Business Loans for South Africans

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Business Loans for South Africans can be used for start-up costs, working capital, equipment purchases, and expansion. Business loans / finance and accessing non-repayable business grants remain a challenge for most entrepreneurs…Common misconceptions are that one needs collateral or owners contribution against business loans.  Government initiatives, that are here to stimulate our economy circumvent these historic funding requirements. Business Loans for South Africans are available through funders that DTC as access to, and we assist with the necessary developments thereof.

The government of South Africa assists companies by providing small business loans. The parameters of this cost-effective borrowing are flexible, and the interest rates are quite low. The Department of Trade and Industry and the Small Enterprise Development Agency are normally in charge of government small company loans.

DTC Provides National Support in Accessing Business Loans / Finance and Grants:

Accessing small business funding shouldn’t be complicated or time-consuming. Dream Team Capital (DTC) offers our clients customised support to allow you to achieve their critical growth objectives. Our support in raising venture capital extends to start-ups businesses, going-concern mergers and acquisitions or expansions of existing businesses.  We provide you with integrated parcels of specialised corporate advice to ensure you maintain or develop your competitive edge – assessing the options and then craft the business approach, helping you “take the next step”.

We assist you in accessing business loans / finance and business grants through our national and international network of funders.  Our funders include BB-BEE funding initiatives, venture capital companies, crowd funds, banks, private equity groups, government grants, Silicon Cape investment companies, rent-to-own finance companies and angel investors.  Our capital raising documents are industry perfected and are based on compelling market strategies and the financial clarity.

Our funding strategy process includes the following key elements and steps:

  •  A thorough development of all pertinent company documents, from business plans to supporting documents and tax compliance to sale agreements. This provides the benefit of review and analysis of your materials by funders.
  •  Assessment of the strengths and weaknesses of your team, business model, business market or industry and your offering terms. This provides you the opportunity to express your vision, goals and potential to an experienced, objective listener who can spot weaknesses you might miss.
  • An exchange of pertinent company documents for our analysis, review and inclusion into a preliminary due diligence binder. This gives you a readily accessible document repository that is very handy when talking to any investor or lender.
  • A detailed report of funders with recommended action plans to get you on the best road to funding. This provides your company with a solid resource to assess your funding and/or grants, and guidelines in the application process.

It is essential that you enter the funding arena prepared in order to have the best chance of winning. A thorough funding strategy  is a proven way to minimise mistakes and maximise your chances of hearing “Yes!”.

Business Loans for South Africa

Requirements for Business Loans for South Africans include:

The business needs to comply with all the relevant regulatory and statutory requirements. The most basic requirement for businesses looking for financing is having a registered business. DTC can assist with this service!

Other requirements include that the business be registered for tax.

Depending on the funding provider, you will be required to provide some, or all of, the following supporting documents:

  • Financial documents – Basic business plan; cash flow projections; outstanding debtors; up-to-date management accounts (income statement, balance sheet and cash flow statement); latest annual financial statements; latest VAT statement; last three/six months’ bank statements, tax clearance certificate;
  • Personal documents – ID documents of owners; marriage certificates of owners (if 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; and
  • 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 might want to see a comprehensive business plan detailing the purpose of the loan and how you expect 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.

For obligation free assistance on Business Loans for South Africans – Contact DTC