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Small and Medium Enterprises Development Authority

Applying for a Loan


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The traditional option of raising fund for a start-up is to go to a local bank and asks for funding. But banks tend to favor established businesses with a track record and assets. Large banks are not especially eager to lend the relatively small amounts of start-up money most individuals need. They make a lot more money on one big loan than they do on a lot of small loans.
Still, it might be worth your while to apply for a bank loan. Capital is supplied to enterprises through banks in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; and asset-based finance such as factoring and invoice discounting.
 
We suggest trying a small local bank, preferably one you already do business with or have a savings account. For Capital investment, an entrepreneur may take loan from either the Development Bank of Mauritius Ltd., Commercial Banks or Leasing companies.  It is essential that you put yourself and your idea in the best possible light to obtain the loan you need.
 
However, not all business finance is external/commercially supplied through banks and other financial institutions. Much finance is internally generated by businesses out of their own earnings and/or supplied informally as trade credit, that is, delays in paying for purchases of goods and services.