4 Basic Requirements to Have Absa Business Loan Approved

4 Basic Requirements to Have Absa Business Loan Approved

Owning a business is an exciting but laborious task and sometimes you need to go the extra mile to achieve your commercial goals. If you need to grow your business in South Africa, you can consider Absa Business Loans. In this article we will show you the 4 basic requirements to ask for this loan. We are also going to tell you all about the kind of business loans offered by Absa, and useful information like loan calculators, and such.

1: Knowing Absa Business Loans Rules and Regulations

When you run a business you have several responsibilities and one of them is always being informed about the paperwork in every transaction you do. This also applies to asking for loans. For this reason, it might be a good idea to read your loan contract carefully before signing it to get all the information regarding rules and regulations for this type of loan. It is always best to err on the side of caution and clear up all your doubts regarding terms and conditions.

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2: How do I apply for a Business Loan at Absa?

First off, you need to decide what type of Business Loan is more appropriate for your business. Keep reading our article to know the different corporate loans offered by Absa. Once you’ve chosen a loan you’re ready to continue with the process.

People who run a business are usually in a hurry: tight schedules, lots of meetings and what not. Applying online for a business loan would be so much time-saving. Unfortunately, since this kind of loans involve a lot of paperwork and checks, online application is not an option at Absa Bank.

However, the process is not complicated at all. If you are already an Absa Bank costumer, contact your account manager. If you are new to the bank, contact the bank directly. Or, if you prefer, you can go to the nearest Absa branch and start your application in person. This last option might take you more time, but it will be the best choice if you have a lot of questions.

3: What are the Requirements to Ask for a Business Loan at Absa?

You have already decided which type of Business Loan is the best fit for you. Now, what are the specific requirements? There are some requisites which are common to every type of loan:

  • Being 18 years old or older

  • Being a citizen of South Africa

  • Having a good credit history

When borrowing money, banks need to be sure that you’ll be able to pay them back. And with corporate loans requirements are stricter since they usually involve larger amounts of money. As we said above, there are different types of business loans and they have specific preconditions. Let’s take a look at them.

Business term loan:

  • Financial reports

  • Approving a credit history check

  • Having a guarantor

  • Additional security at the bank’s discretion

Revolving loan:

  • Personal guarantor 

These requirements have to be met for you to apply for a business loan. If you have doubts or questions, send us a message and make as many questions you may have. We’re here to help.

4: What are the Interest Rates offered by Absa for Business Loans?

When clients want to apply for a loan, interest rates is the first thing that comes to their minds. How much will it be? Is it good enough? Is it too high? Is it convenient? But the rate you will be able to get will depend on your business structure. How much capital you own and your business credit history will be factors determining the interest rate of your loan. This information will be made available to you when you discuss the terms of your loan with your account manager or the staff of the bank.  

Does Absa Bank have a Business Loan Calculator?

Clients want to know what to expect from their loans. And they’re right. Knowing how much you will end up paying, at what rate, and on what period of time will help you manage your finances wisely. However, you should bear in mind that these calculators are created for the purpose of giving general information. This is to say that your loan conditions may differ from the results given by the calculator on the basis of your specific situation.

Unluckily, Absa does not offer a business loan calculator on their web page. But don’t lose heart; we have an easy-to-use personal loan calculator which you can use to get a general idea of your loan structure. And again, if that is not good enough for you, or you don’t understand the information provided by the calculator, we are here to help you: drop us a message and we will try to have all your questions answered.   

4 Things you Need to Know about Business Term Loan Offered by Absa

At the beginning of this article, we told you that if you want to request a loan at Absa, you should know thetypes of loans they offer. The Business Term Loan is one of them. Below you will find out 4 things you absolutely need to know about them:

  • This loan has been thought for companies that wish to get funding to develop a plan, to expand their business or buy items such as vehicles or buildings.

  • The repayment period of this loan can extend to ten years.

  • This loan offers different types of repayment alternatives.

  • With this loan you are able to structure your loan repayments while the loan is active with regard to the possibility of skipping payments or making balloon payments.

