Absa ups lending limit to SME's

As part of its commitment to shore up SMEs, especially those who do not have sufficient security to qualify for finance, Absa Small Business has increased its Khula lending limit for start-up businesses from R100 000 to R350 000.

"This is a confirmation of our unwavering pledge to meaningfully promote start-up small businesses. We are undoubtedly committed to government's agenda of developing SMEs to counter the challenge of unemployment," says Faisal Mkhize, Managing Executive - Absa Small Business.

In addition, Absa Small Business has appointed Khula specialists - who will be based in the respective Absa regional offices - to assist with the application process, management of existing Khula relationship as well as reviewing of existing.

Khula specialists will maintain a close relationship with the Khula regional offices and assist growing Khula business in the geographical areas identified by Khula for growth opportunities such as Northern Cape, North West Province, Free State, Limpopo and Mpumalanga.

Absa has been investing efforts on operational and risk efficiencies within the Khula sphere, during 2008. With these efficiencies now embedded, there is a renewed focus on growing Khula business in Absa from 2009 onwards.

"Starting a small business involves more than financing, as it also encompasses proper processing and strict follow ups on applications; shortening the turnaround and speeding up the entire process," stated Mkhize.

He concluded that their Khula specialists will help them to manage the application process by doing pre-assessments on all applications. "They will also provide advice and related assistance to applicants."

The Khula Credit Guarantee Scheme was established eleven years ago to facilitate access to finance for people wishing to start/buy a small to medium-sized business, but do not have sufficient security or collateral to provide to the bank in order to secure a business loan. In such
cases, where a client meets the relevant requirements, the bank will apply to Khula for a guarantee which then acts as collateral for a specific percentage of the total loan amount. Absa has supported this scheme over all these years.