By Marko Campher, Executive for Lending at Nedbank
For many established small and medium enterprises (SMEs), growth is not limited by a lack of ambition or poor demand for their products or services; it’s usually limited by cash flow. A business can gain new work, grow its turnover and have ambitious plans in place to expand, but still come under strain when customer payments are delayed, stock needs to be bought upfront, or costs rise before revenue catches up.
In our experience at Nedbank Business and Commercial Banking, this is where the difference lies between businesses that are ready for finance and those that are not. Often, the SMEs that are best placed to secure finance are those that understand how cash flows through the business, have a clear view of how finance will be used, and have a proper repayment plan. These growth-ready businesses tend to plan earlier, keep better records, and approach finance as part of a growth strategy rather than as a last-minute money fix.
Revenue is an important part of the picture, but it doesn’t tell the full story. A business may look healthy on paper and still face pressure if it doesn’t understand its working-capital cycle, seasonal peaks, payment patterns, or operating gaps. Businesses that stay close to those numbers are often in a better position to access finance and use it well, because they know where the pressure points are and what kind of support will make a difference.
Businesses are typically in a stronger position when they can show exactly what the finance is for and what it is expected to achieve. That might mean buying equipment, increasing stock, taking on a larger order, expanding into new premises, or covering a short-term gap between costs and incoming revenue. It’s not just about the need for capital; it’s also about demonstrating how that capital will help the business move forward.
Demonstrating good financial discipline is key. It’s less about perfection and more about clear evidence that the business is well organised. Businesses that keep their records up to date, understand their numbers, and maintain an orderly financial picture typically remove friction from the finance process. They also put themselves in a stronger position to make sensible decisions about what they can afford and which facility best suits their needs.
One problematic pattern we often see is that many businesses leave finance conversations too late. By the time they approach the bank for finance, pressure is already building, and this can reduce the options available to them. A more effective approach is to engage with the bank earlier, while there is still time to assess which finance structure fits the business and how repayments will work. Businesses that plan ahead usually make stronger decisions than those that seek support only once the need has become urgent.
Businesses also strengthen their position when they are clear about the type of finance they need and the role it should play. Growth capital delivers the most value when it supports the realities of the business, its cash flow cycle, and the opportunities it is trying to unlock, rather than serving as a catch-all solution to every pressure point.
For businesses that can demonstrate these qualities, the next question is often not if finance is needed, but whether it will be available when they need it. A business may be operationally sound and commercially ready but still hesitate when there is uncertainty about access to capital at an opportunity’s onset. Greater certainty changes that dynamic. When business owners clearly understand what finance options are available to them, they can plan ahead, commit to growth, and respond more decisively when opportunities arise.
This thinking underpins Nedbank’s recently launched pre-approved business loan facility, offering up to R20 million to qualifying SMEs. At its core, the offer reflects Nedbank’s understanding that businesses with strong fundamentals and operational discipline should be able to plan with greater confidence and access the finance they need easily, so they can act quickly when the time is right.
Strong businesses don’t become fundable by chance. They understand their cash flow, stay close to their numbers, and plan well before pressure builds, making themselves fundable. When that discipline is matched by a bank that offers certainty around available finance, business owners are in a far better position to back themselves and secure their sustainable growth.
For more information, go to https://nedbankbusinesshub.ned
