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Business Bridging Finance and Business Loans in South Africa

Business Bridging Finance and Business Loans in South Africa

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 Bridging Finance and Business Loans in South Africa

How To Get A Business Loan in South Africa

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 

  • Credit Score

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.

  • Collateral

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.

  • Years in Operation

The longer you’ve been operating and the more financial records you’ve got, the better your chances of getting a business loan approved.

  • Annual Revenue

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.