Standard bank business term loan – Financing your company

Business term loan – Standard bank South Africa has for decades been involved in the provision of products and services which support the growth of the small-scale business sector. Standard bank believes a healthy and thriving small-scale business sector not only acts as a source of income and employment to many but it can also spur national economic development to greater heights. In a bid to support this important economic sector, Standard bank introduced the Standard bank business term loan.

The Standard bank business term loans enables small-scale businesses to secure funds for any period up to eight years and its payable in equal monthly installments. This credit facility which carries a minimum loan amount of R50,000 with no maximum amounts is tailor-made for acquiring business entities, buying fixed assets like property equipment and refurbishments and alterations. This business term loan has no fixed repayment period but is determined by monthly repayments which include interest and capital, additional funds payed over and above your monthly agreed repayments will be available for withdraw subject to a minimum of R10,000 and multiples of R1,000 and the account can be linked to electronic channels.

To access this credit facility, a prospective customer needs to submit certain pieces of information and documents. One of the key submission requirement is the business plan which stipulates the nature of the business, product offering, market environment and management skills. Financial information such as cash flow forecast, projected income and expenditure, personal statement of assets and liabilities for all partners, members and directors, amount and source of the business owners contribution or stake in the business, sales and purchases budgets is required.

If a client is buying an existing business, there is need to provide copy of deed of sale or draft deed, draft or signed lease agreement for premises. Collateral information is provided by Government Khula finance company and credit bureau checks of business and partners are always conducted.

The requirements for an existing business which has been banking at another institution are slightly different. The requirements in this case include financial statements of the business, three months bank statements, facilities letter from existing bank and details of collateral held by existing bankers.

To contact Standard bank regarding this unique credit facility, clients can call Standard bank on 0860109075 or 0112994633 and trained consultants will be on hand to provide the needed assistance.