Property Loans
You’ve done it. After months of searching, you’ve found your dream home. The only problem? The sale of your current house isn’t finalised yet, and the seller of your new home won’t wait. You have substantial equity tied up in your property, but it might as well be on another planet. You need cash for the deposit and transfer costs now, but the proceeds from your sale are still weeks or even months away.
This incredibly common and stressful situation is the exact reason property bridging finance was created. It’s a scenario familiar to thousands of South African homeowners, creating a frustrating cash flow gap that can jeopardise the purchase of a new property.
At New Heights Finance, we specialise in navigating these complex financial situations. As expert finance brokers, we see a bridging loan not just as a product, but as a strategic tool that empowers homeowners. This guide will demystify the process of getting a bridging loan when selling a house, showing you how to unlock your property’s equity precisely when you need it most.
What Exactly is a Bridging Loan When Selling a House?
A bridging loan (or property bridging finance) is a short-term loan that allows you to access a portion of the funds from your property sale before the transaction is officially registered at the Deeds Office.
Think of it as a financial “bridge” that spans the gap between the sale of your old home and the final payout. It is not a long-term debt like a bond. Instead, it’s a specific, secure solution designed to solve a temporary cash flow problem. The loan is secured against the guaranteed proceeds from your property sale, making it a low-risk and highly efficient funding mechanism.
When is a Property Bridging Loan the Perfect Solution?
This type of finance is purpose-built for several key scenarios that arise during the property transfer process. You might need a bridging loan if you need to:
1. Secure the Deposit on Your New Home
This is the most common reason for seeking a bridging loan. You’ve signed an Offer to Purchase (OTP) on a new property, and the estate agent is asking for the deposit to secure the deal. A bridging loan allows you to advance a portion of your sale proceeds to pay this deposit, ensuring you don’t lose out on your dream home.
2. Cover Transfer Duties and Legal Costs
Before your new property can be registered in your name, you must pay the transfer duties (if applicable) and the conveyancing attorney’s fees. These costs can be substantial and are required upfront. A bridging loan can cover these expenses, so the transfer process isn’t delayed while you wait for your funds.
3. Settle Outstanding Municipal Rates or Levies
To finalise a property sale, the seller must obtain a rates clearance certificate from the municipality (or a levy clearance certificate from the body corporate). This often requires paying a few months of rates in advance. If cash is tight, a bridging loan can provide the necessary funds to settle these accounts and keep the transfer moving.
4. Fund Urgent Renovations or Relocation Costs
Sometimes, you might need cash to perform essential repairs on the home you’re selling to satisfy the buyer’s conditions. Alternatively, you may need funds to cover the immediate costs of moving into your new home. Bridging finance can provide this liquidity.
How Does Bridging Finance Work? A Step-by-Step Guide
The process is logical, secure, and surprisingly fast because it’s based on guaranteed future funds, not on your income or credit score in the traditional sense.
Step 1: A Valid Sale Agreement The entire process hinges on having a signed and legally binding Offer to Purchase (OTP) for the property you are selling. There must be no outstanding suspensive conditions (like the buyer still needing to secure a bond).
Step 2: The Conveyancer’s Calculation Your appointed conveyancing attorney calculates the estimated net proceeds from your sale. This is the final amount you will receive after settling your existing bond, paying the estate agent’s commission, and covering any other costs. This calculation confirms the amount of equity available to borrow against.
Step 3: Application and Approval This is where New Heights Finance steps in. You apply for the bridging loan using the signed OTP and the conveyancer’s figures. Because the loan is secured by a guaranteed future payment, the approval process is remarkably quick – often taking just 24 to 48 hours.
Step 4: Funds are Advanced Once approved, the funds are paid out. This is typically done directly to the relevant party, for instance, to the conveyancing attorney’s trust account for the deposit on your new home.
