We assist entrepreneurs and small business owners in securing a successful business loan or start up business loans in South Africa. Whether you are looking to start a new venture, expand your existing business, or address cash flow challenges - a well-tailored financial boost can be a game-changer. So, fasten your seatbelts and get ready to unlock the potential of business loans with us.
What is a business loan?
Business loans are very common and one of the first options for businesses looking to raise finance.
The lender provides money that you, as the borrower, pay back, with interest, over an agreed period.
Types of business loans
There are many types of business loans available in South Africa.
They range from short-term to longer-term loans, and can be either secured or unsecured.
Secured business loans
With these loans, you’ll need to use an asset from your balance sheet as security.
The lender may also consider third-party security, such as a guarantee, instead of or alongside other security.
Usually, property is used as security, although other assets like stocks and shares can be used too.
Unsecured business loans
This allows you to borrow without using any business assets as security.
Often, you’ll need to provide a personal guarantee that says you’ll pay back the loan personally if the business can’t.
Unsecured loans typically have higher interest rates than secured loans.
Business Loans are one of the most flexible finance products on the market. Essentially, funds are paid directly into your bank account for you to utilise as you see best for your business. Whether you're looking to fund a project, ease cash flow, purchase a business or are moving premises.
To apply for a business loan?
Apply online on our website and send the required supporting documents via email to
info@finsaploans.co.za
1. Copy of ID or passport
2. Last 3 months business bank statements
3. Copy of business registration documents.
Application takes less than 5 minutes.
Apply Online
What is a Start Up Business Loan?
Start Up Loans are personal loans designed to help new businesses begin trading. They were created to support would-be business owners who have struggled to secure finance from traditional lenders and banks.
They differ from small-business bank loans in that they are personal loans for business purposes. They are also unsecured, which means you don’t have to use your house or any other asset as security to receive the money.
Starting a new business can be very daunting and often requires an injection of finance to get up and running. Many new start businesses are unaware that funding is available, instead, the business owner often utilises expensive personal credit cards and personal loans.
As a new start business doesn’t have any history for a lender to base a decision on, they will look much more closely at the individuals behind the business and assess the business plan for viability.
Here at Finsap Loans, we are specialists when it comes to providing finance to new start businesses, we are on hand to talk through the options that are available to your business.
Nearly every small business begins with this challenge: You've got a great idea and the skills to make your new venture a success, but you need funding.
When the money you have to start a business doesn't quite match up to the money you need, you might consider a business loan or line of credit to fill in the gaps. Getting a startup loan usually isn't easy, however, since a brand-new business won't have a credit history—or even a sales or operational history—to demonstrate a low credit risk. Still, it is possible to get a loan to fund a new business, and the loan-seeking process itself can be clarifying for a budding entrepreneur. If you're interested in getting a loan to start a business, you can begin by understanding what this process entails.
How to get a start up Business Loans
There are three essential steps to getting a small-business loan:
Create a business and financial plan.
Check your business and personal credit.
Find lenders and apply.
Writing a business plan and mapping out your business's financials is a critical step. Your plans and expense sheet show lenders (and you, for that matter) how your business will grow: what you need to get started, where your funding will come from, what you can expect in sales and expenses, the experience and skills that will propel your business forward, and what success would mean over the next five years. Because your startup doesn't have a track record, these plans help lenders evaluate its risk.
Startup funding often comes from multiple sources. For example, if you need R100,000 to launch your business, you might contribute R25,000 from your personal assets, get R25,000 from friends and family who want to invest—or from a crowdfunding campaign—and borrow the other R50,000.
Credit scores are another key metric. Businesses have their own credit scores that assess creditworthiness based on past behavior, including if the business has any collections, liens, judgments or bankruptcies in its history. For established businesses, a good business credit score can open doors and help secure favorable loan rates and terms. Your startup, though, may not even have a business credit score yet. If that's the case, lenders will rely on your personal credit score and report. Although requirements vary, you'll generally need a high credit score to get a business startup loan. Since startups are inherently risky, your personal good credit acts as a counterbalance to that risk.
Once you have your financials in order and know your credit situation, you're ready to look for a lender—or, more accurately, several. Finding the right financing for your new business may require knocking on a few doors. Fortunately, there are multiple options to explore and resources that can help.
Where to Get a Start up Business Loans
Start up Business Loans are available through banks, online lenders and even microlenders that specialize in smaller loans. However, not every potential lender is going to be a fit for your startup business. In fact, many require loan applicants to be in business for at least a year or two before they can be considered for a loan. It's also ideal to get multiple loan offers, if possible, which means you'll probably want to cast a wide net. The more potential lenders you find, the better your chances of getting a loan that works for your needs.
