Quick and safe Start up Business Loans in South Africa

Quick and safe Start up Business Loans in South Africa

If you are looking forward to starting your very own business or expanding the one you already have, it may be important or necessary to have investment capital. You may need to invest on cars, machinery, inventory or supplies. In that case, what could come in handy would be a business loan in South Africa. Explore the different companies that offer them and how they are different from one another.

How can I get a loan for a new business?

Lime24 South África - Compare loans

Lime 24

Borrow transparently with Flexible Loans. Best loans in South África.

Finding the loan you need and want to start a new business is no easy job, but there are companies ready to help you out. In order to get a loan, you need to turn to all the different agencies that offer this sort of loans. One recommendation is to turn to Rain Fin. This is a credit marketplace that allows borrowers to have access investors and debt capital considered affordable. It allows south African citizens to access alternative credit, which allows them to earn income returns at a fixed rate.

How to apply for a startup business loan?

In order to apply for a startup business loan, you need to look for an agency that provides them. This can be done online or in person. Take into account the following:

  • Fill an easy application

  • There are no obligations or commitments

  • The process of application is free of charge, secure and safe

  • You can apply for a business loan by telephone, cell phone or computer

  • Within only twenty hours you will find out the result

  • Once you have finished applying, if the loan is approved, you will receive funds and be able to grow your business.

  • Access different terms and tailored rates

  • The company will assess you to be able to decide what is the best repayment method or deal to sustain yourself

Which quick loans to start a business could I apply for in South Africa?

In South Africa, there are different companies that provide clients with business loans. Let us explore some of them:

  • FNB

  • Fundrr

Both of these companies provide different sorts of loans:

  • Fundrr provides clients with automated model and high-technological innovation in order to offer efficient and fast loans to those small businesspeople.

  • The application process at Fundrr is completely free and simple. It is totally paperless.

  • FNB, on the other hand, allows clients to expand and grow their business through different methods and resources.

  • Clients can raise their capital with FNB and develop their projects and business with expansions purposes. Over the term of the loan, they can finance different expenditure related to business.

How can I find out more information about start up business loan interest rates?

Rates generally change from financial company to financial company. The conditions established by the market also influence rates. If you need to find out the rates and fees for a particular loan you have in mind, then it may be necessary for you to make use of loan calculators. Fundrr is one of the companies that provide loan calculators for you to find out the rates, as long as you provide some personal bits of information. In general, financial institutions will take into consideration different aspects and factors.

How do start up business loans calculator work?

Believe it or not, start up business loans are not difficult to use. They are just like any other calculator:

•             You introduce or provide the amount that you need to invest in your brand new business

•             Provide the company an approximation of the months you intend to keep the loan. You can repay on a daily basis, monthly basis, weekly etc.

With FNB, you can actually find all the different calculators, for both home loans and vehicle finance. Once you have provided all the details, the calculator will provide you with any necessary information. It does not provide calculators for business loans, though. Fundrr, on the other hand, provides an example of how it would work. Imagine that you borrow an amount of R100,000. In that case, you can apply for a term of six month and access a flat, fixed rate of eighteen percent (estimated value). You can carry out repayments in four different alternatives:

  • Per day, repayment would be of R 786.67

  • Per week, it would be of R 4,541.96

  • Bi monthly, it would be of R 9,833.33

  • Monthly, repayment would be of R 19,666.67

The loan calculator provided by Fundrr enables clients to grasp a better understanding of the workings of the business loan. By simply picking the term and amount, you can see the repayment amount. The company will make sure to evaluate your cash flow patterns. This way, they can select the best form of collection. If you need a loan amount of R150000 and a term of six months, then the total repayment would be of R 175500.00. The weekly repayment would be of R 6802.33, while the daily repayment would be of R 1170.00. You can pick based on your preferences and needs.

Are there any startup business loans requirements?

The requirements may fluctuate, depending on the company where you are applying for the business loan. In order to qualify, for instance, at Fundrr, you need to:

  • have been working for over a year

  • possess an asset value or an annual turnover greater than or equal to R 1000000

  • you need to operate inside South Africa

You have no administration fees, no hidden fees, no added costs that would be extra and no origination fees. The company will take a look at your cash flow and will then create a repayment schedule made only for you. This is a suggestion, so you can take it or ask for an alternative.

How are startup business loans repayment terms?

Repayment terms for startup business loans vary from company to company. In the case of Fundrr, you are given the chance to access terms of a minimum of three months and a maximum of twelve months in order to launch your business into the market or simply expand it. FNB, on the other hand, offers clients terms with a minimum of three months but a maximum of five years. The minimum loan amount provided by FNB is of R2000.

Are there any business startup loans with easy approval?

