Compare the best options on the market and choose the one which best adapts to your day to day needs.
Further Below: Our Guide To Business Loans in Seychelles, Everything you need to know.
Absa Bank Seychelles
- Loan amounts of up to SCR400,000
- Interest rates of as low as 11.49%
- Flexible repayment period of up to five years
- Fast application process
- Favorable conditions
- No early repayment fees
- Credit life insurance
- Online loan application
Seychelles Commercial Bank
- Credit life insurance
- Maximum amount of SCR 150,000
- Competitive interest rates
- A maximum repayment period of 5 years
- Friendly terms
- May be secured or not
- No personal contribution is required
- Swift service
- Internet banking available
Seychelles Credit Union
- Credit life insurance
- Get amounts of up to SCR 250,000
- Interest rates of 12% p.a on a reduced balance basis
- A maximum repayment period of 10 years
- No penalty on early repayment
- Additional lump sum repayments
- Zero hidden fees or transaction charges
- Top-up loans available
- Allows for debt consolidation
Business Loans in Seychelles, All You Need To Know:
It’s our job to let the reader know everything about financing your business in Seychelles. Take a quick read to get a hang of the types of credits available, the latest news about financing, and all the requirements and documentation required to hire this type of consumer loan in Seychelles.
[UPDATE] What economic measures has the Government implemented for companies through covid-19?
Just like many countries across the world, Seychelles was greatly affected by the Covid-19 pandemic. Nonetheless, the government stepped in right from the onset to cushion companies from the harsh effects of the lockdown both directly and indirectly. The government, therefore, issued orders and set in place some legislative acts, and policies that would help companies survive through the pandemic.
- Seychelles Revenue Authority in collaboration with the Ministry of Finance facilitated the introduction of the Tax Amnesty program that aided in relief services to those affected by the pandemic more severely. This program helped credit consumers to regulate their tax obligations.
- Banks, SCU, and other financing institutions chipped in to provide support through payment deferment of payment, moratoriums, and restructuring credit programs in favor of those affected.
- Bank loan repayment for small businesses was deferred for 6 months, during which companies did not pay the capital or the interest. Companies in the tourism sector also enjoyed deferral of tax payments and social security contributions.
- The government established liquidity measures for businesses affected by the pandemic which lasted till September 2021. The policy introduced new loan maturity periods and grace periods.
Distinguishing types of company profiles
Financing for your business greatly depends on the type of business it is. The features of your company will be great determinants of the type of financing your business qualifies for. Below are the different forms of businesses:
- Entrepreneurs: entrepreneurs come up with ideas and plans of what they wish their business to be. They are able to identify the economic need of a particular area and come up with a business plan to address it. However, their plans only materialize when they get financing.
- Start-ups: this type of business is a step ahead of entrepreneurs. The business already exists but is not solvent enough to qualify for big business loans. Hence, it requires some time and consistency in its operations to gain ground.
- Consolidated companies: as the name suggests, these companies are long-standing, make big profits, and are stable in their operations. The companies qualify for big loans because of their high solvency.
- Large companies: these companies have the largest scale of operation (national or international). They have big turnovers and their needs are in millions of euros.
- As legal entities: these are individuals who own a business. The business is run individually and qualifies for financing depending on its scale of operation. However, these loans are adapted to a single person.
- As natural persons: this refers to people who are not employees and have their personal ways of getting income.
Characteristics of business loans
Different business loans have different characteristics which also depend on the lender. However, the measures to use in comparing these loans are the same and are listed below:
- Cost: This is the first feature you’re supposed to look out for every time you think of financing your business. A loan is considered good debt if the interest rates are friendly because it will allow you to improve your business, meet all the business needs and reimburse the credit without straining.
- Amount. A business will qualify for a certain amount of credit depending on its scale of operation and its turnover. The smaller the business the smaller the amount of loan it’s likely to get.
- Purpose. Depending on your lender, different purposes have different loan conditions. Hence, consult with your lender to find out their conditions for whichever purpose you have, e.g. expanding your business, buying machinery, clearing arrears with your suppliers, etc.
- Linkage. Especially in banks, financing always comes with related products such as insurance, business accounts, or other products of mandatory recruitment.
- Term. This is determined by the purpose, amount, and conditions set by the lender. Your business profile will also determine the type of financing and your repayment period.
- Grace period. This is a period during which the loanee is legally allowed to go without making the loan repayments.
- Guarantee. This applies to big loans where the lender requires “payment insurance” with a guarantee or collateral.
- Speed. Be sure to know when you’ll receive the funds after your loan application is approved because some loans tend to grant loans months after application.
- Repayment. Before signing up for a loan, it’s important to know how you’re required to be making repayments. While others have a monthly installment repayment criterion, others will have you pay the principal amount, the accrued interests, and commissions at the end of the loan term.
