. They are customised agreements between two parties to buy or sell an asset at a future date and price. 4. Swaps: Swaps involve the exchange of...
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### Depreciation
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/depreciation/
Definition Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. It is an accounting method used to recognise the gradual reduction in the value of an asset as it is used, consumed, or becomes obsolete over time. What is depreciation? In simpler terms, when a company purchases a long-term asset like machinery, buildings, vehicles, or equipment, the cost of that asset is spread out over its expected lifespan through depreciation. This reflects the fact that assets lose value over time due to wear and tear, technological advancements, and other factors. There are different methods of calculating depreciation, with the most common being the straight-line method and the declining balance method. In the straight-line method, the cost of the asset is evenly distributed over its useful life. In the declining balance method, a higher portion of the asset's cost is depreciated in the earlier years, reflecting a faster decline in value. Depreciation is not a cash expense; it's an accounting concept that reflects the reduction in the value of an asset on the company's financial statements. This reduction in value is recorded as an expense on the income statement, which in turn reduces the company's net income and, consequently, its tax liability. Depreciation is an important concept because it helps companies accurately represent the true economic value of their assets over time. It also has implications for financial analysis, taxation, and decision-making, as it affects a company's profitability, asset values, and tax obligations....
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### Debt-to-equity ratio
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/debt-to-equity-ratio/
Definition The debt-to-equity ratio is a financial metric used to assess the proportion of a company's debt relative to its equity. What is a debt-to-equity ratio? This ratio provides insights into how a company is financed, indicating the extent to which it relies on borrowed funds versus funds invested by its owners (shareholders). To calculate the debt-to-equity ratio, you divide the company's total debt by its total equity. The formula is as follows: Debt-to-equity ratio = total debt / total equity "Total debt" includes both short-term and long-term liabilities, such as loans, bonds, and other forms of debt the company owes. "Total equity" represents the ownership stake of shareholders in the company, which includes common stock, retained earnings, and additional paid-in capital. The resulting ratio is typically expressed as a number or a percentage. A low debt-to-equity ratio indicates that the company relies more on equity financing, which can be considered less risky because it involves a lower level of debt obligations. On the other hand, a high debt-to-equity ratio suggests that the company has a significant amount of debt relative to its equity, which could indicate a higher financial risk since a larger portion of its operations depends on borrowed funds. The interpretation of the debt-to-equity ratio depends on the industry and the company's specific circumstances. Different industries might have varying norms for acceptable levels of debt, and companies with stable cash flows might be more capable of managing higher debt levels than those with volatile cash flows. It's...
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### Credit rating
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/credit-rating/
Definition A credit rating is an evaluation of the creditworthiness of an individual, company, or government entity. What is credit rating? It is a key evaluation performed by credit rating agencies to provide investors, creditors, and the general public with an indication of the likelihood that the borrower will fulfil their financial obligations. Credit rating agencies typically use letter grades or symbols to represent credit ratings. The scale may vary slightly between agencies, but generally, higher grades indicate a lower credit risk, while lower grades suggest a higher risk of default. Credit rating agencies consider various factors when assigning ratings. These factors may include financial metrics, industry conditions, economic trends, management quality, and geopolitical factors. The goal is to provide a comprehensive assessment of the organisation’s ability to meet its financial obligations. Credit ratings are not static; they can be periodically reviewed and revised based on changes in the financial health and risk profile of the entity being rated. Upgrades or downgrades in credit ratings can have significant implications for borrowing costs and market perception. Example of credit rating XYZ Corporation is seeking to issue bonds to raise capital for a new project. Before investors decide to purchase these bonds, they look at the credit rating assigned by a credit rating agency, such as Moody's. XYZ Corporation receives the following credit rating: Moody's: A3 This rating of A3 indicates that Moody's considers XYZ Corporation's bonds to be of relatively high quality and low credit risk. Investors may interpret this rating...
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### Cost of capital
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cost-of-capital/
Definition Cost of capital refers to the total cost a company incurs in order to raise funds for its operations and investments. It represents the overall expense of utilising various sources of financing, such as equity (stocks) and debt (loans or bonds), to support the company's activities. What is cost of capital? The cost of capital takes into account both the cost of equity and the cost of debt. The cost of equity is the return that shareholders expect for investing in the company's stock, taking into consideration factors like dividends and potential capital gains. The cost of debt, on the other hand, is the interest expense a company pays on its borrowed funds. Calculating the cost of capital helps a company make informed decisions about which projects or investments to undertake. It serves as a benchmark to assess whether the potential returns from an investment are greater than the cost of obtaining the necessary funds. This analysis is crucial for maintaining profitability and shareholder value. For businesses, understanding the cost of capital is essential for strategic planning, capital budgeting, and evaluating the financial viability of various opportunities. It's a fundamental concept in corporate finance that plays a pivotal role in shaping a company's financial decisions. Example of cost of capital XYZ Company is considering a new project that requires an investment of R1 million. The company can finance the project using a mix of equity and debt. The cost of equity is estimated to be 10%, and the cost...
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### Collateral
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/collateral/
Definition Collateral refers to assets or property that a borrower pledges to a lender as a security for a loan. What is collateral? This serves as a guarantee for the lender that if the borrower is unable to repay the loan, the lender can seise and sell the collateral to recover the borrowed amount. Collateral can take various forms, such as real estate, vehicles, equipment, inventory, or even financial assets like stocks or bonds. It provides a level of assurance for lenders and allows borrowers to access loans they might not otherwise qualify for. Example of using collateral Sarah wants to purchase a car and decides to finance the purchase through a bank loan. ABC Bank agrees to provide Sarah with a secured car loan. Loan amount: Sarah needs R20,000 to buy the car. ABC Bank approves the loan and provides her with the funds. Collateral: To secure the loan, Sarah pledges the car she intends to purchase as collateral. The car's value is estimated at R25,000. Use of funds: Sarah uses the R20,000 loan from ABC Bank to purchase the car. Ownership and collateral agreement: As part of the loan agreement, ABC Bank places a lien on the car, meaning that until Sarah repays the loan, the bank has a legal claim to the car. Repayment: Over the loan term, Sarah makes monthly payments to ABC Bank, covering both the principal amount borrowed and the accrued interest. If Sarah fails to make the agreed-upon payments and defaults on the...
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### Cash flow
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/cash-flow/
Definition Cash flow refers to the movement of money into and out of a business or individual's financial accounts over a specific period of time. It represents the net amount of cash generated or consumed by various financial activities, such as operating, investing, and financing activities. What is cash flow? There are three main components of cash flow: 1. Operating cash flow: This represents the cash generated or used by a company's core business operations. It includes revenues from sales and services minus operating expenses like salaries, rent, and other operational costs. Operating cash flow is a key indicator of a company's ability to generate cash from its primary activities. 2. Investing cash flow: This component reflects the cash inflows and outflows related to investments in assets or the sale of assets. It includes cash spent on purchasing new equipment, property, or other investments, as well as cash received from the sale of these assets. 3. Financing cash flow: Financing cash flow accounts for the movement of cash resulting from borrowing or repaying loans, issuing or buying back stocks, and paying dividends. It shows how a company raises and distributes funds to investors and creditors. Positive cash flow indicates that a business or individual receives more cash than they are spending, which is generally considered a healthy financial state. Negative cash flow, on the other hand, indicates that more money is going out than coming in, which could lead to financial difficulties if sustained over time. Do you want to...
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### Capital gains
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/capital-gains/
Definition Capital gains refer to the profits or returns earned from the sale or disposition of a capital asset. A capital asset can include various types of property, such as stocks, real estate, bonds, precious metals, and other investments. What is capital gains? When you sell a capital asset for a price higher than its original purchase price, the difference between the selling price and the purchase price is considered a capital gain. Capital gains can be either short-term or long-term, depending on the holding period of the asset: Short-term capital gains: If you hold the asset for one year or less before selling it, any profit from the sale is classified as a short-term capital gain. Short-term capital gains are typically taxed at a higher rate than long-term gains. Long-term capital gains: If you hold the asset for more than one year before selling it, the resulting profit is considered a long-term capital gain. Long-term capital gains often receive preferential tax treatment, with lower tax rates compared to short-term gains. Capital gains are an important aspect of investment income and are subject to taxation in many countries. The tax implications of capital gains vary based on factors such as the type of asset, the duration of ownership, and the tax regulations of the specific jurisdiction. Example of capital gains John, an individual investor, purchases 100 shares of XYZ Company's stock at R50 per share. His total investment is R5,000. Stock appreciation: Over time, the value of XYZ Company's stock...
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### Bull market
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bull-market/
Definition A bull market refers to a financial market, such as the stock market, in which prices of assets, particularly stocks, are on an upward trend over an extended period of time. During a bull market, investor confidence is high, and there is a prevailing sense of optimism about the economy and the prospects of various industries. What is a bull market? Key characteristics of a bull market include rising stock prices, increased trading activity, and a general feeling of positive sentiment among investors. This optimistic atmosphere often encourages more people to invest, further driving up prices. Bull markets can be fueled by factors such as strong economic growth, low unemployment rates, and favourable corporate earnings reports. It's important to note that a bull market is characterised by a sustained uptrend, typically lasting months or even years, rather than just short-term fluctuations. This contrasts with a bear market, where asset prices decline consistently over an extended period. Example of a bull market Imagine a stock market named Imaginaria Stock Exchange (ISE). Economic growth: The economy of the fictional country, Imaginaria, is experiencing robust growth. GDP is expanding, unemployment is low, and consumer confidence is high. Favorable corporate earnings: Companies listed on the ISE are reporting strong earnings, indicating healthy business performance. Investors are optimistic about the future prospects of these companies. Low interest rates: The central bank of Imaginaria has kept interest rates low to stimulate borrowing and spending. Low-interest rates make equities more attractive for investors seeking higher returns....
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### Broker
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/broker/
Definition A finance broker is a professional who acts as an intermediary between individuals or businesses seeking financial products or services and financial institutions that provide those products or services. What is a broker? They help connect borrowers with lenders and assist in finding suitable financial solutions based on the borrower's needs and financial situation. Finance brokers can assist with various types of financial products, such as mortgages, loans, insurance, investments, and more. They have access to a network of lenders and financial institutions, which allows them to compare different options and present the most suitable choices to their clients. Additionally, they can provide advice and guidance throughout the application process, helping clients navigate the complexities of financial transactions. In the UK, finance brokers play a crucial role in helping individuals and businesses access the right financial products and services that align with their specific requirements. Example of using a broker Sarah, an individual investor, wants to buy shares of a tech company, TechCo Inc. , listed on the stock exchange. She decides to use the services of XYZ Brokers, a reputable brokerage firm. Account setup: Sarah opens a brokerage account with XYZ Brokers. This account is where she will deposit funds to buy stocks and receive proceeds from selling stocks. Placing an order: Sarah logs into her brokerage account and places a market order to buy 100 shares of TechCo Inc. Execution by broker: XYZ Brokers, acting as a broker, executes Sarah's buy order on the stock exchange. The...
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### Bonds
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bonds/
Definition Bonds are debt securities issued by governments, municipalities, corporations, and other entities to raise capital. When an investor buys a bond, they are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount at the bond's maturity. What is a bond? Here are the key features of bonds: Issuer: The entity that issues the bond, which can be a government, corporation, municipality, or other organisation. Face value/par value: The initial value of the bond, which represents the amount the bondholder will receive when the bond matures. Coupon rate: The annual interest rate that the bond pays, expressed as a percentage of the face value. This determines the amount of interest the bondholder will receive. Maturity date: The date on which the bond reaches its full term and the issuer repays the bondholder the face value of the bond. Interest payments: Bondholders receive periodic interest payments (known as coupons) based on the coupon rate and the face value of the bond. These payments are typically made semiannually. Yield: The yield is the effective annual rate of return an investor can expect to earn from holding the bond until maturity, factoring in both the coupon payments and the bond's purchase price. Market price: Bonds can be traded in secondary markets, and their prices can fluctuate based on changes in interest rates, credit risk perception, and other market factors. The market price of a bond may be higher or lower than its face...
