Business Revolving Loan
A short to medium term borrowing option that allows you to borrow money from a set amount that is determined by the business owner and the bank. The funds can be used for working capital and bridging finance items.
With a business revolving loan you can borrow again after paying back a certain amount. The funds are available as long as you need them. The minimum amount that can be borrowed is R25 000 with minimum monthly repayments of 1/40 of the borrowed amount.
To qualify for this type of loan you need personal suretyship of the principle amount that is borrowed.
If you’re an existing ABSA customer you may contact your Banker for more information. If you’re a new ABSA customer or you don’t bank with ABSA, call 0860 040 302 for more information.
Business Term Loans
A business term loan a term loan that is ideal to finance development projects, business expansion or buying a business.
The repayment period is up to 10 years and has a wide variety of repayment options that a business may consider. Repayments may be made monthly, bi-monthly, quarterly, half yearly or yearly. You will also have a flexi reserve facility whereby you can access the funds repaid if needs be. You may also add an auto-capitalisation to reduce outstanding capital to benefit from interest burden. You may structure repayments during loan application stage in terms of option to skip payments or, option for balloon payment on last instalment which may be refinanced.
Affordability assessment will be made by assessing your financial statements, furthermore a credit assessment will be made to determine whether the applicant qualifies. Personal suretyship of the shareholders and/or directors or members and additional security may be required.
Business Overdraft
A Business overdraft is used to provide short term cash flow management.
The overdraft can be approved for a fixed period of time while the limit will be reviewed each year. Interest is calculated and payable on the daily balance and the Interest rate can be negotiated.
Personal suretyship of the principle amount is required before the loan is advanced and applicants must have an active business current account with ABSA to qualify.
Small Business Revolve Credit Card
A small business revolve credit card gives you access to credit at any time you need it and is readily available for use from your card.
You may pay as little as 3% of the outstanding balance monthly and since the credit is a revolving credit facility, you can have access to the money paid. There are no transactional fees on all point of sale purchases.
Benefits:
Free lost card protection
Bidvest lounge access – Visa card holders receive a 15% discount off of lounge access charges at Premier Lounges
Elite car park – Visa commercial cardholders receive a preferential rate of R85 per day
SMS or email notifications whenever a transaction is performed
There is a monthly fee of R34.00 on the credit card.
Automatic travel insurance
Enterprise Development Centre
This one is for businesses that have been awarded a contract or valid purchase order by a public sector entity. The contract finance loan is from R50 000 to R3 million.
To qualify you need a credit approval and must have a valid contract or purchase order. Kindly see below for the full minimum qualifying criteria:
• Valid quotations.
• Your business should be a small to medium-sized enterprise (SME) as defined by the Department of Trade and Industry (DTI) – includes start-ups and existing businesses.
• You need to be a South African citizen, permanently residing in South Africa.
• You need to have the skills and/or expertise relevant to your business and/or the industry or sector.
• You need to have a well-researched business plan or business profile.
• Your business should show profitability through historical financials (if existing business) and/or a realistic cash flow forecast.
• No split banking is allowed – the business’s main transactional account will be held with Absa.
• You need a loan of between R50 000 and R3 000 000 with a maximum loan term of five years.
• Loans are paid directly to suppliers
