Many entrepreneurs find it hard to access finance to set up or grow their businesses. Sefa’s mission is to provide top-quality services to small and medium-sized companies or co-operatives in South Africa. If you own a business and feel that it is a bit stuck, this article might help you get on the move. You will get information on Sefa Loans: who can ask for them, what requirements are needed, what kind of loans are offered, and more!
What are Sefa Direct Loan Products?
This organization, which was founded in 2012, saw that the financial market made it very difficult to entrepreneurs to find the funds to expand their business. For this reason, this agency set out to make a contribution to the country by helping these small companies to evolve, while at the same time creating new jobs and growing the economy.
The financial facilities offered by Sefa are enormous, with loans starting from R50 000 and up to R15 million. For more money you can consult for without limit loans on our website. The sectors they serve are numerous; here is a list of some of them:
- Services such as retail or tourism
- Manufacturing
- Agriculture
- Construction (small companies)
However, there are some sectors that are not within the industries served by Sefa:
- Political organizations
- Tobacco, alcohol, gambling businesses
- Property development
In order to access finance through Sefa your company can be at any stage: it can be a start-up, a company with some years of experience in the market, or a company in an expansion stage.
What is the Sefa Loan Application like?
If you have a small or medium-sized company and want to ask for a loan with Sefa you can contact Sefa or start the application process online. You will need to register and provide Sefa your personal information and the details of your company. Remember that if you are married in community of property you will need to also provide information about your spouse and that she or he will have to sign the contract as well.
How long does Sefa take to Approve a Loan?
Sefa offers different types of credit facilities such as asset finance, bridging loans, term loans, revolving credit loans, among others. Both bridging loans and revolving credit loans are easier for Sefa to corroborate, so they tend to be approved quicker. The other loans, such as the term loans, take more time to be approved since Sefa needs to corroborate all the information and documents presented. In order for your loan request to be approved as fast as it can, make sure you don’t forget to give Sefa any paper since this might slow the application process down.
What are the Requirements to get a Loan with Sefa?
As we stated above, Sefa offers credit lines of a maximum of 15 million rands. That is a lot of money, and it implies a great responsibility. For this reason, the qualifying criteria and the required documents you have to hand in are much stricter than the ones asked for a personal loan, for instance.
Depending on the type of loan you want to ask for, there will be specific requirements and qualifying criteria. In this paragraph, we want to focus on those aspects that are common to all loans at Sefa. Remember that there are some industries that are not served by this company.
Ok, let us start by the main qualifying criteria:
- Being a resident of the country
- Having your company registered in South Africa
- Providing a business plan
- Demonstrating affordability
- Providing references (both personal and financial)
- Showing your Tax Clearance Certificate
As to the documents you need to present:
- Application form
- Copy of ID
- Marriage certificate (if married)
- Brief resumes for the owners of the company
- Proof of residence in the country
- Bank statements
- Loan breakdown
Are Sefa Loan Interest Rates Convenient?
Sefa claims to offer affordable interest rates for their business loans. However, the type of rate your company can get will be restricted to the economic characteristics it has, the amount of money you request, and the term.
It’s always good to compare your options; one way to do this is comparing loans. At our site, you will find a tool to find the best loans in South Africa. Go ahead and take advantage of it and start your application.
3 key Features of Sefa Revolving Business Loans
There are many reasons a company might benefit from opening a revolving loan. For example, it can be used as working capital, to acquire machinery or vehicles, or to expand its business. Sefa has created this credit line to help their clients operate their business. With this loan, your company can use the money whenever it needs to. This loan is available mainly for businesses that are already customers of Sefa and that have a good credit history.
Take a look at three key features of Sefa Revolving Loan:
- The loan amount varies from month to month
- Maximum of 12 months
- Repayment is organized on the basis of your company’s cash flow estimates
Sefa works with the aim of tearing down the barriers preventing entrepreneurs from growing their businesses. They know that if your company grows, the whole country will benefit from it. For this reason, they target growing businesses that are unable to find finance through other means because they have, for instance, a Credit Bureau Listing. Of course, that if this is the case of your company, you will have to provide Sefa proof that steps have been taken to remediate this situation.
