Publish Date: 19/06/2020
Embrace growth with a business loan
Do banks grant loans to the self-employed may be a question you as a small business owner have asked yourself. Banks have options for the SME market looking for unsecured loans or a business loan to help accelerate growth. Applying for a business loan may however have several strict requirements or restrictions. An alternative worth considering is applying instead for a personal loan for your business.
Many people who start a business do so while they are still employed, full-time or part-time. With a steady income, along with payslips and proof of your steady income through your bank statements, you can apply for a personal loan and then use this as a business loan to get your small business off the ground.
In assessing whether borrowing money is right for your business, it is important to evaluate your reasons for wanting the loan.
A short term loan can be a great move, if done for the right reasons.
Our advice is that bells and whistles should always come last – you should not be considering a loan to take your customers to Cape Town to thank them for their business at the end of the year, or buy expensive branded uniforms just to look the part.
5 scenarios in which you could consider using a personal loan as a business loan:
Borrowing money from a bank to help your business go to the next level does not have to give you sleepless nights.
The important thing to remember is that a loan is a commitment to repay the money back within a certain time and at a certain interest rate.
If you go into the loan arrangement fully aware of what you are signing up for and are sure you are getting the best possible rates, your end of the deal is simply to make regular, on-time repayments.
This is crucial in securing your future credit record and to the long-term security of your business.
If your small business ready for a boost? Why not talk to a financial advisor about your borrowing options?
African Bank offers several loan options, including personal loans and consolidation loans.
If you are unsure of where to start or whether lending is right for your business, read our informative blog about how to get and use a loan.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.