R 500
R 125000
R 250000
REPRESENTATIVE EXAMPLE: ESTIMATED REPAYMENTS OF A LOAN OF R30,000 OVER 36 MONTHS AT A MAXIMUM INTEREST RATE INCLUDING FEES OF 27,5% APR WOULD BE R1,232.82 PER MONTH. REPAYMENT TERMS CAN RANGE FROM 2 - 72 MONTHS. CREDITUM IS AN ONLINE LOAN COMPARISON TOOL AND NOT A LENDER. INTEREST RATES CHARGED BY THE LENDERS FOUND IN OUR SERVICE CAN START AS LOW AS 20% APR, INCLUDING AN INITIATION AND SERVICE FEE DETERMINED BY THE LENDER. THE INTEREST RATE OFFERED DEPENDS ON THE APPLICANTS' CREDIT SCORE AND OTHER FACTORS AT THE LENDER'S DISCRETION.

Small Business Loans

In order to find the best loan for your needs, it is important to compare loans online.

  • Apply in minutes
  • Get offers from multiple lenders
  • Choose the best loan option available

Note: If you are not satisfied with the loan offers, you don’t have to select any of them.

Applying for a loan online – How it works

About 5 minutes

1. Select loan amount

In the calculator, select the loan amount you need.

The minimum amount is R 500 and the maximum amount is R 250 000.

 

2. Fill out contact details

Fill out your email address and your cellphone number.

Keep in mind that you will receive the loan offers through these channels.

 

3. Fill in additional details

The applications are often processed automatically. To achieve this, banks and lenders need some additional details, like your employment status and monthly income.

 

4. Select the best loan offer

Compare the offers & select the best one! If you are not satisfied with the offers, you don't have to do anything. The application expires automatically.

 

Small Business Loans in South Africa

Starting and running a small business can be a daunting task, especially when it comes to finances. Without proper funding, many entrepreneurs find it difficult to keep their businesses afloat. Fortunately, small business loans are a great solution for those who need capital to grow their businesses. In South Africa, there are numerous loan options available for small business owners looking to secure funding. However, with so many lenders and loan products in the market, it can be overwhelming to find the best loan rates and terms. That’s why we’ve put together this guide to help you find the lowest loan rates and apply online with ease. Whether you’re just starting out or looking to expand your business, we’ve got you covered. Keep reading to learn more about small business loans in South Africa and how to secure the funding you need to take your business to the next level.

Types of Small Business Loans Available

There are several types of small business loans available in South Africa, each with its own pros and cons. The most common types of small business loans include term loans, lines of credit, and equipment financing.

Term loans are the most traditional type of small business loan. They are typically used to finance a specific project or purchase, such as buying new equipment or expanding your business. The loan is repaid over a set period of time, usually between 1 and 5 years, with interest.

Lines of credit are another type of small business loan that provides more flexibility. With a line of credit, you are approved for a certain amount of money that you can draw from as needed. You only pay interest on the amount you borrow, and you can continue to use the line of credit as long as you make your payments on time.

Equipment financing is a type of loan that is specifically designed to help you purchase new equipment for your business. The loan is secured by the equipment itself, which means that if you default on the loan, the lender can repossess the equipment.

No matter what type of small business loan you choose, it’s important to understand the terms and conditions of the loan before you apply.

Factors to Consider Before Applying for a Small Business Loan

Before you apply for a small business loan, there are several factors you should consider to ensure that you are making the right decision for your business. These factors include:

Your Business Finances

Before you apply for a small business loan, it’s important to take a close look at your business finances. This includes your revenue, expenses, and cash flow. You should have a clear understanding of your financial situation and be able to demonstrate to the lender that you are capable of repaying the loan.

Your Credit Score

Your credit score is an important factor that lenders consider when deciding whether or not to approve your loan application. A high credit score can help you secure a lower interest rate and better loan terms, while a low credit score can make it more difficult to get approved for a loan.

Your Business Plan

Having a solid business plan is essential when applying for a small business loan. Your business plan should outline your goals, strategies, and financial projections. It should also clearly demonstrate how the loan will be used and how it will help your business grow.

Your Collateral

Many small business loans require collateral, such as property or equipment, to secure the loan. If you default on the loan, the lender can seize your collateral to recoup their losses. Make sure you have adequate collateral to secure the loan before you apply.

How to Find the Lowest Small Business Loan Rates in South Africa

Finding the lowest small business loan rates in South Africa can be a challenge, but it’s not impossible. Here are some tips to help you find the best loan rates:

Shop Around

The best way to find the lowest small business loan rates is to shop around and compare offers from different lenders. Don’t just settle for the first loan offer you receive. Take the time to research different lenders and compare their rates, fees, and terms.

Check Your Credit Score

As mentioned earlier, your credit score plays a big role in determining the interest rate you qualify for. Before you apply for a loan, check your credit score and take steps to improve it if necessary.

Consider Online Lenders

Online lenders can often offer lower interest rates and more flexible loan terms than traditional banks. Consider applying for a loan through an online lender to see if you can get a better deal.

Negotiate

If you’re not satisfied with the loan offer you receive, don’t be afraid to negotiate with the lender. Ask if they can offer a lower interest rate or different loan terms.

