One of the biggest challenges to any budding entrepreneur is having enough cash available at the right time. Although the pay-day loan service that Wonga offer is sometimes seen as a “tide-me-over” facility to cover an unexpected bill or an emergency expense, that is not always the case. Sometimes good deals and great offers come along with the chance of picking something up for a great price; but if you don’t have the cash available, you could lose out.
The wherewithal to seal the deal
If you run an online business buying and selling some sort of product, cost price is everything. Spotting a good deal and being able to act on it there and then can mean increased profits when you sell the product on. But you have to be able to get your hands on the cash when you need it. Whether you already have a business, or you are just waiting for the right moment to start one up, Being able to finance that special deal can be crucial.
All entrepreneurs have to start somewhere, and for most it means starting off at rock bottom. But according to a recent report in SME-South-Africa.co.za, South Africa is leading the race when it comes to fostering entrepreneurship in women. For many of these ladies (and their male counterparts too), access to short term high cost loans could make all the difference to getting their business start-ups off the ground, or making an important killing.
Doing your homework properly
The key of course is making sure that you can afford the loan in the first place. Short term is good because it means not having to create long-term debts. But it does come at a price, and that price is the interest that the loan provider will charge. If you take this into account, and you can still show a profit on your sales over and above the amount of interest you have pay back, you’re onto a winner and a pay day loan can be a great asset. Raising finance is never easy at the best of times. A pay-day loan could be ideal.
A new oxygen supply
The fact of the matter is that according to a report a couple of months ago in Global-Process-Servers.com, the “grass roots” of the South African economy may have been stifled by lack of access to short term funds. But with the appearance of the payday loan company facility, that could be a thing of the past.
From tiny acorns
It has to be said of course that we’re looking at the small end on the market (the SMEs – with the emphasis on the S for small). But seeds have got to be sewn somewhere, and a great many are falling on the fertile ground of the virtual business world – online start-ups. As they say, from tiny acorns; mighty oaks do grow.
In a very real sense, the pay-day loan could be the boost that the South African economy needs to further foster and nurture its wannabe entrepreneurial young people. As well as being used to help some South Africans out of a tight spot, it could be used as an investment in South Africa’s future.