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If you are looking for a small business loan of no more than R 30,000 in order to start your business and its improvement, you have come to the right place. These loans are typically called Micro Loans, since there they have a limit in terms of the money you can be granted. Regarding the uses you can give to this funds, you can use it for buying new machines or materials and even furniture that will enrich and make your business greater and bigger. Fortunately, Absa has more than one micro loan for your business.
In the article you are about to read, I will give you important information regarding the requirements you need to bear in mind before applying for a loan like these ones and discuss whether it is difficult or not to obtain them. Then, I will mention this company´s benefits and two different micro loans Absa offers to its clients in order to help them improve their business. Finally, I will give you contact details of this company so that it is easy for you to get in touch with their consultants
Requirements for Micro Loans
Clients have in general financing periods of no more than six years and in some cases the bank will ask you for a value as a collateral. The interest rates are usually determined by the bank in conjunction with the client´s needs and availability.
Regarding the collateral, most banks ask for at least one valuable asset possessed by one of the owners of the corporation.
One of the advantages of these loans is that they are granted to clients more easily than other type of loans. However, clients sometimes will need to complete a long application procedure before obtaining the funds they want.
Is it difficult to obtain Micro Loans?
Your capacity of being eligible for these type of loans will rely on your financial status and your previous credit score with other banking companies. Nevertheless, you take some aspects into consideration before applying for a Micro Loan, which will help you in the application procedure. For instance, you need to talk about your business and your experience as a partner, and how were you able to start your business at the beginning, without the help of a micro loan. Then, you can also start talking about your academic knowledge and work experience. In this instance, you can refer to your income and your expertise at the time of managing your business.
One important point to discuss has to do with your capacity to invest funds in valuable assets that will benefit your company. In conclusion, talking about your financial situation and your experience as a business owner will be very beneficial at the time of granting the loan.
Benefits you will get with the Micro Loans found at Absa
-The bank´s representatives with orient you towards the loan procedure and the requirements you need to comply with
-Entrepreneurs have the chance of attending courses and online workshops in order to enrich themselves
-Clients are not required to own a personal computer
-Consultants will guide applicants in terms of the rates they need to pay each month and the taxes that correspond to each type of loan
-Consultants will give strong advice in terms of lending programs that best adapt to the client´s needs and financial
-Business owners have the possibility of registering themselves and their company at the bank´s online portal, so all their information is kept there, in a very safe place
-The government and important suppliers have access to some of the information of the different businesses, which will help them grow whenever they want to help them
-Business owners have the chance of starting the application in the ban´s website
Now, lets see the two different Micro Loans you will find in Absa:
BUSINESS TERM LOAN
With this loan, clients will be able to pay any accumulated debt that their business generated in the past. This loan also serves to make those unaffordable purchases of valuable assets. Lastly, some companies make use of this program in order to change their balance sheet and start from scratch. Clients have convenient financing periods that range from 3 months to 120 months, which is a considerable amount of time. The interest rates can be either fixed or variable, that will be totally up to the bank and the business.
By overdraft I mean the chance that businesses have of obtaining a loan for an unlimited period of time, whose overdraft will be negotiated between the bank and the client representing the business. Interest rates will also be set by the bank and the business representatives and one of the positive aspects is that clients will pay interest rates based on the current use they gave to the funds.
You can go to one of their offices located at cnr 11th & Grayston, Shopping Centre, Benmore Rd, Johannesburg , whose telephone number is 011 689 1940. This office is found in Johannesburg, where Absa has its main quarter.
There is another branch in the area of Bloemfontein located at Nelson Mandela Drive and you can call there by phoning on the following number: 051 401 1051. You can call their representatives by phoning on that number and they will answer your questions and concerns in the short time.
You always have the bank´s website in order to take a look at other lending programs or simply start an application for your business. There , you also get the chance of sending a message to the bank´s representatives so as to obtain a quick answer.
To conclude, finding the right Micro Loan for your business is very simple and quick with Absa. This company offers a variety of benefits and programs in order to grant your business the money it needs. Try these loans and see how your company can improve and enrich thanks to Absa!