Where do you start? Here are a few ideas:
Your bank or credit union: If you've opened a business bank account, inquire with your financial institution about business loans and credit. Even if your new business doesn't qualify for the full loan amount you're looking for at your bank, a small loan or line of credit could help. It'll establish a credit relationship for the future, which can help you build your business credit score along the way.
Business-focused banks: These can be found in your community or online.
Online business lenders: Startups may find online lenders more amenable to lending than regular banks, though interest rates tend to be high.
Microlenders: If you need less than R50,000 to launch your business, Finsap Loans is worth exploring.
Additional Business Funding Options
If a traditional business loan isn't in the cards for you and your startup, alternative funding may help get your business up and running. The most prevalent option here is self-funding. By using your savings or investments, you may be able to "bootstrap" your way to loanworthiness in a few years—or bypass the need for a loan altogether. Just be sure not to wipe out savings for your retirement and emergency fund since doing so can leave you high and dry if your business venture doesn't work out.
Here are a few alternative ideas you might try for funding your startup outside of traditional lending:
Friends and family: If people close to you are willing and able to lend or invest, you can get your business off the ground without a long history or an impressive business credit score. Before you commit to this option, know that defaulting on a loan from a loved one can have major consequences on your personal relationship with them. Get your agreement in writing, and hold up your end of the deal.
Venture capital: Courting an early investment from a venture capital firm or angel investor comes with its own challenges and rewards. Venture capital investors are typically looking for an equity stake and an ongoing role in your business. They favor fast-growing businesses with high growth potential. On the upside, venture capital investment isn't debt; you're working with investors and not lenders.
Crowdfunding: You can hatch your innovation or new business on Kickstarter or one of many other crowdfunding platforms. Visit each prospective site to get a sense of which offers are successful and how they're structured. Also pay attention to terms: Know what happens if your deal falls through.
Vendor financing: If you can sell a vendor on the merits of your business, they may be willing to work with you on financing—by offering credit, a loan or an investment in your company. This may be a viable way to finance equipment or create inventory if you're strapped for cash.
Personal loans or credit: If all else fails and you need an additional loan or credit, you may consider using a personal loan or even your personal credit cards to fund your new venture. Just be wary about the risk you're assuming when you use personal credit to fund a new business. If you rack up a large amount of personal debt and the business fails, you could be in real financial trouble. If you use your home or other assets as collateral, you can lose these as well. Believe in yourself but think critically before making this move.
From a Startup to a Savvy Business
Your new business may need capital, but that isn't all it needs to take root and flourish. Going through the process of building a business plan, seeking out lenders and pulling together the financing you need to make your business a reality just might make you a better businessperson—and that's a lasting benefit for you and your business.
Once you get the funds you need to get your business started, do everything you can to build and maintain your business credit standing as you go. Check your business credit score and learn more about the factors that determine business credit. That way, the next time you need a business loan, you'll be that many steps ahead.
Start Up Loans are personal loans designed to help new businesses begin trading. They were created to support would-be business owners who have struggled to secure finance from traditional lenders.
They differ from small-business bank loans in that they are personal loans for business purposes. They are also unsecured, which means you don’t have to use your house or any other asset as security to receive the money.
Start Up Loans are provided by the Start Up Loans Company , which is funded by the South Africa Government. You can borrow between R5,000 and R25,000, payable over one to five years, at a fixed interest rate of 5% per annum.
When you apply, you’re paired with a dedicated business adviser, who supports you with completing your application form. If your application is successful, your loan comes with the option of 12 months of free mentoring.
Finsap Loans provides Start Up Loans for individauls at a fixed interest rate from 5%.
To apply for a start up business loan?
Apply online on our website and send the required supporting documents via email to
info@finsaploans.co.za
1. Copy of ID or passport
2. Last 3 months personal bank statements or payslips
3. Copy of business registration documents.
Application takes less than 5 minutes.
Apply Online
Business Loans for Blacklisted
Finsap Loans provides business loan for blacklisted, and is a fast and flexible way to raise capital funding, even if you have an adverse credit history or you are blacklisted.
Unlike secured business loans from banks, we don’t require any collateral or business plans, nor are there any hard credit checks necessary. As a direct loan provider, we look at your business’ recent debit and credit card transactions and apply a soft credit check instead, meaning we don’t just rely on your credit history or score when deciding. Since we don’t apply a hard credit check when assessing your eligibility for Business loans for blacklised, applying for one with Finsap Loans won’t affect your credit score at all.
If your registered office is located in South Africa, and your business is registered in South Africa, and has been trading for at least 6 – 12 months, you could be eligible for our unsecured business loans for blacklisted between R10,000 and R5,000,000, even if you have bad credit or blacklisted, or no credit history at all.
With no fixed monthly payments, interest rates or hidden costs, repayments are based on an agreed percentage of your credit and debit card payments. This way, you only pay us back when your customers pay you, while you can focus on running and growing your business. This is one of many reasons why our Business loans for blacklisted business owners is an ideal alternative to bad credit business loans for small business owners who find the process of applying for bank loans both arduous and difficult.