Step 5: Automatic Repayment on Transfer This is the key feature. You are not required to make any monthly payments towards the bridging loan. When your property sale is finalised and registered, the conveyancer repays the bridging loan capital and the associated interest/fees directly from the sale proceeds before paying the remaining balance to you. It’s a seamless, hassle-free process.
Why Partner with a Broker Like New Heights Finance?
While the concept of a bridging loan is straightforward, navigating the market to find the best terms requires expertise. As your finance broker, we add value at every step.
- Expert Navigation: We understand the intricacies of property law and the conveyancing process. We work alongside your attorney to ensure a smooth transaction.
- Access to Specialist Lenders: We have established relationships with multiple reputable bridging finance providers, allowing us to source the most competitive interest rates and fee structures for you.
- Speed and Efficiency: We know exactly what documentation is required and how to package your application for the fastest possible approval, saving you precious time when you’re on a deadline.
- Peace of Mind: The process of buying and selling a home is stressful enough. Let us handle the financial logistics so you can focus on the excitement of your move.
Ready to Bridge the Gap?
A bridging loan when selling a house is more than just a loan; it’s a strategic enabler that provides financial flexibility and peace of mind during one of life’s biggest transitions. It empowers you to act decisively in the property market, ensuring you don’t miss out on your next chapter.
If you’re caught between selling your old home and buying your new one, don’t let a temporary cash flow issue stand in your way.
Property Loans
You’ve navigated the viewings, accepted a great offer, and signed the Offer to Purchase (OTP). Your house is officially sold. It’s an exciting time, but it’s often followed by a frustrating and lengthy waiting period. While the deal is legally done, the actual cash from your sale can take months to land in your bank account, locked away in the conveyancing process.
This delay can be more than just an inconvenience; it can stall your life. You might need that money for the deposit on your next home, to settle debts, or to invest in a new business venture. So, what is the fastest way to get property sale proceeds?
For years, sellers had no choice but to wait. Today, however, a powerful financial tool exists that allows you to access your money almost immediately after the sale is secure. At New Heights Finance, we specialise in arranging this solution, known as an advance on your property seller’s proceeds.
Understanding the Standard Delay
To appreciate the solution, it’s important to understand the problem. The South African property transfer process is thorough and involves multiple steps and institutions, each contributing to the timeline. After an OTP is signed and all conditions are met, the process typically involves:
- Bond Cancellation: The conveyancer must get the cancellation figures for your existing home loan.
- Clearance Certificates: Acquiring rates, water, and levy (if applicable) clearance certificates from the municipality or body corporate is mandatory.
- Document Lodgement: All necessary documents are lodged at the Deeds Office for review.
- Registration: The property is officially registered in the new owner’s name, and only then are the funds released to you.
This entire process, on average, takes between 60 and 90 days. During this time, your equity is legally yours but practically inaccessible.
The Solution: Advancing Your Property Seller’s Proceeds
The fastest, most effective way to bypass this waiting period is through a specialised form of bridging finance. Our Property Seller’s Proceeds product is specifically designed for this situation.
In simple terms, it is a cash advance against the guaranteed proceeds of your property sale. A lender provides you with a significant portion (typically up to 80%) of your net equity upfront. It’s not a traditional loan based on your income; it’s an advance secured by the money that is already on its way to you.
How It Works in 3 Simple Steps
The process is designed for speed and efficiency because the risk is very low.
- Application with a Secure Sale: You apply once you have a signed and unconditional Offer to Purchase. This means the buyer has secured their bond and all other suspensive conditions have been met.
- Verification with the Conveyancer: We work directly with your appointed conveyancing attorney. They confirm the net proceeds available to you after settling your bond, agent’s commission, and other costs.
- Fast Payout: Once the figures are confirmed, the application is typically approved within 24 to 48 hours, and the funds are paid directly into your account.
When the property transfer is complete, the conveyancer simply settles the advanced amount plus the associated fees directly with the lender before paying the remaining balance to you. You don’t have to make any monthly payments.
Why Would You Need to Access Your Proceeds Early?
