How to sue a doctor or hospital in South Africa

How to sue a doctor or hospital in South Africa

Doctors and hospitals are there to provide medical care and life-saving interventions for patients, but unfortunately sometimes things go wrong. This is particularly true for government hospitals in South Africa where standards of care, hygiene and equipment are below what is acceptable. While doctors simply cannot prevent negative outcomes for every single patient, they are required to adhere to a strict code of ethics and standards of practice to prevent putting patients at risk.

Who do you submit a medical negligence claim to? 

If you have been a victim of medical negligence by a doctor or hospital, you will open a civil case at the High Court to claim for damages. You will either be suing a doctor or a hospital. When suing a hospital, the hospital or State (if a government hospital) are held liable for the negligence of staff employed by the hospital.

What constitutes medical negligence? 

  • the healthcare provider or hospital was legally responsible for providing the patient with care
  • the healthcare provider or hospital breached their obligation to provide a level of care that meets regulatory standards
  • the breach in care resulted in serious injury or death to the patient
  • the injury to the patient resulted in financial loss and emotional trauma

Common cause for claims include: 

  • inadequate patient records
  • failure to disclose risks to the patient
  • failure to follow correct treatment protocols at the correct time
  • poor monitoring of patient (development of infections, worsening condition, secondary health issues, death)
  • birth injuries

When are you legally able to submit a medical malpractice claim?

When you sign your admission forms, you often sign an indemnity or disclaimer thus waiving your right to sue the healthcare provider or hospital by knowing all the associated risks. However, if the above misconduct causes can be proven, you have a good chance of opening a case against the healthcare providers or hospital.

How soon must you make a medical negligence claim?

You must submit a medical negligence claim within three years of the incident occurring.

Damages you can claim for

  • Medical expenses
  • loss of income
  • compensation for chronic pain, emotional trauma and suffering

if you need to sue a doctor or hospital we are able to connect you with a medical malpractice attorney. If your medical negligence claim has been approved, we can also give you an early cash advance while you await payment.

 

 

3 Solar Power Finance Options

3 Solar Power Finance Options

When investigating solar power systems for your business, it is important to assess all the finance options available to you. The route you take finance-wise depends on your business’s cash flow, budget and projections. Let’s explore some of the solar power finance options available to your business. 

Upfront Payment 

If your business has the capital and good cash flow, you could afford to pay the costs of installation upfront. Paying the full amount for your new solar power system upfront has the benefit of helping you avoid paying any interest and potentially enjoying the cost-saving benefits sooner. Sometimes when paying the full amount upfront, you are able to negotiate a discount with the installer. 

Business Loan 

If your business is not in a position to fork out the upfront investment on a solar power system, you can look into applying for an unsecured business loan to fund the project. If your business has made more than R1 million in turnover in the past year and has been trading for over 12 months, you can apply for an unsecured business loan of between R50k and R3 million. 

Solar Power System Rental 

Another innovative finance solution is the rent to own model or solar power system rental model of finance. You will apply for solar power installation and pay a monthly rental to the installer for your solar power system for an agreed period of time. You can enjoy the cost-saving benefits of solar power from day 1 without a massive initial investment. 

Interested in applying for solar power system rental? Fill out our application form and our installer will be in contact with you with the next steps. 

 

What is Solar Power System Roof Rental?

What is Solar Power System Roof Rental?

Have you been looking into investing in a solar power system for your business? You may be wondering what financing options are available to you. With the tough economic climate and exorbitant energy prices, many businesses simply cannot afford the hefty lump sum payment that comes with installing a commercial solar power system. Did you know that solar power system rental is an option for most businesses? If your business has a roof, then solar site leasing is a viable option for you. 

What is solar site leasing? 

Essentially, solar site leasing is renting out unused space such as your roof, parking lot or unused property into an income generating area by agreeing to lease the property to solar power installers

How does solar power roof rental work? 

