Set the amount and purpose, then pick the source that fits: own funds, a bank, a government support program, or a partner or investor for a share. Funders read your numbers before your idea, so prepare a cash forecast that shows how you will repay or how they will earn a return.
Step by step
- 1
Define the amount and the purpose
Funding equipment is different from funding working capital. Work out the amount from your monthly cash forecast and add a safety margin for late collections.
- 2
Start with your own funds and the business cycle
Your savings, customer deposits and supplier payment terms are all funding that costs you no interest and no share of the company.
- 3
Bank financing
Banks in Egypt and the Gulf offer financing for small and medium businesses, conventional or Sharia-compliant, and leasing is an option for equipment. Lenders usually ask for company documents, financial statements or bank statements and collateral, so compare the total cost, not just the installment.
- 4
Government programs
Egypt and the Gulf states have official bodies that support small businesses, and some of them offer financing, guarantees or training programs. Read the terms and amounts on their official websites, because they differ between programs and change.
- 5
A partner or investor
Equity investment suits a business that can grow fast, and it means giving up part of the ownership and control, so put the full agreement in writing before you receive the money.
- 6
Prepare the funding file
A business summary, financial statements or bank statements, the cash forecast, the repayment or return plan, and the company's legal documents.
Using short-term financing to buy long-term assets, or to cover a loss whose cause you have not found yet, adds a repayment burden on top of a problem that is still unsolved.
- ways to finance a small business
- how to get a business loan