Accessing your funds early isn’t just about convenience; it provides significant strategic advantages. Sellers use this service to:
- Pay the Deposit on a New Home: Secure your next property without being a contingent buyer, giving you a stronger negotiating position.
- Cover Moving and Relocation Costs: Fund your move without having to dip into savings or take on expensive personal loans.
- Settle Urgent Debts: Use your own money to clear high-interest debts like credit cards or vehicle finance immediately.
- Make Renovations: Start renovations on your new home before you even move in.
- Take Advantage of an Investment Opportunity: Seize a time-sensitive business or investment opportunity that arises.
Why Use a Broker Like New Heights Finance?
Navigating the world of bridging finance can be complex. Partnering with an expert broker like New Heights Finance is the fastest way to get your property sale proceeds because we handle everything.
- Expertise: We live and breathe these transactions. We know exactly what is needed to ensure a fast and smooth process.
- Lender Network: We have access to a panel of reputable, specialist lenders, ensuring we can find you the most competitive rates and terms.
- Streamlined Process: We liaise directly with your conveyancing attorney to get the required guarantees, saving you the administrative headache and speeding up the entire timeline.
Don’t Wait for Your Money
The sale of your property is one of the biggest financial transactions of your life. Waiting up to three months for the proceeds is an outdated necessity. The fastest way to get your property sale proceeds is to proactively unlock them.
If you have a confirmed property sale and need access to your funds now, don’t let the calendar dictate your financial future.
Property Loans
It’s one of the most common questions we hear from property sellers in South Africa. You have a signed, legally binding offer on your home, which means hundreds of thousands, or even millions, of rands in equity are officially yours. Yet, you’re told you have to wait 60 to 90 days, sometimes longer, for the conveyancing process to conclude before you see a cent of it.
This frustrating delay can feel like having your own money locked in a vault you can’t open. You might need those funds right now for a deposit on your next home, to cover relocation costs, or to settle outstanding accounts.
The great news is that you don’t have to wait. It is entirely possible to get a significant portion of your sale proceeds advanced to you, often within 24 to 48 hours of a completed application. This financial tool is known as a Property Seller Advance Payment, a specialised form of bridging finance that we at New Heights Finance facilitate every day.
What Exactly is a Property Sale Advance?
A property sale advance is not a traditional loan based on your income or credit score. Instead, it is a cash advance against the guaranteed future proceeds of your property sale.
Once you have a secure Offer to Purchase (OTP), the equity in your home is no longer just a number on paper; it’s a confirmed future asset. A specialised finance provider can then “bridge the gap” by advancing you up to 80% of these confirmed net proceeds.
Think of it this way: you’re not borrowing new money. You are simply accessing your own money, sooner. The advance is secured by the funds held by the conveyancing attorney, making it one of the safest and fastest forms of short-term finance available.
How Does the Process Work?
The reason an advance on a property sale can be processed so quickly is because it’s based on a secure, legal transaction that is already in progress. The process is designed to be seamless and work in tandem with your conveyancing attorney.
Step 1: The Secure Offer to Purchase (OTP)
The entire process begins once your property sale becomes unconditional. This means:
- The Offer to Purchase has been signed by both you and the buyer.
- All suspensive conditions have been met (e.g., the buyer has secured their bond approval).
At this point, the sale is legally secure, and the proceeds are guaranteed, pending registration at the Deeds Office.
Step 2: Verification by the Conveyancer
Your appointed conveyancing attorney is central to the process. They will provide the finance company with a breakdown of the expected proceeds. This calculation includes:
- The gross sale price.
- Less your existing bond settlement amount.
- Less the estate agent’s commission.
- Less any other costs (like compliance certificates or outstanding levies).
The final figure is your net proceeds, which is the amount the lender will use to calculate your maximum advance (usually up to 80% of this amount).
