Bank funding remains one of the most traditional and widely used ways for South African businesses to raise capital. Unlike government grants, bank finance usually comes with strict eligibility requirements, credit checks, and interest repayments — but it offers larger sums of money, structured terms, and a wide range of products to suit different business needs.
1. Term Loans
Banks provide fixed-term loans where businesses borrow a set amount and repay it with interest over an agreed period. These loans are commonly used for equipment purchases, business expansion, or working capital.2. Overdraft Facilities
An overdraft gives a business immediate access to funds when cash flow is tight. This is flexible and can be used as a safety net, but interest rates are typically higher than standard loans.3. Revolving Credit
This facility allows businesses to borrow, repay, and borrow again up to a certain credit limit. It’s useful for managing ongoing expenses and short-term operational needs.4. Asset Finance
Designed for businesses that need vehicles, machinery, or equipment. Instead of paying the full amount upfront, banks finance the asset, and the business pays it off over time.5. Invoice Discounting / Factoring
Banks advance money against unpaid invoices, giving businesses faster access to working capital while waiting for clients to settle payments.6. Commercial Property Finance
Banks fund the purchase, construction, or development of commercial properties such as offices, warehouses, or retail spaces.
Creditworthiness: Strong credit history and repayment record.
Business Plan: A well-prepared business plan showing growth potential.
Collateral: Assets that can be used as security (for secured loans).
Cash Flow: Clear ability to meet monthly repayments.
Track Record: Many banks prefer businesses with proven operating history.
Access to larger funding amounts than many government schemes.
Structured repayment terms provide predictability.
Wide variety of products tailored to different industries.
Established banks offer credibility and advisory support.
Requires good credit and financial history.
Security or collateral often needed.
Repayments with interest increase financial pressure.
More difficult for start-ups without a track record.
While many financial institutions in South Africa provide business loans and finance solutions, the following banks are some of the most prominent players in the market. This is not an exhaustive list — other local and international banks also operate in the country and may offer specialised funding depending on your industry or business size.
Standard Bank – Offers business term loans, revolving credit, overdrafts, and asset finance.
Absa – Provides SME funding, overdrafts, franchise finance, and working capital solutions.
Nedbank – Specialises in asset-based lending, term loans, and green economy finance.
FNB (First National Bank) – Offers revolving loans, vehicle and asset finance, and SME packages.
Capitec – Provides business term loans, overdraft facilities, and merchant funding solutions.
TymeBank (via Retail Capital) – Offers revenue-based business funding with flexible repayment options linked to turnover.
Investec – Provides tailored financing for high-growth businesses and entrepreneurs.
Bidvest Bank – Focuses on trade finance, working capital, and niche business lending.
SasFin Bank – Offers SME lending, equipment finance, and business credit facilities.
RMB (Rand Merchant Bank) – Provides large-scale corporate lending, structured finance, and syndicated loans.
Bank of China (South Africa) – Offers commercial lending and trade finance for investment and business expansion.
Not all banks offer business loans. The major commercial banks such as Standard Bank, Absa, Nedbank, FNB, Capitec, TymeBank (via Retail Capital), Investec, SasFin, RMB, Bidvest, and Bank of China provide business funding options. Some international banks and smaller players may not focus on SME lending.
Most banks will require:
Company registration documents (CIPC)
Business plan with financial projections
Bank statements (usually 6–12 months)
Annual financial statements or management accounts
Proof of collateral (for secured loans)
It depends on the bank and your business profile. Small businesses may access loans from as little as R50,000, while corporates can secure multi-million rand facilities. Banks assess affordability, turnover, and risk before approving amounts.
Banks typically prefer businesses with a trading history and steady cash flow. Start-ups often struggle to qualify unless the owner provides collateral, surety, or strong financial backing. Government grants and agencies like SEFA or NYDA may be better suited for start-ups.
Rates vary depending on the product, the bank, and your business risk profile. Business loan interest rates are usually linked to the prime lending rate, plus a margin. A business with strong credit and collateral may get lower rates.
Yes. Many businesses combine products, such as having an overdraft for short-term cash flow and a term loan for equipment or expansion. Banks often structure solutions to suit business needs.
Bank funding is commercial, requires repayment with interest, and is usually faster to access if you qualify.
Government funding is often cheaper or non-repayable (grants) but has longer processes and stricter requirements.
This depends on your needs. FNB and Absa have strong SME divisions, Capitec is growing in the business loan space, and TymeBank via Retail Capital offers flexible funding linked to turnover. Standard Bank and Nedbank are also reliable for structured loans and asset finance.
