ABSA Business Loan
- Business loans starting from R25,000
- Low Interest rates
- Repayment up to 10 years
[Accessed December 12, 2022]
When it comes to business loans, ABSA is one of South Africa’s leading brands.
With branches from one end of South Africa to the other and across 15 African countries, it’s no wonder they’ve built up a reputation of being invested in the continent’s growth and development.
ABSA’s passion for business development
From getting SMEs off the ground to getting you started with a franchise, its business credit and insurance service are world-class. But that’s nothing compared to the loans and credit facilities they provide to large and small businesses looking to achieve sustainable growth.
Business loans can be scary when you’re unsure what to look for. ABSA break down their finance options to make it easier for you to get a loan that covers your business's needs and can be structured to suit your budget.
If you’re trying to find a financing option that allows flexibility while giving you the cash your business needs to grow, ABSA’s business term loan is a great option.
Flexible repayment terms you’ll love
With ABSA, the amount of time you take to pay back your loan is in your hands. You can choose a loan term of 3 months to 10 years. The interest charged on your loan will depend on your chosen loan term, the amount you apply for, and the collateral you have on hand.
ABSA will do a risk assessment. They’ll look into your business's credit history to determine how high the risk is that you’ll default on your loan. The risk assessment plays a large role in deciding what interest rate you’ll be charged.
Why choose ABSA
- ABSA is a one-stop shop for all your financial needs, from banking to loans and investments
- They’re invested in growing South African businesses and the communities that surround them
- Their focus is on customer service
- Their financial products are tailored to your needs
- They’re transparent with their rates and fees
ABSA’s main business financing solutions include business loans, vehicle finance, property finance, and trade working capital. Their business loans are divided into four categories:
- Business term loans
- Business revolving loans
- Business overdrafts
- Business and corporate credit cards
Two main characteristics of an ABSA business term loan are loan amount and loan term. You need to determine how much time you’ll need to pay off the loan and a suitable loan amount based on the purpose of the loan.
There are two other notable features of Absa’s business loans that you may find interesting.
ABSA’s Flexi reserve feature
Absa allows you to add a Flexi reserve feature to your loan. With this option, you can build up a reserve on your loan by paying more than the agreed repayment rate. This reserve can bring down the loan amount, but it’s also accessible if you run into trouble. Your Flexi reserve can be paid out of your loan and into whichever account you need it in.
Your optional balloon payment
Another feature you can access is the option to pay off the loan with a balloon payment. The considerable benefit of this option is that it gets you an incredibly low monthly instalment. The downside is that the balloon payment will be due in the last month of your repayment term. Even when you know it’s coming, that can be a scary prospect to face.
ABSA allows you to refinance your loan if the balloon payment is due and you can’t afford to pay it off in one instalment. Refinancing your loan comes with a new round of interest and fees.
Having a nicely padded Flexi reserve feature will go a long way towards helping you afford the final balloon payment.
ABSA – Business loan
- Loan Type Business loans
- Loan Amount from R25,000
- Repayment 10 years
Benefits of ABSA
- Quick online loan applications
- Reliable business loans
- Tailored loan options
Business loan calculator
A business loan tailored to your specifications is now within reach
ABSA prefer to take a personal approach to business loans.
On their website, you’ll find downloadable loan applications for various loan offerings, but the application process is done over the phone or in your nearest branch.
If you’re an existing ABSA client, you’re already halfway there! If not, you may need to consider opening a business banking account at your nearest branch.
The benefit of having an account with ABSA is that they’ll already have access to your financial statements, making the process of applying for a business loan much faster.
What you’ll need to apply
To apply for a business loan, you’ll need to provide your business's financial records so that ABSA can do a credit assessment. They’ll also run a credit check to assess the risks. Collateral in the form of an asset or personal security signed by the owner/director and shareholders.
Contract loan application requirements
A few extra documents are required for a contract loan. You’ll need to provide the purchase order or contract signed by you and the public sector entity you’ve agreed to provide services or goods. The quotes from your supplier for the goods or services you need to complete your contract will also be required.
Contract loans are only available to SMEs, but as long as your business is registered with the DTI, it doesn’t matter whether you’re a start-up or already established.
As the applicant, you must be a citizen or permanent resident of South Africa and participate in the company’s day-to-day running.
You’ll need to be an ABSA client, get credit approval, show reasonable evidence of the profitability of your business, and provide ABSA with your business plan going forward.
Customer Reviews & Testimonials
We needed a business loan and decided to approach ABSA for financing. We were able to complete the entire business loan over the phone. The consultant assisting us was great.
— Sandton —
ABSA was so friendly and very helpful when I approached them for a business loan. They explained the process in an understandable manner and made me feel like a part of the family.
— Port Alfred —
- 9 Adderley St, Foreshore Cape Town, 8001 South Africa
- Get Directions
- Monday 08:00 – 17:00
- Tuesday 08:00 – 17:00
- Wednesday 08:00 – 17:00
- Thursday 08:00 – 17:00
- Friday 08:00 – 17:00
- Saturday 08:00 – 11:00
- Sunday – Closed