With the energy sector in disarray, the demand for renewable energy continues to grow. There is a huge demand for roof space for solar power system installation. If your business has unutilised roof space, a solar power developer will pay you an annual rental to use your roof space to generate solar power

The solar developer takes on all the maintenance and installation costs, so there is no pressure on you in terms of financing, maintenance and running costs. 

Benefits of solar power system rental 

  • No equipment or maintenance costs 
  • Funded by a third-party solar power investor/developer 
  • Owner of the solar power system will pay a set rental to the property owner annually 
  • Agreements are approximately 20 years long, guaranteeing passive income for decades 
  • You get a solar power system without an upfront payment 

If you would like to learn more about renting your roof to a solar developer or want an idea of how much you could earn monthly, fill in our application form and we’ll be in touch with an estimate. 

 

Top Expenses to Cut Back On To Save Money

Top Expenses to Cut Back On To Save Money

South Africans have always experienced tougher economic conditions than other countries so its no wonder we are savvy when it comes to saving money. With economic conditions being tougher than ever before, many South Africans are cutting back on their expenses in order to save money and make it through the month. In fact, 55% of all households are still bearing the brunt of the strain the Cover-19 pandemic have put on their finances.

Here is a list of the top expenses South Africans cut back on in 2021: 

Most consumers have cut back on luxury and big-ticket purchases like appliances, cars and luxury brands, delaying the purchases until their personal finances recover. They have also cut back on subscriptions and memberships like gym and mobile phone contracts.

On the flip side, households have put more money into emergency savings funds, into cutting down debt and into retirement funds. 85% of households are very concerned about how they will manage to pay their bills and debts going forward if things don’t improve.

If you find yourself in a real financial bind and need access to cash quickly, apply for one of our loan solutions today:

Personal Loans – got a clear credit record and need up to R150k fast? Apply for a personal loan.

Pension Bridging Loans – waiting for your pension or provident payout? Apply for a pension cash advance and get some of your money early to ease financial stress.

Loans Against Assets – use art, jewellery, handbags and luxury items as security for a secured personal loan. Get them back once your loan is paid up.

Loans Using Un-bonded Property – is your property valued at over R2 million and fully paid up? Use your home as security for an equity release loan of R1 million or more.

 

How To Manage Your Cash Flow Better

How To Manage Your Cash Flow Better

We all know how the old saying goes…when it comes to running a business, cash is king. Steady cash flow ensures your business can cover it’s overheads while continuing to grow. However, many businesses hit a snag when there’s a lag between forking out cash for overheads and receiving money in from customers. This can limit your ability to expand your business. 

There are a number of ways to manage cash flow issues and ensure a steady stream of cash entering your business at all times. 

  • Cash flow projections 

Every business should put together cash flow projections as part of their annual budget. If your business is seasonal and has a few months where there tends to be a lull in business, cash flow projections can help you prepare and plan for dry spells. 

  • Get paid sooner 

Sometimes the issue is not a lack of sales but payment terms or customers who try stall paying. There are some simple ways you can try get paid faster which include: 

  • Early settlement discounts (e.g. 5% off when settling in 7 days) 
  • Take deposits at order placement if lead times are longer 
  • If customers don’t pay cash up-front, run a credit check before taking them on as a client. 
  • Put old stock on sale to try get rid of redundant inventory 
  • Send out invoices promptly and send frequent reminders 
  • Charge interest on late payments, ensure this clause is in your T’s and C’s. 
  • If the same customers tend to always pay late, change your terms to cash on delivery for any future dealings with them. 

 

  • Get Smart About Overheads 

It’s important to try and get most of your money in BEFORE your expenses are due to be paid out. If suppliers offer 30 day terms, don’t pay on day 15…pay on day 30 once you know most of your income will have hit your account. 

If you can, pay your bills using a company credit card. Many offer up to 55 days interest-free which means you’re up to date with your suppliers and you’re not stretched financially. It’s important to stay in their good books. If you ever foresee payment having to be made late, let them know well in advance so they too can manage their cash flow. 

