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Best Business Loans for Small Businesses in South Africa

Vincent Nyoike
Vincent Nyoike Business Loans

If you are planning to start a new business or expand an already existing business, you want to know where to find small business loans in South Africa. Many entrepreneurs are avoiding borrowing business loans from banks due to their high rates. Luckily, there are many small business loan lenders in South Africa that can help you easily access funding. In this article, we are going to look at the best small business loans in South Africa.

1. Lulalend

Lulalend is a business loan for small businesses in South Africa. You can get a business loan of between R20,000 and R1 million. You need to apply for a Lulalend business loan online and it takes 24 hours for a decision to be made. You can repay the loan in installments of 6 or 12 months. You will be repaying 1/6 or 1/12 every month of the amount advanced to your business. You will be charged an interest rate of between 2% and 6% for the first 2 or 4 months. For the remaining period, you will be charged a 2% interest rate. Lulalend is an unsecured business loan and does not charge prepayment fees.

To qualify for the loan:

  • Your business must be incorporated in South Africa
  • Your business must have been in existence for at least 1 year
  • Your business must have annual revenue of at least R500,000

2. Fundrr

Fundrr is an excellent business lender for small businesses in South Africa. Fundrr analyzes 100 data factors to determine your business performance to develop a Fundrr score. You can get a small business loan of between R2,000 and R500,000. You can apply for Fundrr business loan online and have it approved within 24 hours. You can repay the loan for between 3 and 12 months with an interest rate of 17%. Fundrr does not charge prepayment fees.

To qualify for Fundrr business loan, your business:

  • Have an annual turnover of more than R1 million
  • Have been trading for the last 12 months
  • Have been incorporated in South Africa

3. Merchant Capital

Merchant Capital is a small business lender in South Africa. Merchant Capital advances business loans to SMEs specific to their needs. It provides business loans to retail, manufacturing and wholesale sectors. You can get funding within 48 hours. You can apply for the business loan online through their website or face to face with a sales executive. Their interest rates of 15% are however higher compared to traditional banks.

To qualify for the Merchant Capital business loan, your business:

  • Must be registered in South Africa
  • Must have been operating for at least 6 to 12 months
  • Have a minimum monthly cards sales of R30,000

4. Bright on Capital

Bright on Capital is an online peer-to-peer lender that provides working capital to small businesses in South Africa. They serve businesses that have been operating for at least 12 months and have the capacity to generate at least R1 million in annual revenues. Small businesses in South Africa can access up to R1 million for procurement. Bright Capital gives three types of business loans, Invoice Finance and Purchase Order Finance.

5. Fincheck

Fincheck is a business lender in South Africa for small businesses. You can get a business loan of between R20,000 and R72 million. Fincheck partners with South African banks, providing an excellent platform for comparing business loans across 30 lenders. You can apply for the loan online since they don’t have physical offices. When you apply for a business loan, Fincheck matches you with a lender.

6. iKhokha

iKhokha is a business lender in South Africa that gives card machines that accept debit and credit cards. Once your business has been trading for 3 months, you can qualify for a cash advance loan. To use their service, you need to download their app and check how much you can get. The amount your business can qualify for depends on your business turnover for the three months it has been trading.

7. Express Business Capital

Express Business Capital is a business loan in South Africa that supports SMEs with funding. You can get business funding as long as your business has the potential to generate reliable income. Your business can get funding of between R50,000 and R2 million. To qualify for the business loan, your business must have been trading for the last 6 months. Your business must also have a minimum monthly turnover of R150,000.

8. ProfitShare Partners

ProfitShare Partners provides short-term business loans to SMEs in South Africa. They help SMEs with transactional support, providing them with valid contracts and purchase orders from reputable organizations. Businesses can access between R250,000 and R5 million per transaction.

Read also: Payment gateways in South Africa. 

Summary on Business Loans in South Africa

If you are looking for a business loan to start or expand your business, you can consider the above small business lenders in South Africa. They provide flexible business loans compared to banks. However, for most of them, your business must have been trading for at least one year to qualify for a business loan. Before borrowing a loan, consider your business turnover to avoid running your business into a debt trap and being declared bankrupt. 

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