Apply for a business loan to help your business reach new heights.
What is a business loan?
A business loan is a loan that is designed for business purposes. There are two main types of business loans those are secured and unsecured loans.
Business loans have assisted countless South Africans to help their businesses succeed and grow. The loan amount is usually used to help upgrade equipment that the business needs in order to operate or to help grow the business.
Different lenders will require different information and have specific requirements depending on the loan that you are applying for. The online loan application process is very simple and you can apply directly from the lenders website. There is no need to go to the branch and fill out heaps of paperwork.
Applying for a business loan is easy with the right lender
Lenders in SA aim to make the loan application straight forward and there are no hidden fees. The loan repayments terms can be customised to suit the needs of your business. So, ensure you use a loan comparison site to find the best business loan available.
Supporting documents you might require to apply for a business loan
To apply for a business loan you will need to supply us with a few supporting documents. This will include:
- A proof of your identification
- You will need to provide proof of address this could be your telephone or electricity bill, your passport, trade license, lease agreement or sales tax certificate
- A copy of your bank statement
- You will need to provide proof of your balance sheet information including your profit and loss reports and proof of income over the past two years
- You will need to provide proof of continuation
- You will need to provide proof of documents that might include your company declaration, certified true copy of memorandum and articles of association
- The last three years of your audited financials
Secured business loans option
A secured loan in South Africa is a business loan that backed by a value asset that acts as collateral on the loan. This can be any item of value that is larger than the agreed loan amount and is normally a property, vehicle or expensive business equipment. This type of loan is not a risk for the lender because if you don’t pay back the loan then you will lose the item that you have listed as collateral. The money can be used for anything thing that will benefit the business.
Unsecured business loan option
An unsecured business loan is designed for small business in South Africa and allows small business to borrow between R50 000 to as much as R1 million without any need to provide collateral. There might be certain restrictions on what the business is allowed to use the money for.
The criteria to decide if a business qualifies for an unsecured business loan are that the business must have regular cash flow and make regular payments into the business account.
How does it work?
To apply for a business loan log onto the lender website and fill out the online application form. A loan manager will contact you and let you know what supporting documents you will need depending on the loan you are looking for. You will need to submit at least six months bank statements together with the required supporting documents.
The manager will assess your business loan application and decide if your business qualifies. If they agree then you will need to sign the loan agreement online. The credit will be processed and the funds will be transferred to your business bank account.
You will need to pay back the loan according to the loan agreement repayments terms as set out by the loan agreement contract.
Why should I consider a business loan?
If you qualify for a business loan you can use the money for a variety of different reasons these can include:
- To promote business growth – Use your business loan to help your business achieve long term growth and implement that plan. To increase the sales that your business is making and increase cash flow.
- Strategy and timing – Extra cash can be used to help implement a better business plan and help your business remain stable and profitable.
- New business venture – If you are looking expanding or exploring other possible business ventures, a business loan can help you make that a reality.
- Expanding on assets – By purchasing additional assets, you are stimulating the growth of your business, which helps your business grow.
Business loans for new business owners
A new business loan may be granted to small developing business but the criteria and requirements are usually much stricter than for an established business.
A business loan from a reputable lender is the best way to develop and foster business growth.