Small and Medium Enterprise Fund
Are you an aspiring black entrepreneur with a great business idea, but lack the knowledge to get it going? Maybe your circumstances don’t let you qualify for normal bank credit despite having a potentially profitable business opportunity? Then the small and Medium Enterprise Fund offered by Absa, may address your needs.
The Small and Medium Enterprise Fund will arrange business finance from R10 000 to R1 500 000 to suit your business funding needs (Note: maximum and minimum loan amounts differ according to province). You may require finance for working capital, business expansion, and bridging requirements to execute tenders or contracts.
Normal or performance guarantees are also available, and can assist with winning customers’ trust.
The Small and Medium Enterprise Fund could be for your business if:
- Your business will have 100% BEE ownership
- You will be involved in the business on a full-time basis
- You do not qualify for traditional bank credit due to a lack of a credit rating, security or your own capital
- You require a loan that is no more than R500 000/R1 500 000
- You would like transactional bank facilities and electronic bank solutions
- Are happy to bank only with Absa
- Your work is dependent on being able to guarantee your business products and services
- A loan linked to the prime interest rate, to be paid off over a period of no more than 3 years
- Access to an overdraft facility, bridging finance and performance guarantees
- A mentor who will assist you by offering expert insight into the feasibility of the business, testing the information provided in your business plan and financial projections, as well as providing aftercare assistance to you in the form of ongoing financial and business guidance