{"id":2668,"date":"2020-03-22T16:26:09","date_gmt":"2020-03-22T16:26:09","guid":{"rendered":"http:\/\/localhost\/2020\/swoopMW20\/?post_type=knowledge-hub&#038;p=2668"},"modified":"2024-03-12T16:31:56","modified_gmt":"2024-03-12T16:31:56","slug":"startup-loan","status":"publish","type":"knowledge-hub","link":"https:\/\/swoopfunding.com\/za\/knowledge-hub\/startup-loan\/","title":{"rendered":"Startup loan"},"content":{"rendered":"\n<p><em>A startup loan is a business loan designed to help new businesses launch and grow. It is one type of <u><a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/startup-finance\/\">startup finance<\/a><\/u>. Like any other <u><a href=\"https:\/\/swoopfunding.com\/za\/business-loans\/\">business loan<\/a><\/u>, it&#8217;s a lump sum of capital that you pay back with regular repayments at (usually) a fixed interest rate. There are many different lenders offering startup loans, each with their own lending criteria, application processes and terms.<\/em><\/p>\n\n\n\n<p>Let&#8217;s say you&#8217;re a startup business. You&#8217;ve got a great idea. You might also have a team in place, a business plan, a budget and a figure for the amount of finance you need in order to meet your short-term needs and grow. You might decide you need funding for, say, three years to cover development costs and startup losses. Perhaps you&#8217;ll need finance even after you&#8217;ve reached break-even point, especially if your business is seasonal.<\/p>\n\n\n\n<p>The good news is that there are lots of options for <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/startup-finance\/\">startup finance<\/a>, spanning <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/debt-financing\/\">debt finance<\/a>, <a href=\"https:\/\/swoopfunding.com\/za\/business-grants\/\" data-type=\"link\" data-id=\"https:\/\/swoopfunding.com\/za\/business-grants\/\">grant funding<\/a> and <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/equity-finance\/\">equity finance<\/a> from crowdfunding or external investors.&nbsp;<\/p>\n\n\n\n<p>For <a href=\"https:\/\/swoopfunding.com\/za\/business-loans\/short-term-loans\/\">short-term finance<\/a> you might consider an overdraft (paying interest only on the amount you\u2019re overdrawn each day), factoring (selling accounts receivable), a credit card or other types of <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/working-capital-finance\/\">working capital finance<\/a>.<\/p>\n\n\n\n<p>If you\u2019re looking for longer-term finance then a startup loan is one option. There are a large number of lenders (bank and non-bank) that offer loans to startups or new businesses.&nbsp;<\/p>\n\n\n\n<p>Here are some typical characteristics of the kind of startup loans currently on offer:<\/p>\n\n\n\n<ul>\n<li>loans from R10,000 to R500,000 (some lenders offer up to R10m)<\/li>\n\n\n\n<li>loan terms from one to five years (or up to 25 years for a <a href=\"https:\/\/swoopfunding.com\/za\/commercial-mortgages\/\">commercial mortgage<\/a>)<\/li>\n\n\n\n<li>fixed or variable rates (depending on product)<\/li>\n\n\n\n<li>instant decision for smaller loans<\/li>\n\n\n\n<li>funding released within hours (some lenders)<\/li>\n\n\n\n<li>interest rates from 6% (this varies according to lender)<\/li>\n\n\n\n<li>no arrangement fees (some lenders)<\/li>\n\n\n\n<li>no early repayment charges (some lenders)<\/li>\n\n\n\n<li>repayment holidays (some lenders)<\/li>\n\n\n\n<li>the ability for you to check your loan potential online without affecting your credit rating<\/li>\n\n\n\n<li>facility to top up your loan (some lenders)<\/li>\n\n\n\n<li>director personal guarantees may be required&nbsp;<\/li>\n\n\n\n<li>free mentoring (some lenders).<\/li>\n<\/ul>\n\n\n\n<p>Lenders will usually want to see details of:<\/p>\n\n\n\n<ul>\n<li>your business plan<\/li>\n\n\n\n<li>your turnover&nbsp;<\/li>\n\n\n\n<li>your trading history (some lenders require a minimum of six months or two years)<\/li>\n\n\n\n<li>your founders<\/li>\n\n\n\n<li>your projected earnings.<\/li>\n<\/ul>\n\n\n\n<p>You might find, however, that your business doesn&#8217;t currently meet the lending criteria for a startup loan (or for any longer-term <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/business-loans\/\">business loan<\/a> for that matter). Or perhaps you just don&#8217;t want to take out a traditional loan. You could instead investigate <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/equity-crowdfunding\/\">crowdfunding<\/a>, <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/peer-to-peer-lending\/\">peer-to-peer lending<\/a>, <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/business-angels\/\">business angels<\/a>, <a href=\"https:\/\/swoopfunding.com\/za\/knowledge-hub\/venture-capital\/\">venture capital<\/a> and other types of alternative finance. Your business may also be eligible for <a href=\"https:\/\/swoopfunding.com\/za\/business-grants\/\">grant funding<\/a> or for one or more of the government&#8217;s schemes to reduce taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A startup loan is a business loan designed to help new businesses launch and grow. It is one type of startup finance. Like any other business loan, it&#8217;s a lump sum of capital that you pay back with regular repayments at (usually) a fixed interest rate. There are many different lenders offering startup loans, each [&hellip;]<\/p>\n","protected":false},"parent":0,"menu_order":48,"template":"","segment":[295],"acf":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable":"<p>A startup loan is a business loan designed to help new businesses launch and grow. It is one type of startup finance. Like any other business loan, it&#8217;s a lump sum of capital that you pay back with regular repayments at (usually) a fixed interest rate. There are many different lenders offering startup loans, each with their own lending criteria, application processes and terms. Let&#8217;s say you&#8217;re a startup business. You&#8217;ve got a great idea. You might also have a team in place, a business plan, a budget and a figure for the amount of finance you need in order&hellip;<\/p>\n","category_list":"","author_info":{"name":"","url":""},"comments_num":"0 comments","featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"<p>A startup loan is a business loan designed to help new businesses launch and grow. It is one type of startup finance. Like any other business loan, it&#8217;s a lump sum of capital that you pay back with regular repayments at (usually) a fixed interest rate. There are many different lenders offering startup loans, each with their own lending criteria, application processes and terms. Let&#8217;s say you&#8217;re a startup business. You&#8217;ve got a great idea. You might also have a team in place, a business plan, a budget and a figure for the amount of finance you need in order&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"","url":""},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub\/2668"}],"collection":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/knowledge-hub"}],"about":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/types\/knowledge-hub"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/media?parent=2668"}],"wp:term":[{"taxonomy":"segment","embeddable":true,"href":"https:\/\/swoopfunding.com\/za\/wp-json\/wp\/v2\/segment?post=2668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}