If you are planning to apply for funding as an entrepreneur, you need to get your personal finances in order.
Every week, we receive enquiries from entrepreneurs looking to fund their businesses or start-up ideas and there is very little appreciation that lenders will not lend to you if you do not have a good track record of managing your own money.
It is often perceived as “unfair” that lenders will not extend credit to entrepreneurs who don’t have some of their capital to put in, but the lender wants to be able to assess that you can ultimately generate enough income to repay the loan you take out. To do that, they are going to look at how you treat money in your personal capacity.
- Do you pay your bills on time?
- Do you pay your bills in full?
- Do you apply for funding from a variety of lenders?
- How much credit has been extended to you and do you manage it appropriately?
In this video, Vusi Thembekwayo talks to Karl Westvig the CEO of Retail Capital SA and they touch on this important aspect: