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.
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
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
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)
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