Achieving the financial freedom you long for
With our economy in shambles, women are increasingly looking for business opportunities to earn extra income. While most discover great opportunities, they are often limited by finance. Therefore, the question is “where can women acquire funding for their start-ups?” We talked to a financial expert, Mrs Marufu in order to get an insight on funding opportunities for women.
Q: Where can women acquire funding for their SMEs?
There are various financial institutions which offer funding for women. We have banks and a number of micro-financial companies primarily aimed at providing women with monetary means to start or sustain their businesses. There are various types of loans tailor-made for all types of women – from the formally employed to those in the informal sector.
A current trend among women is the formation of financial clubs. These involve contributions from every member of the club; the money is then banked, usually in forex to retain value. It serves as a financial reserve, group members are loaned the money upon request and required to pay an agreed interest rate. This is a great way for women to empower each other.
Q: What are the requirements to acquire funding?
Requirements usually vary in accordance with the institutions and individual characteristics. The basics are: a national identification card and proof of residence. From the basic, other factors such as employment are taken into consideration. Formally employed women are obliged to provide 3 months’ pay slip and bank statements, and hold permanent employment. Unemployed women are expected to submit trade references and their projects are a great part of the considerations. For Green-fields, a visit is made to determine viability of the project. References from prior projects are also required. If one is a member of any women’s group, they are required to submit the relevant references as well.
Mrs S. Marufu