  • Unsecured Business Loans 

Sometimes even with fine-tuned cash flow projections, chasing payments and carefully managing overheads, businesses still run into cash flow issues. Nobody predicted the Covid-19 pandemic while budgeting last year, for example and despite their best efforts, many business owners find themselves in need of cash, NOW! 

The quickest way to get business bridging finance is through an unsecured business loan. You can get access to a cash loan of between R50 000 up to R1.5 million in as quickly as 3 business days! There’s no easier way to get cash back into your business than by applying for an unsecured business loan with NHFinance. With flexible loan terms and fair interest rates, you can get the cash you need to pay your overheads fast! 

Apply Now.

How To Get A Cash Loan Fast With Bad Credit

How To Get A Cash Loan Fast With Bad Credit

With the cost of living in South Africa on the increase, our monthly salary can sometimes barely cover our expenses, never mind during a pandemic where salary cuts and retrenchments are plentiful. From groceries to medical aid, school fees and fuel, expenses add up fast and cash dries up even faster.

If you need cash urgentlyto pay important expenses like electricity, water and rent for example, where do you get it from? Most of us think, I’ll take out a personal loan, so I can get cash today. But the reality is, banks can take weeks or months to get a loan approved. And by then, it’s too late.

And after all that waiting, they could reject your loan applicationbecause you have a bad credit score or no credit history at all. You may think there is no hope to get a loan, but we will show you how to get a loan with no credit check!

Loan Against Movable Assets

If you’ve got valuable jewellery, art, vehicles, boats or other loose assets as security for a loan, you can apply and have cash in your hand in less than 24 hours! We offer a loan product that guarantees you a quick cash loanwhen you lodge your valuables with the lender as loan collateral.

The loan term is very flexible and generally clients choose to pay back the loanover 3 to 6 months, but the loan term can be shorter or longer. This is a very quick way to get a loanwith no risk to you. Your valuables are safely stored away and returned to you in the same condition as soon as your loan is paid up. For more information or to apply, click here.

For more information on personal loans, property loansor business loans, please take a look around our website. We invite you to apply for any of our loan products should you meet each product’s minimum requirements.

 

How To Get A Business Loan in South Africa

How To Get A Business Loan in South Africa

For most business owners, getting a business loan in South Africa can be a frustrating process. Many approach their banks directly and still get rejected after a long, drawn-out process, despite showing growth and great future prospects. Sometimes it feels like funding businesses is an impossible task but don’t give up yet, there are ways to secure pollen finance to expand your business!

What Do You Need From Your Business Loan?

Many SMME’s get rejected when applying for business funding because they are applying for the wrong type of loan! First figure out when you need the cash? Do you need it right now or in a few weeks or months down the line? If you’re waiting for a big invoice to be paid you’ll be able to pay back your loan in a matter of days. If you need the cash because your business is seasonal, you’ll need a very different type of loan.

Then ask yourself why you need the cash? What are you using it for? Here is a table with some common SMME expenses that owners seek out loans to cover…

When applying for business finance, make sure the institution you are applying to offer the type of business loan you are looking for.

How To Qualify For A Business Loan 

  • Credit Score

If your business is in good credit, you’ll have a much easier time securing a business loan. If you have a large debtors book, big overheads and unpaid bills, lenders are going to be a lot more nervous loaning your business money.

  • Collateral

If you own equipment, machinery, vehicles or your building, these can be considered collateral. They are assets the lender can claim if you default on your business loan repayments.

  • Years in Operation

The longer you’ve been operating and the more financial records you’ve got, the better your chances of getting a business loan approved.

  • Annual Revenue

Some lenders have minimum requirements in terms of annual turnover and their various loan products. Check this carefully before applying.

Is It Hard To Get A Business Loan?

Through traditional means, yes! It can feel near impossible! It is easy to get an unsecured business loan with New Heights Finance. We have simplified the process to widen access to business loans for SMME’s.