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### Bear market
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/bear-market/
Definition A bear market refers to a prolonged period of declining prices and pessimism in a financial market, typically characterised by a drop of at least 20% from recent highs in stock prices. What is a bear market? During a bear market, investor confidence tends to wane, and there's a prevailing sense of negativity about the market's future prospects. Key features of a bear market include: Declining prices: Prices of various financial instruments, such as stocks, bonds, or commodities, experience a sustained downward trend. Pessimism: Investors and market participants become increasingly cautious and concerned about the economy's performance and the overall direction of the market. Reduced trading volume: As uncertainty and caution grow, trading volumes often decrease because investors are less inclined to buy or sell. Negative sentiment: Media coverage tends to focus on economic challenges, market declines, and potential risks, contributing to prevailing negative sentiment. Longer duration: Bear markets can persist for months or even years, as they often reflect broader economic cycles and significant shifts in investor sentiment. The opposite of a bear market is a bull market, characterised by rising prices, optimism, and confidence in the market's future. Both bear and bull markets are natural parts of market cycles, driven by various economic factors, investor behaviour, and global events. Understanding these market dynamics is crucial for investors to make informed decisions about their investment strategies. Example of bear market Imagine a stock market index, such as the Imaginary Stock Index (ISI), has been steadily declining for an...
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### Balance sheet
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/balance-sheet/
Definition A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It presents a summary of the company's assets, liabilities, and shareholders' equity, showing how these elements are balanced or equal. What is a balance sheet? Here's a breakdown of the components found on a balance sheet: Assets: These are the resources owned by the company that have economic value. Assets are typically categorised into current assets (those that are expected to be converted into cash or used up within a year) and non-current assets (those with a longer lifespan). Examples of assets include cash, accounts receivable, inventory, property, equipment, and investments. Liabilities: These are the company's obligations or debts to external parties. Similar to assets, liabilities are divided into current liabilities (debts due within a year) and non-current liabilities (long-term debts). Examples of liabilities include accounts payable, loans, bonds, and other forms of debt. Shareholders' equity: Also known as owners' equity or net worth, this represents the residual interest in the company's assets after deducting its liabilities. It includes the initial investment by the shareholders plus any retained earnings generated by the company's operations. The balance sheet follows the fundamental accounting equation: Assets = liabilities + shareholders' equity. This equation ensures that the company's resources (assets) are financed by either external sources (liabilities) or internal sources (shareholders' equity). Balance sheets are essential financial documents used by investors, analysts, creditors, and management to assess a company's financial health,...
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### Asset allocation
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/asset-allocation/
Definition Asset allocation refers to the strategic distribution of an investment portfolio across different types of assets, such as stocks, bonds, cash, real estate, and other investment vehicles. What is asset allocation? The goal of asset allocation is to create a diversified portfolio that balances risk and potential returns based on an investor's financial goals, risk tolerance, and time horizon. Diversification through asset allocation involves spreading investments across various asset classes and sectors. This approach aims to reduce the impact of poor performance in any single investment on the overall portfolio. Different asset classes have varying levels of risk and return potential, so a well-thought-out asset allocation strategy can help manage risk while aiming for long-term growth. Investors may adjust their asset allocation over time to align with their changing financial situation and goals. For example, a younger investor with a longer time horizon might have a higher allocation to higher-risk assets like stocks, while an older investor closer to retirement might prioritise more conservative investments like bonds. Effective asset allocation requires careful consideration of an individual's financial circumstances and investment objectives, and it plays a crucial role in achieving a balanced and successful investment strategy. Example of asset allocation Sarah, a 30-year-old investor, has a moderate risk tolerance and a long-term investment horizon of 30 years until retirement. Asset allocation strategy: Given her long investment horizon and moderate risk tolerance, Sarah decides on a diversified asset allocation strategy: a. Equities (Stocks): Sarah allocates 70% of her portfolio to a...
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### Annual percentage rate (APR)
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/annual-percentage-rate-apr/
Definition The annual percentage rate (APR) is a standardised way of expressing the overall cost of borrowing, including both the interest rate and certain fees, as a single percentage. It's designed to provide borrowers with a clearer understanding of the true cost of a loan or credit product. What is the annual percentage rate? The APR takes into account not only the interest rate charged on the borrowed amount but also any additional costs such as origination fees, points, and certain other finance charges. By including these costs, the APR gives borrowers a more accurate representation of what they'll actually pay over the life of the loan or credit agreement. Lenders are typically required to disclose the APR to borrowers when offering loans or credit, allowing borrowers to compare different offers more easily and make informed decisions about their borrowing options. Keep in mind that while the APR provides a helpful comparison tool, it may not cover all potential costs, so it's important to carefully review all terms and conditions before committing to a loan or credit product. Example of annual percentage rate Car loan details: Alex is in the market for a new car and decides to finance the purchase with a loan. He borrows R20,000 from a bank to be repaid over 5 years. Nominal interest rate: The bank offers Alex a nominal interest rate of 5% per year on the loan. Additional fees: In addition to the interest rate, there are some upfront fees associated with the...
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### Amortisation
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/amortisation/
Defintion Amortisation refers to the process of gradually reducing or paying off a debt, such as a loan or a mortgage, over a specific period of time through regular payments. What is amortisation? These payments typically consist of both the principal amount borrowed and the interest that accrues on the outstanding balance. Amortisation schedules outline the payment plan, detailing how much of each instalment goes towards reducing the principal balance and how much covers the interest. In the initial stages of a loan, a larger portion of the payment goes towards interest, while over time, the proportion allocated to the principal increases. This systematic approach ensures that the debt is fully repaid by the end of the agreed-upon term. Amortisation is commonly used in various financial contexts, including home mortgages, car loans, and other types of instalment loans. It helps borrowers manage their repayment obligations and allows lenders to receive a consistent stream of payments over the life of the loan. Example of amortisation Intangible asset acquisition: On January 1st, Tech Innovators acquires a patent for a new technology by paying R120,000. The patent has a useful life of 4 years. The accounting entry for the acquisition is: Patent (Intangible asset) = R120,000 This entry records the initial cost of the patent on Tech Innovators' balance sheet. Amortisation process: Since the patent has a useful life of 4 years, the annual amortisation expense is calculated as R120,000/4 = R30,000 The monthly amortisation expense is R30,000 / 12 = R2,500 Monthly...
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### Accrual accounting
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accrual-accounting/
Definition Accrual accounting is a method of financial reporting where revenues and expenses are recorded when they are earned or incurred, regardless of when the actual cash transactions take place. What is accrual accounting? This approach aims to provide a more accurate picture of a company's financial performance and position over a specific period. In accrual accounting, revenue is recognised when it is earned, meaning when goods are delivered or services are performed, even if the payment has not been received yet. Similarly, expenses are recorded when they are incurred, irrespective of when the payment is made. This method contrasts with cash accounting, where transactions are only recorded when cash changes hands. Accrual accounting is widely used by businesses to reflect a more comprehensive view of their financial activities and obligations, providing a more accurate representation of the company's financial health. Example of accrual accounting Service provided, not yet paid: On December 15th, XYZ Marketing Services provides advertising services to a client, ABC Retailers, but does not receive payment immediately. The total invoice for the services is R5,000. The accounting entry for this transaction is: Accounts receivable (Asset) = R5,000 Service revenue (Revenue) = R5,000 This entry reflects an increase in the accounts receivable asset, representing the amount owed by the client, and an increase in service revenue. The revenue is recognized when the service is provided, regardless of when the payment is received. Payment received in the next accounting period: On January 10th of the following year, ABC Retailers...
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### Accounts payable
- Published: 2023-08-21
- Modified: 2025-04-24
- URL: https://swoopfunding.com/za/business-glossary/accounts-payable/
Definition Accounts payable refers to the amount of money a business owes to its creditors or suppliers for goods and services they have provided. What is account payable? It is a liability on the company's balance sheet and represents short-term debts that need to be paid off within a specific time frame, often referred to as the payment terms. This typically involves invoices received from vendors, suppliers, and service providers. Businesses need to manage their accounts payable effectively to ensure timely payments and maintain good relationships with their suppliers. Example of accounts payable Purchase on credit: On March 1st, ABC Office Supplies purchases office furniture on credit from XYZ Furniture Store, with a total cost of R10,000. The accounting entry for this transaction is: Office Furniture (Asset) = R10,000 Accounts Payable (Liability) = R10,000 This entry reflects an increase in the office furniture asset and an increase in the accounts payable liability. Payment within credit terms: The credit terms specify that ABC Office Supplies has 30 days to pay the invoice. On March 25th, within the credit period, ABC makes a payment of R10,000 to XYZ Furniture Store. The accounting entry for the payment is: Accounts Payable (Liability) = R0 Cash (Asset)= R10,000 This entry reduces the accounts payable liability and decreases the cash asset to reflect the payment made. In this example, Accounts Payable initially represents the amount owed to the supplier for the purchased office furniture. The liability is later reduced when the payment is made within the...
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## Knowledge hub
### Convertible loan note (CLN)
> Been offered a loan from an investor under a convertible loan note (CLN) agreement? Is it the right choice for your business? Here's how they work.
- Published: 2020-05-19
- Modified: 2024-03-12
- URL: https://swoopfunding.com/za/knowledge-hub/convertible-loan-note-cln/
- Segment: Working capital finance
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### Advanced Subscription Agreement (ASA)
> An Advanced Subscription Agreement (ASA) is an equity instrument where investors 'pre-pay' for shares in a company. Find out more here.
- Published: 2020-05-19
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/advanced-subscription-agreement-asa/
- Segment: Equity finance
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### Bridging loan
> Thinking of getting a bridging loan for your business? Find out if this short-term finance option is right for you on the Swoop Knowledge Hub.
- Published: 2020-05-15
- Modified: 2024-05-23
- URL: https://swoopfunding.com/za/knowledge-hub/bridging-loan/
- Segment: Business loans
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### Working capital loan
> Could a working capital loan be right for your business? Find out more about your options on the Swoop Knowledge Hub.
- Published: 2020-05-02
- Modified: 2024-05-15
- URL: https://swoopfunding.com/za/knowledge-hub/working-capital-loan/
- Segment: Business loans
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### Family offices
> Family offices are private advisory firms set up by affluent families (or individuals) to manage their wealth, investments & trusts. Find out more.
- Published: 2020-05-01
- Modified: 2023-11-30
- URL: https://swoopfunding.com/za/knowledge-hub/family-office/
- Segment: Equity finance
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### Business cash advance (revenue loan)
> Is a business cash advance the right lending option for your business? Find out more on the Swoop Knowledge Hub.
- Published: 2020-04-27
- Modified: 2024-07-31
- URL: https://swoopfunding.com/za/knowledge-hub/business-cash-advance/
- Segment: Business loans
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### Trade finance
> Is your business worried about the risks involved in trading abroad? Explore your trade finance options on the Swoop Knowledge Hub, or apply with Swoop today.
- Published: 2020-03-23
- Modified: 2023-11-30
- URL: https://swoopfunding.com/za/knowledge-hub/trade-finance/
- Segment: Types of finance
What is trade finance? Trade finance is an umbrella term that covers many financial products and instruments used by businesses to reduce the risk of trading abroad. It includes importing, exporting and domestic trade. Trade finance is a broad term that encompasses a range of financial products utilised by banks and companies to make trade transactions possible. Trade finance for importers If you're an importer you won't want your own money tied up in shipments of goods that could take several weeks to arrive – assuming they have actually been shipped. Trade finance for exporters And if you're an exporter, you probably don't want to wait until your goods have arrived at their final destination before you get paid – assuming your importer doesn't default on payments. You might also want a cash advance based on a purchase order or invoice. Why use trade finance? In theory, trade finance mitigates these potential risks (e. g. payment risk, supply risk, bankruptcy risk) to international and domestic trade. International trade involves various risks, such as currency fluctuations, credit risks, and shipment risks, which can make it difficult for parties to secure financing for their trade deals. Trade finance helps to mitigate these risks by providing financial instruments such as letters of credit, trade guarantees, and documentary collections that ensure payment and delivery of goods. Moreover, trade finance also offers other services like financing working capital, providing credit insurance, and managing currency exchange risk, which are essential for companies engaged in international trade...
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### Debt financing
> Thinking of using debt financing to raise capital for your business? Find out what your options are with the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2024-06-07
- URL: https://swoopfunding.com/za/knowledge-hub/debt-financing/
- Segment: Types of finance
What is debt financing? Debt financing, also known as debt funding, is when a company borrows money to be repaid at a future date with interest, over a set period of time. A loan can come either from a lender – see business loans – or from selling bonds to the public. If your business needs to raise money (capital) you can either borrow from a lender (i. e. debt financing) or sell a share of ownership in your business (equity financing) in return for capital. You can of course combine the two. What is included in debt financing? Debt financing includes, for example, business loans, overdrafts, equipment leases, invoice discounting and R&D tax credit loans as well as fixed income products such as bonds, bills, or notes. You will find there are debt products to suit just about every business stage and situation, whether you are looking for startup finance, working capital finance or a longer-term business loan. How does debt financing work? The details vary, but in all cases your business is taking on debt – the lender gives you cash in return for regular repayments that add up to the principal amount you borrowed plus interest within an agreed time frame. The lender usually has a clear idea of how much they’ll get back. At Swoop Funding, there are three primary options for companies seeking financing: selling equity, taking on debt, or a combination of both. Equity represents ownership in the company and provides shareholders with a...
