Short-term financing is a common way for businesses to handle financial difficulties caused by industry challenges.
Businesses in the importing sector often have to tackle challenges caused by the global climate and other factors outside their control.
At Business Loans, we specialise in facilitating short-term funding for specific industries such as importers.
We source the best loan offers from our network of trusted lenders to ensure you get the best deal on short-term finance. In this article, we explain:
- challenges faced by importers in South Africa
- the import industry in South Africa in 2024
- how to get funding for importers in South Africa
- why use Business Loans for importer funding.
Challenges faced by importers in South Africa
All businesses face challenges related to economic downturn and a lack of spending power. However, there are specific challenges faced by the import industry that can lead to financial difficulties and the need for short-term funding.
Ports and railways
The efficiency of our ports and railways is vital for the import industry. Infrastructure challenges, cable theft, and shortages of locomotive parts have all negatively affected the efficiency of South Africa’s ports and railways.
Customs duties
In September 2024, SARS introduced VAT in addition to the current 20% flat rate customs duty. In November, it also reconfigured the current 20% flat rate into the World Customs Organisation (WCO) regime for the first three broadband categories with appropriate duty rates.
Import permits
Restricted items require import permits and the permit system can be a challenging and complex process to navigate. It’s vital that import businesses understand the regulatory requirements and obtain the necessary permits.
Global conditions
Global conditions can negatively affect local import businesses. Despite the US dollar being expected to depreciate, which could mean improvement in the rand’s foreign exchange value, oil prices could also spike due to conflict in the Middle East.
The import industry in South Africa in 2024
Despite these ever-present challenges, the import industry in South Africa remains a key component in the country’s economic framework.
In September, imports reached R158 billion. This was a reduction of 1.3% compared to the previous month, a drop attributed to reduced imports of machinery and electronics (-15%), and chemical products (-5%).
On the plus side, there was an increase in purchases of mineral products (+20%), prepared foodstuff (+11%) and original equipment components (+9%).
According to projections by analysts, these numbers are expected to improve in 2025 and 2026.
How to get funding for importers in South Africa
Our funding for importers process is simple. We look at your business’ specific needs and source a funding option that would work best for you.
All you need to do is apply online with your basic information and a dedicated funding consultant will get in touch to finalise your application.
Once the application is complete, approved and the necessary documentation has been processed, the funding is available immediately.
Our services are free for our clients, meaning we source the best loan for you at no additional cost.
To qualify for funding, your business must:
- be registered in South Africa
- have been operating for 12 months
- have made R1 million in sales in the past year.
Why use Business Loans for importer funding
Business Loans is a specialised funding facilitator. We have experience sourcing the best loan options for businesses, and we have a carefully curated network of trusted lenders to choose from.
At Business Loans, we offer:
- personalised service
- quick, online application
- flexible terms
- no office visit needed
- re-advances available
- up to R6 million in funding.
Our business loans are fast, typically getting approved within 48 hours of receiving the necessary documentation. Apply online now to get fast funding for importers in South Africa.
