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Are you looking for the best startup loan without collateral to boost your business in South Africa? The country’s market offers great options, and here you can find out the best ones.
Now, which startup loan without collateral is the right choice for your company’s current moment? Discover this and other answers in 05 minutes, by reading this article.
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Finally, in this article, we will explore the main options to find the best startup loan without collateral on the market. We will help you compare the most important characteristics of each offer, from interest rates to eligibility requirements, ensuring the ideal decision for your growth.
10 Best Startup Loan Without Collateral Options
1. Lula (Startup loan without collateral)
Lula has consolidated itself as a reference in quick financing, recently positioning itself as a neobank for companies.
Firstly, its philosophy addresses the time scarcity of startups through proprietary scoring technology that allows for near-instant decisions.
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It is worth noting that the company offers two main products: the Cash Flow Facility, which acts as revolving credit, and Fixed-Term Financing.
Furthermore, for companies with a strong digital history, Lula eliminates the need for complex financial statements for smaller amounts.
The technical details are interesting for those who need agility. The loan amount ranges from R 10,000 to R 5,000,000, with short repayment terms, between 3 to 12 months.
Moreover, monthly costs range from 2% to 6% of the advanced amount in the first months, with no penalties for early settlement.
To qualify, the company must have a minimum of one year of operation, annual revenue greater than R 500,000, and be registered in South Africa. As a rule, approval occurs in hours, with funds available within 24 hours.
2. Bridgement
Bridgement focuses on the liquidity of accounts receivable, solving the problem of companies that sell well but suffer from long payment terms from corporate clients.
In addition, the platform connects directly to the company’s accounting software to advance funds against unpaid invoices or offer a line of credit. Simplicity is the pillar of this model, designed to encourage quick debt settlement.
Unlike other lenders, Bridgement proportionally reduces the total fee if the company pays the loan before the deadline.
As a rule, amounts range from R 20,000 to R 5,000,000, with flexible terms of up to 12 months.
Rates start from 1.7% per month, with a single fee per withdrawal and no hidden costs.
3. ProfitShare Partners (Startup loan without collateral)
ProfitShare Partners (PSP) operates a disruptive model that challenges banking logic.
Instead of focusing on the balance sheet, PSP assesses the validity and profitability of a contract or Purchase Order.
This is vital for startups that secure large contracts but lack working capital to deliver.
Furthermore, the model is not an interest-bearing loan, but a capital partnership where PSP pays suppliers directly.
In this arrangement, ProfitShare Partners recovers its capital plus a pre-agreed share of the profit when the end customer pays.
It is worth noting that amounts range from R 250,000 to R 5,000,000 per transaction, with terms linked to the contract cycle.
4. Retail Capital
A leader in the Merchant Cash Advance (MCA) sector, Retail Capital designs its product for retailers and businesses with a high volume of card transactions.
Technically, MCA is the purchase of future receivables.
Moreover, the institution advances an amount and is reimbursed by retaining a fixed percentage of daily sales.
You need to know that the Retail Capital loan amount is based on average monthly revenue, and can reach 100% of the turnover. The term is variable, estimated in months depending on the speed of sales.
5. Standard Bank – BizFlex
Standard Bank responded to fintech innovation with BizFlex, incorporating the flexibility of MCA into the structure of a corporate bank. Being considered one of the best bank loan rates South Africa.
Firstly, this loan uses risk models based on transactional behavior, where payment is a percentage of the revenue entering the business account.
Furthermore, Standard Bank’s BizFlex offers personalized amounts, from R 10,000 up to millions, with terms generally structured for 12 months.
6. SEFA (Startup loan without collateral)
SEFA is the government agency mandated to fill the credit gap ignored by the private sector, prioritizing development.
Its products, such as the Micro Loan and TREP, are vital for early-stage startups.
Unlike fintechs, SEFA can finance startups with less than 6 months of operation, or even in the initial phase, provided they present a robust business plan.
Micro Loans range from R 50,000 to R 250,000, while loans for SMEs can reach R 15 million. Moreover, the terms are extended, ranging from 36 to 60 months.
7. FNB
FNB uses its leadership in digital innovation to offer data-driven unsecured credit.
Firstly, know that the bank analyzes transactional account behavior to proactively offer pre-approved limits.
Furthermore, the customer can view their credit offer in the app and accept it instantly, without the need for real guarantees for these specific lines.
FNB offers terms of up to 3 to 5 years for term loans. Interest rates are personalized based on the Prime Rate.
8. Pollen Finance
Pollen Finance operates in the niche opportunity for established businesses, focusing on healthy companies that need fast capital.
You should keep in mind that the goal is not rescue, but rather to allow the company to take advantage of commercial opportunities, such as discounted stock purchases.
Pollen Finance offers loans of up to R 1,500,000, which can be higher in specific cases. Furthermore, the term is short, weekly or monthly, with interest rates starting from 1.95% per month.
In this case, eligibility is more restricted, requiring a minimum of 1 to 2 years of operation and annual revenue greater than R$ 1 million.
Comparative Table of Startup Loans Without Collateral
| Institution | Maximum Value (ZAR) | Average Term | Approximate Cost/Rate | Access Time |
| Lula | 5,000,000 | 3-12 months | 2% – 6% p.m. | 24 hours |
| Bridgement | 5,000,000 | Flexible (12m) | From 1.7% p.m. | Same day |
| ProfitShare | 5,000,000+ | Project Cycle | Profit Sharing | 48 hours |
| Retail Capital | % of Turnover | Variable | Fixed Purchase Factor | 48 hours |
| Standard Bank | Personalized | 12 months | Fixed All-in Cost | Instantaneous |
| SEFA | 15,000,000 | 36-60 months | Prime + Margin or Fixed | Months |
| FNB | Risk Profile | 3-5 years | Based on Prime | Instantaneous |
| Pollen | 1,500,000+ | Short Term | From 1.95% p.m. | Days |
| NEF (WEF) | 75,000,000 | 5-10 years | ~1.5% p.a. (Subsidized) | Months |
| Genfin | 5,000,000 | 12 months | Interest on Outstanding Balance | 24 hours |
Conclusion
The market for startup loan without collateral in South Africa has reached a level of maturity that offers real alternatives to traditional financing.
We analyzed everything from the agility of Lula and Bridgement to the governmental support of SEFA and NEF, passing through the innovation of banks like Standard Bank and FNB.
When choosing your financing, reflect on the stage of your business. If speed is essential to take advantage of a stock opportunity, the higher cost of a fintech is worth it.
Do not let the lack of physical collateral paralyze your growth. Evaluate the options detailed in this guide, prepare your transactional data,
We also recommend that you apply for the solution that best aligns with your operational cycle today.