Before you even think about applying for funding, your business must be structured, compliant, and attractive to funders. Being “funding ready” means:
1.Your business meets the necessary criteria for different funders
2.Your financials are clean, updated, and well-documented
3. Your business model is clear and demonstrates growth potential
4. You have a solid plan on how the funds will be used
Many small businesses apply for funding without preparing properly, leading to rejection. Here are some of the biggest mistakes:
A.No proper financial records – If you can’t prove your cash flow, you’re already losing
B.Unstructured business models – No clear revenue strategy = no investor interest
C.Bad credit history – If your business or personal credit is messy, lenders will hesitate
D.No collateral or security – Funders often need some level of security for large amounts
E.Weak business case – Not clearly defining why you need the money and how it’ll be used
When applying for funding, ensure you have these ready:
1. Company Registration Documents – CIPC registration, tax clearance, B-BBEE certificate
2.Financial Statements – At least 12-24 months of management accounts
3.Business Plan – A proper breakdown of operations, market, and growth strategy
4.Cash Flow Projections – Show how your business generates income
5.Bank Statements – Usually from the last 6-12 months
6.Tax Compliance Certificate – Funders avoid businesses with outstanding SARS issues
7. Contracts or Proof of Income – Especially for invoice financing or contract-based loans
Pro Tip: Keep these documents updated at all times so you’re always ready when an opportunity arises.
Business Loans – Fixed-term repayment loans for growth
Line of Credit – Flexible borrowing, only paying for what you use
Revolving Capital – Ongoing access to funds as needed
Invoice Financing – Get paid upfront for outstanding invoices
Asset Finance – Funding for business equipment and machinery
Trade Finance – Import/export funding solutions
Green Building Finance – Funding for energy-efficient solutions
1️ Improve Your Financial Records – Keep clean books with an accountant
2️ Show Consistent Revenue – Funders need proof that your business can sustain itself
3️ Strengthen Your Credit Score – Keep your business and personal credit in check
4️ Secure Long-Term Contracts – Having stable contracts makes you less risky
5️ Be Transparent – Don’t hide debts or risks—investors appreciate honesty
Step 1: Define Your Funding Needs – Know exactly how much you need and why
Step 2: Research the Right Funders – Not every funder supports every business type
Step 3: Prepare Your Application – Have all your documents and projections ready
Step 4: Submit and Follow Up – Keep track of submissions and engage with funders
Not understanding the funder’s criteria – Tailor your application properly
Applying for the wrong type of funding – Some businesses need equity, others need loans
Overestimating or underestimating funding needs – Be realistic in your projections
Failing to show how the funds will be used – Funders need clarity on ROI
If you follow this masterclass, you’ll significantly increase your chances of securing funding. Fundoh is here to match your business with the right funding partners, ensuring you don’t waste time applying for funding you don’t qualify for.
🚀 Ready to take your business to the next level? Let’s get you funded!