Property-Backed Finance

A short term loan (6 months), secured by unencumbered assets (typically property).  Applying normal lending criteria, banks would often not be able to assist you as you may not be able to make monthly repayments. You may only be able to make one full repayment when an existing deal you are working on concludes. We kept this in mind when developing this product and structured it for full repayment of capital and interest at the end of the term.

When would this type of loan suit me?

  1. Cash flow is tight but you are awaiting a pay-out when an existing deal concludes
  2. This existing deal should conclude within 6 months
  3. You can provide unencumbered assets as security.

The minimum requirements are:

  • The Borrower must be a Juristic Person in terms of the National Credit Act
  • Maximum transaction value not to exceed 40% of the property value.
  • Valuation of property to be done at clients’ expense.
  • Satisfactory exit strategy / repayment mechanism.
  • Minimum advance of R500 000 (no maximum).
  • Assessment of Assets and Liabilities of Borrower and/or Sureties.
  • SARS affairs in order

How much does it cost?
Each deal is unique and so pricing will vary depending on the nature of the deal.

No monthly repayments required because interest and capital is repaid together at the end of the 6 months.

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