Boost your business with a Development Credit Fund loan
Are you an SME and need a business loan of between R50 000 and R5 million? Our Development Credit Fund loan may be perfect for you.
Qualifying criteria
- Your business is a small or medium enterprise (SME) as defined by the Department of Trade and Industry (DTI) - includes new start-ups, existing businesses, franchises and businesses switching from other banks, subject to credit approval.
- You would not qualify for a business loan under normal banking criteria due to poor credit records (must be justifiable).
- You are a South African citizen permanently residing in South Africa.
- The business’ major shareholder (more than 66%) is fully involved in the day-to-day operation of the business.
- You have the skills and or expertise relevant to your business and/or the industry or sector
- You have a well-researched business plan.
- Your business can show profitability through historical financials or a realistic cashflow forecast.
- You operate in an approved industry (ask our consultants about the sectors and industries that do not qualify).
- You require repeat loans, but only once the initial loan has been repaid in full.
- You need a loan of between R50 000 and R5 million with a maximum loan term of four years and monthly reducible overdrafts.
- We can also assist with financing moveable assets via Absa Commercial Asset Finance
- You can show evidence of a revenue stream, that is, letters of intent.
- The business’s main transactional account is held with Absa. No split banking is allowed.
How the loan is structured
- 70% of the loan will be paid to your suppliers - we will structure payment of the loan directly to your suppliers.
- Your interest rate will be linked to the prime lending rate and will be structured according to the lending risk.
How to get it
Download and complete the application form below and take it to your nearest Absa branch, along with supporting documents listed on the last page of the form.
Alternative Funding application form (85kb)
Source: Absa
