Seven steps to secure business funding from the IDC

During a panel discussion at the Global Export Accelerator Partnership (GEAP) event held at the Cape Town International Convention Centre (CTICC) last month, Ganief Bardien, Regional Manager at the Industrial Development Corporation (IDC) Western Cape explained how entrepreneurs can secure funding from the IDC.

The GEAP event hosted more than 150 Black-owned business beneficiaries from across Cape Town, Johannesburg, Nelson Mandela Bay and Pietermaritzburg over two days, where Ganief outlined a seven-step process that can increase the chances of success when approaching the IDC.

Preparation:
The first step is to understand your own business thoroughly. Ganief emphasized the need to have a deep-dive understanding and a logical way to explain your business. "Preparation is very important," he said.

Meeting with the IDC:
Face-to-face meetings with the IDC are crucial. It provides an opportunity to engage with the regional manager or dealmaker and discuss what the IDC looks for in funding applications.
He stressed the importance of telling your business story and ensuring it sounds logical.

Providing Information:
While there are statutory information requirements, it's not just about meeting those basic criteria. He explained the need to provide market information, technical information and financial information that supports your business case.
He advised being “optimistically conservative” with financial forecasts.

Due Diligence:
The IDC conducts a thorough due diligence process to evaluate the viability of the business. Ganief added that the dealmaker acts as a salesperson for the entrepreneur and stressed the need to answer questions and provide all necessary information. 

Approval Committee:
Once due diligence is completed, the dealmaker presents the proposal to the approval committee. The executive advised having a meeting with the dealmaker beforehand to understand what will be pitched to the committee.
This step is crucial as it determines whether the funding will be approved.

Signing Agreements:
After the approval, agreements need to be signed. Ganief recommended having a lawyer review the agreements and highlighted the importance of reading and understanding everything in the agreement. 

“If you don't understand something, we’ll always be available to explain it to you,” he said.

Disbursement:
The final step is the disbursement of funds. The executive highlighted that conditions must be met before funds can be drawn down. These conditions can range from ethical requirements to specific agreements.

He emphasized the need to meet all the conditions to access the funds.