Best Bad Credit Business Loan lenders in South Africa for 2025
- Written by Wesley Vos
- Updated
Business Loans
Lula: Best for fast approvals and flexible repayment
Pros & cons
Pros
- Fast approval with funds available in 24 hours
- No collateral required, making access easier for SMEs
- Transparent costs with no hidden fees
- Flexible repayment options with no early repayment penalties
- Simple online application process completed in minutes
Cons
- Higher finance fees compared to secured loans.
- Short repayment terms may not suit all businesses.
- Minimum turnover of R500,000 required for eligibility
Our take
Overview
Lula is a well-established South African alternative lender that provides fast and accessible business loans, even to enterprises with lower credit scores. The company offers funding solutions tailored for small and medium-sized enterprises (SMEs), assisting them in managing cash flow, purchasing inventory, and investing in growth. Their swift online application process and rapid turnaround render it ideal for businesses requiring urgent funding.
What sets Lula apart is its flexible repayment options and unsecured loan offerings. Since credit scores are not the sole determining factor for loan approval, Lula assesses other business performance indicators, such as revenue and cash flow. This makes it a viable option for SMEs struggling to secure loans from traditional banks.
Key Facts
- Loan Amounts: Lula offers business loans ranging from R10,000 to R5 million to businesses of all sizes.
- Fast Funding: Applications may be approved within minutes, with funds released within 24 hours, ensuring swift access to capital.
- Flexible Repayment Terms: Repayment terms are available for either 6 or 12 months, and there are no penalties for early repayment, enabling businesses to pay off their loans sooner.
- Unsecured Loans: No collateral is necessary, allowing SMEs with limited assets to qualify more easily.
- Transparent Pricing: Lula employs a straightforward and transparent fee structure, with monthly costs varying from 2% to 6% of the loan amount, depending on the selected repayment plan.
- Minimal Documentation: The application process is entirely online and takes under 10 minutes. It only requires basic business details and financial records.
Known qualification & document requirements
- Business must be operational for at least six months
- Annual revenue of at least R500,000
- Valid South African business registration
- Recent bank statements required
- No collateral or audited financials are required
Fees
Lula does not charge initiation fees or monthly admin fees, unlike many traditional lenders. Their cost structure is transparent, with fees ranging from 2% to 6% of the loan amount, depending on the loan plan chosen, for the first few months. After that, a fixed 2% fee is charged for the remaining months of the term. Additionally, there are no early repayment penalties, allowing businesses to save on costs if they repay earlier than expected.
Time to receive funds
24h after application approval
Illustrative Example
Loan Amount: R100,000
Repayment Term: 12 months
Monthly Fee (First 4 months): 6%
Monthly Fee (Remaining 8 months): 2%
Monthly Instalment: R10,500.00
Total Cost of Credit: R26,000 (fees over 12 months)
Total Repayment: R126,000
*Please note this is just an illustrative example of what it would cost you. Actual fees and rates may vary based on your specific loan amount and repayment plan. For an accurate quote, we recommend applying directly with Lula.
Business Loans
Bridgement: Best for simple, transparent fees and flexible funding

Interest (APR)
From 1.7% per mo
Loan Amount
R20k-R5m
Loan Term
1-12 mo
Apply on partner site
Pros & cons
Pros
- Fast funding, with approvals within 24 hours
- No hidden fees, with a single transparent fee structure
- Discounts for early repayment, helping reduce the overall cost
- No collateral required, making loans accessible to more businesses
- Minimal paperwork required
Cons
- Annual turnover requirement of R500,000 may limit smaller businesses
- Loan terms are capped at 12 months, which may not suit all business needs
- Requires consistent revenue
- Interest rates vary based on risk profile
Our take
Overview
Bridgement is a South African fintech lender that provides fast, flexible funding solutions for SMEs, including those with limited or poor credit histories. Their business loans are designed to be straightforward and transparent. They offer a pay-as-you-use model, where businesses only pay for the funds they use.
Bridgement stands out for its no-hidden fees policy and highly flexible repayment options, enabling businesses to manage their cash flow effectively. Unlike traditional lenders, it emphasises business performance more than credit scores, making it an excellent choice for SMEs with weaker credit profiles.
Key Facts
- Loan Amounts: R20,000 to R5 million, making it suitable for small and medium-sized businesses.
- Fast Funding: Loan approvals within 24 hours, with funds disbursed soon after.
- Flexible Repayment Terms: Repayment periods vary from 1 to 12 months, offering discounts for early settlement.