We offer unsecured business loans to businesses older than 6 months with a turnover of at least R1 million in the last 12 months. Read more about what we can offer you here and we invite you to start the application process with us now.

Interest Only Bonds – Commercial Property

How do I reduce my monthly bond repayments?

Are your bond repayments too high? Tenants not paying rent? Vacancies increasing? Sounds like you need to
reduce your monthly bond repayments. It is possible to reduce your bond repayments by up to 32% per month and free up cash to get your business cash flow out of the red.

This is how – Interest Only Bonds 
Your bond repayment is made up of two main components: capital and interest. The capital amount is the loan amount you took out with your financial institution.

Interest is calculated as a percentage of a loan (or deposit) balance, paid to the lender periodically for the privilege of using their money (The Balance)

So, if you remove the repayment of the capital amount and only pay interest, then it is possible to reduce your
bond repayments by as much as 32%. The reduction in repayments is dependent on the interest rate you are currently paying your bank. The good news is, the interest rate is at an all-time low as a result of the economic turmoil caused by the coronavirus pandemic. Bad for investors, relief for property owners. Back to interest only bonds. The capital amount can be paid back at the end of the loan term.

Here is an typical example (subject to lenders conditions) that outlines the potential cashflow saving:

Traditional Capital and Interest Repayment Model
Bond                     R 50 million
Term                     10 years
Interest                 Prime plus 1 % ( 11.25 % )
Repayment           R 695 844 pm

Interest Only Model
Bond                     R 50 million
Term                      5 years ( plus 5 years if account handled well)
Interest                 Prime plus 1 % ( 11.25 % )
Repayment           R 468 750 pm

This equates to a 32% improvement in cash flow – R 227 094 pm x 12 =  R  2 725 128 pa. Capital Repayment – R 50 million at year 5, or rollover if the lenders is happy to refinance.

Types of properties
The ideal types of properties for this financing solution are income-producing commercial, industrial or
residential properties (blocks of flats, hotels, student accommodation), valued at between R 20 million and
R80 million.
If you have a property valued at more then R 80 mill, it is possible to structure the funding in an alternative
manner. The property must have been owned for at least 2 years and have some equity available.

Risks
As a borrower, your risk is reduced because cashflow is improved. With a positive cash-flow you have
funds to buffer your business against any unforeseen circumstances, such as COVID, other natural or
man-made disasters.

How may I use the cash saved?
The cash you will have freed up can be used for other investments or as the property owner requires. The borrower
must, however, remember that at year three to five, the capital has to be paid back. This can come from
the savings made in cashflow, from bank loans, other businesses or even the Interest Only Bond holder,
could refinance or roll-over the loan.

How long does it take to set up the Interest Only Bond?
The lenders need all supporting documents to prepare a submission. The proposal is submitted to the credit committee for assessment. If all in order, then a valuation of the property is done and the final term sheet is presented to you. This normally takes 2 to 3 weeks, measured from when ALL the requested supporting documents have been received.

What are the costs?
The interest rates charged are market related. Rates from prime plus 1% to prime plus 3% are available. This is risk dependent. The current bond on the property would need to be cancelled and a new bond registered. There may be bond cancellation costs and there will be bond registration costs. There are also the normal administration and raising-fee costs.

  • Main Advantages
    Companies wanting to grow their property portfolios can use this finance facility to purchase more
    property.
  • If there is equity in the property, it is possible to release this equity.
  • Cash-flow is improved. Reduction in monthly payments of up to 32 % are possible.
  • Reduced interest rates. Some property owners are paying rates in excess of prime plus 5 %. There are
    savings to be made using these commercial bond facilities.

 

For more information visit https://nhfinance.co.za/interest-only-bonds/

FAQ: Do I Qualify For A Pension Bridging Loan?

