Knowledge Centre

Get the capital you need, and make sure it works for your business, not against it.. 

Funding and Loans

1. What You Need to Know  

Every business needs capital to start, grow, or survive tough times, but getting it requires more than filling in forms. 
 

Banks, government, and investors all want evidence that your business is viable. Accountants prepare the financial statements, cash-flow forecasts, and compliance reports that funders demand. They also advise on the right type of funding (loan, grant, overdraft, incentive scheme) and ensure you don’t borrow more than you can repay. 

2. Why It Matters to You

An accountant gives you the credibility funders demand.  

  • Increases your chances of approval. 

  • Helps negotiate better interest rates and terms. 

  • Ensures funds are used for growth, not wasted. 

  • Keeps you compliant with funders’ ongoing reporting requirements. 

3. Frameworks, Standards, or References 

Funding decisions are shaped by compliance rules and financial models. 

  • Frameworks to use: Business Plans, Feasibility Studies, Cash-Flow Forecasting. 

  • Standards & compliance: IFRS for SMEs (financial reporting), Companies Act (statutory returns), SARS tax compliance. 

  • References: DTI incentive guidelines, IDC funding requirements, CIBA practice guides. 

  • What your accountant will actually do: 

  • Prepare audited/verified financial statements. 

  • Draft business plans and feasibility studies. 

  • Build cash-flow projections for repayment schedules. 

  • Submit compliance reports to banks, IDC, or DTI. 

  • Monitor use of funds and renegotiate terms if needed

4. How to Apply  

Steps to secure funding with your accountant’s help: 

  1. Identify the type of funding you need (loan, grant, investor, incentive). 

  2. Gather your financial records and compliance documents. 

  3. Work with your accountant to prepare business plans and cash-flow forecasts. 

  4. Apply with the correct funder (bank, IDC, DTI, investor). 

  5. Track and report on the use of funds with accountant support. 

5. Common Mistakes to Avoid 

These mistakes can sink your funding application: 

Applying without financial statements → Always include credible reports. 

Overestimating revenue → Use realistic, funder-friendly forecasts. 

Ignoring repayment capacity → Plan for cash flow, not just approval. 

Missing compliance reports → Meet funder deadlines to avoid penalties.