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### Government funding
> Looking for grant funding for your business? Find out what your options are & who the biggest grant funders are from the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2023-06-01
- URL: https://swoopfunding.com/za/knowledge-hub/government-funding/
- Segment: Government agencies and funds, Types of finance
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### Mezzanine finance
> Thinking of using mezzanine financing for your next large business project? Find out if it's right for you from the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2024-08-13
- URL: https://swoopfunding.com/za/knowledge-hub/mezzanine-finance/
- Segment: Private debt
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### Direct lending
> How does a direct lending fund work? Find out more about your options and whether it would work for your business on the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/direct-lending/
- Segment: Private debt
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### Initial public offering (IPO)
> Selling shares in your business to the public for the first time - It's a big step. Find out more about IPOs on the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2024-08-13
- URL: https://swoopfunding.com/za/knowledge-hub/initial-public-offering-ipo/
- Segment: Equity finance
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### Equity crowdfunding
- Published: 2020-03-23
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/equity-crowdfunding/
- Segment: Equity finance
---
### Venture capital
- Published: 2020-03-23
- Modified: 2023-11-30
- URL: https://swoopfunding.com/za/knowledge-hub/venture-capital/
- Segment: Equity finance
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### Business angels
- Published: 2020-03-23
- Modified: 2024-03-26
- URL: https://swoopfunding.com/za/knowledge-hub/business-angels/
- Segment: Equity finance
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### Equity finance
> Find out more about equity finance and the options available to your business on the here on the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/equity-finance/
- Segment: Equity finance, Types of finance
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### Customer handles own collections (CHOCs)
- Published: 2020-03-23
- Modified: 2024-08-13
- URL: https://swoopfunding.com/za/knowledge-hub/chocs-customer-handles-own-collections/
- Segment: Invoice finance
---
### Confidential invoice factoring
- Published: 2020-03-23
- Modified: 2024-08-13
- URL: https://swoopfunding.com/za/knowledge-hub/confidential-invoice-factoring/
- Segment: Invoice finance
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### Confidential invoice finance
- Published: 2020-03-23
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/confidential-invoice-finance/
- Segment: Invoice finance
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### Selective invoice discounting
- Published: 2020-03-23
- Modified: 2024-08-13
- URL: https://swoopfunding.com/za/knowledge-hub/selective-invoice-discounting/
- Segment: Invoice finance
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### Invoice finance
> Unpaid invoices piling up? Find out if invoice finance would work for your business from the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2024-08-13
- URL: https://swoopfunding.com/za/knowledge-hub/invoice-finance/
- Segment: Invoice finance, Types of finance
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### Asset finance
> Need new equipment for your business? Learn more about your asset finance options with the Swoop Knowledge Hub.
- Published: 2020-03-23
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/asset-finance/
- Segment: Asset finance, Types of finance
Asset finance is a type of lending that gives you access to additional business assets (e. g. equipment). There are two main types of asset finance: equipment leasing and hire purchase. If you are facing a large one-off payment to access equipment, machinery or vehicles, you might want to consider asset finance as an alternative to traditional bank loans or overdrafts. The two main types of asset finance are:  equipment leasing (including finance leases, operating leasesandcontact hire) hire purchase. You might also consider asset refinance, which allows you release cash from the value in your existing assets.
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### Trade finance loan
- Published: 2020-03-23
- Modified: 2024-06-06
- URL: https://swoopfunding.com/za/knowledge-hub/trade-finance-loan/
- Segment: Working capital finance
If you’re a wholesaler, distributor or importer, a trade finance loan can give you the cash you need to buy inventory or stock from a supplier, in order to fulfil an order. It's a form of working capital finance. It falls under the broader banner of trade finance. If you have domestic customers, or some in South Africa and some abroad – and if you’re importing or exporting – a trade finance loan (trade loan) could help you handle overseas transactions and costs. Put simply, a trade finance loan can give you the cash you need to buy inventory or stock from a supplier, in order to fulfil an order. In this narrow definition of trade finance, it's another form of working capital finance and has a lot in common with purchase order finance and supplier finance. Let's say you have a confirmed purchase order from a customer and you want to either import stock or inventory, or export products for resale. This is the point at which you'd talk to a trade finance lender. They would look at you favourably if both your customer and supplier were established businesses. Their loan would pay your supplier (in this case the exporter) before you (the importer) receive the goods.   Goods can then be shipped to you more quickly so that you can fulfil your order. Your trade finance lender in other words acts as a third party to mitigate payment risk and supply risk. A trade finance loan (trade loan)...
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### Supplier finance
- Published: 2020-03-23
- Modified: 2024-03-12
- URL: https://swoopfunding.com/za/knowledge-hub/supplier-finance/
- Segment: Working capital finance
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### Purchase order (PO) finance
- Published: 2020-03-23
- Modified: 2024-07-31
- URL: https://swoopfunding.com/za/knowledge-hub/purchase-order-finance-po-finance/
- Segment: Working capital finance
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### Line of credit (non-revolving)
> A line of credit is like a business loan that's ready to go. Find out more about your options from the Swoop Knowledge Hub.
- Published: 2020-03-22
- Modified: 2023-12-07
- URL: https://swoopfunding.com/za/knowledge-hub/line-of-credit-non-revolving/
- Segment: Business loans
A line of credit is like a business loan that's ready to go. It's an agreement with a lender that lets you borrow on an as-needed basis and pay back when it's convenient. You have a credit limit, in the same way you do with a business credit card or bank overdraft. A revolving credit facility, on the other hand, is a 'rolling' type of line of credit. A non-revolving line of credit has similar features to revolving credit (or a revolving credit line). In both cases you agree a credit limit with a lender, you can use the funds for a variety of purposes, you pay interest, and you can make payments at any time, as documented in your agreement with the lender. There is one major difference: with a non-revolving line of credit the pool of available credit does not replenish after you've completed your payments. Rather, once you pay off the line of credit in full, the lender closes the account and you can't use it again. So, unlike revolving credit, a non-revolving line of credit is a static product – or a one-off financial arrangement. When you have reached your credit limit, you cannot borrow more. Both revolving credit and non-revolving credit lines come in unsecured and secured versions.
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### Revolving credit facility (line of credit)
> Thinking of setting up a rolling credit line between you and your lender? Find out how they work from the Swoop Knowledge Hub.
- Published: 2020-03-22
- Modified: 2024-08-19
- URL: https://swoopfunding.com/za/knowledge-hub/revolving-credit-line-facility/
- Segment: Working capital finance
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### Working capital finance
> Do you know the working capital ratio of your business? Find out how to calculate it, and how to bridge the gap on the Swoop Knowledge Hub.
- Published: 2020-03-22
- Modified: 2023-06-01
- URL: https://swoopfunding.com/za/knowledge-hub/working-capital-finance/
- Segment: Working capital finance, Types of finance
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### Selective invoice financing
- Published: 2020-03-22
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/knowledge-hub/asset-based-lending/
- Segment: Invoice finance
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### Asset refinance
> Asset refinance is a way to can unlock cash from items your business already owns, securing a loan against property, machinery, equipment, or vehicles.
- Published: 2020-03-22
- Modified: 2023-11-29
- URL: https://swoopfunding.com/za/knowledge-hub/asset-refinance/
- Segment: Business loans
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### Startup loan
- Published: 2020-03-22
- Modified: 2024-06-13
- URL: https://swoopfunding.com/za/knowledge-hub/startup-loan/
- Segment: Business loans
A startup loan is a business loan designed to help new businesses launch and grow. It is one type of startup finance. Like any other business loan, it's a lump sum of capital that you pay back with regular repayments at (usually) a fixed interest rate. There are many different lenders offering startup loans, each with their own lending criteria, application processes and terms. Let's say you're a startup business. You've got a great idea. You might also have a team in place, a business plan, a budget and a figure for the amount of finance you need in order to meet your short-term needs and grow. You might decide you need funding for, say, three years to cover development costs and startup losses. Perhaps you'll need finance even after you've reached break-even point, especially if your business is seasonal. The good news is that there are lots of options for startup finance, spanning debt finance, grant funding and equity finance from crowdfunding or external investors.   For short-term finance you might consider an overdraft (paying interest only on the amount you’re overdrawn each day), factoring (selling accounts receivable), a credit card or other types of working capital finance. If you’re looking for longer-term finance then a startup loan is one option. There are a large number of lenders (bank and non-bank) that offer loans to startups or new businesses.   Here are some typical characteristics of the kind of startup loans currently on offer: loans from R10,000 to R500,000...
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### Peer-to-peer lending (P2P)
> Peer-to-peer lending (P2P) is a type of business loan by a large number of private investors to your business, usually through an online platform.
- Published: 2020-03-22
- Modified: 2025-01-10
- URL: https://swoopfunding.com/za/knowledge-hub/peer-to-peer-lending/
- Segment: Business loans
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## Sectors
### Self-employed loans with no proof of income
> Self-employed workers often require business financing and are often asked for proof of income. See how to apply for funding without this here.
- Published: 2023-08-22
- Modified: 2025-01-10
- URL: https://swoopfunding.com/za/sectors/self-employed-loans-with-no-proof-of-income/
- Business sectors: Sector guides
Guide to self-employed loans with no proof of income Self-employed workers and sole traders often require business financing. Get a quote To secure this type of borrowing, they will usually be asked for proof of income. But what do you do when you can’t show evidence of the money you make? Read on to learn more about loans for self-employed with no proof of income - and how to can get them. Don’t let a lack of paperwork slow your business down. What is proof of income? Proof of income is verifiable documentation that shows how much you have earned (or will earn) over a given period of time. Typically, you’re being asked for proof of a steady source of income. For the self-employed – sole traders, freelancers, and gig workers – providing such evidence means showing tax returns, trading accounts prepared by your accountant, work contracts, and recent bank statements to whoever is asking for this information – usually lenders, landlords, and leasing companies. Get a quote Why do lenders ask for proof of income? Lenders must be certain that you have enough income to support the repayment schedule of the loan you are applying for. If you can’t show steady and predictable income, it may make it more difficult for you to borrow money. It can also negatively impact other financial agreements, such as renting business premises, leasing vehicles or equipment, even securing accounts with utility companies for the supply of energy and water. Top tip: Lenders will...
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### Self-employed loans with bad credit
> There are millions self-employed workers in the South Africa, and many of them will require extra funding to support their business at some point in time.
- Published: 2023-08-22
- Modified: 2025-01-10
- URL: https://swoopfunding.com/za/sectors/self-employed-loans-with-bad-credit/
- Business sectors: Sector guides
Guide to self-employed loans with bad credit There are millions of self-employed workers in the South Africa, and many of them will require extra funding to support their business at some point in time. Get a quote Unfortunately, due to erratic income, the self-employed often have bad credit, which makes it more difficult for them to borrow. So what can these entrepreneurs do? Read on to discover everything you need to know about loans for self-employed with bad credit, and how to secure the funds you need. What is bad credit? The term ‘bad credit’ refers to a person's history of not paying bills or loan repayments on time and the increased likelihood that they will fail to make timely payments in the future. In practice, bad credit really means a poor credit score – the calculation that lenders use to determine the default risk of any borrower. Most South African self-employed workers are sole traders, freelancers, and gig workers. When they want to borrow money, lenders will typically check their personal credit score, (although some sole traders may also have a business credit score which is different from a personal credit rating). If your score is too low – defined as having ‘bad credit’ – it can be more difficult to borrow money, especially at competitive interest rates. Get a quote Why is my personal credit score bad? Many business and financial activities can affect your personal credit score. The most common reasons that the self-employed end up with...
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### Inventory financing
> Inventory finance can take the pain out of stocking up and protect your working capital. Buy now. Let future sales cover the cost. Learn more here.