Retirement, Dismissal, Resignation, Death or Divorce are traumatic events in a working persons life, but on the positive side, the lucky ones who have had a company pension or provident savings scheme, are able to make their policy paid up and they can draw down a portion of their funds.

That is the good news. The bad news is that it can take months to get the pension funds from the pension administrators. The reasons for these delays are varied and very frustrating for the individual. In most cases
large corporate companies with call-centres that have very little incentive to process claims fast. This leaves the ex-employee, perhaps only drawing minimum benefit from UIF and now unable to meet their financial obligations.

The Solution
Private pension lenders have recognized this problem and are able to advance pension cash to persons that have given notice to their pension fund, that they require their money to be paid out.

These Pension Bridging companies give pension loans from as little as R3000 up to R50 000 and even more in some circumstances. These funds are made available within 48 Hours of all the paperwork being completed. Yes, you hear right – 48 hours to get your pension payout!

Repayment
Once the provident or pension fund pays out the investment funds, the provident loan or pension loan plus interest and fees is paid back to the lender and the balance is paid to the fund member.

Cost
Provident Bridging loans and Pension Bridging loans, landing rates are governed by the NCA (National Credit Act). Private lending companies are obliged to comply with the NCA or risk having their licences withdrawn. Rates charged for these provident loans are fair considering the risk the lender takes.

Security
Pension bridging does not require any type of security. It is essentially an unsecured personal loan.

Risk
There is no risk to the borrower. There is a cost because the pension lender or provident lender charges interest and an administration fee. The borrower does not have worry about their pension money being stolen. The reason that the risk is low, is that the pension and provident money is paid directly into the members bank account, not to the lender.

Credit Bureau Listing
People often ask if they can get a pension loan if they have a poor credit profile. The good news is,
yes they can. This financial solution is designed to assist those in financial difficulty.

Provident Fund Loans and Pension Loans are a useful way for people that have funds saved to access some of their savings to assist them during difficult financial times.

Beat Lockdown Financial Blues with Unsecured Business Loans

Is your business taking strain under our extended lockdown? Bills mounting up, COVID 19 UIF not paying out, creditors calling for their money and clients not paying? Does that sound familiar? Rest assured, there is help at hand. A new business funding mechanism is available to businesses that have been operating for longer than 12 months and have a good credit record. These are called Unsecured Business Loans.

Requirements for An Unsecured Business Loan

  • All that you need to provide is 6 months bank statements for the initial assessment. No need for audited financial statements, debts and creditors profiles, assets registers and other complicated documents. You’ve got enough on your plate already, we try to make the loan application process one less thing to stress about.
  • Private Lenders
    These Business Funds are offer by private lenders. These companies are easy to deal with and
    respond quick because they are keen to lend money to business. The reason for this is that they
    make money when they lend money. While the money is in their bank accounts it is not making
    them money, therefore they are eager to assist you with your business loan requirements.
  • Loan Sizes
    The minimum loan amount is R50 000 and the maximum R1,5 Million. The amount a company
    is legible for is dependent on the company turnover and how regularly the income comes into
    the business.
  • Timeframe
    Due to the simple and streamlined process the loan approval can be within 3 days, but approval time is always subject to the applicant providing the information the lender needs timorously.
  • Repayment
    Repayment of business finance loans like these are made over a 6 month term. The repayment
    is calculated by adding the loan plus interest together and then divided by 26 weeks. Repayment is by weekly debit order for a period of 26 weeks.
  • Refinance
    If a borrower has repaid the unsecured business loan on time for 13 weeks, then they are entitled to apply for a further business cash advance. The lender will reassess the business and make a decision on whether to advance further business funding.

Typical Applicant Profile
The lenders want to advance cash to businesses that have strong and regular cash flow. Businesses with daily or weekly cash in-flows are good candidates for a business loan approval. Typical strong, regular cash flow businesses are Filling Stations, Supermarkets, Butcheries and Hairdressers.

