In short
Most small businesses start on their own savings and sales, then add family money, supplier credit or a loan. A lender wants to see a plan, records, your costing, what you are putting in yourself and some security. Prepare those first. Never pay a fee to someone who promises you a loan or grant.
ADA does not arrange funding. We cannot get you a loan or a grant and nobody
honest can promise one. The lender or funder decides. We can help you prepare the plan and evidence they ask
for.
The kinds of funding for a small business
| Kind | What it is | Worth knowing |
|---|---|---|
| Own savings and sales | Money you put in, and profit you leave in. | Cheapest, and lenders expect you to have put some in. |
| Family and friends | A loan or gift from people you know. | Write down the amount and the repayment date, even here. |
| Bank loans | A loan from a commercial bank. | Each bank sets its own requirements. Ask for them in writing. |
| Development finance | A loan from a development bank. | See the Development Bank of Namibia below. |
| Government and donor programmes | Grants, funds and loan schemes, often for a group such as youth. | They open, close and change names. Confirm the current status with the programme itself. |
| Supplier credit | Stock now, pay later. | Cheap if you pay on time. Record every amount owed. |
Development Bank of Namibia: what it says it offers and asks
These facts are from the Development Bank of Namibia's own website (checked October 2026). Read the pages yourself before you apply, because terms change.
- It defines an SME as a business with an annual turnover of N$10 million or less.
- The minimum loan is N$150,000, except N$50,000 for young artisans and young professionals. The normal maximum term is 10 years.
- It does not lend directly to individuals for micro-loans. It runs a facility to finance micro-lenders.
- You present a business plan with the application. Copies of documents must be certified, and it prefers a DBN Commissioner of Oaths.
- Its application guide says an owner's equity contribution of 10% to 30% and owners' collateral may be required, depending on the project and its risk. That guide is dated 2020, so ask DBN for the current one.
- It says an SME application takes 4 to 6 weeks and a tender application 3 weeks.
- Its SME finance page names its SME Center and its offices in Walvis Bay, Ongwediva and Rundu.
The sources are at the end of this page. We have left out other programmes, including youth credit and development funds, because we could not confirm today whether they are accepting applications.
What any lender wants to see
| They ask for | What it means for you |
|---|---|
| A business plan | Who the customers are, the costs, twelve months of cash flow and the break-even point. See the business plan template. |
| Records | Proof of what the business really sells and spends. A cash book kept for months is better than a neat sheet made yesterday. |
| Costing | That your price covers your cost and your own wage. See How to price a product. |
| Your own contribution | Money or equipment you are putting in yourself. Lenders want you to share the risk. |
| Security or a guarantee | Something the lender can claim if repayment fails, or a person or scheme that guarantees it. |
| Documents | Identity, registration papers, quotations for what you will buy and, for a tender, the award letter or contract. |
How to prepare
- Ask first. Get the lender's checklist and any template in writing.
- Collect twelve months of records, or start a cash book today and say honestly how long you have kept it.
- Cost what you will buy. Three quotations for each large item.
- Decide your own contribution and what you can offer as security.
- Write the plan yourself, with help if you need it, and be ready to explain every figure.
- Borrow only what the cash flow can repay. If the repayment makes the forecast fail, borrow less or wait.
If you want help with the plan, ADA's Business Plan is From N$2,499, and the Funding Pack (customer research, costing and a business plan) is N$4,199. They prepare the evidence. They do not guarantee an answer from any lender.
Warnings: advance-fee scams and unregistered lenders
- Do not pay to “release” a loan or grant. If someone you have never met asks for a fee first for insurance, processing or a “guarantee”, walk away.
- Check any fee in writing, on the lender's own website or at its office, before you pay.
- Check that a microlender is registered. In January 2026 NAMFISA was reported advising people to verify a lender's registration on the NAMFISA website before borrowing. Our own advice: never hand over a bank card, a PIN or an original document as security.
- Be wary of pressure to sign today, and of any lender who will not give you the terms in writing.
Sources
- Development Bank of Namibia, SME finance
- Development Bank of Namibia, loan requirements and micro-lending
- Development Bank of Namibia, SME business planning
- Development Bank of Namibia, application guidelines and documents
- Development Bank of Namibia, Application Guide (2020)
- Republikein, Namfisa sounds warning over illegal cash loans (18 January 2026)
Sources checked October 2026 (last checked 6 October 2026).