There are many scenarios where bridging finance can be extremely useful. As the term suggests, it offers the opportunity to bridge the gap between payment and receipt of funds. They tend to be relatively short-term arrangements. Here, we look at 8 frequently asked questions about bridging finance with Rodel.
What is bridging finance?
Bridging finance is a flexible and short-term financial solution that can be approved and released within a matter of days. It is a highly useful tool for bridging the gap between two property transactions, so you can have access to equity sooner rather than later.
Why would I need bridging finance?
You would need Bridging finance in the following circumstances:
If you’ve just sold your home and need early access to your sale proceeds.
If you’re an estate agent or commercial broker who needs to access your commission early.
If you’ve been granted a new/further or switch bond and need to unlock your funds sooner.
In other situations where your profits are locked in a property-related transaction.
Essentially, Bridging finance is designed to help you bridge the gap when cash flow is tight. It allows you to access your funds before transfer, so you can settle other important expenses.
Are there any upfront fees to pay?
No, we do not charge any admin fees.
Is it like a personal loan?
Although you may spend the money on similar things to a personal loan, bridging finance is very different.
Firstly you don’t have the burden of paying it off monthly for a number of months (e.g. 12 to 24 months.)
Secondly it relates to a one-off property transaction so is settled in full when the deal settles.
Thirdly it is normally out for a much shorter time – on average only 45 days.
How much can I apply for?
There is no transaction too large or too small. Rodel can advance up to 85% of the amount due to you when the property registers in the deeds office.
How long does it take?
“Bridging finance is a very specialised field and requires a very quick turnaround time,” says Andrew Church, our CEO, “which is why the larger, more cumbersome institutions do not play in this space”.
“We pay out 75% of all applications within 24 hours, with the majority of those being on the same day we receive them and we work with 2500 law firms with whom the deals are structured.”
Though the method as a whole is fast, exactly how so depends on the conditions of the client’s transaction. For some, we will process an application and deposit funds in the borrower’s bank account within 24 hours.
What if I require more funds after my application has gone through?
In this scenario, you would notify us. And a further advance could be organised based on your requirements and how far the transaction has progressed from the first application to the second.
How do I apply for bridging finance?
- Fill in our quick online enquiry form: http://www.rodel.co.za/enquiry-form.
- One of our experienced team members will be in touch and see if we can assist you.
- You or your conveyancer (if you are a seller) will be prompted to fill in our e-application form and upload supporting documents.
- Our credit department will process the application.
- Funds will be paid upon approval.
- 75% of our deals are paid within 24 hours.
If you think you need to make use of our bridging finance solutions, we’re here to help. If your situation is complex, talk to one of our experts before applying. Our experience and knowledge of the market will help you to make the most suitable choice and to understand how the process will work and what is expected of you.
We can enable you to get early access to your funds to make the transaction run smoothly and reduce the financial stress that comes with the process.