- Published: 2023-08-22
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/inventory-financing/
- Business sectors: Business loans
Inventory financing Inventory finance can take the pain out of stocking up and protect your working capital. Buy now. Let future sales cover the cost. Get a quote A majority of SMEs face a cash crunch at least once a year – and paying for inventory that takes too long to sell is a prime cause of this liquidity issue. Put simply, buying inventory now, then waiting months to get your cash back is a financial back hole that too many South African small and medium-sized businesses fall into. But it doesn’t have to be like that. Read on to find out more. What is inventory finance? Inventory finance, (also known as warehouse finance) is the term for a short-term business loan or revolving line of credit that is used to buy inventory – finished goods, components, raw materials – which are typically warehoused by the buyer before selling them to their customers. The purchased goods and materials act as security for the lending. Inventory finance is an important tool to support cash flow, as it can iron out the imbalance in income and expenditure caused by paying for goods or materials before their costs can be recouped from customers. Inventory finance may also enable growth, as it can allow businesses to hold more stock and attract more sales, than if they had to pay for stock upfront with cash. Businesses choose inventory financing to:Cover short-term cash shortagesPrepare and stockpile inventory for the busy seasonBuy in bulk to secure bigger...
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### Self-employed
> Like most businesses, there are times when the self-employed need a loan. But what kind of loans are available, and what do you need to get them? Learn more.
- Published: 2023-04-04
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/self-employed/
- Business sectors: Business loans
Self-employed business loans Candlestick makers, dressmakers, bakers, video game makers - the self-employed and sole traders are some of the nation’s most entrepreneurial workers. Apply now However, like most businesses, there are times when the self-employed need a business loan. But what kind of loans are available, and what do you need to secure them? Read on the find out all you need to know about business loans for the self-employed. What loans are available for the self-employed? Just because you’re self-employed, it doesn’t mean you can’t get a business loan. Lenders may require more paperwork from sole traders and the self-employed than they would from fully employed borrowers or larger companies, but there are still finance options for those who work for themselves:Unsecured loan: Similar to a personal loan. It does not require you to provide security (collateral) to the lender. Unsecured loans are primarily based on your credit history and personal income instead of your business’ performance. A good credit score is typically required to obtain an unsecured loan, and the sum you can borrow may be less than you may secure with other finance options. Small business loan: Works like a regular bank loan and is issued for business purposes. The lender will usually check your personal and business credit score as part of the due diligence process. Your business records will also be reviewed to assure the lender that your business generates enough income to cover the repayments. Secured loan: You provide collateral to protect the...
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### Convenience stores
> Convenience store financing is funding to help start, buy, expand or operate a convenience store. Learn all about the options available here.
- Published: 2023-02-16
- Modified: 2024-12-26
- URL: https://swoopfunding.com/za/sectors/convenience-stores/
- Business sectors: Business loans
Convenience store finance and loans By definition, convenience stores are designed to make our lives easier. So we've made getting funding for them easier. Get a quote No matter if they’re a traditional corner shop, part of a glossy national chain, or big enough to be a mini-supermarket, convenience stores are the places we go when we need something in a hurry. Convenience store financing is much the same thing – funds to help start, buy, expand or operate a convenience store, available with minimum fuss, and often at short notice. Read on the find out all you need to know about convenience store finance and loans. What is convenience store financing? Convenience store financing includes commercial loans, mortgages, and other financial products created to suit the unique nuances of the convenience store industry. Borrowed funds may be used for a variety of purposes:Start a new storeBuy an existing storeExpand and develop an existing storeShore up working capitalBuy into a convenience store franchise chain Get a quote How do these loans work? Convenience store loans are provided by lenders who service the unique financial demands of the industry. Loans may be offered unsecured, or security in the form of a lien against property or other types of hard asset may be required. Experience in the convenience store industry is not mandatory to obtain a loan, but it may improve the terms and conditions attached to any funding. What types of convenience store loans are available in South Africa? There are...
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### Food trucks
> Securing funding for your food truck is key to success. Read on to find out more about food truck finance and how it can help your business grow.
- Published: 2023-01-13
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/food-trucks/
- Business sectors: Business loans
Business loans for a food truck Think of street food and you think of delicious dishes served for immediate consumption with just the sky above your head. Get a quote Fast-food served outdoors is big business in South Africa and king of the street food industry is the food truck – a mobile kitchen selling everything from fish and chips, to BBQ, tacos, wraps, rice bowls, curries, smoothies and empanadas. Growing at a meteoric pace, more entrepreneurs are drawn to this niche area of hospitality. However, launching a food truck can be expensive and even well-established operators can suffer from seasonal low points or when the weather turns to rain or snow. Securing adequate funding for your food truck is therefore key to long-term success. Read on to find out more about food truck finance and how it can keep your mobile fast-food business firmly on the road. Why are mobile food trucks becoming popular business choices? Food trucks are a common sight in many US cities, but until recently, they were a rarity in South Africa, with menus limited to basic foods such as hamburgers, ice creams, and hot dogs. However, an explosion in take-away food before, during and after the COVID-19 pandemic has seen a boom in food trucks on the streets and now they offer food from every corner of the globe. Popular with sports fans, events and concert goers, as well as office workers and the many tourists, food trucks can be very profitable businesses, benefiting...
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### Restaurant loans
> Finance can be secured for restaurants, cafes, take-away outlets, sandwich bars, coffee shops and more. Read all you need to know about funding options here.
- Published: 2023-01-13
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/restaurant-loans/
- Business sectors: Business loans
Loans to open a restaurant Despite the pandemic and a series of economic shocks, the South African hospitality industry still goes from strength to strength. Get a quote With the South African restaurant trade expected to grow, it’s a good time to own or launch a place to eat. Best of all, restauranteurs seeking finance to buy, build, expand, or refurbish restaurants, or cover their everyday expenses are now spoilt for choice. Read on to discover everything you need to know about this feast of loans for restaurants. What restaurant business loans are available? There are restaurant business loans to furnish almost every need:Buy, build, refurbish, or expand a restaurant. Join a restaurant franchise. Secure working capital to pay day to day expenses. Start a new restaurant. Finance can be secured for restaurants, cafes, take-away outlets, sandwich bars, coffee shops and more. Many of these loans require no additional security. Even if you’ve been turned down elsewhere, or you have bad credit, it may be possible to obtain the funds your hospitality business needs. Get a quote The different types of restaurant business loans explained Restaurant loans to spur growthLoans to buy or build a restaurant:Commercial mortgages may be used to buy an existing restaurant, buy a property and convert it into a restaurant, or build a new eatery from the ground up. Borrow up to 90% of LTV (loan to value, a comparison of the size of the loan to the value of the property), repay the loan over...
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### Car garage
> Don’t put your purchase or expansion plans on hold because of poor cashflow – use a car garage mortgage to grow and get your business on the road. Learn more.
- Published: 2023-01-13
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/car-garage/
- Business sectors: Business loans
Car garage commercial mortgages With more than 12 million vehicles registered in South Africa, and the growth of electric vehicles driving a new motoring boom, it’s a good time to be in the automotive industry. Get a quote As sales and vehicle service needs grow to reflect the surge in motorcycles, cars, vans, and trucks on the roads, so established and startup automotive businesses need more and bigger premises. However, buying, expanding or refurbishing showrooms, garages and filling stations is not cheap, and no matter if they’re big, small, new or old, most automotive businesses will need to finance their transaction. This is where commercial mortgages for car garages come in. Don’t put your purchase or expansion plans on hold because of cashflow issues – use a car garage mortgage to fuel your growth ambitions and get your business on the road. What is a car garage mortgage? Car garage mortgages are commercial property loans used to buy existing car garages, petrol stations, MOT and car repair centres, tyre shops, or new and used car showrooms. They may also be used to pay for the construction of new automotive trade and retail properties and to purchase or build properties that sell commercial vehicles or provide maintenance services for vans, trucks and other forms of haulage transport. Commercial mortgages may be secured to cover up to 90% of the LTV, (loan to value – a comparison of the size of the loan to the value of the property), and they can...
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### Vineyard finance
> From commercial mortgages to startup loans and working capital finance, vineyard loans are available to solve every grower’s need. Learn more here.
- Published: 2023-01-11
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/vineyard-finance-2/
- Business sectors: Business loans
Vineyard finance Through bad times and good times, there’s one thing you can be sure of – South Africa still loves a glass of wine. Get a quote Despite significant drops in production and consumption in the first year of the pandemic, South African wine sales are now forecast to grow by 4. 6% in 2025. However, even as sales rise, costs are rising too, leaving many wine growers struggling to modernise their facilities, expand their area under vines, and pay ballooning overhead. Fortunately, this is where vineyard finance can come to the rescue: From commercial mortgages to startup loans and working capital finance, vineyard loans are available to solve every grower’s need. Don’t let financial issues sour your winemaking ambitions. Read on to find the best loan for your vineyard. What types of loan are available for vineyards No matter if you’re seeking to expand production, pay taxes, start a vineyard, or buy property, there’s a vineyard loan for you. Get a quote Commercial land mortgageWine growing is a land intensive business, but in South Africa, even agricultural land can be expensive. This means wine growers who wish to buy an existing vineyard or buy raw land to plant new vines will typically need finance for the transaction. Unlike residential home loans, where one size often fits all, commercial mortgages are tailored to the unique demands and business of the borrower. Borrow up to 90% of the LTV (loan to value – a comparison of the size of the...
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### Brewery finance
> From commercial mortgages to working capital finance, brewery loans are available to solve every brewer’s need. Learn all about your options here.
- Published: 2023-01-11
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/brewery-finance/
- Business sectors: Business loans
Brewery finance Through bad times and good times, there’s one thing you can be sure of – the South Africans still loves a glass of beer. Get a quote Despite significant drops in production and consumption in the first year of the pandemic, South African beer sales rebounded strongly in 2021 and are forecast to grow even more However, even as sales rise, costs are rising too, leaving many South African brewers struggling to modernise their facilities, expand product lines, and pay ballooning overhead. Fortunately, this is where brewery finance can come to the rescue: From commercial mortgages to startup loans and working capital finance, brewery loans are available to solve every brewer’s need. Don’t let your beermaking ambitions fall flat. Read on to find the best loan for your brewery. What types of finance are available for breweries? No matter if you’re seeking to expand production, pay taxes, start a brewery, or buy property, there’s a brewery loan for you. Get a quote Equipment financeMaking a tasty pint of beer doesn’t come cheap. Brewery equipment can be expensive and to keep on top of expanding consumer tastes, brewers must continually modernise to stay ahead of the competition. Asset finance can take the sting out of buying big-ticket plant and machinery. Buy over time and use the equipment as you pay for the equipment. The asset acts as security for the loan. In many cases, there is no need to provide extra collateral. Commercial mortgagesBrewers who wish to buy an...
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### Cow & livestock finance
> Cow and livestock finance are loans that farmers can use to pay for the tools and products they need to raise live animals. Learn more here.
- Published: 2022-12-22
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/cow-livestock-finance/
- Business sectors: Business loans
Cow & livestock finance Livestock farming is big business in South Africa - 33. 9% of all farms in South Africa are classified as livestock farms Get a quote However, with big business come big expenses, and in an industry where margins are notoriously tight and seasonal cash flow problems persist, spending large sums on herd replenishment, feed, and veterinary bills can stretch farms to the limit. Fortunately, this is where cow and livestock finance can help – fast, affordable loans to meet working capital needs, or pay for large-scale investments such as milking sheds, feed processors, and vehicles. Read on to discover more about this agricultural funding and to find the best livestock finance for your farm. What is livestock finance? Cow and livestock finance are loans that farmers can use to pay for the important tools and products they need to raise and process live animals, particularly beef and dairy herds. The funding can pay for short-term costs, such as buying cattle, sheep, pigs and chickens, and paying for feed and medical services, or it can pay for investment costs such as plant, machinery and shelters. Depending on the type of loan and the purpose for which it is used, livestock loans may be short-term, paid back in 1 – 7 years, or long-term, with repayment plans over 1 – 25 years. Some loans require no security (collateral), while some may require a charge over land, buildings, or other capital assets. Get a quote When to consider livestock...
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### Guest house finance
> This funding can be used to refinance a current guest house loan, renovation, buy/build a new guest house, or cover seasonal quiet spots. Learn more.
- Published: 2022-12-22
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/guest-house-finance/
- Business sectors: Business loans
Guest house finance Just like hotels and B&Bs, South African guest houses are booming as the world recovers from the pandemic. Smaller than most hotels, but larger than your average B&B, guest houses fill an important niche in the hospitality industry. Get a quote With domestic trade almost back to pre-pandemic figures, now is a good time to be a guest house owner. However, to buy, start, and run a successful guest house, owners and entrepreneurs will typically need additional funding. Read on to find out more and to discover what you need to secure the best finance for your guest house business. Business loans and mortgages for buying a guest house Guest house finance comes in many shapes and sizes. This funding can be used to refinance a current guest house loan, renovate your building, acquire or build a new guest house, or cover seasonal quiet spots that create a cashflow squeeze. Guest house finance is tailored to fit the unique financial circumstances of the hospitality industry, and in many cases, the property or acquired assets work as security and there is no need to provide additional collateral. This means guest house owners and companies that have weak credit or have been previously turned down for funding may still be able to obtain the financing their business needs to grow. Get a quote Which type of finance is best for my guest house? Match the right business loan to your guest house needs:Commercial mortgageLong-term guest house finance that you...
