Get Access to Business loans – 13 Expert Tips

13 tips getting business loan
Get Access to Business loans – 13 Expert Tips

In the dynamic landscape of South Africa's business sector, resilience is paramount. Despite facing challenges, entrepreneurs and business owners are encouraged to persevere and pursue growth opportunities.

Accessing a business loan can be a strategic step towards realizing one's vision. By partnering with financial institutions that understand the local market intricacies, businesses can secure vital funding and support. With determination and strategic planning, businesses can navigate uncertainties and thrive in South Africa's vibrant economy.

Remember, perseverance is key – don't give up on your business aspirations. Below are 13 of our expert tips on gaining access to business loans.

1. Do not give up

For most businesses it’s hard to get start-up funding in South Africa, but certainly not impossible. You just have to use your talent as an entrepreneur and be creative when looking for credit providers as well as in putting together a business plan and loan application..

2. Consider Start-up funding & loans from family & friends

This is a major source of finance for businesses around the globe and South Africa is not an exception to the rule. You can use the money to get started and then borrow from a financial institution once your venture is stable and able to qualify for finance.

Generally, even if you decide to use a business loan right from the start, you may have to ask the people around you to become co-signers. There is one simple rule to follow when it comes to borrowing from family and friends; you have to do it professionally and sign an agreement so that they can have peace of mind about their money.

3. Make multiple applications for Business loans

Even if your chances of qualifying are low, you should give it a try and complete and submit an online loan application. This is best since it will be faster and easier and you do not need to drive out to meet a consultant. If you prefer to meet with a consultant face to face most business lenders have specialist small business funding consultants that can assist you.

4. Apply to many Business loan providers

This will give you a higher chance of getting a business loan and save you time as well. If you do not have the time or ability to make multiple loan applications you can make use of a broker or consultant that can make the applications on your behalf.

5. Use your business plan to support your application

It has to be comprehensive, concise and well organised. You have to be able to explain every detail to the lender and ensure that your financial plans make sense. Whether you are required to include projections or not it is always a good idea to get them done, even if it is just so that you know what your finances will look like as a result of the loan.

6. Tell the lenders exactly how much you need to borrow

You have to know how much small business funding you need and what return the investment will generate over a given time period. Generally, the smaller the requested amount is the higher your chance of getting finance will be. If you don’t know how much you qualify for, start with how much you actually need.

7. Be patient with your Business loan application

You should provide for considerable delays in the processing of your loan application if you have not prepared well in advance. For a lender to comb through your application, only to find that there are key documents missing, will delay the process significantly.

8. Keep building your business while you wait

You should use all possible alternative options for small business funding and support to establish your venture and stabilise its performance. You should work towards building equity as well. When your business is stronger and you has attained assets, you will have much higher chances of obtaining a business loan to grow your business even further.

9. Start small

You may have big plans for conquering the local and national markets, but it is impossible to achieve this right away. That is why it pays off to downscale your plans so that they match the small business funding sums you can actually obtain.

10. Arrange finance before bidding for a contract

This is essential for ensuring the execution of the work. If you have already won a contract, but you do not have finance, you should consider alternatives such as partnering with another company, even if this is a competitor. Your profit will be smaller, but you will earn a good reputation, solidify your position as a leader in the field and improve your chances of getting finance in the future.

11. Negotiate with Suppliers

You should try to arrange a longer term for paying your suppliers so that you can manage your money more easily and more effectively. They will most certainly show some flexibility, especially if you have paid them on time and in full in the past. You will go a long way if you rely on personal contacts and high business ethics.

12. Negotiate with Clients

If you have secured a contract, you can arrange for the client to pay a deposit and then make progress payments as each milestone of the project is completed.

13. Collaborate with Other Businesses

You can share assets with other business owners or use their facilities for a share of the profit which you will earn.

In conclusion, perseverance is paramount when seeking a business loan in South Africa. Despite challenges, maintaining resilience and exploring diverse financing avenues can lead to success. With strategic planning and determination, businesses can overcome obstacles and secure the funding needed to thrive and expand in the dynamic market landscape.

Popular & reliable direct lenders offering Business loans

  1. Retail Capital Business loan

    Retail Capital

    • Flexible Business Funding
    • 80% approval rate
    • Grow your business
  2. Business Partners Business loan

    Business Partne...

    • Loans up to R50,000,000
    • Term up to 5 years
    • Interest from 18.5%
  3. Bridgement Business loan


    • Loans up to R5,000,000
    • Term up to 12 months
    • Apply in 2 minutes
  4. Merchant Capital Business loan

    Merchant Capita...

    • Tailormade Business Loans
    • Flexible repayment terms
    • Working capital