Why bridging finance?
You’ve sold your property and have set your sights on a new home, but urgently need access to your profits to cover expenses such as deposit, arrear rates, moving costs or even personal debt like school fees or credit card payments. We know the period between sale and transfer can be a financially constricted time.
That’s where bridging finance comes in. Rodel offers a short-term finance solution that is quick and easy to arrange.
How do I apply and how long does it take?
- The Rodel application form is completed by the seller’s transferring attorney and signed by the seller.
- 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. 80% of our deals are done in this time frame.
How much does it cost?
– 0.150% per day, which amounts to R1.50 per R1,000 per day.
– No admin or penalty fees, but the minimum total cost will equal the higher of R250 or 18 days’ fees.
– 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.