A very common approach among start-up entrepreneurs is to use whatever access to short-term credit they may have. Needless to say, this is an incredibly risky approach. To do this, you need more than mere confidence in yourself or your business idea, you need certainty. Short-term credit is very expensive, expect to pay interest of 20%+ on your credit card or overdraft facility, and if you plan to use it in bootstrapping a business, then be sure of your margins, timelines, etc.
When you don’t have an alternative, short-term credit can help you start a business. If you are going to use it, then use it sparingly, judiciously and on an absolute must do basis. Common short-term credit facilities are provided by all major banks and will be dependent largely on your personal credit profile. You can also try African Bank and Capitec Bank for alternatives.
This is not a strategy I would generally advocate in starting or growing your business, precisely because business is an already risky undertaking, notwithstanding the double risk incident of using high interest bearing short-term credit facilities. Caution: if you do decide to use these facilities, pay your creditors as soon as possible and hasten to build a business profile worthy of more appropriate business finance.