These are the benefits of our merchant cash advance at a glance:
Easy approval: Submit your application online within a few minutes, you will receive your answer within 24 hours of submitting your application. Our approval rate lies at 90%.
Simple requirements: We generally don’t require collateral or business plans. Even a low credit score does not stand in the way of your financing.
Flexible terms: Repay your merchant cash advance with your future debit and credit card sales – without any interest rates, APRs or fixed payment amounts. This way you can pay back your business loan quickly and easily within 5 to 10 months.
When Is Business Loans for Blacklisted Necessary?
As a number that rates your credit risk, your credit score is one of the most important criteria when applying for a typical bank loan. There are several agencies in South Africa that keep credit records and measure credit scores. However, if one of them gives you a good score, it’s likely that the others will do the same.
A high, ‘good’ credit score shows you can manage credit and deal with repayments well, whereas a lower, ‘bad’ credit score is usually caused by a bad credit history of either failed or late repayments.
Each time lenders conduct a hard credit check to confirm your eligibility for a loan approval, your credit score is impacted negatively. This is why applying for too many small business loans, and thus going through multiple hard credit checks, can be damaging to your long term ability to secure finance for your company.
Luckily, there are various finance options that only require soft credit checks, which have no impact on your credit score. This is where business loans for blacklisted come into play.
Types of business loans for blacklisted
You can apply for many types of business loans for blacklisted. To help, we’ve listed a range of options below. It’s important to keep in mind that some of these finance options may require hard credit checks in certain circumstances. If you are unsure whether a funding offer is possible without a hard credit check, it’s always best to research thoroughly and contact us beforee you apply.
Invoice factoring helps you avoid cash flow problems and ensures you can pay contractors and suppliers in good time.
Microloans are mostly aimed at start-ups and can provide the finance needed to buy the essentials to get a business up and running.
Business Credit Cards are typically based on the personal credit score of the applicant. These cards can be used for purchasing company-required goods and services.
Working Capital can ensure that your business has the funds needed to carry out its daily duties, giving you the financial backing needed to keep operations running.
Businesses loans for bad credit
Having bad credit can make it more difficult to get a business loan from mainstream lenders such as banks.
Fortunately, there are ways to repair your bad creditopens in new window – and improve your credit score – to make it easier to obtain finance in the future.
Why your business might have bad credit
Having bad credit means that your business’s credit score is low enough that lenders see a risk in lending you moneyopens in new window.
Your credit score (also called your credit rating) is a number that indicates how creditworthy your business is, as guided by its credit history.
The higher your score, the greater the chance you’ll be approved for a business loan.
You might also benefit from better rates, higher credit limits, and a wider range of options.
Reasons for bad credit
A lender might see your business as having bad credit if, for example, you’ve:
missed or been late with credit repayments
defaulted on a credit agreement
exceeded your existing credit limit
declared bankruptcy or insolvency
liquidated (wound up) a previous company
Securing a loan for your business might also be difficult if your senior managers:
have a personal history of debt management plans.
have been associated with other failing businesses.
How to find your credit score
Before you apply for credit, first check your credit score with all three credit reference agencies.
If your business credit score is poor, it’s vital you know about it.
Otherwise, you could face disappointment if you apply for credit and are turned down.
This could leave you unable to:
invest money in your business
weather a short-term cashflow issue
obtain credit with a new supplier
Checking your credit score is usually free of charge, although you may have to pay to access your full credit report.
Loans for businesses with bad credit
If your business has a bad credit score, you may struggle to borrow money from traditional lenders such as banksopens in new window.
If a lender does grant you credit, it may give you less than you want and/or charge more in fees and interest.
Instead, you may need to look for a bad credit business loan.
A number of lenders now offer these loans, especially to businesses that have a good turnover or valuable assets.
The terms of these loans, and their eligibility criteria, do vary.
Also keep in mind that the interest and fees can be significantly greater than a standard loan.
That said, they can be a useful option if your business (or you personally) has a poor credit score.
How to get a bad credit business loan
If you choose to go for a bad credit business loan, identify the best options available to you and find out exactly how much you’ll have to repay.
When you know the annual percentage rate (APR) of each bad credit business loan you’re offered, you can properly compare the costs of borrowing.
Factor in all costs, fees and interest.
Importantly, before you apply for a bad credit business loan, you should seek advice from an accountant.
They will be able to give you a full idea of the cost of the loan and the impact it will have on your cashflow.
Some bad credit business loans require borrowers to have a guarantor.
Others don’t, but these are typically more expensive.
Having a good turnover or valuable business assets can make it easier to get a bad credit business loan.
Application takes less than 5 minutes.
Apply Online
