Quick Business Loans in South Africa

In 2015, South Africa dropped from 22nd to 32nd place in terms of the ease of obtaining loans, according to the World Economic Forum’s Global Competitiveness Report. If you are looking for quick business loans in South Africa, there are a number of factors you need to take into account. 

You have the best chances of getting finance when your business is in a stable position, with an effectively working business plan.

When your business is stronger and you have more valuable assets, you will have much higher chances of obtaining a business loan.

Lenders will evaluate your business when you apply for a loan and keep in mind that banks are usually risk averse. They usually consider lending to small businesses highly risky. The high costs of processing mean that it’s more expensive for banks.

Asset Finance Houses are more flexible when it comes to business loans. Funds can be provided for the purchase of an asset.

Banks traditionally apply time-consuming loan approval processes, so you should expect delays. It generally usually takes 3 months for a company to obtain the funds after having applied for a loan. Micro lenders in South Africa are not quick in granting business loans. The processing of an application can take up to 2 months.

To apply for business loans in South Africa you need to have flawless credit. Lenders want to ensure that they provide business loans to businesses that will be able to afford repayments.

The value of collateral must respond to the level of risk which the lender assumes.

When applying, banks usually require applicants to be specific about what they need. You need to have an exact amount in mind, so it’s important to present a precise figure. Explain how you will use the funds and what returns you expect to get.