Step 3: Fast Application and Payout
This is where we come in. New Heights Finance packages your application and submits it to a suitable lender. Because the security is solid and the figures are confirmed by an attorney, approval is incredibly fast. Most of our clients who have their documentation in order see the funds in their account within 24 to 48 hours.
Step 4: Seamless Automatic Repayment
The best part of a property sale advance is that you don’t have to worry about making monthly repayments. When the property is finally registered, your conveyancer will settle the advance (the capital amount plus the agreed-upon interest and fees) directly with the lender from the sale proceeds. The remaining balance is then paid out to you. The entire process is handled by the attorneys, making it completely hassle-free.
Common Reasons to Get an Advance
Sellers choose to advance their proceeds for a variety of strategic reasons:
- Paying the Deposit on a New Home: This allows you to secure your next property quickly and confidently.
- Covering Transfer Costs: Pay for transfer duties and legal fees on your new purchase without stress.
- Settling Debt: Clear high-interest personal loans or credit cards the moment your sale is secure.
- Moving and Relocation Costs: Fund your move without impacting your day-to-day cash flow.
- Home Renovations: Start work on your new property before you even move in.
- Bridging a Personal Cash Flow Gap: Cover living expenses if you’re between jobs or waiting for the sale to conclude.
Am I Eligible for an Advance?
Eligibility for a Property Seller’s Proceeds advance is straightforward. The primary requirements are:
- You must be the legal owner and seller of the property.
- You must have a valid and unconditional Offer to Purchase.
- There must be sufficient net equity in the sale after settling all associated costs.
Because the advance is secured by the property’s equity, the decision is not typically dependent on your personal credit score or income level in the same way a traditional loan would be.
Don’t Let Delays Dictate Your Next Move
So, can you get an advance on your property sale? Yes. It’s a smart, efficient, and readily available solution that puts you back in control of your own money. The days of being at the mercy of the Deeds Office timeline are over. By leveraging the equity in your confirmed sale, you can bridge the financial gap and move forward with your plans without delay.
Personal Loans, Property Loans
For many South Africans, owning a property outright is the ultimate financial achievement. That title deed, free from any bond, represents years of hard work and financial discipline. But what many people don’t realise is that this document is more than just proof of ownership; it’s a powerful financial key that can unlock substantial capital when you need it most.
If you’ve ever wondered if you can use your paid-off property to secure funding, the answer is a resounding yes. The search for “loans against title deed in South Africa” leads to a smart and effective financial solution that allows you to leverage your most valuable asset without having to sell it.
At New Heights Finance, we specialise in helping property owners understand and access these powerful funding tools. As expert finance brokers, we connect our clients with reputable lenders to ensure they can unlock their property’s value safely, efficiently, and on the best possible terms.
What Are Loans Against a Title Deed?
A loan against a title deed is a type of secured loan. In simple terms, you use your fully paid-off property as collateral to secure a loan from a financial institution. The “title deed” is the legal document that proves you are the unencumbered owner of the property, with no outstanding home loan (bond) registered against it.
Because you are providing the lender with high-value, immovable security, they are able to offer significant advantages compared to other forms of credit, such as:
- Larger Loan Amounts: The capital you can access is directly related to the value of your property.
- More Favourable Interest Rates: The risk to the lender is substantially lower than with an unsecured loan, which almost always results in a better interest rate for you.
- Flexible Terms: These loans can be structured to meet specific, large-scale financial needs.
It is crucial to understand that during the loan period, you retain full ownership and use of your property. You continue to live in your home or operate your business from the premises as you always have.
Unlocking Value with a Loan Against Bond-Free Property
Our core product in this category is the Loan Against Bond-Free Property. It is specifically designed for individuals and business owners who own their property outright and need to access a substantial amount of capital for a specific purpose.
The process is more straightforward and often faster than applying for a new bond from scratch.
How the Process Typically Works:
- Initial Consultation & Valuation: The journey begins with a consultation to understand your needs. A formal valuation of your property is then conducted to determine its current market value. This forms the basis of the loan offer.