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### Crop finance
> Crop finance are loans that farmers can use to pay for the tools and products they need to farm their land. Learn more here.
- Published: 2022-12-22
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/crop-finance/
- Business sectors: Business loans
Crop finance Farming is big business in South Africa - agriculture contributed with nearly R134 billion to the economy, employed over half a million people, and provided half the food we ate in 2021. Get a quote However, big business also means big expenses, and in an industry where margins are notoriously tight and seasonal cash flow problems persist, spending large sums on seed, pesticides, and crop storage can stretch farms to the limit. Fortunately, this is where crop finance can help – fast, affordable loans to meet working capital needs, or pay for large-scale investments such as grain silos and processors. Read on to discover more about this agricultural funding and to find the best crop finance for your farm. What is crop finance? Crop finance are loans that farmers can use to pay for the important tools and products they need to farm their arable land. The funding can pay for short-term costs, such as buying seed, pesticide and diesel fuel, or it can pay for investment costs such as plant, machinery and crop storage facilities. Depending on the type of loan and the purpose for which it is used, crop loans may be short-term, paid back in 1 – 7 years, or long-term, with repayment plans over 1 – 25 years. Some loans require no security (collateral), while some may require a charge over land, buildings, or other capital assets. Get a quote How does crop finance help generate revenue? A cashflow squeeze can hamper a farmer’s...
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### Bus and coach finance
> As passenger numbers grow, so bus and coach operators must be up to date with their vehicle line-ups. Read all about your funding options and apply here.
- Published: 2022-12-22
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/bus-and-coach-finance/
- Business sectors: Business loans
Bus and coach finance As the post-COVID-19 recovery gathers pace, South Arica's road passenger transport network is roaring back to life. Get a quote As passenger numbers grow, so bus and coach operators must update, replace and expand their vehicle line-ups. No matter if you need one vehicle, or a whole fleet of buses and coaches, financing your acquisition(s) makes best business sense. Read on to find out more about bus and coach finance and how it can put you in the driving seat. Finance products we support for the bus and coach industry Instead of putting strain on cashflow and tying up hard-won capital in your vehicles, spread the cost over time. Get a quote Bus financeWhether you need new buses to manage city operations, a rural network, charter hire, or shuttle runs, financing your operations with one of our borrowing options is the best way to go. Buy to keep, rent with an option to buy, or simply rent and return. Whichever route is best for your bus business, we have the right loan for you. Coach financeNever ending disruptions to the rail network reveal how important coach operators are to keep the nation on the move. Whether you’re replacing older vehicles or expanding to meet demand, financing your operations with one of our borrowing options is the best way to go. Buy to keep, rent with an option to buy, or simply rent and return. Whichever route is best for your coach business, we have the right...
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### Business loans for bed and breakfasts
> B&B funding can be used to refinance a current B&B loan, renovation, buy an existing B&B, build a new bed and breakfast, or cover quiet spots. Learn more.
- Published: 2022-12-22
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/business-loans-for-bed-and-breakfasts/
- Business sectors: Business loans
Business loans for bed and breakfasts There are a rising number of Bed and Breakfast businesses in South Africa and, since the arrival of global hospitality giant Airbnb in 2009, traveler interest in small and privately-run visitor accommodation has seen exponential growth. Get a quote This means it’s a good time to own a B&B. However, to buy, start, and run a successful B&B, owners and entrepreneurs will typically need additional funding. Read on to find out more and to discover what you need to secure the best business loan for your bed and breakfast. What business loans are available for B&Bs Business loans for bed and breakfasts come in a variety of shapes and sizes. They can be used to refinance a current B&B loan, renovate your building, acquire an existing B&B, build a new bed and breakfast, or cover seasonal quiet spots that create a cashflow squeeze. These loans are often tailored to fit the unique financial circumstances of the hospitality industry. In many cases, the property or acquired assets work as security and there is no need to provide additional collateral. This means B&B owners and companies that have weak credit or have been previously turned down for funding may still be able to obtain the financing their business needs to grow. Get a quote Common types of B&B funding:Commercial mortgage: These are long-term loans that you use to buy an existing B&B or to build a new one. Borrow up to 90% of the purchase price,...
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### Hotel funding
> Hotel funding can be used to refinance a current hotel loan, renovation, buy an existing hotel, build a new hotel, or cover seasonality. Read more here.
- Published: 2022-12-08
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/hotel-funding/
- Business sectors: Business loans
Hotel funding There are more than 4,100 hotels in South Africa, and they generated revenues of more than R19. 65 billion in 2023. Get a quote Even with the pandemic, the industry has managed average growth every year since 2017 and forecasts for the future reveal this trend is not a blip. However, with success comes rising expectations. Customers want increasing value for their money, which puts hotels in fierce competition to expand, renew and innovate to catch their share of a growing market. Unfortunately, such strategies don’t come cheap. Buying hotels, building new, or engaging in extensive refurbishments is expensive, and in an industry where margins are under constant pressure, paying for long-term investment with short-term working capital can be an issue. Fortunately, there’s a solution to this dilemma: Hotel owners can stay ahead of their competitors without putting strain on cashflow by using hotel loans and mortgages to pay for upgrades, acquire new properties, or cover seasonal low points. Read on to discover more about these types of funding and how to put your hotel’s financial problems comfortably to bed. What is hotel funding? Hotel funding comes in a variety of shapes and sizes, and it can be used to refinance a current hotel loan, renovate your hotel building, acquire an existing hotel, build a new hotel, or cover seasonal quiet spots that create a cashflow squeeze. These loans are often tailored to fit the unique financial circumstances of the hotel industry, and in many cases, the property...
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### Haulage finance and HGV loans
> There are many types of haulage finance and HGV loans, and they may be arranged quickly and with little fuss. Find out more here.
- Published: 2022-12-08
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/haulage-finance-and-hgv-loans/
- Business sectors: Business loans
Haulage finance and HGV loans Moving stuff from A to B is big business, and the South African road freight market is estimated to be worth USD22. 92bn in 2024 Get a quote Transporting everything from car parts and canned peas to soft drinks and summer shoes, truckers and the 3,100 firms they drive for are the lifeblood of our economy. However, booming as business may be, many haulage businesses still struggle to pay the bills. A difficult mix of slow paying customers, expensive vehicles, rising energy costs, and increasing regulations is creating a cashflow crisis with firms of every size. Fortunately, haulage finance and HGV loans are available to ease the economic pain. Use them to pay for everything from buying trucks and buildings, to paying tax, covering wages, or filling up the tank. Read on to find out more about affordable haulage finance and HGV loans, and how they can put you and your haulage business firmly in the driving seat. Quick and straightforward haulage loans and funding South African road hauliers operate in an industry where time is money. Waiting for cashflow to improve so you can buy urgently needed parts and equipment or purchase the new vehicles you need is not an option. Waiting means losing out, which is why financing these kinds of needs immediately makes sound business sense. Buy what you need now, pay back over time, keep the pipeline moving. There are many types of haulage finance and HGV loans, and they may...
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### Care home finance
> A care home mortgage is used to buy, develop, or refinance a care home. Learn all about the funding options available and apply today.
- Published: 2022-12-08
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/care-home-finance/
- Business sectors: Business loans
Care home finance Like most advanced economies, South Africa has an ageing population, with more than 5 million people beyond the age of 60, and over 600,000 people over 80. Get a quote As people get older, they need more assistance to carry out basic activities, and many require the kind of full-time attention that only a care home can provide. This potent mix of ageing citizens and booming demand has seen the care home industry mushroom. Clearly, buying a care home or expanding an existing care facility can make good financial sense. However, instead of using cash, care home finance and mortgages are the best way to fund business growth. Read on to find out more and discover how to fund your care home without piling strain on cashflow. What is a care home mortgage? A care home mortgage is a commercial mortgage used to buy, develop, or refinance a care home. This may mean buying an existing care home, starting from scratch with a new property, expanding an existing facility, or extracting equity for liquid cash. Care home mortgages function like residential mortgages, where a lender provides a percentage of the purchase price based on LTV (loan-to-value, a comparison of the size of the loan to the value of the property), and the borrower repays the loan in instalments, as either capital + interest, or interest only and a lump sum capital repayment at the end of the loan term – which can be anywhere from 1 –...
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### Buy a care home
> Buying a care home or expanding an existing care facility can make good sense, and many buyers will seek a care home mortgage to fund their purchase. Read more.
- Published: 2022-12-08
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/buy-a-care-home/
- Business sectors: Business loans
Funding to buy a care home The South African care home industry is big business. An ageing population means millions of people are needing assistance to carry out basic activities, often with the kind of full-time attention that only a care home can provide. Get a quote Buying a care home or expanding an existing care facility can make good financial sense, and many buyers will seek a care home mortgage to fund their purchase. However, buying a care home is not as simple as buying a house. Different rules apply. Buyers must conform to a raft of regulations and lenders will carefully scrutinise the business side of the transaction as well as the property. Success depends on ticking all the boxes. Read on to find out more about buying a care home with a mortgage, and how to ensure your purchase is five stars all the way. What funding is required to buy a care home? Buyers seeking to purchase a care home will typically fund the acquisition with a commercial mortgage. This is a business loan used to buy, develop, or refinance a care home – which can mean buying an existing care home, starting from scratch with a new property, expanding an existing facility, or even extracting equity for liquid cash. Care home mortgages function like residential mortgages, where a lender provides a percentage of the purchase price based on LTV (loan-to-value, a comparison of the size of the loan to the value of the property), and...
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### Farm equipment financing
> Special plant and machinery loans to help South African farmers buy the equipment they need without increasing strain on cashflow. Read more here.
- Published: 2022-12-02
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/farm-equipment-financing/
- Business sectors: Business loans
Farm equipment financing We rely on South African farms to provide half the food we eat. To keep our shopping baskets full, farmers must squeeze maximum production from every acre that they manage. Get a quote Automation is the best answer to this challenge, but agricultural machines, technology and plant are not cheap. How can South African farms obtain the equipment they need to grow when margins are shrinking, and farm finances are under heavy pressure? Step forward Farm Equipment Financing - special plant and machinery loans to help farmers buy the equipment they need without increasing strain on cashflow. Read on to discover more about farm equipment financing and how it puts farmers in the driving seat. Equipment finance: the catalyst for growth Ever since the first steam traction engines arrived on farms in the 1850’s, mechanical invention has expanded farm productivity, with more output per acre year on year. Modern farms are now unrecognisable from the farms of 100 years ago. They’re bigger, more productive, and grow a greater diversity of crops and animals. Unfortunately, the need for continual growth impacts farm finances. Despite record food demand, many South African farmers are receiving less for their production as margins continue to dwindle. Buying the necessary farm machinery, plant, and technology to stay competitive is essential, but further strain on cashflow must be avoided. This is where agricultural equipment finance makes sense. Borrow to buy the plant and machinery to keep your farm on the cutting edge. Pay for...
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### Nursery funding
> Setting up a nursery can be emotionally and financially rewarding for those who prepare thoroughly and follow a solid plan. Learn more here.
- Published: 2022-11-29
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/nursery-funding/
- Business sectors: Business loans
Nursery funding Like all educational organisations, day nurseries suffered badly during the COVID-19 pandemic. Get a quote However, since the re-opening of the economy, demand for childcare places has ballooned to all-time highs. Furthermore, with 69% of mothers stating that reliable childcare is their avenue back to work, and 40% saying that good quality nurseries are the key, it’s clear the current boom is not a fleeting blip, it’s a long-term trend. Why start a nursery? All in all, there’s never been a better time to start a new childcare nursery. However, securing premises, hiring staff, meeting regulatory demands and establishing your nursery brand all cost money. Without sufficient funding, your big idea may remain nothing more than a dream. But not to worry. Specialised finance to start and support day nurseries is available. No matter if you wish to buy a business or a building, or just cover daily overhead, there’s a nursery loan to suit your needs. Read on to find out more about nursery funding and how it can make child’s play of setting up your childcare centre. Get a quote Setting up a nursery Setting up a nursery can be emotionally and financially rewarding for those who prepare thoroughly and follow a solid plan. Follow these key steps to get your nursery venture off the ground:Research the qualifications you may need – and if you don’t have them, what are the steps to secure them? Establish what kind of day nursery you intend to operate –...
