ABSA business loans offer South African businesses with startup and existing small, medium and micro enterprises (SMEs) asset loans, working capital and business expansion finance.
Depending on your business needs and its performance, you can get any business loan amount starting from R25 000 or other borrowing options provided by ABSA.
ABSA has quite a number of business loan packages, therefore in this article, we list and review each product, rather than generalizing our review.
There are 4 ABSA business loans options you can access from ABSA:
With the ABSA business term loan, you are able to structure repayment terms of your loan to meet your budget.
There are two option of repayment structure, which are;
While negotiating the loan, you have to include a number of elements like the risk recognition and mitigation, pricing and financial covenants.
Business term loans are ideal for financing developmental projects, business expansion or business purchases like management buyout.
Funds can be withdrawn anytime you need them after the facility has been advanced. You don’t have to ask for a new loan or sign a new contract because this saves you time, money. You will not have to do any paperwork.
The loan repayment period may go up to 10 years, with several repayment options to consider:
Businesses use debit orders to pay their instalments
The ABSA business overdraft is another option in the ABSA business loans. It is an ideal way of borrowing funds to improve your business working capital and its cash flow.
Interest is negotiable and can only be charged on funds you have already used and not on the overdraft limit.
The interest payable is calculated on daily balances of the overdraft using the agreed interest rate.
Your business is granted the overdraft for an agreed fixed period of time. With no need to commit any collateral security.
The set overdraft limit agreed on is reviewed yearly. However, you can still review it as and when business is in need.
In ABSA business loans a revolving loan is the bank’s lending of funds, of a certain amount agreed on.
You then pay back the loan with an intention to borrow again.
This allows you to borrow as many times over the term of the agreement, according to the terms reached with ABSA.
The revolving loan is convenient for short to medium-term borrowing. It allows you to borrow any amount from a minimum of R25 000, there is no set limit on how much you can borrow.
There is no maximum limit to the amount you can access, however it is your business performance and size that set the limit.
Personal suretyship of the principal
ABSA business loans have an option to take up business credit cardsfor your operations. This is ideal when you need funds to manage your day to day business expenses.
There are 3 business cards to go for:
With so many options, getting one of the ABSA Business Loans shouldn’t be much of a big problem. Choose the option that suits your business needs and pursue it.