Guaranteed business loan for SMEs

Our Thembani International Guarantee Fund loans are aimed at black-owned SMEs operating in South Africa, Southern Africa and in countries where we do business. SMEs can apply for a loan ranging between R50 000 and R10 million.

Qualifying criteria

• Your business should be BBBEE with minimum 51% black ownership.
• Your business should have operations in South Africa and within Southern Africa and/or countries where we operate.
• Entrepreneurs should have the skills and or expertise relevant to business and/or the industry/sector or be linked to an enterprise development support structure like our Enterprise Development Centres or Shanduka Black Umbrellas.
• You should have a researched business plan.
• You should demonstrate profitability via historical financials and/or a realistic cashflow forecast.
• You should have evidence of revenue stream.
• Main transactional account to be held with us. No split banking is allowed.

Features

• Loan amounts  - minimum R50 000 and maximum guarantee amount R10 million (at 50% guarantee maximum loan amount will be R20 million).
• The preferred term of loan should be a maximum of five years.
• Interest rate is prime linked; which will be risk based lending
• Corporate and government contracts can be financed at different fee structures (3%).
• Open to certain approved industry/sectors (Terms and conditions apply).
• Structure the payments of the loan directly to suppliers.
• Initiation fee that the client has to pay to Thembani:

o   2,8% fee for 1st year (0,5% initiation fee paid prior to disbursement and 1,5% per annum guarantee invoice upfront before disbursement. While the 1,5% is payable upfront where cash-flow is not accommodating, arrangements can be made to have the 1,5% paid in four instalments at the beginning of each quarter)

o   2,3% for every year thereafter

• Repeat loans and increases in facilities are allowed during the term of the facility.
• AVAF/CAF - that are necessary for production of goods or provision of service to happen. Yellow goods will also be covered. These movable assets must be used for the business operation.

How to get it

Download and complete the application form below and take it to your nearest Absa branch, along with supporting documents listed on the last page of the form.

Alternative Funding application form (85kb)

Source: Absa