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### Dental practice loans
> Dental practices sell products and services that are in high demand. Well established practices can provide good profit margins and income. Learn more here.
- Published: 2022-11-29
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/dental-practice-loans/
- Business sectors: Business loans
Buy a dental practice After more than two years of pandemic lockdowns and restrictions, large numbers of the South African population are seeking medical treatments to get them back to health. Get a quote As a result, dental practices have been inundated and are struggling to meet demand. However, busy surgeries mean good business and dental practices are booming, with profits and salaries climbing year on year. This means buying a dental practice can make good economic sense, although for many buyers, the upfront costs may put a purchase out of reach. But not to worry. Dental practice finance can take the pain out of the transaction. Read on to find out how commercial mortgages, business loans and working capital finance can bridge the gap to help you buy the dental practice you need. How to buy a dental practice Dental practices are dynamic businesses, selling products and services that are in high demand. Well established practices can provide solid profit margins and good income for their owners. Buying a practice would be a logical step for an Associate Dentist wishing to take the next big step in their career, or seasoned dentists wishing to expand their current dental business. However, buying a practice that may rely heavily on fees, strong patient retention rates, high maintenance and staffing costs, and a requirement to constantly modernise and stay ahead of new procedures, is not a simple task. Before making an offer for a practice that’s for sale, buyers must consider these...
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### Agricultural mortgage
> An agricultural mortgage (aka farm mortgage) is a loan used to buy real estate or to release equity from a farm property. Learn more here.
- Published: 2022-11-29
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/agricultural-mortgage/
- Business sectors: Business loans
Agricultural mortgages There are around 32,000 farms in South Africa, and the average farm had a turnover of R22,5 million per year. Get a quote Clearly, farming is big business, which means those who wish to buy a farm should use a business loan. Agricultural mortgages are specialised financial products designed to work with the unique economics and working patterns of the farming industry. More flexible than many other types of property loan, they can open the door to ownership for the first-time farmer or plough the way for experienced professionals seeking to expand their farming footprint. What is an agricultural mortgage? An agricultural mortgage (sometimes called a farm mortgage) is a long-term loan used to buy rural real estate or to release equity from a farm property. Agricultural loans are similar to standard commercial mortgages except they are tailored to fit the unique economics of the agricultural industry. Get a quote How do agricultural mortgages work? Agricultural mortgages are usually paid back over 1 – 25 years and they may be capital + interest loans (you pay interest and some of the borrowed capital back each month), or interest-only loans (you only pay interest each month and then make a lump sum repayment at the end of the term). Mortgages of up to 90% of LTV (loan to value – the size of the loan in comparison to the value of the property) may be possible, depending on the status of the borrower. The lender will take a legal...
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### Agricultural loans
> Many farms suffer from poor cash flow and volatility in the prices they pay for supplies and what they achieve for their products. Read more here.
- Published: 2022-11-29
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/agricultural-loans/
- Business sectors: Business loans
Agriculture loans There are around 32,000 farms in South Africa. They provided half the food we eat, and employed almost half a million people. Get a quote Clearly, farming is big business, but unfortunately, it’s also very seasonal. Many farms suffer from erratic cash flow caused by patchy income and volatility in the prices they pay for supplies and the prices they achieve for their products. This can leave many farms struggling to expand, unable to cover supply costs, and late to pay mandatory obligations. Specialised agricultural finance has grown to plug these gaps – providing tailored long-term loans to buy land and expand production. Read on for an overview of agricultural loans and how they can help you grow your farm into a high-performing business. Supporting the agricultural sector to find the funding they need Many farms are land rich and cash poor, with income that is volatile. Their erratic cashflow may be the result of seasonal patterns, or it could be caused by slow payment by large wholesale buyers. Either way, lack of working capital, or investment funds to expand, puts a brake on profitability and can cause permanent harm to the business. Farmers often need funding to buy more land, build infrastructure, pay for supplies, such as seed or cattle, and invest in new machinery. Fortunately, as diverse as farmer funding needs may be, there are just as many loans available, and they can cover almost all eventualities and for every type of farm. Get a quote...
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### Petrol station finance
> Petrol stations are one of the few South African retail businesses that can provide 24/7 revenues. Read all about your funding options here.
- Published: 2022-11-24
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/petrol-station-finance/
- Business sectors: Business loans
Loans to buy a petrol station Petrol stations are one of the few South African retail businesses that can provide 24/7 revenues. Get a quote From motorists buying fuel and travelers wanting snacks, to last-minute shoppers needing an essential item or early birds chasing their daily newspaper, petrol stations can generate a constant stream of customers. This means buying a petrol station can be a solid business opportunity, however, petrol stations don’t come cheap. Whether you buy a franchise operation, or an independent station, the cost can be high – for example, a BP franchise will typically require a total investment of R2million by the time the franchise fee, startup costs and shop build-out are factored in. Few people will have the cash required to buy a South African petrol station, however, there are a range of loans available to fund the purchase and upfront costs. Read on to find out more about petrol station loans and how to get your next big business concept firmly on the road. What types of loan are available to buy a petrol station? Petrol station loans fall into two main categories:Commercial mortgages or franchise finance to fund a purchase and/or redevelopment costsCommercial mortgages function like a regular residential mortgage. The lender provides part of the cost to buy the petrol station, and they take a legal charge over the property as security. You pay back the loan over 20 – 30 years. This type of loan may also cover some of the initial...
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### Pub finance
> Pub finance can be used to cover cashflow dips, buy inventory, refurbish premises, even buy a pub or join a franchise operation. Read all you need to know here.
- Published: 2022-11-18
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/pub-finance/
- Business sectors: Business loans
Pub finance Pubs are getting more and more popular in South Africa. With more than 1,000 establishments selling a diverse array of food and drink, the sector seems to keep growing. Get a quote This figure is down on pre-pandemic levels, and with new and rising costs to cope with, the South African pub industry still needs financial support. Pub financing offers a choice of loans to fill the gaps in cashflow, pay for renovations, and bring pubs back to life. Instead of calling time at your local, pub loans can make your pub a hospitality powerhouse. What types of pub finance are available? Pub finance can be used to cover cashflow dips, buy inventory, refurbish premises, even buy a pub or join a franchise operation. Some pub loans can place a lump sum into your bank account within a matter of hours and repayment terms can range from one year or less for a cashflow loan, to many years for a commercial mortgage. Interest rates will vary according to the type of loan, the repayment terms, and the status of the borrower. Let’s look at the different types of financing available for your pub: Cashflow funding The hospitality trade can be very seasonal. Sales may rise and fall throughout the year. Cashflow loans can help pubs through the quiet times and are popular type of finance. Cashflow (working capital) loans for pubs include:Merchant cash advance: Pubs borrow against their customer card receipts. The loan is repaid as a percentage...
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### Shopify loans
> As e-commerce continues to expand, online businesses get bigger, but this can pose a problem for Shopify merchants who lack the funds to fuel growth. Read more.
- Published: 2022-11-18
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/shopify-loans/
- Business sectors: Business loans
Shopify loans E-commerce is a big business in South Africa. Today, the online trading industry is worth $1bn in South Africa and is expected to grow. Get a quote One of the largest online platforms is Shopify, an e-commerce provider that hosts online stores for more than 14,500 South African manufacturers, retailers, artists, and charities. As e-commerce continues to expand, online businesses must naturally get bigger, but this can pose a problem for Shopify merchants who lack the funds to fuel growth. Fortunately, there’s a solution – e-commerce loans can give traders the cash they need to cover costs and expand their sales footprint. Read on to find out more about e-commerce loans from Shopify and a host of other lenders. What is a Shopify loan? Shopify loans provide financial support for Shopify member businesses. The platform offers two short-term loan products: Shopify capital loans, and Shopify merchant cash advances. US businesses may choose from either product, but for South African businesses, merchant cash advances are the only option. Note that Shopify merchants cannot apply for a capital loan or a merchant cash advance unless they receive an invitation from Shopify to do so. Let’s look at the way Shopify loans work: Get a quote Shopify loan structure Shopify determines available credit, fees, and interest rates on a case-by-case basis. The borrowed sum, fees, interest rate, and daily repayment rate are governed by the scale of merchant’s sales on Shopify and their risk profile. Generally speaking, the higher their sales...
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### Construction loans and finance
> Construction finance for a new build or re-developing an existing property to sell for a profit, use for your own needs, or rent out for income. Learn more.
- Published: 2022-11-18
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/construction-loans-and-finance/
- Business sectors: Business loans
Construction loans and finance Constructing a new building or re-developing an existing property to sell for a profit, use for your own needs, or rent out for income, can be a successful financial strategy. Get a quote A South African property is almost always in demand. However, building buildings is not cheap. Large upfront costs to cover land, materials and labour will be incurred, and meeting these costs can put a major dent in any business cashflow. Fortunately, there’s a solution to this problem – meet the construction loan - a purpose-built financial product that lets you fund the cost of building without demolishing your bank balance. Borrow up to 75% LTV Competitive rates Terms up to 24 months Options for all construction loans What is a construction loan? Construction loans, (also known as development loans), are a type of bridging loan used to cover the costs of building new homes and commercial premises or re-developing existing residential and commercial properties. Construction loans may also be used to buy a plot of land to build on or purchase an existing property for re-development. Get a quote How do construction loans work? Constructing or re-developing a property is a capital-intensive task. Large upfront costs to pay for land, planning, construction materials and labour will be incurred. These costs must be met before the property can be re-sold or used to generate income. Additionally, because the property may not exist yet, (it’s a new-build), or it will undergo significant change, (re-development), it...
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### Auction finance
> Buying property at auction can speed up the buying process, let you pay a lower price, or give you the opportunity to purchase an unusual property. Learn more.
- Published: 2022-11-18
- Modified: 2024-12-20
- URL: https://swoopfunding.com/za/sectors/auction-finance/
- Business sectors: Business loans
Auction finance Buying property at auction may speed up the buying process, let you pay a lower price, or give you the opportunity to purchase an unusual property. Get a quote South African property auctions move fast. Buyers must pay in full within a time frame that’s usually too short to get a traditional property loan. So, if you don’t have the cash to pay upfront, how can you buy at auction? The answer is Auction Finance – a fast and simple bridging loan that lets you buy with confidence at auction, then gives you time to re-sell for a profit or secure a long-term mortgage. Don’t miss out on bargains. Use an auction loan to be a winner when the hammer falls. Borrow up to 80% LTV Competitive rates Terms up to 24 months Approval in as little as 5 days What is auction finance? Auction finance is a type of bridging loan used to buy residential or commercial property at auction. Because auction houses usually require payment in full within 14 or 28 days of purchase (56 days if bought online), it can be difficult for some buyers to arrange a traditional property loan within this short time frame. Auction finance can cover this gap for 1 to 24 months, allowing the borrower to pay the auction house according to their rules, and sufficient time to re-sell the property or arrange a long-term mortgage to replace the auction loan. Get a quote How does auction finance work? Auction...
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## Business insurance
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## Start a business
### How to choose your title as a business owner
> Your business title can set you apart from other company employees, indicate special skills, even determine how much you get paid. But which is right for you?
- Published: 2024-10-15
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/how-to-choose-your-title-as-a-business-owner/
- Start a business sectors: Starting a business
What’s in a name? Quite a lot it seems, as there are dozens of business titles to explain who does what within a business structure. Your business title can set you apart from other company employees, indicate special skills, even determine how much you get paid. But which is right for you? Let’s dig into the hierarchy of business titles to discover more. Get a quote What is a business title? A business title is a formal designation or a label given to an employee or business owner that reflects their role, responsibilities, and position within an organization. It helps internal and external observers define a person’s position in the business hierarchy, clarify what they do, and can communicate authority. What different business owner titles are there? When it comes to their title, business owners are spoilt for choice:Owner: The Owner has full legal and financial control of the business. This title reflects the individual's ultimate authority over decision-making, operations, and ownership of assets within the company. CEO (Chief Executive Officer): The CEO is the highest-ranking executive in a company, responsible for making major decisions and setting strategy. They report to the board of directors and are in charge of overall operations. CEOs are typically employees of larger businesses and may or may not own any share of the business. Founder: The Founder is the person who originally established the company. This title reflects their role in starting the business, though they may or may not be involved in day-to-day...
