Crucial Elements to Secure a Loan Approval

Mandate to Proceed and Fee Agreement.
In order to source the right financial package for you, we will require you to sign our Mandate to Proceed. We will provide this.

Credit Profile
If you have a bureau listing it is highly unlikely that we can assist you. The new National Credit Act limits lenders to only providing credit to persons and businesses with normal credit profiles. If you own a home however, we may be able to do a debt consolidation to assist in relieving you from your financial predicament. Once your credit record is clear, you can then make application for business finance.

Business Plan
 This needs to be an up-to-date, concise and comprehensive outline of what you intend doing. No lender will even consider a loan without a decent business plan. If you do not have one then we can refer you to someone to do this or you can find a professional to do this for you.

Profitability
Whether it is a business you wish to buy or to expand an existing business or new business that needs working capital, it should be a profitable enterprise or irrevocably demonstrated that it will be profitable in the future.

Own Contribution
Most lenders require that the borrower have at least 10 % if not more, of their own contribution, before a financial loan will be considered. They are not prepared to take ALL the risk. Finance houses require that the borrower also put in some contribution to ensure that there is commitment by the borrower, to the business.

Collateral
In addition to own contribution, some types of business ventures are considered high risk. The higher the risk the more collateral / security a lender will want and the higher the collateral offred, the greater the chances of a loan approval.