Absa Development Credit Fund

Have you applied for an Absa business loan and been turned down because you did not have enough security?

We may have another finance option for you, subject to your business’ ability to repay the loan.

The Absa Development Credit Fund could be the right choice if:

  • your business is a Small, Medium or Micro-sized Enterprise (SMME) as defined by the Department of Trade and Industry (DTI) - includes new start-ups, existing businesses, franchises and businesses switching from other banks, subject to credit approval
  • you would not qualify for a business loan under normal banking criteria due to poor credit records (must be justifiable)
  • you are a South African citizen permanently residing in South Africa
  • the business’ major shareholder (more than 66%) is fully involved in the day-to-day operation of the business
  • you have the skills and or expertise relevant to your business and/or the industry or sector
  • you have a well-researched business plan
  • your business can show profitability through historical financials or a realistic cash flow forecast
  • you operate in an approved industry (ask our consultants about the small number of industries that do not qualify)
  • you require repeat loans, but only once the initial loan has been repaid in full
  • you need a loan of between R50 000 and R3 million with a maximum loan term of five years and monthly reducible overdrafts
  • you can show evidence of a revenue stream, i.e. letters of intent
  • the business’ main transactional account is held with Absa, no split banking is allowed.

How the loan is structured:

  • 70% of the loan will be paid to your suppliers - we will structure payment of the loan directly to your suppliers.
  • Your interest rate will be linked to the prime lending rate and will be structured according to the lending risk.

Excluded from the Absa Development Credit Fund:

  • non-South African citizens
  • money raising ventures
  • enrichment
  • all trusts, public companies, section 21 companies and co-ops
  • residential property finance
  • no split banking is allowed
  • SMEs may not have other business interests.


Complete the application form and bring it to your nearest Absa branch, along with the supporting documentation listed on the last page of the form.

 Alternative Funding application form (85kb)

Did You Know?
When you phone the Small Business Support Centre and a Business Manager will be on hand to assist you.

Contact Support Centre
  • Call us on
    0860 040 302
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