Where to get business loans
Numerous companies offering consumer loans have entered the Seychelles financial industry, dislodging the banks’ long-standing monopoly. Seychelle’s financial systems have evolved to produce accessible financial products that can be tailored to meet various borrowing requirements. Because of this, you can obtain a loan that suits your company’s demands regardless of how unique your financial position may be.
Which entities provide business loans in Seychelles?
- Banks: these are the oldest and the most popular providers of business loans. The loans are only given to firms that prove to be solvent enough to repay the loan, among other factors. Nevertheless, SME bank loans are now offered under better conditions and have fast concessions.
- Companies and private capital lenders: the process of applying for a loan and receiving the funds is faster under this category than in others. The application is completely online. Their financial products are offered in excellent conditions which either compete with banks or are better.
- Alternative financing platforms for crowdlending: these are platforms belonging to companies that help borrowers connect with investors. Once connected, it’s the investor’s prerogative to contribute working capital to the borrower or not. Once the borrower starts repaying the loan, the investor will receive the interest. The whole application process to the processing of the loan happens online and the borrower is attended to in a matter of two days.
We will be eligible for various types of financing based on our distinct financial circumstances. Therefore, be sure to do a thorough financial audit to determine which loans your business is eligible for and which you will be able to repay with ease.
Business loan conditions
According to Seychelles Laws on consumer credits, there are basic requirements that every business owner looking for a loan must meet:
- National registration: The company or business looking for financing must be authorized and operating following Seychelles Law controlling and supervising businesses. Lenders won’t be hesitant to grant financing if this is done.
- Annual income: Lenders will be able to evaluate your company’s solvency with the use of these data before extending credit. To assess whether you can afford the loan you’re applying for, the lender will examine your profits and business expenses.
- The seniority of the company: while there are loans tailored for small businesses and startups, big loans will only be available to consolidated companies which will be solvent enough to reimburse the loan.
- Good credit history: work to ensure that your company maintains a positive credit history with the Seychelles Central Credit Register. A negative credit score will frustrate your ability to obtain financing.
Documents needed to get funding
- Corporate Tax payment receipt
- Income tax return
- Bank statements
- An annual balance sheet of the company’s turnover
- VAT return
The submission of these documents may be online or physical, depending on the entity’s preference.
Other forms of financing for companies
- Business credit lines
These are special financial instruments that provide you access to a set sum of money that you can withdraw as you like. You won’t have to pay back the entire amount if you decide to repay the loan; instead, you’ll only have to pay back the principal amount you withdrew plus interest.
This form of financing majorly suits the self-employed and SMEs, where the borrower chooses to clear invoices with about two or so suppliers later. The lender, hence, transfers the funds directly to the supplier, after which, we will repay the lender the cost of the loan and the interest as well as other charges.
- P2B or crowdlending loans
The borrower contacts a private investor via these online platforms, and the investor makes the decision regarding whether or not to invest in the business initiative. Our choice of investor firm and the crowdlending platform we utilize determine the terms of these credits.
- Loans with mortgage guarantee
These are mortgage loans that offer to finance only if the borrower can present some form of guarantee. In this case, the borrower must present property that’s more or less equivalent to the amount of loan they get.
Products to invest in our company
- Equity crowdfunding
These are internet platforms that have recently penetrated the financial market in Seychelles. The platforms put the borrower in touch with professionals and private investors that fund our company projects. Before agreeing to these loans, it’s crucial to understand that the professionals and investors will receive a stake in your firm and a cut of its profits.
- Business Angels
Just like in equity crowdfunding, the borrower connects with the investor through an online platform. However, the company offering these loans will decide whether to have their Business Angel invest in your business or not. The investors will have a share of our company and they mostly invest in big business projects.
- 3F (Friends, Family, Fools)
The 3 F’s (Friends, Family & Fools) refer to people who offer financing for our business projects, either family, friends, or fools. The conditions of financing depend on the agreements made by the lender.
Aid for the financing of companies
- Capitalization of unemployment
This type of financing is only eligible to the unemployed who wish to start up a business. They, therefore, collect any unemployment benefits that are designed to suit them.
Through crowdfunding platforms, borrowers can obtain financing from sponsors who are interested in our projects. Hence, the entrepreneur or business owner publishes their business projects on the platform where the investors will see and reach out to them.
About this page, our methodology
What this page is for: Our objective is to assist you in obtaining the most suitable financing. As a result, we wish to walk you through what personal guarantee credits are, how to compare them, which deals are currently offering the best value, and how to select the best out of the many available ones.
Source: The information herein regarding personal loans comes from the Central Bank of Seychelles portal, and the Financial Consumer Protection Act (FCPA) among other reference sources.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources
About FUNDGECKO: We are an online platform that works to give individuals information about personal finance. Additionally, we provide you with information to aid in your search for a reliable personal loan lender.Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products