Business Mortgage from Standard bank

Business Mortgage or Business Loan

A very underrated and an extremely intuitive and entrepreneurial product offered by Standard Bank and only Standard Bank is something called the Business mortgage.

This incredible Standard Bank product offers financing to business owners who are operating their businesses from residential type properties where business loans gives the owner access to further advances and access bond facilities thus alleviating cash.


Business Mortgage Features:

1. Borrow up to R10 million (minimum R100000)

2. Repayment period to Standard Bank can be up to 30 years
3. Loan of up to 80% of the property’s assessed value
4. Finance is available for additions and alterations
5. Finance of sectional title office blocks up to R 1 500 000.00
6. Further advance and access bond facilities may be applied for

Inclusion of property types
Bed and breakfast/guesthouse accommodation/attorneys/doctors with Liquor licenses is now an acceptable property type. Standard Banks business loan now also caters for Sectional Title office blocks below R1.500 000.

Repayment period and loan term
The repayment period for business mortgage is now standard at 30 years with an LTV of 80%

Accessbond limit option
The accessbond limit option will now be offered on business mortgage accounts. This will allow customers to withdraw funds taking the balance up to the ATM limit.

Further advances offered on business mortgage
Customers are now able to apply for further advances on a business mortgage. The maximum loan size was increased to R10 000 000.00

Business Loan Option 1
If you’re wanting the property to remain zoned residential however, want to be allowed to operate a business from the site the following must be met:
– It must retain a residential character
– It must be able to convert back to residential
– A portioned percentage used for business use, is to be determined and added to the report by the assessor
– An official letter of consent use must be added as an condition of the loan

Business Loan Option 2
If you want it re-zoned to business:
– The property must be situated in a business node (must be the norm for the area)
– Adequate comparable sales must be on hand
– Business zoning checked and verified (zoning certificate) must be obtained

Business Loan Option 3
If it’s a B&B guesthouse or creche it will be evaluated on the basis of an SME proposal, having regard to:
– Past financial’s
– A full budget forecast
– A Business plan – essentially to ensure the applicant has adequately researched the purchase
management capability
– A cash flow forecast
– A personal balance sheet

The assessments are undertaken post grant on a revenue / expenditure method


The maximum loan is 80% –  loan maximum will be considered.

 Important documents:

1. Zoning certificate.

2. Business plan – showing room count and occupancy.

3. 12 Months cash flow projection.

4. 3 Years Financials and latest management accounts.

6. 6 Months current owners business bank statements.

7. Why is the current owner selling?

 BUYER: (You)

1. Statement of personal asset and liabilities.

2. CV – what qualify you to run this guesthouse – personnel and management – this can be included in the business plan.

3. are you  buying this to run as your full time business?

4. Three months personal banking statements.

5. If you are earning an income currently from a business or employer – proof thereof.


1. 20% deposit will be required.

2. If you are a current home owner this will count in his favour. If there is equity in the property, covering bond can be registered to cover deposit.

3. It might be advisable for you the buyer to ask an accountant to do a feasibility study once you – the buyer has the financials, and you must compare the financials with the current business banking account. Don’t only rely on the financials. Figures can be played with.