Before applying for funding, it's crucial to assess whether your business is truly ready. Applying before you're prepared wastes time, damages your credibility with funders, and can lead to rejection. This assessment helps you evaluate your readiness and identify gaps to address.
Why Assess Readiness?
Benefits of Being Ready
- ✓ Faster application processing
- ✓ Higher approval rates
- ✓ Better terms and conditions
- ✓ Stronger negotiating position
- ✓ Less back-and-forth with funders
Costs of Applying Unprepared
- ✗ Wasted application time and fees
- ✗ Rejection damages future applications
- ✗ May get unfavourable terms
- ✗ Delays your funding timeline
- ✗ Missed opportunities
Assessment Areas
Funding readiness is evaluated across five key areas. Score yourself honestly in each area.
1. Legal & Compliance
Funders require proof that your business is legally compliant and in good standing with regulators.
2. Financial Health
Your financial position determines what funding you qualify for and on what terms.
3. Business Fundamentals
Funders evaluate whether your business has a solid foundation and growth potential.
4. Documentation Readiness
Having your documents ready significantly speeds up applications.
5. Implementation Capacity
Funders want confidence that you can execute your plans and manage funding responsibly.
Self-Assessment Checklist
Use this checklist to score your current readiness. Count how many items you can honestly check off:
Essential Items (Must-Have)
Important Items (Should-Have)
Score Your Readiness
Ready to Apply
You're well-prepared. Start identifying and applying for suitable funding programmes.
Almost Ready
Address a few gaps first. Focus on quick wins to improve your position.
Not Yet Ready
Significant preparation needed. Focus on building fundamentals before applying.
Improving Your Readiness
Quick Wins (1-2 weeks)
- File CIPC annual return: Takes 30 minutes online at cipc.co.za
- Get Tax Clearance: Apply via eFiling, issued within 48 hours if compliant
- EME Affidavit: Complete sworn affidavit for automatic Level 4 B-BBEE
- Open business bank account: If operating from personal account
- Gather bank statements: Request 6-12 months of statements
Medium-Term Improvements (1-3 months)
- Write business plan: Use our templates or get professional help
- Prepare financial statements: Engage an accountant if not done
- Register for COIDA/UIF: Required for most funding
- Build sales pipeline: Document contracts, orders, and prospects
- Get proper B-BBEE certificate: If QSE or larger
Red Flags to Address
These issues will likely cause rejection—address them first:
- Outstanding SARS debt: Get on a payment plan and apply for TCC
- CIPC deregistration: Reinstate your company first
- Judgments or adverse credit: May need rehabilitation or explanation
- No business bank account: Cannot receive funding personally
- Fraudulent documentation: Will blacklist you permanently
Next Steps
Based on Your Score
Score 8-10: Apply Now
Browse funding options and start applications. Use our guides to identify the best fit for your needs.
Score 5-7: Quick Prep
Address quick wins in the next 1-2 weeks, then proceed with applications while continuing to strengthen your position.
Score 0-4: Build First
Focus on compliance and business fundamentals for 1-3 months. Consider business development support programmes.
Need Help Getting Funding Ready?
Get quotes from verified business consultants who can help prepare your compliance documents, financial statements, and business plan for funding applications.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation