The dork who got kicked out of Capitec
Uncategorized Tagged Bootstrapping, Capitec, funding an SME, microlending, Standard Bank February 4th, 2010Brett Commaille over at InVenfin took great pleasure in hearing how I was rejected and ejected from micro-lender Capitec today in favour of the security guard who works in the parking lot at the Cresta shopping mall.
I’m not going to bore you with all the details but in a nutshell I was looking for a short-term loan to pay off some software development costs I wanted to push through.
Being a Capitec shareholder and having never tried out their service offering I strolled into the bank, took my seat in the line and waited to speak to a consultant – somewhere between the security guard and the guy who washed cars at Audi.
Now to put my visit in context I’ve interviewed Riaan Stassen (Capitec CEO) before and he’s regularly told me that they are aiming to target the middle-class market so I thought I must fit in to this category. It only took a few suspicious looks I was getting from the consultants to know that I wasn’t their idea of “typical” client.
After a few minutes one of the consultants came up to me to ask me what I wanted. When I explained my requirements she shook her head and told me that because I was effectively “self-employed” I would not fit their lending requirements (remember they are charging 30%+ interest).
Please could I move on so they could service people who were gainfully employed and had a pay-slip to prove it…
… and that dear reader is what you set yourself up for if you decide you are going to bootstrap an SME.
Having hit every single source of credit to feed this monstrosity we created, I think I have felt every emotion under the sun while watching this start-up get put together. Even now where things are starting to come right and the blocks are falling into place, I still love and hate every single minute of the adventure.
To be ushered out of Capitec a few days after Standard Bank approved a R1m bond for my new house is probably one of those experiences which will stay with me for a long time to come.
I wanted to write this post for two reasons. Firstly I wanted to entertain but secondly I hoped to highlight to other would-be entrepreneurs what they are potentially letting themselves in for when they make the decision to take the plunge.
Personally we made a lot of mistakes when we set the business up. These are mistakes we are still feeling 5 years down the line. A big mistake is that we made our business and personal balance sheets one and the same.
In humble conclusion – if you are planning to start a business I hope you remember the blog about the dork who got sent on his way from Capitec in favour of the security guard who leads a desirable and predictable life… at least now you know what you are letting yourself in for.
February 7th, 2010 at 10:22 am
What business are you in? If you’re in Cape Town, maybe we can get in touch?
February 7th, 2010 at 10:41 am
I run a publishing company – Rival Industrial (www.rival.co.za) – ignore the website at the moment it is undergoing a major revamp!
The company includes start-ups Bundublog.com, ManufacturingHub.co.za and Ferronews.com which are all niche market titles in various stages of their growth cycle.
I am speaking at the AD:Dynamo conference on the 17th of Feb – http://www.addynamo.com – with Justin Hartmann and a couple of others. Feel free to register for the conference (no charge) and maybe we can exchange notes. It’s a bit of a whirlwind visit and then flying back to JHB but expecting to do Cape Town to meet a couple of fund managers and VC people in late Feb / early March.
My number is 082-561-1585 if you wanna chat. Otherwise I’m on marc@rival.co.za
I also put together the Rival Pioneers entrepreneur initiative – http://rivalpioneers.bundublog.com/ – (there’s also a Facebook group) which tries to provide a bit of trouble-shooting / support network for young SA entrepreneurs.