What are the main Benefits of Requesting a Term Loan at Sefa?
The term loans offered by Sefa were designed for allowing entrepreneurs or small to medium-sized enterprises to access funding for buying assets such as furniture for the company. This loan can be repaid in a term period that ranges from 12 to 60 months.
There are two main benefits that you will be able to enjoy if you take out a term loan with Sefa:
- You can use the cash from your loan to acquire movable assets such as equipment
- You can use the asset you’re buying through the term loan as security
If your company is having a hard time finding the finance it needs to grow and expand, take into consideration a Sefa loan and boost your business. After reading this text, you know what loans you can request, what documents you need to request them, and how the application process works.
Preguntas Frecuentes
Can I find a Sefa branch in Rusternburg?
Sefa has over fifty branches nationwide. If you want to talk to a member of their staff and you are in Rustenburg you will find their offices in 32B Hestek Street, Sunetco Building, Rusternburg. If you don’t want to go there, you can also call them on 014 592 6391 or send them an e-mail at sefanw@sefa.org.za.
Can my company get finance if we don’t have collateral?
Sefa’s mission is to help entrepreneurs and small companies access the finance they are denied elsewhere. For this reason, they go the extra mile and consider applications from companies notwithstanding the fact they do not have collateral to offer. Also, if you need help to develop your business plan, you can contact Sefa’s sister agency, Seda, to ask for help with it.
Can non-profit organization access loans provided by Sefa and what kind of term can I get for an asset loan?
Sefa does not allow non-profit organizations or political organizations to access their loans. The products this agency offers target small to medium companies in sectors such as tourism, retail, manufacturing, small scale mining companies, among others. Now, with regards to your question of Asset Finance, (if your company qualified) you could get a repayment term of up to 60 months.
Good day, I need a loan of 20000 for my business. I need this loan urgent. Can I take a revolving loan?
There are no revolving loans at SEFA. Also, bear in mind that there are certain qualifying criteria that you need to meet in order to access finance through this organization. If you do not meet them, you could check other business loans in other financial companies where they do offer revolving loans.
Is there any document that I must complete to send? Can you send it to me?
Sefa offers finance to small companies and co-operatives of South Africa in order to help them grow and thus contribute to the country's economy. There are various loans at this organization, such as bridge loan, asset finance, term loans, among others. You need to check what the requirements are for each specific loan.
Do you fund starting businesses? Or does it have to be existing?
SEFA funds small companies and cooperative, so if you are not a registered business, then you might not be able to ask for finance with SEFA. You need to be a registered entity with contractual capacity. Also you will need to provide evidence that you will be able to pay back the money you borrow.
Good day, I have a company which started in 2019 but has never been active n don't have funds in the bank. We got a contract to load material from mining and which we need funding to buy at least 2 trucks plus side tippers 34ton.
You could consider asking SEFA for the Support Program for Small Enterprises to find the funding you need to buy the 2 trucks you need for you load material contract for mining. There you will be directed as to what documents you will need to prepare and if you qualify or not.
I need a start-up loan for an insurance company. I need a loan amount of R9,463,000.
If you are looking for a start-up loan to set up an insurance company, you can borrow some money from the private entity SEFA. This institution offers the possibility to access from 50,000 rand to 15 million rand. Therefore, if you comply with all the criteria, for sure you will be able to qualify for 9,463,000 rand.
I am in property development. I want to know what kind of loan I can apply for.
If you are in the property development sector and wish to apply for a business loan, you can do so perfectly with Sefa where you can obtain up to 5.000.000 rand. The application can be completed online by providing your personal information and all the details regarding your company. The type of loan you can choose depends on the stage of your business, such as a start-up or an expansion period.
I started a bakery business 2 years ago and it's running smoothly. I have just registered the business and the plan is to start baking lessons. I need baking equipment. Any suggestions for me? I need financial assistance.
If you need financial assistance to start baking lessons as you are in the bakery business, you can resort to Sefa Loans which offers potential clients business loans up to 5.000.000 rand with a repayment period between 12 months and 5 years. If your organisation is oficially registered, you can immediately start the online application process.
