Absa Bank, which is a major financial services provider in South Africa, offers a diverse set of solutions to clients across different areas, including retail, business, wealth management, corporate, and investment.
The bank is committed to creating shared value in a sustainable manner, and it plays an essential role in the life journeys of its customers and clients. The bank aims to enable its customers and clients to accomplish more and recommend their services to their friends, family, and business associates.
The Absa brand is driven by its customers and the bank's unwavering dedication to being bold, enthusiastic, and consistently aiming to make Africa proud. As one of the biggest and most diversified financial services groups in Africa, Absa has operations in 15 countries on the continent, including offices in the UK and the US.
Absa's presence covers a wide range of countries, including Botswana, Ghana, Kenya and Mauritius to name but a few.
Absa aims to make opportunities a reality for everyone by granting them access to the life-changing potential of financial services. The bank is committed to presenting groundbreaking technologies and initiatives to facilitate greater possibilities while contributing to the creation of a world that values progress and economic activity that serves the greater good.
Absa's focus is on sustainable growth that benefits not only its present customers, employees, and communities in Africa but also future generations, both in the region and worldwide.
Absa's principles are centred on promoting excellence to accomplish enduring outcomes, taking responsibility for their actions, creating new ideas, making decisive decisions, learning from setbacks, and being courageous enough to adapt to new approaches.
The bank's primary focus is on the customer, anticipating their requirements, providing a unified One Absa customer experience, and surpassing their expectations. Absa believes that its employees are its greatest asset, and they draw from diverse perspectives to shape the future. The bank collaborates with fortitude, integrity, and dynamic energy, trusting, valuing, and nurturing their employees to help them achieve their full potential.
Absa provides customised financing options to cater to the distinct funding needs of businesses. One of the most suitable loan options for businesses seeking funding for developmental projects, business expansion, or purchases is the business term loan.
Absa provides businesses with flexible repayment options to meet their unique needs. One such option is the flexi reserve facility, which allows borrowers to hold additional funds that can be reused as needed.
Moreover, borrowers can transfer available funds from the flexi reserve facility to their accounts, which helps to reduce outstanding capital and benefits from the interest burden. Additionally, Absa offers repayment frequencies that can be customised to match the business's cash flow, with options for monthly, bi-monthly, quarterly, half-yearly, and yearly repayments.
Absa's term business loan is a flexible solution to manage your business' debt. This loan is ideal for financing assets, consolidating business debt, restructuring your company's balance sheet, or financing a management buyout or share buy-back.
With a minimum term of three months and a maximum of 120 months, this loan provides you with a range of repayment options that can fit your business needs.
Whether you are looking to purchase new equipment, expand your operations or simply consolidate your debt, Absa's term business loan can help you achieve your business goals while keeping your finances under control.
To cater to the specific needs of businesses, Absa offers a range of financing options, including term loans, overdrafts, and revolving loans.
The business term loan, which can have a repayment period of up to ten years, is ideal for funding developmental projects, business expansion, or business purchases. Absa's financing solutions are designed to provide businesses with the financial support they need to succeed, with flexible repayment options tailored to match their cash flow.
Before applying for a term loan at Absa, it’s essential to understand the eligibility criteria and application procedure.
Demonstrating your business's affordability is a crucial eligibility requirement, which can be accomplished by providing financial statements. These statements will allow Absa to evaluate your business's financial position and determine if you can repay the loan.
Your credit score will also be subject to assessment based on your credit history and determines your creditworthiness. A low credit score may make it more challenging to obtain a loan or may result in a higher interest rate being offered.
Another eligibility requirement is personal suretyship from shareholders and/or directors or business members. This means that you or other business members may need to provide a personal guarantee that the loan will be repaid if the business cannot do so. While this provides additional security for the lender, it carries a personal risk for those providing the suretyship.
Depending on the size and nature of the loan, additional security may also be required, such as assets like property, vehicles, or equipment that can be used as collateral to secure the loan.
Once you meet the eligibility criteria, you can begin the application procedure, which typically involves filling out an application form and submitting supporting documentation like financial statements, business plans, and bank statements. Absa's credit team will evaluate your loan application and discuss any further requirements with you as needed.
During the loan application stage, you can structure the repayment based on your budget and requirements. You can skip payments, which can help you manage your cash flow more effectively. Additionally, you can make a balloon payment on the last instalment, which may be refinanced if needed.
In short, to qualify for a term loan, businesses must meet certain criteria. They need to demonstrate affordability, which requires submitting their financial statements. The loan application will also be subject to credit assessment based on scoring. Personal suretyship of the shareholders and/or directors or members is also required, and additional security may be necessary depending on the loan amount.
In our review, Absa adheres to the compliance criteria in accordance with the National Credit Act, where the granting the loan will not cause financial distress to the consumer.
✅ Absa is a registered credit provider in South Africa: NCRCP7
