---
title: Do you need finance to start a business?
description: Do you need finance to start a business?
---

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1. [Funding info](https://knowledge.fundsmart.co.za/?hsLang=en)
2. [Understanding business funding](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en)
3. [Different funding needs](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-funding-needs)

# Do you need finance to start a business?

### Understanding start-up finance

Start-up funding can be very tricky. After all, you are asking the lender to give you money based on a business idea. There are no proven facts to back up your assumptions that the business will generate money, so it is considered highly risky. Formal lenders do not like risk.

 

### What are your options?

As a start-up business, you do have options available to you, but each comes with its own terms and conditions. 

 

**Our aim is to explain these for each of the options listed below:**

- [Angel investors](https://knowledge.fundsmart.co.za/angel-investors?hsLang=en)
- [Family and friends](https://knowledge.fundsmart.co.za/family-and-friends?hsLang=en)
- [Bootstrapping](https://knowledge.fundsmart.co.za/understanding-bootstrapping?hsLang=en)[.](https://www.finfind.co.za/bootstrapping)
- [Personal or business overdrafts](https://knowledge.fundsmart.co.za/personal-or-business-overdrafts?hsLang=en)
- [Personal or business credit cards](https://knowledge.fundsmart.co.za/personal-or-business-credit-cards?hsLang=en)
- [Home loans](https://knowledge.fundsmart.co.za/home-loan?hsLang=en)
- [Government lending agencies](https://knowledge.fundsmart.co.za/government-lending-agencies?hsLang=en)
- Return to [Home page](https://knowledge.africanbank.finfind.co.za)

 

- [Understanding business funding](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#main-content)

    - [Challenges to accessing finance](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#challenges-to-accessing-finance)
    - [Different funding needs](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-funding-needs)
    - [Different types of funders](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-types-of-funders)
    - [Different types of funding products](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-types-of-funding-products)
    - [Credit scores and reports](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#credit-scores-and-reports)
    - [Learn more](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#learn-more)
- [Funding options for startups](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#main-content)

    - [Angel investors](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#angel-investors)
    - [Credit cards](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#credit-cards)
    - [Crowdfunding](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#crowdfunding)
    - [Family and friends](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#family-and-friends)
    - [Government funding](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#government-funding)
    - [Home loan](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#home-loan)
    - [Incubators and enterprise development programmes](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#incubators-and-enterprise-development-programmes)
    - [Overdrafts](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#overdrafts)
    - [Social enterprise funding/impact investing](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#social-enterprise-funding-impact-investing)
    - [Venture capitalists](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#venture-capitalists)
- [Funding Glossary](https://knowledge.fundsmart.co.za/funding-glossary?hsLang=en)

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