- Application and Documentation: You will need to provide key documents, including the original title deed, your ID, proof of address, and proof of income to demonstrate affordability. We, as your broker, package this for the lender.
- Credit Assessment & Offer: The lender performs a credit assessment and, based on the property value and your affordability, presents a formal loan offer. This will detail the loan amount, interest rate, and repayment terms.
- Legal Process & Registration: Once you accept the offer, legal agreements are drawn up. A new, smaller bond is registered against your property at the Deeds Office in favour of the lender. This is the legal step that secures the loan.
- Funds Disbursed: As soon as the bond is registered, the funds are paid out to you.
Who is This Loan For?
A loan against a title deed is a significant financial tool, best suited for those with a clear and strategic purpose for the funds. Our clients typically include:
- Business Owners: Needing a large injection of capital to fund expansion, purchase new equipment, buy a large amount of stock, or launch a new division.
- Entrepreneurs: Seizing a time-sensitive investment opportunity, such as buying into a franchise or acquiring another business.
- Property Investors: Raising the deposit or full purchase price for a new investment property, effectively using the equity in one property to acquire another.
- Individuals Consolidating Debt: Combining multiple high-interest, unsecured debts (like credit cards and personal loans) into one single, lower-interest secured loan, drastically reducing monthly payments.
- Homeowners Funding Major Renovations: Undertaking significant home improvements that will add substantial value to their property.
The Key Benefits of Using Your Title Deed
Leveraging your bond-free property offers distinct advantages:
- Access to Significant Capital: This is one of the few ways to access millions of rands in personal or business funding.
- Financial Leverage: You are using a dormant asset to create active wealth or solve major financial challenges.
- Wealth Creation: The funds can be used for investment purposes that generate returns far exceeding the cost of the loan’s interest.
- Retain Your Asset: Unlike selling, you get the cash you need while keeping your most valuable asset for the long term.
Why Use a Finance Broker like New Heights Finance?
While you can approach a lender directly, partnering with a specialist broker like New Heights Finance is the smarter choice. The world of secured lending can be complex, and our expertise is your advantage.
- Access to the Right Lenders: Not all banks or finance houses specialise in this type of lending. We have a network of reputable institutions that do, ensuring we match you with the one best suited to your needs.
- Securing the Best Terms: Because we submit applications to multiple lenders, we create a competitive environment that allows us to negotiate the best possible interest rates and terms on your behalf.
- Streamlined Process: We know exactly what documentation is required and how to present your application for the highest chance of a swift and successful approval. We manage the process from start to finish.
Your Title Deed is Your Power
Your bond-free title deed is a testament to your financial prudence. Now, it can be the key to your future growth and stability. When you need serious capital, a loan against your title deed is the most intelligent, cost-effective, and powerful option available in South Africa.
Don’t let your most valuable asset sit dormant. Apply on New Heights Finance today for a confidential, no-obligation quote to explore how you can unlock the power of your property.
Business Finance, Property Loans
As a property investor in South Africa you’ll appreciate that a successful property flip isn’t an endpoint but a launchpad for your next project. You’ve put in the work, found a buyer for your renovated property and signed a profitable sale agreement. Your capital is secured… but it’s not yet in your bank account. Then, it happens. The perfect new opportunity appears — a distressed property at a rock-bottom price, a time-sensitive private sale, or a must-have property at auction. The deal won’t wait the 60 to 90 days it takes for your current sale to register at the Deeds Office. You have the capital, but it’s trapped in administrative limbo. This is the frustrating cash flow gap that can stall a thriving investment portfolio. It’s also where the most strategic investors deploy their secret weapon: bridging loans for property investors, secured against the proceeds of the property you’ve just sold.
This isn’t about taking on new debt; it’s about accessing your own profits, faster. This guide will show you how this specific financial tool allows you to maintain momentum, outmanoeuvre the competition, and continuously scale your property portfolio.
