If you have sold your property and have money due to you on registration, Rodel can advance a portion of this money upfront.
Why bridging finance?
The demand for bridging finance arises due to the time required in the conveyancing process to register the transfer of a property from the seller’s name to the buyer’s name in the deeds office. It typically takes 60 to 90 days from the date the sale agreement is signed to when the sale is registered. The property seller would only receive their money from the sale when registration occurs, but may need their money beforehand.
– There may be a need to pay arrears or future rates for the transaction to progress, or
– The seller may be buying elsewhere and need to put a deposit down on that home.
– It may even be used to settle urgent debts or pay for that well deserved holiday.
How do I apply and how long does it take?
Normally the Rodel application form is completed by the seller’s transferring attorney and signed by the seller. Thereafter Rodel’s credit department will assess the transaction and depending on the value may need to view certain transaction documents. Once the deal is approved payment can be made. If all documents are available payment is usually made within 24 hours of receipt of the documents and in fact 80% of our deals are done in this time frame.
How much does it cost?
The cost is 0.150% per day, which amounts to R1.50 per R1,000 per day.
Rodel does not charge any administrative or penalty fees, but the minimum total cost will equal the higher of R250 or 18 days’ fees.
For natural persons, should the term of the funding extend beyond 120 days, the daily fee will reduce to 0.049% per day or R0.49 per R1,000 per day from day 121 onwards.
You have sold for R1,000,000
Your bond and agents commission and other costs total: R600,000
Net due to you on registration: R400,000
If you needed R50,000 now of the R400,000 for 30 days that would cost R2,250
OR R50,000 x 0.150% x 30 days = R2,250
How much can I apply for?
There is no transaction too large or too small.
You can access up to 85% of the money due to you.
Using the example above if you had R400,000 due to you on registration we can advance 85% of this or R340,000 (i.e. R400,000 x 85%)
To find out how Rodel can help, watch our video.