- No Hidden Fees: Bridgement imposes a fixed finance fee without origination, administrative, or hidden charges.
- Pay-as-You-Use Model: You only pay for the funds utilised, making it perfect for businesses with variable cash flow.
- Minimal Documentation: Requires little paperwork and a swift online application.
Known qualification & document requirements
- Registered business in South Africa
- Annual turnover of at least R500,000
- Trading history of at least 6 months
- Connect accounting software or provide bank statements
- Valid business registration documents
- No personal collateral is required
Fees
Bridgement does not charge initiation fees or monthly admin fees. Instead, it operates with a simple fee structure: a single fixed fee starting at 1.7% per month is charged on the amount advanced, with no hidden costs. You are only charged if you use the facility, and there are no penalties for early repayment, meaning you can save by paying off your loan early.
Time to receive funds
24-48h after application approval
Illustrative Example
Loan Amount: R100,000
Repayment Terms: 6 months
Interest Rate: 1.7% per month (fixed fee)
Monthly Instalment: R18,333.33
Total Cost of Credit: R10,000 (fixed fee)
Total Repayment: R110,000
*Please note this is just an illustrative example of what it could cost you. Your interest rate and repayment terms may vary based on your business profile and risk assessment. For an accurate quote, we recommend applying directly with Bridgement.
Business Loans
ProfitShare Partners: Best for contract-based financing
Pros & cons
Pros
- No collateral, financials, or trading history required to qualify for funding
- Fast approvals and funding, typically within 24 to 48 hours
- 100% of capital provided for purchase orders and contracts
- Repayments are tied to project completion and profit share, offering flexibility
- Ideal for government and corporate contracts
- Helps businesses fulfil larger deals
Cons
- Funding is only available for specific projects or contracts, limiting general use
- May require working with credible entities in the public or private sector
- The profit-sharing model can be costly
- Short-term funding only
- Requires strong client contracts for approval
Our take
Overview
ProfitShare Partners is a dynamic South African financial services provider specialising in short-term funding solutions for small and medium-sized enterprises (SMEs). Established to bridge the gap in access to working capital, ProfitShare Partners focuses on enabling businesses to secure the funds they need without requiring collateral or extensive credit history. Their unique approach to financing ensures that you can access the necessary capital to fulfil purchase orders, complete contracts, or expand operations.
With a reputation for fast approvals and flexibility, ProfitShare Partners is an ideal choice for businesses looking for business loans. Their funding solutions are designed to align with your cash flow, providing tailored repayment options that work in tandem with your business performance. Their customer-centric model has made them a trusted partner for SMEs across various industries in South Africa.
Key Facts
- Loan Amounts: ProfitShare Partners offers funding ranging from R250,000 to R5 million, providing businesses with significant capital to complete large contracts.
- No Traditional Loan Structure: Instead of charging interest, ProfitShare Partners operates as a short-term joint venture partner, sharing in the profit of the transaction.
- Fast Funding: Applications are processed and approved within 24 to 48 hours, giving businesses quick access to funds.
- No Financials or Security Required: Businesses do not need to provide financial statements or collateral to qualify for funding, which is ideal for younger companies without established credit histories.
- Focus on Contract Financing: ProfitShare Partners specializes in purchase order, contract, and invoice financing, helping businesses manage cash flow while waiting for client payments.
Known qualification & document requirements
- South African-registered business with the Companies and Intellectual Property Commission (CIPC)
- Valid purchase order or contract from a credible corporate or government entity
- Six months of business bank statements
- Proof of business address
Fees
ProfitShare Partners does not charge initiation fees or monthly admin fees. Instead, they operate on a profit-sharing model, where the repayment is based on a percentage of profits made from the funded project. This structure helps businesses avoid the burden of traditional loan interest and fees.
Time to receive funds
24-48 hours after application approval
Illustrative Example
Loan Amount: R500,000
Repayment Terms: Linked to the completion of a project (no fixed term)
Profit Share Fee: 10% of project profit (agreed upon upfront)
Total Cost of Loan: R50,000 (profit share fee)
Total Repayment: R550,000 (includes loan and profit share fee)
*Please note this is just an illustrative example. Actual profit share, repayment terms, and loan amount will vary based on the specifics of your project or contract. To get an accurate quote, we recommend applying directly with ProfitShare Partners.
