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Financing Your Brickyard : Where to go?

At Hydraform, we know your business is your passion. One of the most daunting challenges facing potential business owners is a lack of funding with which to launch their dream. Whether your business requires funding at the launch stage or expansion phase, the biggest challenge is finding money. There is no single perfect-fit approach for all situations. According to the required amount, purpose, type of business, ownership, the sources may vary dramatically.

There are, however, various institutions within South Africa supporting the development and upliftment of communities by funding small businesses. We’d like to provide you with a few possibilities you may want to investigate.

First National Bank (FNB)

Once our sales team has helped you select the machinery you need to build a better brickyard, we will provide you with access to the online loan application form. As with all loan applications, there are a few requirements you will need to meet. The following is a list of requirements:

  • Depending on the application type, you will need to provide seven months’ business statements (note that the type of account you will need to have is a business bank account).
  • You company documentation will need to include CIPC documents, proof of residence, and the member IDs.
  • You will also need to provide financial statements (IS, BS, Cash Flows) covering the most recent 12 months (this will need to include the loan amount).
  • Along with the applicant’s personal information, you will also need to provide the director’s ID and proof of residence.
  • You must demonstrate a minimum turnover of R20 000.00 per month.
  • Your business must have been operational for 12 months, or more.
  • You will need to demonstrate a fair credit record and score from the credit bureau, with no defaults or judgments.
  • Loan amount – Balance Sheet dependant
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The loan amount is balance sheet dependent, and the interest is completely personalised. The loan term is max five years. Turnaround time is three to five days, if all documents are in order, and the finance amount is – of course – risk dependent.

Standard Bank (STD Bank)

When you have made your selection from our wide range of machinery and accessories available, you will be provided with application forms which you can fill in at our offices. One of our team will even help you complete the forms! Here’s a list of the requirements you will have to meet:

  • You will need to provide six months’ worth of personal or business bank statements if you are not a STD Bank customer. STD Bank clients don’t need to submit statements.
  • You will need to supply your company’s CIPC documents, proof of residence, as well as the member IDs.
  • You will need to supply business financial statements covering the most recent 12 months, including the loan amount. You will also need to supply Cash Flows and the personal balance sheet/s of your company’s member/s.
  • The type of bank account may be either business or personal.
  • As the applicant, you will need to supply your own personal information, as well as copies of the Director’s ID and proof of residence.
  • You must be able to demonstrate a turnover of R300 00.00 per annum.
  • Your business must already have been operating for 12 months or more.
  • You must be able to demonstrate a fair credit record and score, with no defaults or judgments from the credit bureau.
  • Loan amount – Balance Sheet dependant

The loan amount is balance sheet dependent, and the interest is personalised. The loan terms is a maximum of five years. The turnaround time for approval is three to five days, if all documents provided are deemed to be in order. The finance amount is risk dependent.

SEFA

SEFA does not decline applicants based on their credit profile, provided that there are valid arrangements in place between the applicant and his/her creditors. The supporting documentation is vital and must be in order to be granted the loan. The applicant will need to go to his/her regional SEFA offices, but application forms are available on their website – www.sefa.org.za. The following requirements must be met:
  • You must provide 6 months’ worth of personal or business bank statements.
  • You must provide you company CIPC documents, proof of residence, and member IDs.
  • Your financial statements must cover no less than three years. Start ups must be projected.
  • The type of bank account must be business and personal.
  • Along with your own personal information, you must provide copies of the Director’s ID and proof of residence.
  • The major shareholder of the company must be a South African citizen.
  • The demonstrable turnover is as per the financial statements.
  • You will need to supply a viable business plan, as well as a valid tax clearance certificate.
  • Loan amount – R50 000 to R5 million
  The type of business covered by this loan ranges from start-ups to well-established businesses. It should be noted that you will not be disqualified for a business or personal loan based on your credit profile. If there are listings or unpaid amounts, then you must submit proof of arrangements to repay the debt. The loan amount is R50 000.00 to R5 million, and the interest is discounted for development impact projects. The loan terms is a maximum of five years. The turnaround time for loan approval is six to 12 weeks, and you will need to supply a comprehensive business plan. As with all loans, the finance amount is risk dependent.

The Department of Small Business Development (DSBD)

The DSBD provides two different scheme for financing, and we will provide you with the details of both to better empower you to choose the right fit for your loan.

Vodalend

Hydraform is now a registered affiliate on Vodalend, and we can even apply on your behalf if you should require this service. With Vodalend, you apply and receive the decision within minutes, and your cash within 24 hours. The terms and rates are unique to each individual customer. The only restrictions are that your business must be registered, and has to have been operating for 12 consecutive months. Your business must be located within South Africa and have a good credit standing, with a turnover of R500 000.00 per annum, and a minimum of R40 000.00 per month. The minimum requirements for funding are much less intensive than those of banks, and the process is relatively simple. It is important to note that Vodalend will not be able to assist you if you have any adverse listings on your name, or adverse listing against your company’s name. Here’s how the Vodalend process works:

  • You provide the basic details about yourself and your business.
  • Your cash will be available within 24 hours, and you repay the loan in standard instalments.
  • You will be required to provide your business’s company registration number and VAT number if you’re operating as a Sole Proprietorship, as well as your company’s financial history.
  • You will be required to provide a minimum of the last three months’ bank statements.
  • Repayment of the loan amount has a six to 12 month repayment plan, and every month you pay back a portion of the total funding amount plus the monthly cost.
  • You apply at the Hydraform offices, or you can call 087 057 2766, or email [email protected].
 

With so many different financing options available, you may finally be able to realise your dreams for your brickyard company. It just makes sense to investigate all the options, and Hydraform is ready and waiting to help you make your business a success!

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