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### How to start a retail business
> Starting a retail business can be an exciting venture. With proper planning and execution, you can find success and meet your target market's needs. Learn more.
- Published: 2024-05-30
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/how-to-start-a-retail-business/
- Start a business sectors: Business ideas
Starting a retail business can be an exciting venture. With proper planning and execution, you can find success and meet your target market's needs. While getting your retail business up and running is no easy feat Swoop is here to provide insights toward profitability, and how we can support you on this journey. Get a quote Is a retail business profitable? A retail business can be highly profitable if a good location is chosen and management meets the needs of the market demand. Factors that are important in determining whether a particular retail business is profitable include; Selecting a viable nicheBuilding strong vendor relationshipsPracticing efficient management of inventory Keeping operational costs down While competition can be tough in many cases, creating a good business plan and using smart marketing strategies can better your chances in many cases. Consider, for example, a small boutique for environmentally friendly fashion. With growing awareness and the disposition of consumers toward more sustainable goods, such a niche can draw a loyal customer base willing to pay premium prices. Good inventory management keeps the boutique flowing with bestsellers, with the lowest overstock to minimise waste. Good vendor relationships mean better prices and access to exclusive goods. Market demand and trendsMarket demand and trends can work both for you and against you. While you need to stay ahead of trends and be attentive to market demand, you also need to not let it constantly sway your decisions. It's all about striking the right balance. Retail businesses that...
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### Open a pizza shop
> Starting a pizza shop is an exciting journey that brings the joy of making delicious food and the challenge of running a business. Learn more about it here.
- Published: 2024-05-29
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/open-a-pizza-shop/
- Start a business sectors: Business ideas
Starting a pizza shop is an exciting journey that brings the joy of making delicious food and the challenge of running a business. But there is a process that demands attention no matter your experience. At Swoop our aim is to help you understand what it takes to open a successful pizza restaurant, from the initial idea to opening day. Get a quote What is a pizza shop? A pizza shop, or pizzeria, specialises in making and selling pizzas. These establishments can offer various styles, such as thin crust, deep-dish, and wood-fired pizzas, often accompanied by salads, pasta, and beverages. Pizza shops range from small, family-run places to large franchises with multiple locations. What do I need to start a pizza shop? You’ll need a few things before you can get started running your pizza shop including:Business plan: A detailed outline of your business strategy. Funding: Money to cover startup costs and ongoing expenses. Location: A strategic spot where there’s demand for pizza. Licenses and permits: Legal approval to operate. Employees: Staff to manage daily operations. Equipment: Ovens, mixers, and other kitchen essentials. Supplies: Ingredients and packaging materials. Marketing: Strategies to attract and keep customers. Step-by-step guide on how to open a pizza shop Turning your dream of owning a pizza shop into a reality requires strategic planning and thoughtful execution. From the initial brainstorming and securing the right location, to obtaining funding and ensuring legal compliance, each step plays a crucial role in building a successful pizza business. Here’s...
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### Start a bakery
> How can you get the bakery you’ve always dreamt of owning? Let’s find out. Learn all you need to know about starting a bakery business here.
- Published: 2024-03-19
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/start-a-bakery/
- Start a business sectors: Business ideas
The South African baked foods market is worth around USD 4. 25 billion and demand for bakery products is continuing to rise. With more and more customers seeking healthier, organic or specialist baked foods, the future of independent retail and wholesale bakeries has seldom looked so good. However, although bakeries can be great businesses – typically delivering profit margins of 15% and giving owners a personal income starting from R132,000 per year – starting your own bakery is not without its challenges. You’ll need premises to work from, employees, funding, permits and licenses, plus a good marketing angle and an enticing range of products. So how to do this? How can you get the bakery you’ve always dreamt of owning up and running? Let’s find out. Read on to discover all you need to know about starting a bakery business. Get a quote 1. Choose a bakery style The first thing you need to decide is what kind of bakery to operate. There are two basic models – retail bakeries and wholesale bakeries. Retail bakeries sell direct to consumers, usually as a storefront, but more often in a café environment where customers can sit down to eat a light meal or drink a cup of coffee. Wholesale bakeries sell to businesses – such as grocery stores, restaurants and hotels. In South Africa, wholesale bakeries represent 25% of all bakery businesses, but they capture 88% of industry revenues. Retail bakeries may be best for entrepreneurs who want to sell more creative,...
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### Open a liquor store
> Suppose your dream is to own a liquor store. Read how do you get there, what hurdles must you cross and most importantly, what will it cost? Let’s find out.
- Published: 2024-03-19
- Modified: 2025-02-05
- URL: https://swoopfunding.com/za/start-a-business/open-a-liquor-store/
- Start a business sectors: Business ideas
The old saying goes that no matter what the economy is doing, people still have to eat and drink – and judging by forecast liquor sales of billions in 2024, drinking alcoholic beverages is also a necessity. Get a quote With sales of liquor expected to grow every year for the rest of this decade, opening a liquor store may seem like a slam dunk – and if you do your homework right it can be. However, liquor stores are among the most regulated retail businesses in South Africa, with federal, state and local laws covering every aspect of the operation. Add in expensive inventory, strong competition, high licensing costs and increasingly savvy customers and it doesn’t take much imagination to see that operating a liquor store can also be hard work. But let’s suppose your business dream is to own your own liquor store no matter what. How do you get there, what hurdles must you cross and most importantly, what will it cost? Let’s find out. Read on to discover all you need to know about opening a liquor store. How do I start a small liquor store? Opening a small liquor store comes with the same fundamentals as opening any kind of store, you can either start from scratch with a brand-new business, or you can buy an existing liquor store with an established customer base. However, that’s about as far as the similarities go, because opening a new liquor store or taking over an existing store...
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### Start a brewery
> With many breweries producing millions barrels of beer annually, the South African craft brewing industry is growing each year. Read more and get started.
- Published: 2024-03-18
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/start-a-brewery/
- Start a business sectors: Business ideas
With many breweries producing millions barrels of beer annually, the South African craft brewing industry is growing year on year. However, that doesn’t mean it’s all plain sailing for budding beer entrepreneurs. Stiff competition from the majors and more small breweries opening every year is making it tough for new craft brewers to gain a toehold. But what do you do if your heart is set on owning your own beer-making business? How do you start a craft brewery and succeed in a crowded market? Like many things in life, it begins with a plan. Here’s all you need to know to give your new brewery the perfect head start: Get a quote What do I need to start a brewery business? First of all, to understand the basics: What is a craft brewery? To be classed as a craft brewery, your business can make no more than six million barrels per year. Your business must be an independent business with no more than 25% owned by a member of the alcoholic beverage industry who is not a craft brewer. The majority of the beverages you make must be beers with flavours derived from the fermentation of traditional or innovative brewing ingredients. For example, flavored malt beverages are not considered beers. So now we know what a craft brewery is, let’s look at the steps you need to take to launch one. Apply now Starting a brewery in 7 steps You don’t need experience in the beer-producing industry to start...
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### Restaurant
> If you're looking to open a restaurant, look no further. Here’s a rundown of the key things you need to know before you take the plunge & become a restauranteur
- Published: 2024-03-15
- Modified: 2025-02-05
- URL: https://swoopfunding.com/za/start-a-business/restaurant/
- Start a business sectors: Business ideas
After slumping during the pandemic, the South African restaurant industry quickly regained its strength and saw growth return in 2021. So, does this mean it’s a good time to open that restaurant you’ve always wanted? It could be. However, opening a new restaurant is not easy. It takes creativity, patience and dedication to succeed. Most of all, you’ll need a solid plan to get you there. With this in mind, here’s a rundown of the key things you need to know before you take the plunge and become a restauranteur. Get a quote How to open a restaurant: Step by step There are already more than 15,000 restaurants across South Africa, and competition for leisure rands has never been higher. If you’re going to make your restaurant a success you’ll need a novel concept, a great marketing plan, first-class location, terrific food and a reason for people to come back again and again. 1. Choose a restaurant concept and brandFrom your location to your restaurant décor, menu, marketing, even your pricing policy, your restaurant concept influences your whole business. Do your research before settling on a theme. What kind of cuisine is already available where you intend to operate? Is there a gap that nobody else is filling? Can you build a successful business within that niche? Additionally, you might want to consider the operating style of your potential competitors. Can you offer something that they don’t have? For example, if your area is full of casual diners, is there...
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### How to get a loan to start a business
> How do startup loans work and what do you to do to get one? Read on to find out all you need to know about getting a startup loan for your business.
- Published: 2024-03-15
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/how-to-get-a-loan-to-start-a-business/
- Start a business sectors: Starting a business
Thousands new businesses were launched in South Africa in 2023 and the pace of entrepreneurship shows no sign of slowing down. Doing your own thing in business is clearly the way to go. Many of these budding businesses used personal savings and funds from friends and family to get off the ground. But what do you do if you don’t have cash to hand and no personal sources to finance your great idea? Startup business loans are designed to help new organisations get up and running. More readily available from online lenders than traditional banks and credit unions, these specialised forms of financing can make all the difference when launching a new company, giving entrepreneurs the critical funding they need to get their business through the early months and years. So how do startup loans work and what do you need to get one? Read on to find out all you need to know about getting a loan to start a business. Get a quote What are the different types of startup business loans? There are many types of startup business loan. Interest rates, fees and terms and conditions can vary significantly. This means it is important to review all the options before settling on a deal. Here's a rundown of the best startup loans to support your new venture Term loansThis is the most common startup business loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up...
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### Laundromat business
> On average it costs R200,000 to R500,000 to launch a mid-size laundromat. Learn all about the costs and apply for finance with Swoop here.
- Published: 2024-03-01
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/laundromat-business/
- Start a business sectors: Business ideas
Laundromats are a strong and steady industry, supported by a growing population and more people living in apartments and condos where in-home laundry facilities are becoming rarer. The fact is, people need clean clothes and if they can’t do them at home, laundromats are the only game in town. Get a quote However, opening a successful laundromat is no slam dunk. On average it costs R200,000 to R500,000 to launch a mid-size laundromat – and that’s one without all the bells and whistles, such as pay-by-card machines, wash/dry/fold/press services, vending machines and TV facilities to keep your customers entertained. On top of this are your day-to-day running costs, wages to employees, essentials like insurance and the constant need to maintain the machines that produce your income. All in all, launching a laundromat is not something you can do for a few thousand rand – especially in the early days of your startup. But where does all the money go? Let’s dig into the facts to find out what it costs to open a laundromat. How much does it cost to open a laundromat? How much you spend will be influenced by what type of laundromat you wish to operate. Do you start from scratch in a new location, buy or rent an existing laundry business, or go the franchise route? If you start from scratch, you can create a laundromat exactly as you want it depending on your budget, but you’ll have to build your customer base from zero. If...
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### Vending machine business
> Vending machines are open 24/7. Read all you need to know about starting a vending machine business, and finance options available here.
- Published: 2023-11-07
- Modified: 2025-02-05
- URL: https://swoopfunding.com/za/start-a-business/vending-machine-business/
- Start a business sectors: Business ideas
Vending machines are the stores that never close. Open 24/7 for the sale of food, drinks, candy, toys, and more, they’re a fast and convenient way to buy the things we need. They’re also profitable, low maintenance and suitable for investors seeking passive income or a part-time or full-time business venture. But if you’re new to the world of vending machines, how do you start your own vending machine business? What kind of equipment do you need, what do you sell, where do you sell, and what does it all cost? Read on to discover all you need to know about starting your vending machine business and where to get the funds to get it off the ground. Get a quote What is a vending machine business? Vending machines are standalone cash or card-operated devices that sell a wide range of products to consumers. A vending machine business is an organisation that manages one or more of these machines – usually as the equipment owner, but sometimes as a franchisee. Vending machines can be found in many different locations, from airports and strip malls to colleges and theme parks. Dispensing candy, sodas, snacks, healthy foods, tech equipment, beauty products and more, these machines can provide a low-cost entry point to a lucrative business opportunity. Vending machine operators are responsible for purchasing or renting the machines, finding the best locations to place the devices, keeping them stocked with fast-selling products and collecting the cash they generate. Depending on the number of...
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### How to start a small business
> Starting your own business can be an exciting and rewarding journey. But there’s a lot to consider to get your business off the ground. Learn it all here.