Business Loans
Cash Flow Capital: Best for short-term loans with daily repayments

Interest (APR)
2.5-4% per mo
Loan Amount
R50k-R2m
Loan Term
4 to 12 mo
Apply on partner site
Pros & cons
Pros
- Fast approval and funding, typically within 24 to 48 hours.
- No collateral required, making loans easier to access.
- Flexible repayment options, with daily or weekly payments available.
- Early settlement discounts, helping you save on costs.
- Applications take less than 5 minutes to complete.
Cons
- Higher starting interest rates, from 32% (2.5-4% per month), compared to some competitors.
- Loan terms are shorter, with a maximum of 12 months.
- Minimum monthly turnover requirement of R300,000 may limit eligibility.
- Restrictions on some industries such as construction and insurance.
Our take
Overview
Founded in 2014, Cash Flow Capital provides alternative financing solutions tailored specifically for small and medium-sized enterprises (SMEs) in South Africa. They specialize in offering fast and flexible business loans, including working capital and asset finance, designed to meet the cash flow needs of growing businesses. Unlike traditional lenders, Cash Flow Capital simplifies the lending process with a quick, 5-minute online application, and funds can be disbursed within 24 hours of approval. Their primary focus is supporting SMEs across industries like retail, FMCG, and hospitality, helping them scale without the long delays or complexities often associated with traditional bank loans.
Cash Flow Capital has made significant strides in the SME lending market by providing more than R2 billion in funding to over 3,700 businesses since its inception. Their proprietary credit model ensures fast pre-approvals, with repayment terms ranging from 4 to 12 months. The company offers daily or weekly repayment options, providing greater flexibility to businesses with fluctuating cash flow needs. Cash Flow Capital’s mission is to empower small businesses by providing accessible capital to fuel growth, helping entrepreneurs achieve their next level of success.
Key Facts
- Loan Amount: Cash Flow Capital offers business loans ranging from R50,000 to R2 million, tailored to your business needs.
- Repayment Terms: Flexible repayment terms ranging from 4 to 12 months, with daily or weekly options.
- Fast Funding: Get approved within hours and receive funding within 24 to 48 hours after approval.
- No Collateral Required: Loans are unsecured, so no collateral is needed to access funding.
- Early Settlement Discounts: Cash Flow Capital offers discounts for early settlement, helping you save on overall costs.
- Quick Application Process: Applications take less than 5 minutes to complete, streamlining the process.
Known qualification & document requirements
- A profit margin of at least 10%
- Minimum 6 months in business
- Monthly turnover of at least R300,000
- 3 months recent bank statements required
- The most recent financial report of the company
- No collateral is required, but proof of revenue is essential
Fees
Cash Flow Capital does not charge initiation fees or monthly admin fees for their business loans. Instead, they offer a straightforward and transparent cost structure with no hidden fees. The total loan cost is based on your business’s risk profile and repayment plan, and early settlement discounts are available to help save on overall repayment costs.
Time to receive funds
24-48 after application approval
Illustrative Example
Loan Amount: R100,000
Repayment Terms: 6 months
Interest Rate: 3% per month (example rate based on risk profile)
Monthly Instalment: R19,666.67
Total Cost of Credit: R18,000 (interest over 6 months)
Total Repayment: R118,000
*Please note this is just an illustrative example of what it could cost you. Your interest rate and repayment terms may vary based on your business profile. To get an accurate quote, we recommend applying directly with Cash Flow Capital.
Business Loans
GroWise Capital: Best for short-term unsecured funding for SMEs
Pros & cons
Pros
- Fixed finance fee (no variable interest)
- Fast funding, with approval and disbursement in hours
- No collateral required for loans, making them accessible to more SMEs
- Flexible repayment options tailored to business cash flow
- Early settlement with no penalties and potential discounts
- Simple application process with minimal paperwork
Cons
- Short loan terms, limited to 6 weeks to 12 months
- Limited funding options focused on merchant cash and stock advances
- Fixed finance fee structure may result in higher overall costs
- Strict turnover requirements apply
Our take
Overview
GroWise Capital is a tech-enabled, alternative business lender based in South Africa, specialising in providing fast, flexible funding solutions to small and medium-sized enterprises (SMEs). Established in 2019, GroWise Capital aims to address SMEs’ funding gaps by offering tailored financial support that can be accessed quickly, often within hours. Their products range from cash to merchant stock advances, with funding between R15,000 and R5 million and repayment terms of up to 12 months. The company’s technology ensures a smooth application process with minimal paperwork, making it a convenient option for businesses looking for fast, no-nonsense funding.
