Free money is rare and competitive. Know the trade-offs before you chase the wrong one.
Key facts
Choosing the right kind of funding saves months of wasted applications.
Grants
Don’t have to be repaid, but are competitive, restricted and slow, often tied to sector, age or location, and frequently cost-sharing (you fund part). Best for early-stage or specific qualifying activities.
Loans / debt
You keep 100% ownership but repay with interest (e.g. SEFA). Good when you have cash flow to service the debt and want to retain control.
Equity
A funder (e.g. parts of NEF) puts in cash for a share of the business. No monthly repayment, but you give up ownership and share future upside.
Reality check: many businesses end up with a blend — a small grant plus a loan. Build your plan around what you can realistically qualify for and service.
Need help with this? Bekin Consulting can handle it for you — from registration to filing.
Related guides
- Government funding: SEFA, NEF, NYDA & the dtic
- How to qualify for funding & grants
- Beyond government: banks, IDC, incubators & competitions
- NPO vs NPC vs PBO — what’s the difference?
General information for South Africa, current to 2026 — not legal, tax or financial advice. Confirm current rules with SARS, CIPC or the DSD before acting.