No Security Necessary!
A big advantage of unsecured business loans is that the borrower does not have to provide any security. Banks and other secured lenders want property, debtors and even plant and equipment as security for their loans. But in our harsh economic circumstances this model is not always possible which is where unsecured business loans come in to assist you to improve cash flow in your business right away.

Default on Loan
As with any type of lending, if the borrower defaults on the repayment, the lender is entitled to take legal action to recover their money. This can lead to the company and its members being listed at the credit bureaus and this has a negative effect on any business. It is best to not borrow money, if there is a likelihood of not being able to pay the loan back.

Unsecured business loans are suitable for businesses that have positive and regular cash flow. They are not the cheapest form of business loan but they are quick (3 days to approval), no security is needed and they suit businesses that are in need of a Short Term Bridging loan.

Has Covid-19 Impacted Your Income?

When we rang in the New Year, who would have guessed we would face a global pandemic that would creep into every country and continent across the world. That some of us would lose businesses, lose our jobs or take massive salary cuts. We are living in extraordinarily difficult times.

The business gurus and commentators say there is a new ‘normal’ we all need to get used to which includes working from home, working in shifts or teams and often as a result, reduced hours. Unfortunately, this new way of doing business has resulted in company retrenchments, dismissals and forced resignations across almost every industry, with some being harder hit than others. As of today, hair & beauty salons, restaurants, certain manufacturing concerns and gyms to name a few can only operate under reduced capacity and with major restrictions in place. Many businesses have been unable to bring in an income since lockdown in South Africa started on 26 March 2020.

When faced with this situation, UIF registered employees can claim from the Unemployment Insurance Fund. The problem with UIF is that it does not pay out the full wage or salary. This leaves an income shortfall. Families expenses are generally fixed and there is very little opportunity to reduce monthly living costs. For example: school fees, rent, bond repayments and food are all fixed costs.

The good news is that there are a number of temporary financial solutions available to the public:

1. Pension Loan
If you have given notice to your pension fund or provident fund that you want to make your policy paid up, it is possible to secure a short- term Pension Bridging Loan from accredited private lenders.
2. Property Secured Loan
If your home is bond-free or has a bond that is less than 40% of the property value, it is possible
to secure a Loan Against the Property  in some circumstances, to help you free up cash to cover expenses.
3. Loan Against a Movable Asset
It is possible to use your valuables like gold, diamonds, art, antiques, jet skis, cars, bakkies, motorbikes and other loose assets, as security for a loan.

When faced with the daunting prospect of retrenchment, do not panic. There are temporary financial solutions that enable families to make it through the tough times. For more ideas and financing solutions click here: www.nhfinance.co.za

Debt Consolidation – Bonded Property

Debt Consolidation Using Property

Settle Debt Using Property

 

Do you have debt to settle ?
Do you own a property ?

 

Settle your debts by selling your property and secure the right to Buy It Back within 12 to 24 months.

 

How? The Sell, Rent, Buy-Back or Seller Buyback method.

The Sell and Buy Back Process

  • Sell your property and use profits to settle debts
  • Rent the property for a negotiated and agreed amount
  • Buy your property back within 12 – 24 months

Requirements for the sale of your property:

Types of property: Any but specific criteria apply to vacant land
Minimum Property Value: R 1 000 000
Maximum Property Value: No maximum
Buy-Back price: Client and Purchaser to agree.
Credit Profile: All credit profiles welcome
Exclusions: Certain locations (TBA)

SELL AND RENT BACK TO PAY OFF DEBT

The Rental Agreement

You will pay rent at an amount agreed by both parties to the agreement
Term can be for 12 to 24 months
You can buy the property back anytime within 12 – 24 months

USE YOUR HOME TO PAY LOANS

Buy-Back Option
You have the option to purchase your property within 12 to 24 months
The Buy Back price is the to be agreed between the parties to the agreement.
Your Buyback option can be exercised at any time in the 12 – 24 months period.