What sets GroWise Capital apart is its focus on financial inclusion and the empowerment of entrepreneurs. The company provides funding without requiring collateral and offers flexible repayment options, including daily, weekly, or monthly payments based on the business’s cash flow. GroWise Capital is committed to helping companies grow by offering customised financing to their specific needs, ensuring that entrepreneurs can access the resources they need to thrive in a competitive market.
Key Facts
- Loan Amounts: Growise Capital offers business loans ranging from R15,000 to R5 million.
- Repayment Terms: The repayment periods vary between 6 weeks and 12 months.
- Interest Rates: Growise Capital uses a fixed finance fee model, tailored to your business’s risk profile and repayment terms, meaning no traditional interest rates apply.
- Unsecured Funding: Growise provides unsecured business loans, meaning no collateral is required.
- Fast Funding: Loan approvals and disbursals are typically completed within hours.
- Tailored Repayment Options: You can choose flexible repayment options, with payments scheduled daily, weekly, or monthly based on your cash flow.
- Simple Application Process: The online application process takes under 4 minutes and requires minimal paperwork.
Known qualification & document requirements
- Minimum 6 months in operation
- CIPC registered business
- Average monthly turnover of at least R50,000
- Submit 6 months’ bank statements
- Valid ID of the business owner(s)
- No collateral is required, but business revenue is essential
Fees
Growise Capital does not charge initiation fees or monthly admin fees for their business loans. Instead, they apply a fixed finance fee, which is added to the cash advance amount and repaid over the loan term. This fee is determined based on the business’s risk profile, and there are no early settlement penalties. This transparent fee structure eliminates hidden costs, making it easier for businesses to manage their repayments.
Time to receive funds
Within hours of application approval
Illustrative Example
Loan Amount: R100,000
Repayment Term: 6 months
Fixed Finance Fee: 10% of loan amount (approximate)
Monthly Instalment: R18,333.33
Total Cost of Credit: R10,000 (finance fee)
Total Repayment: R110,000
*Please note this is just an illustrative example of what it could cost you. The actual finance fee and repayment terms may vary based on your business profile and risk assessment. To get an accurate quote, we recommend applying directly with Growise Capital.
Compare bad credit business loan rates with Fundrate's top picks
Lender | Best For | Est. Apr | Loan Amount | Loan Term |
---|---|---|---|---|
Lula | Fast approvals and flexible repayment | 2-6% per month | R10k-R5m | 6-12 months |
GroWise Capital | Short-term unsecured funding for SMEs | N/A | R15k-R5m | 6 weeks-12 months |
Cash Flow Capital | Short-term loans with daily repayments | 2.5-4% per month | R50k-R2m | 4-12 months |
Bridgement | Simple, transparent fees and flexible funding | From 1.7% per month | R20k-R5m | 1-12 months |
ProfitShare Partners | Contract-based financing | N/A | R250k-R5m | N/A |
Pros and cons of bad credit business loans
While bad credit business loans can provide crucial funding, they aren’t ideal for every business. Weigh the pros and cons before committing.
- Fast approval and funding.
- No collateral required.
- Flexible repayment options.
- Can improve business credit score.
- Helps maintain cash flow.
- Higher interest rates.
- Shorter repayment terms.
- Limited loan amounts.
- Stricter eligibility for high-risk industries.
- Potential fees for early repayment.
What is a Bad Credit Business Loan?
A bad credit business loan is a financing option for businesses that find it difficult to secure traditional loans due to a poor credit history or lack of a credit record. These loans offer SMEs a means to access funding despite a low credit score. Lenders providing bad credit business loans concentrate on business cash flow, revenue stability, and overall financial health rather than solely on credit scores.
How Does a Bad Credit Business Loan Work?
Bad credit business loans function similarly to traditional loans but feature more flexible eligibility criteria. Rather than relying solely on credit scores, lenders evaluate factors such as revenue history, business age, and industry risk. Some lenders may require collateral, whereas others provide unsecured options at higher interest rates. Loan terms generally range from 3 months to 5 years, with repayment structures including fixed instalments, revenue-based repayments, or short-term advances.
Loan Use Cases
Businesses may use bad credit loans for various purposes, including:
- Working capital – Maintain daily cash flow for expenses like salaries, rent, and utilities.
- Equipment purchases – Acquire essential machinery, tools, or technology to enhance operations.
- Inventory financing – Secure stock or raw materials to meet demand and grow revenue.
- Business expansion – Fund renovations, open new locations, or hire additional staff for growth.
