THE PRACTICAL ANSWER
Start with the business need. A funder’s appetite only matters if its capital fits how your business operates and grows.
Start with what the money must do
Separate the funding requirement into uses: stock, equipment, product development, market expansion, or a defined impact programme. Identify when each cost falls due and what will generate the cash to sustain it. One business can have several needs that call for different funding routes.
In African markets, the currency of a funding offer deserves attention alongside its headline cost. If customers pay in local currency and a loan must be repaid in another currency, model how exchange-rate changes could affect the payment burden.
Compare the obligations, not just the amount
| Route | Questions to test |
|---|---|
| Grants | Does the activity meet the programme’s purpose and eligibility? Can you manage restrictions, reporting, match funding, and the disbursement schedule? |
| Debt | What cash will cover interest and repayments? What security, guarantees, conditions, and currency exposure come with the facility? |
| Equity | Does the growth opportunity suit the investor? What ownership, governance, return, and exit expectations would you accept? |
Terms differ between funders and agreements. A grant can carry repayment or clawback conditions; an equity investment can carry obligations beyond an ownership percentage. Review the actual offer.
Consider whether different needs need different capital
A combination of grants, debt, and equity can be useful where the sources fund compatible activities. It also adds coordination: eligibility, timing, permitted uses, and other funders’ consent may all matter.
Before approaching a funder
- Write down the use of funds and the milestones it supports.
- Build a cash forecast with realistic customer payment dates.
- Decide which ownership, repayment, and reporting obligations are acceptable.
- Check whether the proposed currency and timing fit the business.
Use our fundraising information checklist to organise the information behind your request.
PUT IT INTO PRACTICE
Discuss your funding options
We agree the work, deliverables, and fees before starting.
Discuss your funding optionsGeneral business guidance. Funding terms and local requirements vary; assess the details of your business and proposed engagement.