Remember that for being able to qualify for this loan you need to provide proof of affordability, to approve a credit check run on your company, and to have a guarantor for the owners of the company. This loan is a great choice for companies wishing to expand their business or planning to acquire new equipment or locations.

Does Absa Offer a Business Loan for Small Companies and Startups?

It can be specially challenging for small business to access convenient loans with the purpose of growing their business. It may be even harder for startups which often consist of an entrepreneur with lots of brilliant ideas and will, but little money.

Absa offers four lines of funding for small business or startups. Study them to decide which one is best for your business.

Alternative Lending Solution: This is a type of product fort those who want to start a business and who have either won a contract with a public institution or for those companies owned by black Afro Americans on the agricultural sector.

Loan for acquiring vehicles or for asset funding: this product is good for those small businesses which want to buy vehicles or buy properties in order to expand their business.

Loans for working capital: this line provides small business owners and startups immediate funds for growing their business.

Development for enterprise and supply: with this product, small businesses or startups can access to financing and assistance from Absa.

When you start your business or when you want to make the leap from being a small business to well-established company you need all the information you can get. Absa does not have a loan calculator specific to small business, but you can feel free to use their personal loan calculator to find out the approximate rates and terms they offer. Remember, they are approximate, so don’t expect them to be exactly what you will get.

The requirements include:

  • Being a South African resident

  • Being of legal age

  • Accepting to have a credit check on your company

  • Providing documentation about your bank statements

  • Having a guarantor: a person who commits himself or herself to pay in the event that you are not able to do it.

  • Other requirements that the bank may deem necessary

3 Benefits of the Business Revolving made Available by Absa

Sometimes in our pursuit of success we rush to things and do not take the time to consider them with ease. So, before we move on to these 3 benefits of Absa’s Business Revolving Loan, let’s talk a little about what a revolving loan is.

A revolving loan is a compromise you make with a bank where the bank lends you a certain amount of money, you pay it back in order to borrow it again, and so on. Over the term of the agreement you will be able to borrow as many times as you arrange with the bank.  

Ok, now that we know how it works, we can go on with the 3 benefits of Absa Business Revolving Loan.

  • There is a minimum amount you can borrow (R 25 000), but there are no maximum amounts! This is amazing because you can start thinking big: the sky is the limit!

  • Funds are there for you to withdraw them when you need them. You don’t have to ask for a new loan or sign any new contract. This will save you time, money and you will not have to deal with bothersome paperwork.

  • You need to pay back a specific amount of money before you can borrow more. This is helpful because it makes you have a control over your expenses and avoid making unnecessary expenditures.

We hope that we were able to help you figure out which type of Absa Business Loan is best for your company and what are the requirements you have to meet to request them. Good luck and we sincerely hope we have been able to help you out in this critical decision for your business in South Africa. And remember, you can leave us a comment or question: our job is to help you out.


Preguntas Frecuentes

Are phone lines available 24/7?

Yes, they are!

Do I a maximum amount of money to borrow?

It depends on each case.

I live in Johannesburg; can I find an office there?

Yes! It is located at 53 Polly St.

I want to start my own business of chicken farmers and to create job for our comminity around our area and to develope our future, can a loan serve?

Absa has its business loans for such instance, so that if you want to settle your chicken business, you can obtain money from the company and repay each month a small amount of money. For example, if you choose a loan of R 20 000 in 2 years, you will pay R859,62 if the interest rate is 3%

I am a final year student who wants to start a student accommodation business. Can ABSA fund me?

ABSA can definitely fund you or your personal project for your accommodation business as long as you comply with the company's loan requirements. If you are a student who also works and earns a salary, then ABSA will have no inconveniences to fund you. You should be eighteen or older and earn at least R2000 monthly.

Good day, I am working on a commission base, but sadly my employer passed away in April 2020. The person who took over, can unfortunately only do so temporarily. We supply fertilizers to farmers, but it is only in bulk (34ton loads or more) to the ones that need and can afford such big orders. I would therefore like to start my own business to be able to supply fertilizers to the smaller farmers that do not need nor can afford those quantities, as I know there is a big demand amongst the smaller farmers. I would therefor need to get start-up business funding and would like some advice on which loan would best suit my needs. Kind regards

Depending on your specific situation, you could consider asking for more information about Absa Agricultural loans for business that are black-owned. Also, there is a small business loan for women that could work for you. With this last loan, you could borrow from R150.000 to R30 million with a repayment period of a maximum of ten years.