DEBT CONSOLIDATION WITH PROPERTY

EXPLANATIONS

Debt Settlement using property, is also known as the Buyback Sale, Sale and Leaseback, Rent to Buy Back and Rent to Own. Essentially you settle debt using property equity. You sell your property with the right to buy the property back and use the profit from the sale, to settle your debts.

Bond Consolidation, Loan Consolidation and Debt Consolidation Loans for Homeowners is when you use the equity in your property to settle your debt. So, consolidate your debt using the equity in your home.

If you are looking for homeowner debt relief, a mortgage debt settlement or homeowner equity release, look no further. You can assist yourself to pay your debt off.

Why stress about your debt ? The solution is easy. Sell your home to settle debt and then stay in your property and buy your property back, within 12 – 24 months.

This also applies to commercial, industrial, retail and other property types. Ask our vendor consultant when they contact you.

FREQUENTLY ASKED QUESTIONS

Can you assist if I have a bad credit profile?

Yes. This is precisely who we can assist.

Can you assist if I have a good credit profile?

Yes.

Is there a minimum and maximum home/property value?

Yes, no properties less than R 1 000 000 value will be considered.

What is the maximum debt amount?

50 % of the value of your home/property

How long does it take?

Submit the required documents and processing starts.

How much does it cost?

See examples on home page.

Can I stay on in my home?

Yes, at an agreed rental amount.

Can I rent my home/property back after it is sold?

Yes, at an agreed rental

Can I buy my home/property back?

Yes, within 12 – 24 months and this is negotiable.

Is there any risk to me?

No, as long as you abide by the Terms and Conditions of the Sale and Rental Agreement

What types of property can be used?

All types but not vacant land, unless it meets very specific criteria.

What Documents Are Needed?
  • Proof of address
  • Erf details and street address
  • Latest municipal rates statement
  • 3 months bank statements
  • Latest bond statement
  • Credit check authority
  • Marital status confirmation
  • List of all other debt over R10 000
  • Proof of Income ( salary slips or business income)
  • Copy of ID
  • Photos of property

Ideal Property Profile

 

Any type of property valued at over R 1 000 000 that has a bond of less than 35 % of the value of the property. Eg Property R 1 million. Bond R 350 000 or less.

 

Buy Back Bond

When you are ready to buy your property back, the vendor can assist you, by facilitating the bond application process. All banks will be approached to get you the best deal possible. You may also use your own bank or your own bond originator.

 

USE PROPERTY EQUITY TO CONSOLIDATE DEBT

Use the tried and tested Sale and Buy-Back method.

 

Important Notes and Conditions
1. We refer your enquiry to third parties and you deal direct.
2. This is not a loan product.
3. This is property transaction solution i.e. Sale and Purchase
4. Neither us, nor the third-party vendors, is a FSP registered
5. Neither us, nor the third-party vendors are registered with the NCR

6. Neither us, nor the third party, get involved in the settlement of your debt
7. The decision on whether to enter into a transaction or not, is at the sole discretion of the
purchaser.

Development Finance – Residential

Development Finance

Affordable Housing Finance

JV Partner

Please find brief outline of the Joint Venture affordable housing / GAP Housing / Low Cost Housing, development funding structure, below.

Development Funding Structure

with JV Partner
‘WATERFALL’ REPAYMENT  STRUCTURE:

  • Repay JV Partner’s Equity From First Free Cash
  • Repay Developer’s Equity
  • Repay JV Partner Required Returns ( 25% / 30%  IRR)
  • Repay Developer’s Required Returns ( 25% / 30% IRR)
  • Pay balance of cash to JV Partner and Developer in ratio of shareholding

Cost Schedule

  • Minimum Term – 3 months
  • Maximum Term – 12 months
  • Minimum APR – 13 %
  • Maximum APR – 30 %

Example :

  • Loan                         R 1 million
  • Term                        R 1 year
  • APR                           13 %
  • Repayment         R 1 130 000

Subject to lenders Terms and Conditions at time of quote.

