If you're a small business owner in South Africa looking to grow your business, you're likely aware that securing funding can be a game-changer. Whether you need capital to expand your operations, purchase new equipment, or boost your working capital. Our business finance marketplace platform, will be your go-to destination. To make the funding application and approval process that much easier, we’ve put together the ultimate checklist for applying for funding through FundingHub's platform, explaining the funding process, the necessary documents, and why this platform can be your financial ally.
How does the funding process work?
FundingHub simplifies the funding process, making it accessible and efficient for small business owners.
5 step guide to applying for funding through FundingHub
1. Start our effortless application process
Getting started is a breeze. You'll need to answer a few questions about your business, which takes less than 5 minutes to complete. Rest assured that FundingHub prioritises your privacy and we don’t use any personal or sensitive information without your explicit permission. Lenders can only access your details when you choose to get a quote from them.
2. Get a clear overview of offers
Once FundingHub has the necessary information about your business, we anonymise it and automatically identify potential lenders who may offer you finance. We understand what lenders look for in a business and match your profile accordingly. You'll receive these offers in an easy-to-understand format, making it simple to compare your options.
3. Choose your preferred lender
Depending on the type of financing you need, FundingHub allows you to see multiple offers. Whether it's an unsecured loan, merchant cash advance, or invoice factoring finance, you may be able to see a live quote if you've provided the necessary information. You can then select your preferred lender or rely on FundingHub's recommendation based on your application.
4. Finalise and accept offer with confidence
After identifying a suitable lender, you'll have the opportunity to speak with them directly and iron out the details of your finance agreement. Once everything is in order, you can accept their offer, and the funds will be deposited into your bank account. Alternatively, you can always return to the FundingHub platform to explore other options.
5. Find offers best suited to your growing business
As your business uses the financing to expand and thrive, it's crucial to continually check for new offers. A more established business often means access to less expensive finance options.
Why should you use FundingHub to get access to business finance?
FundingHub offers distinct advantages that make it a valuable resource for South African small business owners:
1. It’s fast and convenient
With us you only need to complete one application. This single step grants you access to offers from over 30 lenders, saving you valuable time and money. No more filling out multiple applications and waiting for responses.
2. You’ll get access to the best loans in SA
FundingHub's extensive network of lenders ensures that the offer you receive is tailored to your business's unique needs. With options from over 30 lenders, you can trust that you're getting the best-suited financing solution.
3. Your personal data is safe
Your privacy and data security are paramount to FundingHub. The platform is designed to ensure that your information is only used with your explicit permission. You can confidently share your business details without concerns about misuse.
4. Our platform is 100% free
FundingHub provides its loan comparison service entirely free of charge. You won't incur any fees for using their platform to explore financing options. This commitment to affordability is a boon for small business owners looking to save on costs.
How long does the SME funding application take?
We streamline the application process to save you time and expedite access to funding. Typically, completing an application takes just 5 minutes. If you have all your information readily available, the process can be even quicker.
It's important to note that the approval process's timeline depends on the documentation you provide. Having your documents prepared, which may include 6 months of bank statements, can expedite the approval process significantly. Different types of loans have varying qualification criteria, but as a minimum, your business should meet the following requirements:
- Monthly turnover (revenue) in excess of R30 000 per month.
- A minimum of 6 months of revenue history.
- A registered business (sole proprietors are accepted).
*we’ll get to the finer details of these documents further down.
FundingHub has chosen a diverse range of lenders to ensure they can assist businesses of various types and maturities. Whether your business is just starting or well-established, FundingHub can connect you with the right financing options.
How much does business funding cost?
The cost of a loan varies based on several factors, with the most crucial being the risk factor associated with your business and the type of loan you're seeking. Interest rates on loans through FundingHub can range from as low as 0.8% per month (equivalent to 7.6% annual interest rate) to as high as 30% per year.
Understanding the cost elements of a loan is essential to make informed financial decisions. FundingHub can provide you with more detailed information about loan costs, ensuring you have clarity on the financial implications of your financing choices.
What documents are required during your funding application?
Now that you understand the step-by-step process of securing funding through FundingHub's platform, let's delve deeper into the essential documents you'll need to provide during your funding application. While it's true that different lenders may request various documents, FundingHub simplifies this process by outlining the basic, first-application documents you'll typically need to submit:
1. Business registration document
Your business registration document is a fundamental piece of paperwork that proves the legitimacy of your business. It verifies your business's legal status and is essential for lenders to assess your eligibility for financing. Whether you are a sole proprietor or operate as a registered business entity, having this document ready is crucial.
2. Director/s ID Docs
Identification documents are vital for lenders to verify the identities of the individuals involved in the business. This step helps lenders confirm the credibility of the applicants and establish a level of trust. Ensure you have the ID documents of all relevant directors readily available when applying for funding through FundingHub.
3. 6-Month Bank Statements
A 6-month bank statement is a valuable financial document that provides lenders with insights into your business's cash flow, revenue, and financial stability. It offers a snapshot of your business's financial health over a reasonable timeframe. This document helps lenders assess your ability to manage loan repayments and gauge the level of risk associated with your business.
By having these basic documents prepared and readily accessible, you can streamline the funding application process and increase your chances of approval. FundingHub is designed to work efficiently when you have these documents on hand, potentially expediting the approval process.
It's important to remember that while these are the primary documents required for the initial application, different lenders may request additional documentation based on their specific criteria. Therefore, being organised and having a comprehensive set of financial records can be beneficial. These records may include tax returns, profit and loss statements, balance sheets, and any other documents that demonstrate your business's financial stability and potential. Our FundingHub team will go above and beyond to help you during the funding process, so if there are other documents that can be used to secure funding then we’d suggest sending these along too.
Now that we’ve given you the full rundown on everything, you’ll need to get business loan approval in South Africa it’s now about getting all your ducks in a row before you start the journey. With FundingHub as your SME funding partner, your business can thrive and achieve its goals.