Access to funding is a big obstacle that both new and experienced business owners face when starting and growing a business. This is of concern as we know access to sufficient funds at the right time can mean the difference between the survival and closure of a business. Business loan application assistance is offered by Dream Team Capital across South Africa.
Business Loan Application Requirements
The most basic requirement for businesses looking for financing is having a registered business. Companies can be registered online on the Companies and Intellectual Property Commission (CIPC) website, or on the Bizportal.gov.za website, a platform created by the CIPC that offers company registration and related services. DTC also offers this service. The owner needs to know the amount of funding they require and what return the investment will generate over a given time period. Other requirements include that the business be registered for tax.
The processing of an application can take up to 2 months. If you are approved, you will receive the funds in another month or as per the agreed time frame. The period from applying to obtaining the loan can be up to 3 months long.
Depending on the funder you approach, some or all of the following supporting documents will be requested;
•Financial documents – Basic business plan; cash flow projections; outstanding debtors; up-to-date management accounts (income statement, balance sheet and cash flow statement); the latest annual financial statements; latest VAT statement; last three/six months’ bank statements, and tax clearance certificate.
•Personal documents – ID documents of owners; marriage certificates of owners (where applicable).
•Business documents – Company registration documents; office lease or mortgage agreement; shareholder agreements; share register; proof of business address; relevant business licenses; accreditations; or registrations.
•Application forms – Prepare your application pack to ensure your funding application is aligned with the type of funding opportunities the funders are looking for.
Some traditional lenders may want to see a solid business plan detailing the purpose of the loan and how the business expects to increase profits. Your business plan should include current and projected financials. Clearly demonstrate that your business will have enough cash flow to cover ongoing business expenses and new loan payments. This can give the lender more confidence in your business, increasing your chances of loan approval.
At DTC, we have extensive experience with business loan application assistance. For more information and assistance contact us!