- Published: 2023-07-12
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/how-to-start-a-small-business/
- Start a business sectors: Starting a business
Starting your own business can be an exciting and rewarding experience. But there’s a lot to consider and you’ll need to be prepared to put in the work to get your business off the ground. Part of this will involve writing a business plan, deciding on the legal structure of your business and getting funding to help your business expand and grow. So, take a deep breath, grab a cup of tea, and check out our comprehensive guide that covers all you need to know about how to start a small business. Get a quote Why start your own business? There are multiple reasons why you might want to start your own business. Perhaps the most attractive one is that you get to be your own boss. This means you can work more flexibly, pick your own hours and decide what type of work you want to do. Going it alone can mean you get to focus on something you’re interested in while also having a varied role. One minute you could be dealing with suppliers, the next you could be tackling accountancy spreadsheets. Working for yourself can also be very profitable, provided you have the right business idea and the right mindset. To give yourself the best chances of success, you’ll need to give some serious thought to the type of business you want to run. Think about what you’re interested in as well as what you’re good at. Do people regularly come to you for advice about certain...
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### Transport business
> Do you know a lot about the transport industry and are keen to run your own business? This short guide aims to cover the steps you need to take. Read more.
- Published: 2023-07-12
- Modified: 2025-02-05
- URL: https://swoopfunding.com/za/start-a-business/transport-business/
- Start a business sectors: Business ideas
If you know a lot about the transport industry and are keen to run your own business, this short guide aims to cover the steps you need to take and help you understand how to start a transport business. Get a quote Why start a transport business? Demand for transport services is high right now. A shortage of HGV drivers and high fuel costs mean that many clients are desperately looking for suppliers to transport goods around South Africa. That means that if you have experience in the haulage industry and dream of being your own boss, it could pay to set up your own transport business. Be warned, however, that it is also a competitive industry, so it’s crucial to do some research and take steps to keep your costs low to increase your chances of success. What are the different types of transport businesses? Transport businesses includes a wide range of services to various needs and industries. Some common types of transport businesses include:Passenger transportation: This includes services such as taxis, ride-sharing companies, buses, trains, and airlines that transport people from one location to another. Freight transportation: Freight transport businesses specialise in moving goods and cargo from one place to another. This can involve trucking companies, shipping companies, freight railroads, and air cargo carriers. Logistics and warehousing: These businesses focus on managing the storage, distribution, and movement of goods through supply chains. This can include third-party logistics providers, warehouses, and distribution centres. Specialised Transport: Some transport businesses cater...
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### Nursery business
> Do you have a background in childcare and dream of running your own nursery? Learn everything you need to know about starting a nursery business here.
- Published: 2023-07-12
- Modified: 2025-02-05
- URL: https://swoopfunding.com/za/start-a-business/nursery-business/
- Start a business sectors: Business ideas
Do you have a background in childcare and fancy running your own nursery? This comprehensive guide will explain everything you’ve ever wanted to know about how to start a nursery business. Get a quote Why consider starting a nursery? Running your own nursery business can be a highly rewarding experience. After all, you’ll be heavily involved in children’s early development and can help to give them a good start in life. Demand for new childcare settings is also high. With more parents going back to work after having a baby, and as new government schemes are introduced to help parents with costs, demand for nurseries is going up all the time. Of course, starting your own business also means you get to be your own boss, so once your business is up and running, you might have more flexibility in choosing your working hours. So, if you have a love for children’s learning and development, you’re good at managing people and you’re capable of managing everything from looking after children to marketing to bookkeeping, starting a nursery could be the perfect solution. Are nurseries profitable? Running a nursery can be profitable but it needs to be managed well. Startup and running costs can be very high which means you need to find ways to keep costs down and boost your profit margin. Your nursery premises will likely be your biggest expenditure and prices will vary depending on your location and the type of premises you’re buying or renting. You might...
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### Moving and removal business
> If you dream of running your own business and you like being physically active, setting up a removal firm could be right up your street. Read more here.
- Published: 2023-07-12
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/moving-and-removal-business/
- Start a business sectors: Business ideas
If you dream of running your own business and you prefer being physically active to sitting at a desk all day, setting up a removal firm could be right up your street. But before you go ahead, there are a number of important points to consider. This short guide aims to cover everything you need to know about how to start a moving business. Get a quote Decide what services you want to offer A key part of getting your business up and running is to give some thought to the type of services you want to offer. Some of the options open to you include:Man and van If you’re one person working on your own, a man and van service could be the most suitable choice. These services are typically more popular with those on a lower budget and all you’ll need to do is drive the van and help your clients load and unload their items. Self-loadAgain, this service tends to be most attractive to clients looking to keep costs down. Plus it’s even less work for you. You simply drive the van from A to B, while your customers load and unload it. Home removalsIf you’re looking to start a larger business, a home removals service might be more appropriate. This type of service will be more expensive, so you’ll earn more, but you’ll need to find a business partner or hire staff to help you. Commercial removalsYou could also think about helping businesses to move to...
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### Makeup business
> Launching your own makeup business means you’ll be able to start your own brand. Furthermore, you can set your own prices & sell in-store or online. Read more.
- Published: 2023-07-12
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/makeup-business/
- Start a business sectors: Business ideas
If your interests lie in beauty and cosmetics, you might be thinking about starting your own makeup business. Whether you’re thinking of launching an online store or you’d prefer to sell your products through distributors, a physical store or independent consultants, this guide explains all you need to know about how to start a makeup business. Get a quote Why launch a makeup business? Launching your own makeup business means you’ll be able to start your own brand. It also gives you the freedom and flexibility to set your own prices and sell products in-store or online. Plus, it could enable you to follow your dream and work in a business you’re really passionate about, while also having the benefit of being your own boss and working the hours that suit you. What types of businesses are available in cosmetics? There are lot of options to explore when it comes to starting your own cosmetics business. It’s important to choose a suitable niche to focus on as this will help you build a brand, find your target market, and stand out from the competition. When weighing up your options, you want to think about whether your brand will fill a product gap in the market, or whether it’s going to be a new version of a popular classic. Make sure you carry out some market research first to assess whether there will be sufficient demand. Some of the areas to think about include:Traditional makeup products: This includes mascaras, lipsticks, foundation,...
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### Graphic design business
> Setting up your own graphic design business can be an exciting journey. Read our guide on everything you need to know about starting a graphic design business.
- Published: 2023-07-12
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/graphic-design-business/
- Start a business sectors: Business ideas
Setting up your own graphic design business can be an exciting prospect. But it’s crucial that you understand exactly what’s involved to make sure you’re fully prepared and to help increase your chances of success. Here’s everything you need to know about how to start a graphic design business. Get a quote Why start a graphic design business? Running your own business has several benefits. As well as enabling you to be more flexible about the hours you work, you’ll also be able to pick the projects you want to work on. Graphic design is a diverse field and can be a great option for self-employed individuals. So if you’re an experienced graphic designer and fancy working for yourself, setting up a graphic design business could be the perfect solution. As part of this, you’ll need to think about the area you want to work in. For example, you could work in branding and help businesses with logo designs and colour schemes, or you might want to work in layout and print design for magazines and newspapers. You could also consider graphic design for packaging, advertisements, websites or even for videos and animations. What does a graphic design business do? A graphic design business provides creative services to clients seeking visual communication solutions. These services may include designing logos, branding materials, advertisements, print materials, digital graphics, motion graphics, website layouts, and other visual assets. Graphic designers work closely with clients to understand their needs, goals, and target audience, then translate...
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### Farming business
> Is it your dream to run your own farm? This guide takes you through the necessary steps to help you understand how to start and finance a farm. Read more.
- Published: 2023-07-12
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/farming-business/
- Start a business sectors: Business ideas
Is it your dream to run your own farm? If so, you’ll need to have the relevant experience and be prepared to put in the work to boost the chances of your farm being profitable. This guide takes you through the necessary steps to help you understand how to start a farm. Get a quote Why consider starting a farm? You might want to start a farm if you like the idea of working for yourself and enjoy spending a lot of time outside. Although farming can be challenging, if you plan well, it’s possible to earn a decent profit. What’s more, there’s a wide range of different farming types to choose from. You could consider poultry farming, vegetable farming or dairy farming, for example. You could also think about growing cereals such as barley, oats and wheat, or fruits such as apples, strawberries and raspberries. Is farming profitable? Farming can be profitable, but you need to plan carefully. The covid-19 pandemic hit farming incomes hard and they have struggled to recover. That said, figures show that Total Income from Farming (TIFF) in South Africa for 2022 was over R417 million, an increase of 15. 2% from 2021. As well as the pandemic, the farming industry has also been affected by extreme weather, such as heavy rain or prolonged dry spells in recent years. Farming can be unpredictable so you need to ensure your farm is resilient, that you’re producing maximum yield and that you’re selling your crops for the...
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### Gym business
> If you’re a fitness professional and dream of running your own gym, it’s key to understand what’s involved, the costs, and how you’ll finance it. Learn more.
- Published: 2023-06-19
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/gym/
- Start a business sectors: Business ideas
If you’re a fitness professional or personal trainer and you fancy running your own gym, it’s important to understand exactly what’s involved, how much it’s going to cost you and how you’ll finance it. Read this guide to find out everything you need to know. Get a quote What are the steps to opening a gym? Opening a gym requires a lot of work, but the steps below can help get you started:1. Check you have the right qualifications and skills2. Research licensing3. Find the right premises4. Consider insurance5. Acquire gym equipment6. Hire staff7. Market your gym 1. Check you have the right qualifications and skillsTo run your own gym, you’ll need to have good people skills and be prepared to work long hours. Remember that most gym users will have jobs of their own which means they’ll often want to work out in the early morning or evening. You’ll also need a minimum of a Level 2 qualification as a fitness instructor which you can complete in-person or online. You and any employees should have adequate safety training and you’ll need an appropriate number of first aiders on site too. 2. Research licensingMake sure you understand what licensing you’ll require. This will depend on the range of activities you plan to offer. For example:If you plan to sell or prepare food on the premises, you’ll need to register with your local authority environmental health department. If you want to show live television programmes, you’ll need television licence from TV...
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### Consulting business
> Curious to know how to start a consulting business? It’s key to have a clear understanding of what it involves and how to finance it. Read more here.
- Published: 2023-06-19
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/consulting-business/
- Start a business sectors: Business ideas
Curious to know how to start a consulting business? It’s important to have a clear understanding of what it involves and how to finance it. This guide takes you through the necessary steps to help you get set up. Get a quote What is consulting? Consulting is the process of providing expert advice to people working in a professional or technical field, in return for a fee. Consultants specialise in a niche industry or trade. They are experts in their field and must have valuable knowledge that people are willing to pay for. As well as giving advice, a consultant might offer feedback, strategy building and problem diagnosis. They work to help businesses become more successful and can offer a new perspective to help businesses overcome certain challenges. Consultancy or contractorConsultants and contractors both work with businesses, but they work in different ways. Contractors are self-employed workers that are contracted by companies to provide certain services. Consultants are hired to provide expert advice and might be self-employed or employed by a consulting company. However, it’s also possible for consultants to be asked to provide a service in a contractor-type role. Types of consulting businesses: There are several different types of consulting businesses, as we explain below:1. Management consultingThis is the most common type of consulting. If you go into this line of work, you’ll work with business leaders to help their companies run smoothly. You might assess certain processes and help them to implement new ones, for example. You might...
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### Landscaping business
> If you like working outside and are dreaming of being your own boss, setting up a landscape gardening business could be an option to explore. Read more here.
- Published: 2023-06-19
- Modified: 2025-02-04
- URL: https://swoopfunding.com/za/start-a-business/landscaping-business/
- Start a business sectors: Business ideas
If you enjoy working outside and are keen to be your own boss, setting up a landscape gardening business could be an option to explore. This guide explains everything you need to know about how to start a landscaping business. Get a quote Why start a landscaping business? Working for yourself has a number of benefits. For a start, you’ll have more flexible working hours and you’ll be able to choose the projects you want to work on. If you’re also someone who likes to work outside, rather than sit at a desk all day, and you enjoy being creative, a landscape gardening business could be a good match. However, you will need to be prepared to work hard and be happy to work all in weather conditions. You’ll also need to have training in lots of different areas, including stonework, paving, draining and irrigation and decking, and have a good knowledge of plants. If you don’t have the required skills, it’s best to take a course at a horticultural college before you start. How profitable is a landscaping business? Determining the profitability of a landscaping business in South Africa depends on factors such as market demand, competition, pricing strategy, operational efficiency, and the ability to manage costs effectively. Landscaping businesses can be profitable businesses, particularly in areas where the demand for landscaping services is high. Factors such as population growth, urban development, and environmental awareness can influence the demand for landscaping services. Additionally, offering specialised services such as garden...
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