The Small, Medium and Micro enterprises (SMMEs) have formed an integral part of South Africa's economic development policy since democratisation. As it is the case in many other developing countries, SMMEs are seen as the engines of growth and the sector that will provide the most job opportunities. Read this Department of Small Business Development's pdf here
The securing of a loan for a small to medium business has been notorious for being hard to obtain for a while in South Africa. This can be becuase of many reasons. But ultimately the common one is the fact that the business may not be worth the risk at face-value. At Day One we have our own vetting system in place that strives to see the full potential of your business so even if you were rejected by the big banks we might make the loan accessible however there are usually strict requirements to be met the applicant. Only Resident SMMEs are offered loans
Day One offers two primary forms of investment. One being Debt investment, also known as a loan(discussed above). The second being Equity investment, which is the acquisition of shares in your business. By buying shares in your business we are able to open the necessary funding or acquisition of the much needed assets which could be equipment, vehicles etc. Among other requirements, the business needs to be registered with CIPC and be in good standing. All companies registered with the CIPC have shares and a certificate of shareholders, speak to an SME or your financial advisor for more information. click here to read full requirements and apply
Day One strives to provide above prime interest rates to all Residents, SMMEs included. As an entrepreneur, diversifying your streams of income and securing financial security is compulsory. However finance is not for everyone as it can get really confusing really quickly, with the help of SMEs and in-house industry peers(Residents) you are sure to get the most out of business finances without the feeling of bombardment with jargon. The more you save with Day One the greater your chance at higher loans becomes