FNB lends to businesses through several products — term loans, overdrafts, asset and equipment finance, commercial property finance and cash-flow facilities. Which one you qualify for depends less on the amount you want than on what the money is for and how the business generates cash.
Business lending is assessed on the entity’s trading record rather than on a salary, so the documentation is heavier and the assessment takes longer than a personal loan.
Eligibility Requirements at a Glance
The core criteria apply across business lenders.
- The business must be registered with the Companies and Intellectual Property Commission (CIPC), or be a registered sole proprietorship or partnership
- A trading history — commonly at least twelve months, and longer for larger facilities
- A business bank account, normally with FNB for FNB facilities
- Tax affairs in order with SARS, evidenced by a tax compliance status PIN
- Directors, members or partners 18 or older with valid identification
- No unresolved judgments against the entity or its principals
Income and Affordability Requirements
The question is whether the business produces enough surplus cash to service the facility after existing commitments.
Lenders assess turnover stability across recent months, gross and net margins, the existing debt service burden, and seasonality. Consistency matters more than a single strong month.
Where directors sign personal surety, their own affordability and credit records are assessed too. The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Match the product to the need: a term loan for a fixed once-off cost, an overdraft for fluctuating working capital, asset finance for equipment. Funding a long-term asset from an overdraft is expensive.
Credit and Financial Requirements
Both the business and its principals are assessed. Commercial bureau records, supplier payment behaviour, trade references and the directors’ personal bureau records all feature.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
Note that the National Credit Act does not protect every business borrower. Juristic persons above the prescribed asset value or turnover threshold fall outside the Act, which means its affordability and disclosure protections may not apply. Ask FNB in writing whether your agreement is regulated.
Security is usually required: a bond over property, a notarial bond over movable assets, a cession of book debts, or personal suretyship from the directors. Be clear about exactly what is pledged.
Documents and Verification Required
Prepare the full pack before applying — incomplete financials are the commonest cause of delay.
- CIPC registration documents and a current company profile
- ID documents and proof of residence for all directors, members or partners
- Six to twelve months’ business bank statements
- Latest annual financial statements and year-to-date management accounts
- SARS tax compliance status PIN
- A business plan and cash flow forecast covering the facility term
- Details of existing loans, leases and security already granted
- Proof of the ownership or shareholding structure
- Where relevant, signed contracts or purchase orders supporting the projected income
How to Apply and Improve Approval Readiness
Apply through your FNB business banker, on fnb.co.za, or through the FNB app for smaller facilities. A relationship banker who understands the business usually gets a better outcome than a cold application.
- Bring financials up to date first — stale accounts undermine the whole application
- Keep the business account clean: returned debit orders and constant overdraft excesses read badly
- State the specific use of funds and the return expected
- Match the term to the life of the asset
- Compare against SEFA, the IDC and the National Empowerment Fund, whose terms for qualifying businesses can be better
- Ask for the total cost including initiation and monthly fees, not just the rate
Frequently Asked Questions
How long must the business have traded?
Most commercial lenders want at least twelve months of trading with matching bank statements. Start-ups are usually better served by development finance institutions, which assess a business plan rather than a track record.
Do I need to bank with FNB?
For FNB business facilities, generally yes. The bank uses the account history as part of its assessment, so an established account strengthens the application.
Will I sign personal surety?
For small and medium businesses, usually. Suretyship makes you personally liable if the business cannot pay, so weigh the exposure before signing.
Does the National Credit Act protect my business?
Not always. Juristic persons above the prescribed thresholds fall outside the Act. Ask the bank to confirm in writing whether the agreement is regulated.
Qualifying criteria, thresholds and pricing are set by the bank and change. Confirm current requirements with FNB business banking before applying, and compare against development finance options.