Business Loans
The world of business can be vast, and diverse, and a convoluted mish-mash of products, services, and finances all rolled into ever-changing packages and options. It can be overwhelming, and often confusing, to try and gain momentum and grow as a business owner in this kind of climate. From competitive markets to issues of cash flow and expenditure, and the current state of the economy, there are many obstacles and challenges that lie in wait for businesses in South Africa.
It can very quickly begin to feel like a constant uphill battle every time you want to take a step forward as a business. It’s in this current corporate climate that bridging finance has stepped in to assist. Bridging finance refers to the means of getting quick funds in the form of a loan to cover short-term expenses necessary for growth, while you wait for the funds to recoup over a short period of time.
What Is Business Bridging Finance?
Bridging finance for business is the financing of business loans for immediate costs that your business needs to cover. As your business begins to grow, expenses will generally grow at the same time. This can be a tricky situation to navigate for your business because while it may be growing, cash flow can still become a hard line to balance. This is where bridging loans for business are so crucial.
Why Take a Bridging Loan for Your Business?
There are several really good reasons to take out loans for business in South Africa. Business owners can get access to funds immediately by taking out a business loan, which can help facilitate the continued growth and expansion of the business, as well as cover any short-term expenses of the business.
How To Get a Business Bridging Loan for Your Business
Trusted and secure lenders such as business-loan.co.za provide a fast and easy solution to businesses looking to secure bridging loans for immediate use. The application process is simple and to the point, and businesses can get their approved loan in as quickly as one day. If you’re an established and registered business that’s been operating for more than 12 months and have accrued more than R1 million in sales in the last 12 months, then you’re eligible for a business bridging loan. Additionally, you can provide bank statements or issued invoices to verify and substantiate your application for a business loan.
Are You Ready for Your Business Bridging Loan?
Now that you’ve got a good insight into what a business loan can do for your business, the obvious next step is a decision. If you’re in need of immediate funds to propel your business to the next level, a bridging loan might just be what you need. Ask yourself this question; are you ready for your business bridging finance? If the answer is “yes”, don’t hesitate to explore our unsecured business loan and apply now to access business loan funds.
Business Loans
We all know how the old saying goes…when it comes to running a business, cash is king. Steady cash flow ensures your business can cover it’s overheads while continuing to grow. However, many businesses hit a snag when there’s a lag between forking out cash for overheads and receiving money in from customers. This can limit your ability to expand your business.
There are a number of ways to manage cash flow issues and ensure a steady stream of cash entering your business at all times.
1. Cash flow projections
Every business should put together cash flow projections as part of their annual budget. If your business is seasonal and has a few months where there tends to be a lull in business, cash flow projections can help you prepare and plan for dry spells.
2. Get paid sooner
Sometimes the issue is not a lack of sales but payment terms or customers who try stall paying. There are some simple ways you can try get paid faster which include:
- Early settlement discounts (e.g. 5% off when settling in 7 days)
- Take deposits at order placement if lead times are longer
- If customers don’t pay cash up-front, run a credit check before taking them on as a client.
- Put old stock on sale to try get rid of redundant inventory
- Send out invoices promptly and send frequent reminders
- Charge interest on late payments, ensure this clause is in your T’s and C’s.
- If the same customers tend to always pay late, change your terms to cash on delivery for any future dealings with them.
3. Get Smart About Overheads
It’s important to try and get most of your money in BEFORE your expenses are due to be paid out. If suppliers offer 30 day terms, don’t pay on day 15…pay on day 30 once you know most of your income will have hit your account.
If you can, pay your bills using a company credit card. Many offer up to 55 days interest-free which means you’re up to date with your suppliers and you’re not stretched financially. It’s important to stay in their good books. If you ever foresee payment having to be made late, let them know well in advance so they too can manage their cash flow.
4. Unsecured Business Loans
Sometimes even with fine-tuned cash flow projections, chasing payments and carefully managing overheads, businesses still run into cash flow issues. Nobody predicted the Covid-19 pandemic while budgeting last year, for example and despite their best efforts, many business owners find themselves in need of cash, NOW!
The quickest way to get business bridging finance is through an unsecured business loan. You can get access to a cash loan of between R50 000 up to R5 million in as quickly as 1 business day! There’s no easier way to get cash back into your business than by applying for an unsecured business loan with NHFinance. With flexible loan terms and fair interest rates, you can get the cash you need to pay your overheads fast!
5. Direct Debits
Subscription-based businesses or businesses that collect recurring payments often struggle to find ways to collect their payments effectively. One cannot rely on customers making manual payments as they try to skip payments or simply forget to do the EFT. This makes it very hard to manage your cash flow and grow your business as you never know what you’re going to be getting in. It doesn’t have to be this way, however. Businesses accepting recurring payments can sign up for direct debits to automate the process of collecting payments from customers on a set day every month. This eliminates the hassle for the customer and makes your income far more predictable. This solution is perfect for:
- Web hosting providers
- IT services
- Short-term finance companies
- Telecommunications companies
- Gyms
- Subscription-based businesses
- Etc
Business Loans, Personal Loans
With the cost of living in South Africa on the increase, our monthly salary can sometimes barely cover our expenses, never mind during a pandemic where salary cuts and retrenchments are plentiful. From groceries to medical aid, school fees and fuel, expenses add up fast and cash dries up even faster.
If you need cash urgentlyto pay important expenses like electricity, water and rent for example, where do you get it from? Most of us think, I’ll take out a personal loan, so I can get cash today. But the reality is, banks can take weeks or months to get a loan approved. And by then, it’s too late.
