Unsecured Lending
Credit Card
Nedbank offers a credit card that is an ideal card solution for start-up businesses to access quick credit on demand. The credit assessment is based on the individual’s affordability, allowing the business owner to split business and personal spending and build credibility. This can be used to improve cash flow with flexible payment options and provides clients the opportunity to earn rewards on business spend. Start-up, small-medium sized businesses or sole proprietors with a minimum annual turnover of R150, 000.00 looking for a line of credit with flexible repayment options may apply for this facility with Nedbank.
The Nedbank Rewards Revolve Card is a revolving-balance payment solution for small-medium sized businesses, combining a monthly minimum payment option to improve cash flow and the ability to earn rewards on business spend. The credit card is personalized to an individual’s needs/affordability. This facility can be accessed through a Revolving credit facility whereby the client can pay only the minimum outstanding balance.
Ideal for the start-up business to enable cash flow while earning rewards. Issued with both a MasterCard as well as an American Express card.
There are three ways to repay:
1) min 5% monthly repayments
2) budget facility
3) full payment with up to 55 days of free interest.
The once-off initiation fee is R235,00.00 with an R51,00 per month card fee. It will cost you R140,00.00 to replace the card.
Gap Access Merchant Cash Advance for business:
A cash advance for your business based on historic point-of-sale transaction volumes and data. All the records of your previous transactions together with the volumes and frequency of the transaction will be taken into consideration when applying for this type of financing. It works in conjunction with “Point-of-sale device” and your business must have been a Nedbank
Merchant for at least 3 months with a business turnover of over R1 million per annum. It is ideally used to fund operational expenditure, such as office renovations or equipment. It is quick and requires fewer documents to apply for this type of funding. The pricing structure is transparent and the repayments are matched to your Point-of-sale cash flow. Repayments occur daily as a percentage of your point-of-sale card sales and are customized to your business. If the merchant transactions of the business increase, the cash advance can be repaid quicker.
- Between R30 000 and R1 500, 000 can be accessed, depending on merchant turnover.
- Can be repaid between 6 and 9 months.
- 15% of the value of the advance will be charged as a fee
- Automatic deduction of between 5% – 15% of the net card settlement through the point-of-sale. The balance owed (the advance amount) gets reduces daily.
- Only Registered businesses that have been operational for at least two years and have a turnover of R 1 Million or more can apply. These businesses must provide a one-year transactional history and must be a merchant with Nedbank for at least three months. Pro forma invoice demonstrating intended use of funds, up to 70% of the advance value must be provided. Personal suretyship must be made.
Overdraft
An overdraft facility is ideal for immediate cash flow flexibility, providing working capital finance and unlocking cash flow.
An overdraft can provide the flexibility to borrow or repay as and when your cash flow allows and make funds accessible quickly and easily through a variety of mechanisms. Calculates debit interest on the daily used amount only.
Stock financing
Business Banking offers stock finance as a trade finance solution and our Customised Trade Solutions (CTS) team will assist with the structuring and ongoing deal management of the facility. Our solution will finance up to 80% of the cost of goods, depending on the risk associated, determined by factors such as:
- price volatility of the stock being financed;
- nature of the stock (eg easily saleable, durable);
- strength of the offtake agreements/orders; and
- Strength of the offtake as well as the strength of the payment instrument (ie open account, letter of credit, or other bank risk instruments).
Vehicle and Asset Finance
Used to finance the purchase of new or used vehicles from approved dealerships/individuals and to purchase assets such as machinery or specialized equipment used in engineering, medicine, and manufacturing.
A two vehicle finance option is depending on whether you want to lease or own your fleet:
- Full-maintenance lease, which offers usage rather than ownership, with all services, repairs, and maintenance included in the lease.
- Operating rental (Oprent), which offers usage rather than ownership, but excludes maintenance costs. Maintenance will remain your responsibility.
- Both options give you tax relief as the VAT on the rental amount is claimable, as opposed to outright purchasing of the fleet, where the VAT is capitalized on the purchase price.
The Deposit for full ownership after repayments are completed can be negotiable based on the type of product and client scenario. The loan can be repaid between 24 and 72 months. You have the option to choose between fixed and prime-linked interest rates.
There are no penalties on small and intermediate agreements for settlement the loan amount early and you can be structured your balloon payments into your agreement which will reduce the monthly repayments, with a lump sum repayment (referred to as the balloon payment) at the end of the agreement period. At that point you have the following options:
- Apply to refinance the balloon payment amount for a further term. (Terms and conditions will apply).
- Sell the vehicle.
- Pay the full balloon payment amount and take ownership of the vehicle.
Click Here for more information on Balloon payments
Property finance
If your business needs the property for it to operate and function for business purposes for commercial or industrial use then Nedbank offers a wide variety of solutions for businesses that need to secure financing for their properties. This includes financing for developers, equity participation, investment, affordable housing project finance, solutions for the listed sector, and residential development finance.