Hello, I'm banking with nedbank and have been in operation for 4 months, my business is based on primary agriculture. Nedbank can only offer loans if the business is in operation for 6 months minimum, what is absa bank requirements?

Absa Bank has designed a business credit line that can help you grow your company, and this loan can be repaid in up to ten years. For you to request the business loan at Absa, you will need to prove affordability, have good scoring, provide surety, and depending on your business, additional security might be requested.

I have a company called Amakhwalo Trading Enterprise PTY now I have shortage of feeding and equipment of my broilers I want to know if absa can lend me money to improve my business. I'm not working in case you need pay slip.

Absa does lend money to companies that need to grow their business. There are different types of business loans available at this bank. You can consider a short to medium term loan, for instance. In order for you to qualify, you will need to provide proof of affordability of your company and suretyship.

How long does it take to make a business loan?

After you submit your application for an Absa business loan together with all the documentation requested, the bank will start checking all your information. This process might take the bank approximately a whole week, but if, for instance, you forgot to submit a document, it will take a little longer.

Hi I'm interested to buy a business in Eastern Cape and it cost R 2 500000.00. I'm working full time but deciding to resign in order to run the business. But I would like to borrow the business loan. Could you please advise which loan is applicable?

Business loans at Absa and at any other bank are meant to help companies grow their business. This means that for you to borrow money with a business loan in order to buy that company in Eastern Cape, you need to have a company of some sort. If you do not, then you should think about personal loans at Absa. However, the maximum amount you can borrow with these loans is R350.000

Please, if I apply for a startup loan of 10, 000, how much do I have to pay before getting the loan?

If you want to apply for a startup loan at Absa of R10,000 you would not have to pay anything before getting the loan. What you will need is to prove that your business has the affordability and the documentation needed to ask for a business loan at Absa Bank.

Good Day, I am wanting to apply for a start-up business loan (R1 000 000), I have a business plan with projected figures for 18 months. The figures are underestimated turnover and with that research my business should break even by month 4. Does ABSA offer start up loan without collateral?

Absa Bank offers loans for stat-up businesses for SME Contract Financing, Agricultural Financing and for businesses run by women. Depending on the characteristics of your company, you might be able to request a R1,000,000 business loan at ABSA without collateral. Also, bear in mind that according to the type of business you have, you will need to comply with different requirements.

I want to open an internet cafe. I am not working can ABSA fund me ?

There is no need to have a job in order to apply for a business loan with ABSA. However, there are other key requirements to comply with such as being a South African citizen over 18 years old with a good credit history. If you want to open an Internet café, bear in mind that the company offers four lines of funding for small businesses, which you can select according to your situation.

Hi! I am a South African citizen. I am currently not working but wanting to start a business, would ABSA Bank lend me at least 25,000 rand?

If you are a South African citizen who is not currently working, and you wish to start a business with 25,000 rand, Absa Bank is probably the right entity to ask for money.  This bank only requires its customers to be over 18 years old, a South African citizen and have a positive credit history. All your information will be analysed, and it will be determined how much you can access. 

Hello, I need a loan at ABSA for R20,000. What are they going to need from me, and how must I pay, like period and rate?

If you are looking for a business loan with ABSA Bank for about 20,000 rand, you should consider the following information. It is important to have a positive credit history, provide a valid South African ID and be over 18 years old. The amount of money you will need to pay on a monthly basis will depend on the interest rate taken from your business organization, and the payment period you choose (up to 10 years for a business loan). 

Hi, I have a registered business running. I am currently using ABSA business cheque account. My business makes approx 50,000 rand a month. I need a business loan, long term. How much can I qualify for? Can you estimate?

If you have a registered business, are currently using an ABSA business account, the bank will analyse your profit and your credit history in order to grant a business loan. In order to determine how much you can obtain with a monthly income of 50,000 rand, you will need to provide more details to the bank. Some factors to consider are: affordability, scoring, personal suretyship and additional security. 

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