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Product Guide: ABSA Business Term Loan

Comparison Overview:

  • Product: Business Term Loan
  • Minimum Loan Amount: n/a
  • Max loan amount: n/a
  • Min repayment period: 3 months
  • Max repayment period: 120 months
  • APR: n/a

Product Overview

When other financial products can’t effectively accommodate your business needs, an Absa Business Term Loan could be the answer. A term loan is a medium to long-term financial instrument that lets you borrow money and pay it back at a fixed rate, over the medium to long term.

Features

  • Manage your business’ debt and avoid spending from your operating capital - convert your overdraft’s hard-core amount into a term loan structure and start paying off the hard-core amount (a hard-core overdraft is when your business has an overdraft facility that is always in overdraft. If this becomes a long-term situation, we might advise you to convert the hard-core portion of your facility to a loan)
  • Ideal for when you need a specific asset and the financing can’t be done through Absa Vehicle and Commercial Asset Finance
  • Helps you to consolidate your business debt
  • You can use it to restructure your company’s balance sheet
  • Use it to finance a management buyout or share buy-back
  • The term of your loan is matched to the type of asset you are funding, with a minimum term of 3 months and a maximum of 120 months

Benefits

  • The scheduled use and repayment of the loan helps you budget more accurately
  • You have Absa’s assurance that they will not call up the loan, as long as you adhere to all the terms and conditions
  • You can structure your facilities correctly - finance short-term expenses with an overdraft facility and medium and longer-term asset purchases through a term loan
  • You can deposit surplus funds into your account and so pay less interest
  • You can withdraw surplus funds on credit approval and by completing a loan debit authority form at your nearest branch

Qualifying Criteria

  • The minimum security requirement is personal suretyship of the principal/s
  • You may also need additional security for your loan (a secured loan is a loan in which you, the borrower, pledge an asset such as a house or investment, which can be sold by the bank if you can’t repay the loan)