Comparison of Small Business Loan Rates from Different Lenders

To give you an idea of what to expect when shopping for a small business loan in South Africa, here is a comparison of loan rates from different lenders:

Standard Bank

Standard Bank offers small business loans with interest rates starting at 10.5%. The loan term can be up to 5 years, and you can borrow up to R5 million.

Nedbank

Nedbank offers small business loans with interest rates starting at 10%. The loan term can be up to 5 years, and you can borrow up to R5 million.

FNB

FNB offers small business loans with interest rates starting at 10.25%. The loan term can be up to 5 years, and you can borrow up to R5 million.

Absa

Absa offers small business loans with interest rates starting at 10.5%. The loan term can be up to 5 years, and you can borrow up to R5 million.

How to Apply for a Small Business Loan Online

Applying for a small business loan online is a simple and convenient process. Here are the steps you need to follow:

Step 1: Research Lenders

Research different lenders and compare their rates, fees, and terms.

Step 2: Gather Your Information

Gather all the information you will need to complete the loan application, including financial statements, tax returns, and business plans.

Step 3: Fill Out the Application

Fill out the loan application online, providing all the necessary information and documentation.

Step 4: Wait for Approval

Once you submit your application, you will need to wait for the lender to review it and make a decision.

Step 5: Receive Your Funds

If your loan application is approved, the funds will be deposited into your bank account within a few days.

Tips for Getting Approved for a Small Business Loan

Getting approved for a small business loan can be a challenge, especially if you’re a new business owner. Here are some tips to help you increase your chances of getting approved:

Have a Solid Business Plan

Having a solid business plan that outlines your goals, strategies, and financial projections can help demonstrate to lenders that you are a responsible borrower.

Improve Your Credit Score

Improving your credit score can help you qualify for a lower interest rate and better loan terms. Make sure you pay your bills on time and keep your credit utilization ratio low.

Offer Collateral

Offering collateral, such as property or equipment, can help you secure a lower interest rate and better loan terms.

Alternatives to Small Business Loans

If you’re unable to secure a small business loan, there are several alternatives you can consider, including:

Crowdfunding

Crowdfunding is a way to raise money for your business by getting contributions from a large number of people online.

Grants

There are several grants available for small businesses in South Africa. These grants do not need to be repaid and can provide valuable funding for your business.

Angel Investors

Angel investors are wealthy individuals who invest their own money in startups and small businesses. They can provide valuable funding and mentorship to help your business grow.

Small Business Loan Scams to Avoid

Unfortunately, there are many small business loan scams out there that can leave you in a worse financial situation than before. Here are some red flags to watch out for:

Upfront Fees

If a lender asks for upfront fees before you receive the loan, it’s likely a scam.

Guaranteed Approval

No legitimate lender can guarantee approval for a loan.

Unsolicited Offers

Be wary of unsolicited loan offers that come through email or phone calls.

Conclusion and Final Thoughts

Small business loans can be a valuable tool for entrepreneurs looking to grow their businesses. However, it’s important to do your research and compare different lenders to find the best loan rates and terms. By following the tips outlined in this guide, you can increase your chances of getting approved for a small business loan and take your business to the next level.

You might also be interested in:

Lime
Loan amounts
R300
R5400
Payback period
5 days to 7 weeks
Interest rate
Daily interest rate of 0.1% to 0.16% depending on Tariff Group
Other fees
R69/month + opening cost 16,5% of first R1000 lent + 10% of loan amount over R1000 (+VAT). Limited to lesser of 15% of loan amount (+VAT).
Representative example: If you want to borrow R2000 for 30 days, you have to pay back R2428.78. The total cost includes interest, VAT, and a monthly service fee.
MyLoan
Loan amounts
R100
R250000
Payback period
7 days to 36 months
Interest rate
MyLoan is an online loan broker and not a lender. Interest rates of the loans in the comparison panel can start as low as 20% APR.
Other fees
MyLoan is an online loan broker and not a lender. Other fees depend on the brokered loan.
Representative example: a R50 000 loan at an interest rate of 24.5% per annum plus a once-off initiation fee of R1 207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00, over 72 months would have a total cost of R 103 155.57. The maximum annual interest rate including fees is 27.5%. Repayment terms can range from 1 - 72 months. MyLoan is an online loan broker and not a lender. T service is free and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants’ credit score and other factors at the lenders’ discretion.
Fasta
Loan amounts
R800
R8000
Payback period
1 month to 3 months
Interest rate
Monthly interest rate 3%
Other fees
Initiation fee R994 + Service fee R69 + Credit protection fee R48.76
Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.
Boodle
Loan amounts
R500
R8000
Payback period
16 days to 6 months
Interest rate
Daily interest rate of 0.17%
Other fees
Service fee R60 per month + Initiation fee R165 on the loan above R1000 + Insurance premium R4.50 per R1000 per month on the daily balance
Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.
MPowa
Loan amounts
R500
R8000
Payback period
16 days to 6 months
Interest rate
Interest of 5% per month, 3% on additional loans during the same calendar year
Other fees
Initiation fee of 16.5% of the capital amount on the 1st R1000 then 10% on each amount over R1000 plus VAT. A service fee of R60 per month plus VAT.
Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.