Township businesses were left on the sidelines for too long; however, slowly, there’s a shift. More corporations have seen the value that comes from the township.
Townships are no longer a mere product of a broken system that attempted to isolate marginalised communities, but these locations are a testimony of resilience, survival, and a thriving people, despite the challenges that persist in these communities.
Townships contribute billions to the South African economy. One of the initiatives created to back township businesses is the Tech Credit Fund for black-owned Internet Service Providers. In this article, we’ll tell you about the fund and explain how ISPs can apply.
What is the Tech Credit Fund?
The Tech Credit Fund is a subsidiary of Solcon Capital. Solcon Capital is an investment firm that invests in tech sub-sectors that drive development and innovation. The fund is aimed at providing small and medium-sized black-owned Internet Service Providers with up to R5 million in debt funding as a means to boost broadband connectivity across South Africa’s townships.
With interest rates ranging between 2% and 6% and repayment terms of 3 to 5 years, these businesses can receive support with fair rates and no hidden fees.
Additional Support
The fund doesn’t just provide capital, but also delivers technical and operational support. This includes assistance with vendor negotiations, deployment optimisation, and network design.
Equipment Cash
Need tools for your business? This funding helps you buy routers, servers, and fibre equipment. Having the right tools helps you deliver better service and avoid delays.
Working Capital
Running a business costs money every day. This funding helps you pay for daily needs. You can cover rent, data costs, and supplier payments while your business grows.
Kasi Expansion
Want to grow your business in more townships? This funding helps you move into new areas. You can reach more customers and build your business in different communities.
Tech Support
You also get help from people who understand the business. They give simple advice and guidance. This support helps you run your network better and avoid common mistakes.
How to Apply for the Tech Credit Fund?
Applying for the fund is a straightforward process. Firstly, it’s important that you use the loan repayment calculator on the website. This lets you see a clear picture of the loan amount, loan term, fees, your monthly instalment repayment, as well as the overall interest you’ll be paying.
What Do You Need to Apply?
To apply, you must ensure that you have the following documents:
- Certified copy of your passport.
- Proof of your business address.
- 6-month bank statements.
Tip: While not mentioned on their website, when you’re pursuing funding opportunities, always ensure you have your audited financial statements.
What Are Audited Financial Statements?
An audited financial statement is a financial report on your company’s financial statements that has been conducted and verified by a Certified Public Accountant (CPA). When a CPA conducts a financial statement audit, they go through each item on the statement through protocol testing. This allows the CPA to ensure that the data presented on the documents is accurate.
Financial management is key for SMEs. Funders typically ask for audited financial statements to reduce risk and ensure that your business is financially responsible and a trustworthy candidate for funding.
Applying to the Tech Credit Fund Website
Once you’ve compiled the necessary documents needed to apply, follow these steps:
- Head to https://techcreditfund.co.za/.
- Click on Apply Now in the top right corner.
- The website will take you to the application section. Here, choose the amount you’re applying for. This amount must be between R750 000 to R5 million. After stating how much you need, select the loan term, which should be between 36 months and 60 months.
- Register or log in, and provide your business, financial, and personal details. Once you’ve provided those details, complete the affordability assessment.
- Upload your documents and click upload once you’ve selected your documents.
- Wait for e-mail communication from the Tech Credit Fund team.
If you aren’t ready to apply just yet and would like to ask questions about the fund, you can either fill out the contact form on the site, e-mail sibulele@techcreditfund.co.za, or call +27 (81) 355-9877.
