ABF or Asset-backed Finance is yet another trusted solution on offer by us.
How do you know if this is the correct solution for you? We’ve unpacked ABF into plain English.
In generic terms asset-backed finance is self-explanatory; a loan that is secured by ceding an asset. A Home Loan is an example of Asset-backed Finance; here you are borrowing funds against an asset.
So how does this all relate in the Rodel world?
Our product came about when we discovered a need amongst our commercial clients for bridging finance on transactions that are not necessarily linked to the sale or purchase of a home. These clients had assets and needed the cash urgently for business transactions. They knew they would be in a position to repay these funds sooner than a traditional Home Loan term and also didn’t want to go through the process of applying for a Home Loan and paying the associated fees.
Imagine the following;
You have your eye on a business that you have painstakingly investigated but you’re up against another buyer. It has come down to one simple fact; whoever raises the money first will be successful in the purchase of this business. Or the continued success of your business depends on acquiring equipment/stock which you need to pay for immediately.
You own an asset, a freehold property, but you do not have the time to apply for and await registration of a bond in order to access the equity therein.
Cue Rodel!
Rodel offer the Asset-backed finance option on freehold property, with the following guidelines;
• The funds are borrowed against a property that has no existing bonds
• The repayment mechanism cannot be the sale of this property
• Repayment period may not exceed 6 months
• Maximum LTV (loan to value) may not exceed 40% of the total value of the asset
• Valuation conducted is for the applicants account
• Minimum loan amount is R500 000 (there is no maximum)
• Full assessment on Assets and Liabilities on the borrower/s and sureties/guarantors
• The borrower must be a Juristic Person in terms of the National Credit Act
At Rodel we have a vast array of solutions on offer to suit just about any situation. We tailor our offerings to ensure that we look after the most important people in our business, you!
It may not be a business transaction you have in mind, it could be the purchase of a second property (without having to apply for a Home Loan), it could be for renovations, etc. Whatever it may be, our team is here to discuss the in’s and out’s with you.
Go on, Rodel it!