Some companies have worked throughout the years to make approval and the whole process of application easier. Fundrr, for instance, has a system of easy approval: if you have already applied and have met the requiring conditions, within only twenty four hours you can find out whether you have been approved. The company has developed an algorithm for decision making, which means that as soon as you apply, the system will automatically process your application. In order to reach a decision, the company will center its attention on the cash flow of your project or business, instead of your credit score.

How do start up business loans work?

Understanding start up business loans is not difficult. It is a way created to help you out with business financing, that is, helping you finance your business. How can you use a business loan?

  • For working capital

  • For buying machinery

  • For furniture

  • For purchasing equipment and any necessary supplies

  • For getting machinery

  • For the construction or purchase of real estate

Small businesses can therefore access dynamic financing. The biggest challenge that you may face when making use of a small business loan is getting enough capital to sustain the initial growth of your personal project.

Which are the best banks for small business startup loans?

As it was previously stated, there are plenty of companies in South Africa offering business loans to start up your business. FNB as well as Fundrr are companies that could benefit you in different aspects, especially when you need your business to grow. Standard Bank as well as Nedbank are other two alternatives that many customers turn to because of their expertise and wide variety of loans.

Are there banks that do startup business loans?

Once again, as it was mentioned before, there are many financial agencies that operate with business loans. FNB and Standard Bank are some of the agencies that provide clients with loans that can help them boost their business. They even provide business accounts to make sure that you can use banking products.

In conclusion, if you need to take a business loan, you can do it with any of these agencies. They each offer terms that are similar and some are different. You can apply directly from your mobile phone or make a phone call to any of these offices in South Africa. Applying is also quite easy and fast since you can do everything you need online, without the need of moving. Start applying today and make sure that you get a business loan that grows your business and your possibilities for expansion.

Preguntas Frecuentes

How do I know if I qualify?

You must begin the application to find that out

Do I have to be employed?

Yes you do

Can I use automatic deduction?


Can african bank buy me house or business?

With African Bank you can purchase a new house or settle your business. You can apply for a Home Loan or you can start the application for a Business Loan.

If you are not working but you want to start up a business loan is it possible for the bank to help you?

Sadly, this will not be possible. In general, all the banks will request the applicants to submit some paperwork to be eligible for any type of loan. For instance, clients can be asked to submit a copy of their ID, their recent bank statements and payslips from the last three months. Also, the company will carry out an analysis of the applicant's economic situation, credit record and affordability capacity before granting a loan. 

Can I get a loan without a payslip and owing money?

Sadly, this will not be possible. In order to obtain a business loan from a bank such as Standard Bank or FNB, it is important to provide proof of income by at least having one year of work experience. As an applicant, you will be asked to hand in some documentation, and you will also be subjected to a credit analysis of your economic situation. It is crucial to have a positive credit score and enough affordability capacity. 

I need a loan to buy an existing CC that is has proven to be profitable. It is a guest lodge and sport school on a 16 ha farm and I need 11,500 000. Is there any company that will lend me money?

If you need a business loan to buy an existing CC which includes a guest lodge and a sport school, you can resort to a bank like FNB and Standard Bank. Depending on the company that you choose, you may need to comply with some criteria such as being a South African citizen, presenting a profitable business plan, having working experience for at least 1 year, among others. Please, bear in mind that 11,500,000 rand is a considerable amount of money. Your application will be subjected to a credit assessment. 

I am a young entrepreneur who is 20 years old. I want to start a business from scratch, which bank can offer me a loan and how much?

As a 20-year-old entrepreneur looking for a loan to start a business from scratch, you can resort to some financial companies like Standard Bank. You will need to present some documentation such as a valid ID, a business plan, proof of income, bank statements, among others. The company will carry out an analysis of your credit profile and affordability capacity to determine how much money you can obtain. 

Can I take a loan even if I am unemployed?

If you are unemployed and do not have a way to present evidence of regular income, you will not be able to obtain a loan to start a business. Usually, the lending companies will require to show your payslips. However, you can resort to Pawn Loans and obtain money by pawning items of value.  

Can I get a loan for a year? I'm a start-up and do quotations, but to get big jobs, I must have some training and some certificates, but all of them are money, so I need a loan to do my courses.

Of course, you can. If you wish to obtain a loan for a year because you need money to do some training and obtain certificates to expand your business, there are some entities that offer financial help for small business or entrepreneurs. For instance, you can resort to ABSA which provides help like start-up funding and expansion projects. 

New business startup loans institutions?

If you are looking for financial institutions that can help set up a new business in South Africa, there are some banks which can offer loans for startup businesses. For example, you can resort to Nedbank which has several loan options including business services. Also, you may also try with Standard Bank, Absa or First National Bank. 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top