Business Bridging Finance and Business Loans in South Africa

Business Bridging Finance and Business Loans in South Africa

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.

Beat Lockdown Financial Blues with Unsecured 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.