APPLY NOW

The Basics

Ideal residential units are to be between R 280000 and R 480000 selling price.

Developer enters into a partnership with the JV Partner (JVP).

Development land transferred to a Special Purpose Vehicle (SPV) company.

JVP only holds 30 % shares and Developer 70 % Shares in SPV (even though the JVP will contribute a greater equity amount to the project).

The total project value cannot be less than R 140 million.

Banks will provide up to 70 % Debt finance to the project. (JPV does not sign any sureties for this loan but the developer will have to).

JVP and Developer to provide 30 % Equity combined. For this size project, a minimum of R 40.2 million, is required.

JVP will contribute up to 80 % of the 30 % Equity required eg  R 32.2 million.

The Developer to contribute 20 % (or more if they want to or can) of the 30 % Equity required
eg R 8 million.  This can be in the form of Land, Value Added or Cash.

First free cash is paid to settle JVP equity loan (Interest and Dividend), then Developers Equity loan is paid out.

Then JVP paid out Return of 25 % to 30 % IRR on equity portion invested.

Then Developer Return of 25 % to 30 % IRR paid out on equity portion invested.

Balance of cash (Profit) paid out to JVP and Developer in ratio of shareholding.

This scheme has been running in South Africa for a number of years and has proven to work successfully with experienced Developers.

This JV structure can also be applied to Blocks of Rental Flats that are for long term investment purposes and / or  for student accommodation.

Security Bonds

For Executors, Curators, Trusts, Liquidators, Deceased Estates and Attorneys

 

Security Guarantees in 3 days. No more waiting !

3 Easy Steps  :

  1. Fill in enquiry form on this site ( CLICK HERE )
  2. Receive Call and Quote
  3. Guarantee Bond can be issued

 

Liquidation Bonds – Trustee Bonds – Curator Bonds – Executor Bonds – Professional Indemnity Insurance

If you are in need of a Bond of Security ( Guarantee or Suretyship ), as required by the Master of the High Court ( the Master ) and you are an :

  • Executor of an estate
  • Liquidator in winding up the affairs of a business or individual
  • Trustee of a Settlement Trust
  • Curator in charge of a minor or incompetent person
  • Attorney needing additional insurance cover,

 

then we can assist with Trust Bonds, Liquidator Guarantees, Curatorship Bonds and Court Bonds.

In addition we also arrange Bonds for Non-Professional Executors and Attorneys Insurance ( above R 5 million )

 

Example : Deceased Estates

 

The general concept for other types of surety bonds, are very similar to example below.

All deceased estates need to be reported to the Master of the High Court (the Master).

In certain instances, the Master will request a Bond of Security be provided by the Executor.

The Executor will not be given the necessary authority to finalise the estate, until the Bond of Security (Bond) has been provided.

 

The Bond, is a form of guarantee or suretyship, guaranteeing the Executor will perform their duties in accordance with the relevant Acts.

 

Once the Bond of Security has been provided, the Master will issue a Certificate of Authority, which enables the Trustee, Curator, Liquidator, Executor to proceed with the finalisation.

 

 

Security Bond Issuers

The Master will only accept Surety Bonds from a list of approved insurers, of which only a few credible ones in South Africa.

 

Why Us

  • Our providers are independent and so give you access to the best insurers in South Africa.

 

  • Due to years of experience in the market our vendors assess the risk is assessed differently, so as to get you the best cover possible.

 

  • Speed is of essence. Our vendor systems and capacity enable you to get your bond facility in place within 3 days.

 

Rates

Approximate costs range from  .5 % to .6 % plus VAT, of the bond amount ( to be quoted at time of request )

 

What to do Next

Fill in our no obligation enquiry form below

 

 

Some other terms for the products we facilitate are :

Liquidators Guarantee

Liquidators Bond Guarantee

Asset Bonds

Security Bonds

Sequestration Bonds

Winding Up Bonds

Company in Liquidation Bonds