Start up capital

When taking out a loan to finance the start of a new company you could use this tactic. If, for example, you calculate that you will need R100,000 to get your company up and going, you could actually try to get a loan for R130,000 so that the extra money can be used to pay for the interest repayments and other bills & expenses of the start up before you start to earn serious cash! If you don't do this then you can put a financial strain on your company from day one.