fbpx

What do I need to apply for a secured long term business loan

What do I need to apply for a secured long term business loan

Secured business loans offer a longer repayment period and more competitive interest charges. By using an asset as a security for the loan, the business can repay the loan over the period of up to three years. This offers the benefit of more time to use the funds within the business. With an unsecured loan, the loan repayment is paid from month one with a maximum period of twelve months. The business would need strong cashflow to qualify which is not always possible. That’s why if a business has security to offer, it can help secure working capital over a longer period.

In this article we will discuss the following about secured business loans:

1. What can you use as security for your business loan

2. The value of the asset needed for the loan

3. Documents required for your loan

4. Application form to apply for a secured loan with our partner

What can you use as security for your business loan?

The financiers are looking for an asset that can be ceded to them should you not be able to repay the loan.

Two of the most popular assets you can use are an unencumbered property and a debtor’s book. Any asset offered may not be used for another loan. For the property it must be an additional property, and not the main residence of the director. It must also be paid off and not have an outstanding bond.

The value of the asset needed for the loan

Most financiers require an asset that is double the value of the loan you require. So, if you need a two-million-rand loan, you will require an asset or assets to the value of four million rand. This is the first requirement that lenders will check. If you can’t provide sufficient security, they will not continue with the application.

Documents required for the loan

Due to the repayment period and security required, the application is a bit more intricate and takes time for approval. They need to assess the business in depth and therefore need all the information upfront.

Information checklist

1. Audited financials from last 2 years

2. Latest management accounts

3. SARS Tax clearance certificate

4. Latest debtors and creditors age analysis

5. 3 months of official E-statements direct from the bank

6. Selfie with id book in picture for each director

7. Statement of private assets and liabilities of shareholders

8. Brief company background and Organogram of company structure


Connect with our secured loan partner

We work with a financier that offers secured loans up to seven million rand. The repayment period is up to three years.

If you can provide all the documents and meet the asset requirements, we would love to assist you with your application.

Simply complete the form below and check your inbox for forms to continue with your application.

Conclusion

A secured loan can provide business finance over a longer repayment period. The main requirement is being able to provide security double the value of the loan you need. Premier finance can help you with your secured loan application. Complete the form above to get started now.

Leave a Reply

Your email address will not be published.