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Many entrepreneurs find it hard to access finance to set up or grow their businesses. Sefa’s mission is to provide top-quality services to small and medium-sized companies or co-operatives in South Africa. If you own a business and feel that it is a bit stuck, this article might help you get on the move. You will get information on Sefa Loans: who can ask for them, what requirements are needed, what kind of loans are offered, and more!
What are Sefa Direct Loan Products?
This organization, which was founded in 2012, saw that the financial market made it very difficult to entrepreneurs to find the funds to expand their business. For this reason, this agency set out to make a contribution to the country by helping these small companies to evolve, while at the same time creating new jobs and growing the economy.
The financial facilities offered by Sefa are enormous, with loans starting from R50 000 and up to R15 million. The sectors they serve are numerous; here is a list of some of them:
- Services such as retail or tourism
- Construction (small companies)
However, there are some sectors that are not within the industries served by Sefa:
- Political organizations
- Tobacco, alcohol, gambling businesses
- Property development
In order to access finance through Sefa your company can be at any stage: it can be a start-up, a company with some years of experience in the market, or a company in an expansion stage.
What is the Sefa Loan Application like?
If you have a small or medium-sized company and want to ask for a loan with Sefa you can contact Sefa or start the application process online. You will need to register and provide Sefa your personal information and the details of your company. Remember that if you are married in community of property you will need to also provide information about your spouse and that she or he will have to sign the contract as well.
How long does Sefa take to Approve a Loan?
Sefa offers different types of credit facilities such as asset finance, bridging loans, term loans, revolving credit loans, among others. Both bridging loans and revolving credit loans are easier for Sefa to corroborate, so they tend to be approved quicker. The other loans, such as the term loans, take more time to be approved since Sefa needs to corroborate all the information and documents presented. In order for your loan request to be approved as fast as it can, make sure you don’t forget to give Sefa any paper since this might slow the application process down.
What are the Requirements to get a Loan with Sefa?
As we stated above, Sefa offers credit lines of a maximum of 15 million rands. That is a lot of money, and it implies a great responsibility. For this reason, the qualifying criteria and the required documents you have to hand in are much stricter than the ones asked for a personal loan, for instance.
Depending on the type of loan you want to ask for, there will be specific requirements and qualifying criteria. In this paragraph, we want to focus on those aspects that are common to all loans at Sefa. Remember that there are some industries that are not served by this company.
Ok, let us start by the main qualifying criteria:
- Being a resident of the country
- Having your company registered in South Africa
- Providing a business plan
- Demonstrating affordability
- Providing references (both personal and financial)
- Showing your Tax Clearance Certificate
As to the documents you need to present:
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- Application form
- Copy of ID
- Marriage certificate (if married)
- Brief resumes for the owners of the company
- Proof of residence in the country
- Bank statements
- Loan breakdown
Are Sefa Loan Interest Rates Convenient?
Sefa claims to offer affordable interest rates for their business loans. However, the type of rate your company can get will be restricted to the economic characteristics it has, the amount of money you request, and the term.
It’s always good to compare your options; one way to do this is comparing loans. At our site, you will find a tool to find the best loans in South Africa. Go ahead and take advantage of it and start your application.
3 key Features of Sefa Revolving Business Loans
There are many reasons a company might benefit from opening a revolving loan. For example, it can be used as working capital, to acquire machinery or vehicles, or to expand its business. Sefa has created this credit line to help their clients operate their business. With this loan, your company can use the money whenever it needs to. This loan is available mainly for businesses that are already customers of Sefa and that have a good credit history.
Take a look at three key features of Sefa Revolving Loan:
- The loan amount varies from month to month
- Maximum of 12 months
- Repayment is organized on the basis of your company’s cash flow estimates
Sefa works with the aim of tearing down the barriers preventing entrepreneurs from growing their businesses. They know that if your company grows, the whole country will benefit from it. For this reason, they target growing businesses that are unable to find finance through other means because they have, for instance, a Credit Bureau Listing. Of course, that if this is the case of your company, you will have to provide Sefa proof that steps have been taken to remediate this situation.
What are the main Benefits of Requesting a Term Loan at Sefa?
The term loans offered by Sefa were designed for allowing entrepreneurs or small to medium-sized enterprises to access funding for buying assets such as furniture for the company. This loan can be repaid in a term period that ranges from 12 to 60 months.
There are two main benefits that you will be able to enjoy if you take out a term loan with Sefa:
- You can use the cash from your loan to acquire movable assets such as equipment
- You can use the asset you’re buying through the term loan as security
If your company is having a hard time finding the finance it needs to grow and expand, take into consideration a Sefa loan and boost your business. After reading this text, you know what loans you can request, what documents you need to request them, and how the application process works.
Questions and answers
Good day, I need a loan of 20000 for my business. I need this loan urgent. Can I take a revolving loan?
There are no revolving loans at SEFA. Also, bear in mind that there are certain qualifying criteria that you need to meet in order to access finance through this organization. If you do not meet them, you could check other business loans in other financial companies where they do offer revolving loans.
Is there any document that I must complete to send? Can you send it to me?
Sefa offers finance to small companies and co-operatives of South Africa in order to help them grow and thus contribute to the country's economy. There are various loans at this organization, such as bridge loan, asset finance, term loans, among others. You need to check what the requirements are for each specific loan.
Can I find a Sefa branch in Rusternburg?
Sefa has over fifty branches nationwide. If you want to talk to a member of their staff and you are in Rustenburg you will find their offices in 32B Hestek Street, Sunetco Building, Rusternburg. If you don’t want to go there, you can also call them on 014 592 6391 or send them an e-mail at firstname.lastname@example.org.
Can my company get finance if we don’t have collateral?
Sefa’s mission is to help entrepreneurs and small companies access the finance they are denied elsewhere. For this reason, they go the extra mile and consider applications from companies notwithstanding the fact they do not have collateral to offer. Also, if you need help to develop your business plan, you can contact Sefa’s sister agency, Seda, to ask for help with it.
Can non-profit organization access loans provided by Sefa and what kind of term can I get for an asset loan?
Sefa does not allow non-profit organizations or political organizations to access their loans. The products this agency offers target small to medium companies in sectors such as tourism, retail, manufacturing, small scale mining companies, among others. Now, with regards to your question of Asset Finance, (if your company qualified) you could get a repayment term of up to 60 months.
I couldn’t agree more! I have a small company in the food sector and I find it terribly hard to get the finance I need.
This is a serious organization. I haven’t taken out a loan myself, but I definitely heard good things about it.
I’d like to find out more information about this company.