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Small business owners work the hardest on their business, investing a lot of their time and money to realise their entrepreneurial vision. It is so important to have a vision for where you want your business to go and remind yourself of this regularly.

Not only will this keep you motivated when you are experiencing tough times, but it will also push you to think about how you can lay the foundation during the start-up stages to enable growth when the time comes.

Having recently worked with businesses in Gauteng and KwaZulu-Natal to help them keep their doors open despite the impact of the pandemic and the looting incidents in 2021, has reminded me of the importance of managing your finances well.

It has been incredibly satisfying to assist businesses to access revolving credit loans, for example, to be able to cover their losses and continue to pay their employees’ salaries.

The best way to increase your chances of securing a loan in future for your business, is to get the basics right from the starts. That includes:

  • Using a business bank account strictly for business transactions – too often business owners use their business accounts for personal expenses such as buying groceries or takeaway meals for themselves. This indicates a lack of financial know-how and should be avoided.
  • Pay yourself a salary – you will, of course, have personal expenses, but to cover these, you should pay yourself a salary into your personal account.
  • Ensure payments are honoured – debit orders that bounce are also a cause for concern when applying for a loan. If, however, there is a good reason for it, business owners can motivate in their application why this should not count against them.
  • Have an accountant – using a professional to assist you with your financial recordkeeping could make a big difference when applying for your loan.

About the Author

Image of Faith Ndlovu
Faith Ndlovu
Small Business Banker, Business Banking

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