Standard bank loans  and loans from family and friends allow you to borrow money for a set period of time against an interest rate. Alternatively, you can source finance from institutions which aim to help businesses start up and grow. 

Learn more about social business lenders.  

Social investment loans  

Social lenders may ask for joint and several guarantees  from Directors. This means they borrow money from the person with the largest assets at nil interest and lend it to the enterprise at a good interest rate.

Some social lenders do not ask for these guarantees if the business plan is strong enough. Others do not ask for personal guarantees as a matter of principle.

Paying particular attention to the cost of maintenance and early repayments in your loan agreement. Is the monthly interest based on the outstanding balance or the initial capital sum you borrowed? The former will be much cheaper, but some loan deals may be set up as the latter and cost you more as a result. So, read the loan agreement carefully before you sign it.

Download our guide to applying for loans: