Finance tips shared with small businesses

2017-08-09 06:00
PHOTO:Makhosandile zuluSefa KZN regional manager Thula Mkhwanazi speaking at the breakfast session about the financial services that the agency have to offer.

PHOTO:Makhosandile zuluSefa KZN regional manager Thula Mkhwanazi speaking at the breakfast session about the financial services that the agency have to offer.

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THE Small Enterprise Finance Agency (Sefa) hosted an awareness campaign last Thursday informing small medium micro-sized enterprises (SMMEs) on how they can access finance from the agency.

Msunduzi Municipality Sipho Myeni said in his welcoming remarks that such a session would provide answers for local SMMEs in need of capital for their business ventures.

A logistics company owner, Kugen Moonsamy, who received funding from the agency shared his testimony on how a loan from Sefa helped him procure his own fleet of trucks, therefore, doing away with the cost of relying on rentals.

Small Enterprise Development Agency (Seda) representative Mike Zondo said Seda works collaboratively with Sefa, but the former helps to develop business until they can grow, with a cash injection from the latter.

“Seda provides non-financial support and cost sharing grants,” Zondo said.

“It helps to start at Seda before going to Sefa because with Seda we assist you with getting your business plan fine tuned and all other systems required to develop and grow your business.”

Another Sefa beneficiary, Zimele Mahlobo, said information about such agencies is important because it is empowering, especially for young people based in rural areas.

“You’ll find young people with beautiful business ideas but because of a lack of knowledge those ideas perish,” Mahlobo said.

Sefa KZN regional manager Thula Mkhwanazi said the agency is aligned with the National Development Plan (NDP) which identifies small enterprises as pivotal players in driving economic growth.

“The NDP sets out ambitious goals for the SMME sector, and these include a target of 90% of employment opportunities created by the sector by 2030,” he said.

Mkhwanazi said the agency provides access to finance for small businesses and cooperatives up to R5 million with varied repayment periods.

A local businessman said attending the session was worthwhile because he learned about Sefa, a suitable alternative than relying on loan sharks.

“Loan sharks want 30% interest which doubles when your repayment is overdue. Relying on loan sharks means your profits are reduced significantly, sometimes you do not see any profits. The interest rate that Sefa is offering is much less and more viable,” he said.

“You’ll find young people with beautiful business ideas but because of a lack of knowledge those ideas perish,”

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