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Liquidators Finance

Unlock Immediate Capital While Property Transfers Await

Addressing transfer delays with strategic liquidator finance

New Heights Finance is a finance broker that doesn’t directly provide loans. We partner with various financial institutions to offer you a variety of loan options and help you compare different products. New Heights Finance may earn a commission, which is usually a fixed percentage of the loan amount and can vary depending on the lender.

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Bridging finance for liquidators

Delays in the transfer of liquidated properties can create significant cash flow challenges for liquidators. Operational costs continue to accrue and the inability to access sale proceeds can hinder the efficient administration of the estate. At New Heights Finance, we understand these frustrations. We partner with a diverse network of financial institutions to offer specialized financing solutions designed specifically for liquidators facing transfer delays. Let us help you bridge this financial gap and maintain momentum in the liquidation process.

Why Choose New Heights Finance to Overcome Transfer Delays?

  • Targeted Lender Network: We collaborate with private lenders that understand the specific challenges faced by liquidators dealing with property transfer delays. This allows us to connect you with lenders offering tailored solutions.

  • Expert Understanding of Liquidation Processes: Our partners have a strong grasp of the legal and logistical intricacies of liquidation, including the potential for transfer delays. We can effectively communicate your situation to lenders.

  • Efficient and Streamlined Process: We understand the urgency of accessing funds during these delays. We work diligently to gather the necessary information and present your case to relevant lenders quickly and efficiently.

Who can benefit from liquidators finance?

Insolvency Practitioners

Access immediate funds to cover ongoing costs and administrative expenses while waiting for the registration of property transfers to finalize.

Liquidators Facing Transfer Delays

Secure the necessary capital to avoid cash flow shortfalls caused by unforeseen delays in property conveyancing.

Estates with High Holding Costs

Obtain financing to offset the expenses associated with maintaining and securing properties pending transfer.

Liquidators Needing to Fund Distributions

Bridge the gap to make interim distributions to creditors or beneficiaries while awaiting the release of funds from property sales.

Loan Conditions

Loan Term: From 6 month to 12 months 

Property Status: Bond-free, owner holds title deed

Property Value: Over R1.5 million

Maximum Loan: 50% of open market value

Interest: 2.8 – 4% per month

Cost Schedule

    Property Value: R 1 000 000
    Loan Granted: R 400 000
    Bond Reg Costs: R 12 000
    Attorney Fees: R 8 000
    Initiation Fee: R 12 000

    Funds Available: R 368 000 ( to Client)

    Interest Rate:  2.8% – 4% per month

    Once-off Costs: 3% fee

    Term: 6 – 12 months 

    Subject to lenders Terms and Conditions at time of quote

    How Does Finance for Liquidators Work?

    This specialized financing is designed to provide liquidators with access to capital based on the imminent sale of liquidated properties where the transfer process is underway but not yet finalized. It acknowledges the security inherent in the pending transfer and aims to alleviate the financial strain caused by these delays.

    Key Features

    • Security Against Property Sale Proceeds: The anticipated funds from the completed property transfer serve as the primary security for the financing.
    • Short-Term Facilities: These financing solutions are typically structured as short-term loans, aligning with the expected (albeit delayed) completion of the property transfer.
    • Flexible Drawdown Options: Funds can often be drawn down as needed to cover immediate expenses.
    • Interest Accrual: Interest is typically charged for the duration the funds are utilized, until the property transfer is finalized and the loan can be repaid from the sale proceeds.

    Benefits

      • Improved Cash Flow: Access immediate capital to manage ongoing operational costs and avoid cash flow bottlenecks caused by transfer delays.
      • Maintaining Liquidation Momentum: Enables the liquidator to continue with other aspects of the liquidation process without being held back by pending property transfers.
      • Covering Holding Costs: Provides funds to offset expenses associated with maintaining and securing the properties while awaiting transfer.
      • Facilitating Interim Distributions: Allows for potential interim distributions to creditors or beneficiaries, improving stakeholder relations.
      • Avoiding Distressed Actions: Prevents the need for potentially unfavorable actions due to a lack of immediate funds.

      FAQs

      What kind of documentation is typically required to secure financing for transfer delays?

      To secure financing for transfer delays, lenders will typically require documentation that substantiates the pending property transfer and the anticipated proceeds. This may include:

      • Offer to Purchase/Sale Agreement: A signed agreement outlining the terms of the property sale
      • Proof of Transfer Process: Documentation from the conveyancing attorneys confirming the transfer is underway and detailing the stage of the process.
      • Valuation of the Property: A recent valuation report to confirm the market value of the property.
      • Details of Outstanding Costs: Information on the immediate expenses that need to be covered.
      • Liquidation/Insolvency Documents: Relevant court orders or appointment documents confirming the liquidator’s authority.
      How is the amount of financing determined when it's based on pending property transfers?

      The amount of financing available is typically determined based on a percentage of the net proceeds expected from the property sale. Lenders will consider factors such as the agreed-upon sale price, any outstanding encumbrances on the property (e.g., mortgages), and the estimated costs associated with the transfer. They will aim to provide a loan amount that adequately addresses the immediate needs while ensuring sufficient funds will be available from the transfer proceeds for repayment.

      What happens if the property transfer faces further unexpected delays?

      While the financing is structured around the anticipated completion of the transfer, lenders understand that unforeseen delays can occur. In such situations, it’s crucial to maintain open communication with the lender. Options might include:

      • Extending the Loan Term: Negotiating an extension of the financing period, potentially with adjustments to interest accrual.
      • Exploring Alternative Security: Discussing potential alternative security measures if the transfer delay becomes protracted.
      • Reviewing the Underlying Issues: Collaborating to understand the reasons for the further delay and assessing the likelihood of eventual transfer.

      Proactive communication and transparency are key to managing such situations.

      Is this type of financing only available for residential properties, or can it be used for commercial or industrial properties as well?

      Financing for transfer delays can potentially be utilized for various types of properties undergoing liquidation, including residential, commercial, and industrial properties. The key factor is the existence of a confirmed sale agreement and a demonstrable process underway for the transfer of the property. The lender’s assessment will focus on the security provided by the anticipated sale proceeds, regardless of the property type.

      THE BELOW FORM ONLY APPLIES TO LIQUIDATORS FINANCE. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.