Loan Eligibility Factors
Lenders consider several factors when evaluating applications for bad credit business loans:
- Minimum revenue requirements – Lenders may require a consistent revenue stream.
- Time in business – Typically, lenders prefer businesses operating for at least six months.
- Credit score considerations – A low credit score is acceptable, but other financial factors must be strong.
- Industry type – Some lenders restrict funding to specific sectors.
Credit Score Impact and How to Improve It
A low credit score can affect loan terms, leading to higher interest rates or limited borrowing amounts. To improve your credit score:
- Pay existing debts on time.
- Reduce credit utilisation.
- Establish strong financial management practices.
- Regularly monitor and correct credit report errors.
Interest Rates Breakdown
Interest rates for bad credit business loans vary based on lender risk assessment:
- Typical interest rate ranges – Between 15% and 40% APR.
- Fixed vs. variable rates – Some lenders offer fixed payments, while others adjust rates based on revenue.
- Factors influencing rates – Business revenue, loan amount, industry risk, and repayment history.
Repayment Terms and Flexibility
Repayment options for bad credit business loans depend on the lender:
- Fixed instalments – Regular monthly repayments.
- Revenue-based repayment – A percentage of daily or weekly revenue.
- Early repayment options – Some lenders allow prepayment without penalties.
Comparison with Other Business Loan Types
Bad credit business loans differ from other financing options:
- Vs. traditional business loans – More accessible but with higher interest rates.
- Vs. merchant cash advances – MCAs are repaid via card sales, while bad credit loans use fixed or revenue-based repayments.
- Vs. invoice factoring – Factoring uses unpaid invoices as collateral, whereas bad credit loans do not.
Regulatory and Legal Considerations in South Africa
Borrowers should understand the legal aspects of business loans:
- National Credit Act (NCA) – Protects businesses from predatory lending.
- Transparency requirements – Lenders must disclose all fees and interest rates upfront.
- Legal protections – Businesses can negotiate repayment terms in financial distress.
Alternatives to Bad Credit Business Loans
If a bad credit loan isn’t the best fit, consider:
- Business lines of credit – Flexible borrowing options with revolving credit.
- Merchant cash advances – Loans repaid through card transactions.
- Government funding – SEFA and other agencies offer financial support.
How to Apply for a Bad Credit Business Loan
Follow these steps to apply:
- Assess eligibility – Check revenue and financial stability.
- Gather documents – Business registration, bank statements, and financial reports.
- Apply – Online or through a lender’s branch.
- Undergo credit and risk assessment – Lenders review business performance.
- Receive funds – Disbursement time varies by lender.
FAQs
What are the typical interest rates for bad credit business loans in South Africa?
Depending on lender risk assessment, interest rates range from 15% to 40%.
How long does it take to get approved?
Approval times vary but typically range from 24 hours to a few days.
What financial documents do I need to apply?
Typical requirements include bank statements, proof of revenue, and business registration documents.
Can I qualify if my business has only been operational for a year?
Yes, some lenders accept businesses as young as six months.
Are there specific industries that qualify?
Most industries qualify, but high-risk sectors may face stricter terms.
What is the maximum loan amount available?
Depending on revenue and lender, loan amounts range from R10,000 to R5 million.
How does repayment work?
Repayment options include fixed instalments, revenue-based payments, or daily/weekly deductions.
Are there penalties for early repayment?
Some lenders allow early repayment with no penalties, while others charge fees.
Does my personal credit score affect my loan eligibility?
Yes, but lenders prioritise business cash flow and revenue over personal credit scores.
How do interest rates and fees differ between banks and alternative lenders?
Banks typically offer lower rates but have stricter requirements, while alternative lenders provide flexible access with higher costs.
How we choose our best business loan lenders
To select the best loans, Fundrate evaluates the most prominent lenders in South Africa. Each lender was ranked focusing on four main categories:
Affordability
This section of the scoring evaluates interest rates, penalties, and fees. Lower rates and fees, along with fewer penalties, contribute to a higher score. Lenders that offer rate discounts, grace periods, and the option to change the due date receive bonus points.
Availability
This category considers factors such as minimum loan amounts, number of repayment terms, eligibility requirements, the option to apply with a co-borrower or co-signer, and the loan turnaround time.
Customer experience
This category includes customer service hours, the availability of online applications, online account access, and mobile apps.
Transparency
For this factor, we assess how clearly information is presented to borrowers on the lender’s website. This includes details on credit requirements, rates, fees, and the availability of prequalification.