21/04/2026
We all have different reasons/ circumstances as to why We would want funds. I have put the reasons in three categories as follows:
GROWTH
👍 Your business has excessive orders from customers.
👍 There is a new technology that would increase your sales or drive efficiencies.
👍 You need to open a physical branch in a new location that has very high demand.
👍 There is a new product/ service that you are developing that requires investment.
👍 You want to buy a business that is on sale.
👍 You have come across an exceptional sales person that could 10x your business in 3 months, however, their compensation requirements are beyond your current capacity.
Borrowing for the above reasons should lead to increased revenue for your business.
SURVIVAL
😭 You haven't paid your employees in the last few months.
😭 Your landlord has given the final verbal warning, He'll soon be writing a letter giving notice to vacate the premises.
😭 Most of your suppliers are demanding cash upfront due to erratic payments from you.
😭 You have personal financial pressure, the business can borrow then lend the money to you.
😭 Force majeure- COVID, drought, loadshedding - leading to severe cash flow challenges. You need to make interventions or the business will die.
😭 Business is bad, you want to exit by selling to a new owner.
The above reasons to borrow are realities many of us face in our business journey. Pressure, pressure, pressure!
FEED YOUR EGO
😎 You want to show the world that you have made it with new: offices, house, cars, clothes, furniture, other.
🤑 Lifestyle upgrade: travel first class around the world.
🤔 Caution:
Everyone has different circumstances as to why they want to raise capital, my only words of caution is that before proceeding, work out your numbers and have a worst case scenario back-up plan in case things do not go as planned.
If you have specific questions as regards your unique need to source capital, please reach out to me via WhatsApp on +260977783470. Also look out for my next article in which I will share more details on capital sourcing options and costs of funds.
