Major South African banks typically require personal guarantees, cession of business assets, and sometimes property or stock as collateral for acquisition funding. Alternative sources include private equity, vendor financing, mezzanine funding, and government-backed programs that may offer more flexible terms for buyers.

When you’re trying to get acquisition funding from big South African banks, it can feel a bit like going through a tough interview you have to prove you really deserve the money. Banks like ABSA, FNB, Standard Bank and Nedbank usually insist on strong financials, a solid business plan with good cash-flow forecasts, a healthy credit history, and a meaningful equity contribution (often 20–50% of the price) before they’ll back your deal. They also want security: this typically means pledging the target company’s assets (and sometimes your own), guarantees, and sometimes interlocking covenants that give them comfort they can recover their loan if things go south. In bigger syndicated deals, security packages may cover almost all assets of the group being acquired.

Major South African banks typically require business assets, shareholder guarantees, and personal sureties as security for acquisition funding. Alternative sources include vendor financing, private equity, mezzanine debt, and crowdfunding platforms, which can offer more flexible terms and lower collateral demands. Combining sources often helps buyers bridge funding gaps efficiently.