Property Backed Finance
Secured against unencumbered assets, typically property, this short-term loan spans six months. Traditional lending institutions might be unable to accommodate your needs due to the inability to make monthly repayments. Instead, you might anticipate a single full repayment upon the conclusion of an ongoing deal. Recognizing this scenario, we designed this product for full capital and interest repayment at the term’s end.
When might this loan be suitable for you?
- When cash flow is tight, but you expect a payout upon the conclusion of an existing deal within six months.
- When you can offer unencumbered assets as security.
Minimum requirements include:
- The borrower must be a Juristic Person under the National Credit Act.
- The transaction value should not exceed 40% of the property value.
- Property valuation to be arranged at the client's expense.
- An acceptable exit strategy or repayment mechanism.
- A minimum advance of R500,000 (with no maximum).
- Assessment of assets and liabilities of the borrower and/or guarantors.
- Tax affairs in order with SARS.
What are the costs?
Each deal is unique, so pricing will vary based on the specifics of your situation. With no monthly repayments, interest and capital are repaid together at the end of the six-month term.