ABSA Development Credit Fund
In a South African first, we have partnered with the United States Development Credit Authority (DCA) to create a more flexible, realistic and relevant credit option for our Small and Medium Enterprises (SMEs) than traditional loans.
The Absa Development Credit Fund creates more opportunities to assist more SMEs overall, it further increases the opportunity to provide funding for SMEs who do not have sufficient security or collateral and have poor credit records.
Absa will be the first in South Africa to offer a R200 million fund to SMEs nationally. Qualifying SMEs will include start-ups, existing and new customers who have insufficient security or collateral and are turned away by our competitors.
We do not want a single business to have to close their doors due to not getting the assistance they need.
The Absa Development Credit Fund could be the right choice if you:
- Would not qualify for a business loan due to poor or bad credit records (with mitigating circumstances) under normal banking criteria
- Do not want a Continuous Covering Mortgage Bond (CCMB) to be taken on your personal residential property
- Operate in any industry
- Want to structure the payments of the loan directly to your suppliers – 70% of the loan is to be paid to suppliers
- Require repeat loans, but only once the initial loan has been repaid in full
- Want to realise your dreams as a start-up
- Are an existing or new customer who has been turned down due to insufficient security
The Development Credit Fund is a normal Reducible Overdraft or Term Loan that you apply for via an Enterprise Banker or Relationship Executive at any Absa branch.
You need to provide us with the following documentation:
- A fully completed application for Alternative Funding
- Minimum 12-month cashflow projections
- 6-months’ bank statements (personal and business)
- Historical financial information
- Income and expenditure of all members/directors/owners of the business
- Statement of assets and liabilities of all members/directors/owners of the business
- Detailed CVs with employment records of all members/directors/owners of the business
- A detailed Business Plan
- A business registration document (if applicable)
- A copy of your lease agreement (if applicable)
- FICA verification documents (personal and business)
- Copy of identity documents of applicant(s)
How to apply
You can apply for the Development Credit Fund via Absa Enterprise Bankers or Relationship Executives at any Absa branch.
