Loans Business Owners Can Access In South Africa

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South Africa is a country with an incredible economy comprising business of all types – formal and informal. The presence of these businesses has further led to a rapid boost in the South African economy, especially in the business sector. However, this boost won’t be possible without certain loans in South Africa for such business owners.

These businesses require funding to keep them afloat, and as a result, several loans in South Africa have been set up to meet such needs. If you are an SME in South Africa looking to fund your business, below is a list of loans in South Africa at your disposal.

Loans Business Owners Can Access In South Africa
South African business owner

GROFIN

GroFin is a financier of impact-driven SMEs whose responsibility is to help entrepreneurs succeed. They do this by providing business loans and support, which can also come in the form of guidance and expert advice to entrepreneurs.

With headquarters in Mauritius, GroFin offers support and financing to SMEs across 14 countries in Africa, South Africa not being an exception. Over the years, GroFin has provided support for over 9,630 entrepreneurs and is one of the best loans across Africa which an SME in South Africa can take advantage of.

Eligibility

  • Business must cut across any of the preferred sectors – Healthcare, Agri-processing, Education, Manufacturing, or Key Services such as Waste, Water, Recycling, and Energy.
  • The business must be making a positive economic and social impact.
  • Business must be already established.
  • Loans applied for should be between $100,000 and $1.5m.
  • Entrepreneurs must be able to meet up with the collateral requirement.

More information about this loan can be found on the official website.

TONY ELUMELU FOUNDATION ENTREPRENEURSHIP PROGRAMME

The Tony Elumelu Foundation (TEF) Entrepreneurship Programme is the largest philanthropic initiative in Africa. The initiative was established to empower African entrepreneurs across the continent.

Mr Tony Elumelu founded the TEF Entrepreneurship programme in 2015, an entrepreneur and philanthropist from Nigeria. Ever since its inception, the initiative has provided grants annually for SMEs in Africa and empowered them with $100 million yearly. To qualify for this funding as South Africans, applicants must be a legal resident of South Africa.

Eligibility

  • You must have a feasible business idea.
  • Have an understanding of the financial requirements of running a business.
  • Business idea must be scalable.
  • Applicants must be at least 18 years old and not considered a minority.
  • Business must be for profit and must belong to the applicant.

More information about this loan can be found on the official website.

LULALEND

Founded by Trevor Gosling and Neil Welman, Lulalend is another loan an SME in South Africa can take advantage of. Lulalend is a company that believes in the power of small businesses and the ability to make a difference. 

Lulalend was established to empower businesses across South Africa with the funding required to grow their businesses. The products and services available at Lulaland have been designed to keep South African business owners at the top of their business game. It doesn’t end there; every single process involved with this loan option is very transparent and understandable.

Eligibility

  • Business must be based in South Africa.
  • Loan must be between R20,000 and R1.5 million.
  • Business must have a minimum annual turnover of R500,000.
  • Business must have been trading actively for at least a year.

More information about this loan can be found on the official website.

FUNDRR

Fundrr is a financial technology company that provides loans for any SME in South Africa. It provides small business funding tailored to help business owners grow their businesses.

Fundrr understands the needs of small businesses and has created a platform for businesses to access financing easily. Fundrr’s vision is to become the biggest amongst providers of loans in South Africa and also provide loans at the most affordable, transparent, and flexible way.

Eligibility

  • Business must be based in South Africa.
  • The business must have traded for at least a year.
  • Businesses should have annual revenue of at least R500,000.
  • Loan amount should range from R20,000 to R1 million.

More information about the loan can be found on the official website.

RAINFIN

RainFin is an online credit marketplace for businesses on the lookout for alternative funding. It also comes with competitive rates and a fixed monthly payment plan that makes repayment easy for business owners.

With RainFin, an SME in South Africa can borrow some money to get funded by investors who are seeking highly competitive rates. Furthermore, a large number of investors can participate in loans which in return increases the probability of a borrower getting funded.

Eligibility

  • Must be a South African business.
  • Directors must have a good credit rating.
  • Businesses should have an annual turnover of R1 million.
  • There must be proof of transactional history.
  • Applicants must have a good business credit rating.

More information about this loan can be found on the official website.

As an SME in South Africa, having access to funding when necessary is vital to the growth of your business – be it small scale or large scale. These loans in South Africa will help in bringing your business dreams to reality.

All you have to do is find one that suits your business needs and also ensure you have everything required to be eligible for whichever loan you settle for. With these in place, your business is well on its way to breaking grounds in the South African economy and the world as a whole.

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