Sold your home for a profit, and someone forgot to tell you that it can take 3 months for you to get the cash?
Bridging Finance is the key to gaining access to your profit quickly.
What is Bridging Finance?
Bridging Finance is short-term finance for anybody who expects some payment of money soon, typically within 3 months. A client uses Bridging Finance to turn profits or assets into cash, without the hassles normally associated with traditional forms of borrowing such as bank loans. Bridging Finance is therefore offered by specialist finance companies, which are able to respond quickly and seamlessly to clients’ applications.
It is usually possible to arrange Bridging Finance without actually visiting the offices of the finance company, since the whole process is normally done by e-mail, fax and telephone. In some instances it is even possible to obtain the finance on the same day as the application!
From the Bridging Finance company’s perspective, the credit approval process depends very much on the certainty of repayment. In other words, the more certain you are that payment will be made at some point in future, the more likely you will receive Bridging Finance.
Banks don’t normally provide Bridging Finance because it is a specialised process requiring trained personnel and it does not provide long-term income or regular business for them. Anybody with a short-term need for specialised finance and no time to waste, should therefore approach a Bridging Finance company rather than the traditional finance sources.
Property bridging finance
The most obvious need for Bridging Finance is in the property industry – a seller has sold his house but may have to wait up to three months for the cash, a property owner has been awarded a new bond but now has to wait six weeks for registration, an estate agent has earned her commission on a sale, but will only see it once the transfer is finally registered.
It's appalling that it takes so long to do a little paperwork and transfer your sold house over to the new owner, but as we all know, there's always a backlog and they're always playing catch-up. And the banks don't pay out the money until the registration has gone through. So what do you do in the meantime?
Selling your house and using the profit to pay the deposit on your new home sounds easy, doesn't it? Not so! You may have to wait a few months before you can buy that new home. What a catch 22 situation! Frustrated? Well, the solution is to get Bridging Finance.
CapX Finance is one of South Africa's leading Bridging Finance companies, operating throughout the country. Communication with clients is by telephone, fax and e-mail. You can arrange the Bridging Finance from the comfort of your home or office! If CapX Finance can't help you for some or other reason, they may be able to refer you to another financial institution which specialises in the type of finance you are looking for.
What can Bridging Finance be used for?
- Obtaining cash for a deposit on a new home;
- To pay outstanding rates and taxes on the home you have sold;
- To pay transfer duties on a new home;
- To free up cash for starting or buying a new business;
- To settle existing debts sooner rather than later;
- Advances on estate agency commissions;
- Advances on 2nd and 3rd mortgage bonds.
How does it work and what does it cost?
The process works as follows:
- Contact us by applying for Bridging Finance South Africa online.
- A credit application form will be e-mailed to you, so make sure your e-mail address is filled in correctly.
- You may need to obtain some information from your attorney, or you may telephone CapX so that one of their very helpful client advisors can assist you.
- Fax the completed credit application form to CapX on 021 979 1996.
Once your request for Bridging Finance has been approved, one of the client advisors will contact you. Your money should be in your account within a few hours after the completed form has been received and the Bridging Finance approved.
The cost is R1.50 per day for each R1,000.00 advanced, so that the costs can be calculated easily. There are no other costs such as raising fees, administration fees, service fees or any hidden costs and no compounding interest involved.
How much cash can be advanced?
Generally, up to 80% of the surplus on registration can be advanced.
To work out your surplus, you take the selling price of your house, deduct your current outstanding bond amount and any legal fees and other costs like the estate agent's commission. This will leave you with your surplus. For example:
|Price for your house:||R800 000|
|Minus your outstanding bond:||R300 000|
|Minus the costs*:||R 20 000|
|This leaves you with a surplus of :||R 480 000|
|Maximum amount for a Bridging Finance advance (80%) :||R 384 000|
* The costs usually include things like: Bond Registration costs, Rates and Taxes, and Estate Agent Commissions.
To get the ball rolling, just click to apply for Bridging Finance in South Africa, fill in the form, and you're on your way to gaining quick access to your money. For more information about Capx Finance, click here.
The Bridging Finance Team
For telephonic advice, please phone us on 021 979 1960.