And after all that waiting, they could reject your loan applicationbecause you have a bad credit score or no credit history at all. You may think there is no hope to get a loan, but we will show you how to get a loan with no credit check!
Loan Against Movable Assets
If you’ve got valuable jewellery, art, vehicles, boats or other loose assets as security for a loan, you can apply and have cash in your hand in less than 24 hours! We offer a loan product that guarantees you a quick cash loanwhen you lodge your valuables with the lender as loan collateral.
The loan term is very flexible and generally clients choose to pay back the loanover 3 to 6 months, but the loan term can be shorter or longer. This is a very quick way to get a loanwith no risk to you. Your valuables are safely stored away and returned to you in the same condition as soon as your loan is paid up. For more information or to apply for a loan against assets, click here.
For more information on personal loans, property loansor business loans, please take a look around our website. We invite you to apply for any of our loan products should you meet each product’s minimum requirements.
Business Loans
For most business owners, figuring out how to get a business loan in South Africa can be a frustrating process. Many approach their banks directly and still get rejected after a long, drawn-out process, despite showing growth and great future prospects. Sometimes it feels like funding businesses is an impossible task but don’t give up yet, there are ways to secure pollen finance to expand your business!
What Do You Need From Your Business Loan?
Many SMME’s get rejected when applying for business funding because they are applying for the wrong type of loan! First figure out when you need the cash? Do you need it right now or in a few weeks or months down the line? If you’re waiting for a big invoice to be paid you’ll be able to pay back your loan in a matter of days. If you need the cash because your business is seasonal, you’ll need a very different type of loan.
Then ask yourself why you need the cash? What are you using it for? Here is a table with some common SMME expenses that owners seek out loans to cover…
When applying for business finance, make sure the institution you are applying to offer the type of business loan you are looking for.
How To Qualify For A Business Loan
If your business is in good credit, you’ll have a much easier time securing a business loan. If you have a large debtors book, big overheads and unpaid bills, lenders are going to be a lot more nervous loaning your business money.
If you own equipment, machinery, vehicles or your building, these can be considered collateral. They are assets the lender can claim if you default on your business loan repayments.
The longer you’ve been operating and the more financial records you’ve got, the better your chances of getting a business loan approved.
Some lenders have minimum requirements in terms of annual turnover and their various loan products. Check this carefully before applying.
Is It Hard To Get A Business Loan?
Through traditional means, yes! It can feel near impossible! It is easy to get an unsecured business loan with New Heights Finance. We have simplified the process to widen access to business loans for SMME’s.
We offer unsecured business loans to businesses older than 6 months with a turnover of at least R1 million in the last 12 months. Read more about how to get a business loan and we invite you to start the application process with us now.
Business Loans
Is your business taking strain under our extended lockdown? Bills mounting up, COVID 19 UIF not paying out, creditors calling for their money and clients not paying? Does that sound familiar? Rest assured, there is help at hand. A new business funding mechanism is available to businesses that have been operating for longer than 12 months and have a good credit record. These are called Unsecured Business Loans.
Requirements for An Unsecured Business Loan
- All that you need to provide is 6 months bank statements for the initial assessment. No need for audited financial statements, debts and creditors profiles, assets registers and other complicated documents. You’ve got enough on your plate already, we try to make the loan application process one less thing to stress about.
- Private Lenders
These Business Funds are offer by private lenders. These companies are easy to deal with and
respond quick because they are keen to lend money to business. The reason for this is that they
make money when they lend money. While the money is in their bank accounts it is not making
them money, therefore they are eager to assist you with your business loan requirements.
- Loan Sizes
The minimum loan amount is R50 000 and the maximum R1,5 Million. The amount a company
is legible for is dependent on the company turnover and how regularly the income comes into
the business.
- Timeframe
Due to the simple and streamlined process the loan approval can be within 3 days, but approval time is always subject to the applicant providing the information the lender needs timorously.
- Repayment
Repayment of business finance loans like these are made over a 6 month term. The repayment
is calculated by adding the loan plus interest together and then divided by 26 weeks. Repayment is by weekly debit order for a period of 26 weeks.
- Refinance
If a borrower has repaid the unsecured business loan on time for 13 weeks, then they are entitled to apply for a further business cash advance. The lender will reassess the business and make a decision on whether to advance further business funding.
Typical Applicant Profile
The lenders want to advance cash to businesses that have strong and regular cash flow. Businesses with daily or weekly cash in-flows are good candidates for a business loan approval. Typical strong, regular cash flow businesses are Filling Stations, Supermarkets, Butcheries and Hairdressers.
No Security Necessary!
A big advantage of unsecured business loans is that the borrower does not have to provide any security. Banks and other secured lenders want property, debtors and even plant and equipment as security for their loans. But in our harsh economic circumstances this model is not always possible which is where unsecured business loans come in to assist you to improve cash flow in your business right away.
Default on Loan
As with any type of lending, if the borrower defaults on the repayment, the lender is entitled to take legal action to recover their money. This can lead to the company and its members being listed at the credit bureaus and this has a negative effect on any business. It is best to not borrow money, if there is a likelihood of not being able to pay the loan back.
Unsecured business loans are suitable for businesses that have positive and regular cash flow. They are not the cheapest form of business loan but they are quick (1 days to approval), no security is needed and they suit businesses that are in need of a Short Term Bridging loan.
