The IDC, the NEF and Business Partners all fund larger or longer-term needs. They differ a lot in size and speed. This page sets out what each one publishes about itself, so you can see quickly whether it is worth applying.
The short version
| IDC | NEF | Business Partners | |
|---|---|---|---|
| Amounts | R1 million minimum, R1 billion maximum | R250,000 to R75 million | R500,000 to R50 million |
| How long it takes | About 3 to 5 months (its "ideal") | About 3 to 4 months | Not published on the page we read |
| Fees | Not published on the page we read | Its form says no fees are payable to the NEF or anyone else | Not published on the page we read |
| Security | May include bonds over the business's fixed and movable assets, personal surety and corporate guarantees | Not published on the page we read | Not published on the page we read |
| Size of business | Not published on the page we read | Not published on the page we read | Gross assets under R100 million and annual turnover not over R200 million |
IDC
The IDC's own FAQ says it has a "minimum funding requirement of R1 million and a maximum of R1 billion". So it is not built for a R200,000 stock purchase.
It also says security "may include bonds over fixed and movable assets of the business as well as personal surety and corporate guarantees". Expect to put up business assets, and expect the owners may be asked to sign personal surety.
The IDC's FAQ lists the sectors it supports, from agro-processing and manufacturing to energy, mining and tourism, and says it "ideally" approves applications in "between three and five months". It asks for a completed business plan and a "reasonable financial contribution" from the owners. Its FAQ doesn't publish fees.
NEF
The NEF's application form gives a range of R250,000 to R75 million. It says: "OUR APPLICATION PROCESS IS APPROXIMATELY 3 TO 4 MONTHS" and "NO FEES ARE PAYABLE TO THE NEF OR ANY OTHER PERSONS". That last line matters: nobody should charge you to get NEF funding. The form also asks for "Business bank statements for the past twelve (12) months".
One caution. The form we found sits on a municipal website (stlm.gov.za), not the NEF's own site, and its web address suggests it was uploaded in 2021. Check the current form, figures and ownership rules with the NEF on its own site before you rely on them.
Business Partners
Business Partners' finance page says it funds from R500,000 to R50 million. Its own words: "We only provide finance between R500 000 and R50 million".
It says it does not finance "on-lending activities, direct farming operations, underground mining, informal and micro enterprises and non-profit organisations". Its FAQ says it backs businesses whose "gross assets are under R100 million, where annual turnover does not exceed R200 million".
It asks for a "Completed application. Business plan. Annual financial statements. Up to date management accounts. Cash flow forecast. CV of business owner/s." It also publishes an eight-step process, from "You complete our application assessment online" to "You repay the loan according to agreed terms".
Is any of this a grant?
Mostly not. The IDC's FAQ lists loans, equity and guarantees, not grants, and Business Partners says you "repay the loan according to agreed terms". SEDFA's website lists loans. The NYDA runs a grant programme for people aged 18 to 35; see our NYDA page.
Apply to any of these funders directly, on its own website. Don't pay anyone who promises to get you funding or a grant, and be wary of any site that says every small business qualifies. If someone asks for money upfront, read our scam warning page.
When one of these may suit you better
- You need a large amount. These funders go well into the millions, and the IDC starts at R1 million.
- You can wait. The NEF quotes about 3 to 4 months, and the IDC 3 to 5.
- You have a business plan and up-to-date accounts ready. They ask for them.
- The total cost matters most to you. Ask for the total cost in rand and compare it with a private offer.
When a private funder may suit you better
- The money is needed in weeks. A confirmed order, a supplier deposit or a SARS date won't wait 3 to 4 months.
- The amount is under R250,000. That is below the lowest minimum on this page.
- You don't have a full business plan or forecast. Some private funders decide mainly on your trading history and turnover. One, for example, says it "does not require a business plan, a budget or a financial forecast".
Where we fit
We are a broker. We don't lend. This page is a general guide: to apply to the IDC, the NEF or Business Partners, go to them directly. Our work is private funding for registered Pty Ltd companies and close corporations (CCs) that have traded for at least 12 months and need from R50,000.
Next step
If you need private funding as well, or speed matters more than size, check your fit. It takes about 2 to 3 minutes and needs no documents to start.
Sources
- idc.co.za: : "minimum funding requirement of R1 million and a maximum of R1 billion
- stlm.gov.za: range R250 000 to R75 million
- businesspartners.co.za: We only provide finance between R500 000 and R50 million
- businesspartners.co.za: gross assets are under R100 million, where annual turnover does not exceed R200 million
- businesspartners.co.za: eight-step process
- sedfa.org.za: : funding list "Asset Finance & Term Loans", "Bridging Loans & Revolving Credit
- nyda.gov.za: : the NYDA Grant Programme, for youth aged 18 to 35
- help.bridgement.com: a private funder that "does not require a business plan, a budget or a financial forecast