Good day, l registered my catering business, but l haven't started. I need a loan to buy some equipment, rent a place and buy my stock. I was a chef for more than 10 years. So, how do l get a loan to start my business?
Sefa provides different lines of credit for business to help them expand or start in the business market. If you wish to apply for a loan, there are certain requirements you need to fulfil. For example, you must be a South African resident, your company must be registered, you need to provide a business plan, have enough affordability capacity, count with references, and show a tax clearance certificate.
Hi, I need a boost of about R100,000, can I be helped? I bought a shipping container and I got place. Now I am stuck, I want to sell solar lights and electrical things.
Sefa is a great private financial company that provides economic help to businesses that are at any stage of development. As the company borrows great sums of money, the requirements are a bit strict. So, for the application process for a boost of 100,000 rand, you need to show your ID, your company's registration certificate, a viable business plan, bank account balance and a tax clearance certificate.
I have a start-up business in the health sector. Can SEFA offer me a loan?
The company, SEFA, offers loans to businesses belonging to a wide range of sectors. If you need money for your start-up project in the health area, you can get in touch with an advisor from the company. Usually, the amount of money clients can obtain varies from 50,000 rand to 15 million rand.
I'm an entrepreneur, but I have a credit record. Will it be possible to get SEFA funding?
In order to obtain a business loan with SEFA, it is important to comply with all the necessary requirements as an entrepreneur. One of the main considerations is to have a positive credit history, as the company will carry out a credit check on your financial behaviour and situation to determine if you can be eligible to access the money.
Quotation for 500,000 rand.
In order to know how much money, you will need to pay as a monthly instalment with SEFA, you need to consider some aspects. For example, the repayment period you choose, which can be between 12 months and 5 years, and the interest rate that you will be charged according to your credit score and risk profile. After all this information is analysed, you will be informed about an offer.
I want to open a tuck shop, can I get a loan?
The financial organisation SEFA provides entrepreneurs with high quality business services. As you may obtain up to 15 million rand, the requirements are a little bit stricter than the ones asked by a regular lender. Your project needs to be registered; you need to provide a business plan; you must demonstrate your affordability, among other aspects.
Is it possible to get a loan of 50,000 rand to buy a business? I got this offer while I was going to buy stock as I was starting a business.
SEFA offers different types of loans for businesses depending on the clients' needs. Therefore, you will be able to qualify for a 50,000 rand to buy a business providing that you meet all the requirements. For example, you need to be a South African resident; the company should be registered in the country; you should demonstrate enough affordability and provide references in personal and financial terms.
Can I get a loan for financing vehicle purchase for my waste recycling company?
The private company SEFA offers different lines of credits for small or medium-sized companies. The whole idea of these loans is to help develop businesses. If your waste recycling company needs a vehicle, you can apply for a loan for 50,000 to 15 million rand. The qualifying criteria are strict and require lots of responsibility.
Good day, if the company needs a startup loan, how are they going to provide affordability capacity?
If the company needs a start-up loan with SEFA, there are certain criteria to be complied with in order to qualify. These requirements will be carefully analysed by SEFA, and it will determine the affordability capacity. It is fundamental that the company is registered in South Africa, provides a business plan and references, and finally the owner should demonstrate the Tax Clearance Certificate and bank statements.
I have a company in good standing, but challenges are that since covid it's been not working and doesn't have audited financial statements and have a business that will open job opportunities.
If you are looking for a business loan to boost your company that does not have audited financial statements and has been affected by the pandemics, then you can borrow money from SEFA. This financial entity will provide you with monetary help to promote economic growth and job creation. Probably, they will ask for financial documentation, business plans, earnings, etc to assess the viability of your company.
How do I get a loan from Sefa,I have a small business?
In order to obtain financial support from the lending company SEFA to boost your business, start economic growth and offer job opportunities, you will need to comply with some requirements. For example, you will have to gather financial documentation, present a business plan, be a registered entity in South Africa, among others. These factors will be analysed to assess the viability of your small business.