The 90-Day Waiting Game
Every property investor knows the feeling. You have a legally binding sale agreement, which is as good as money in the bank—but the bank won’t let you withdraw it yet. The South African property transfer process, while secure, is slow. Between bond approvals for your buyer, clearance certificates, and Deeds Office registration, the delay is unavoidable. During this period, you are effectively sidelined. You have to watch as prime investment opportunities are snapped up by cash buyers, simply because your capital is tied up.
The Solution: Unlocking Your Profits with a Seller’s Advance
A bridging loan, in this specific context, is a Seller’s Cash Advance. It’s designed precisely for an investor in your position. The security for this loan isn’t the new property you want to buy; it’s the guaranteed, incoming proceeds from the property you have already sold.
How it Works:
The process is remarkably simple and fast because the risk for the lender is low. The funds are already secured by your successful sale.
- You Provide the Sale Agreement: You give us the signed Offer to Purchase for the property you have sold (let’s call it Property A).
- We Verify with Your Conveyancer: We contact your conveyancing attorney to confirm that all conditions of the sale have been met and that the deal is secure. The attorney provides an undertaking to repay the bridging loan directly from the sale proceeds upon registration.
- We Advance Your Proceeds: We advance you up to 80% of the net proceeds from the sale of Property A, often within 24 to 48 hours.
- You Seize the Opportunity: You now have the cash in hand to confidently purchase your next investment property (Property B), whether it’s at auction or through a private sale.
- Seamless Repayment: When the sale of Property A is finalised and the funds are released, your attorney automatically repays the bridging loan. You receive the remaining balance.
Strategic Applications for Property Investors
1. Dominating at Property Auctions
With a bridging loan, you walk into an auction room with the power of a cash buyer. While others are bidding tentatively, contingent on slow bank finance, you can bid with the confidence of knowing your funds are available. This allows you to secure prime auction properties that offer the highest potential returns.
2. Negotiating Power in Private Sales
When you find a “fixer-upper” through a private sale, the ability to offer a quick, clean deal is your greatest negotiating tool. Sellers are often willing to accept a lower price in exchange for the certainty and speed of a cash transaction. A bridging loan gives you this power, enabling you to secure better deals than your competition.
Bridging A Loan Against Property
Perhaps you’re not selling. Instead, you’re a registered entity (a Pty Ltd or CC) with a valuable, paid-off property in your portfolio that you want to hold for long-term growth. Now, a new opportunity arises, and you need to act fast without liquidating your existing assets.
The Solution: A Loan Against Unbonded Property
This bridging loan allows your registered company to unlock the equity in an existing asset to fund a new purchase.
- How it Works: If your Pty Ltd or CC owns an unbonded property valued at over R1.5 million, you can use it as security for a short-term bridging loan. This provides you with a substantial cash sum to purchase a new investment property outright, giving you the immense power of a cash buyer.
- Who it’s for: Registered property investment companies that want to expand their portfolio by leveraging the equity in their existing, unencumbered assets.
- The Strategic Advantage & Exit Strategy: This strategy allows you to grow your portfolio without selling your best assets. The “exit”—or repayment plan—for this type of bridging loan is typically to secure a traditional, long-term bond on the newly acquired property once the purchase is complete. The funds from the new bond are then used to pay off the short-term bridging loan, leaving you with two valuable assets in your portfolio.
Apply for a loan against property
Which Strategy is Right for You?
Choosing the right bridging loan for property depends entirely on your immediate investment goals:
- Choose the property bridging loan when you are actively flipping properties and need to bridge the cash flow gap between selling one and buying the next.
- Choose the loan against property when you want to hold onto your existing assets and use their equity to expand your portfolio as a registered business entity.
Why This is the Smartest Move for Your Portfolio
Using a bridging loan for property transactions in this way is a cornerstone of a dynamic investment strategy. It transforms the slow, linear process of “sell, wait, buy” into a fluid, continuous cycle of reinvestment.
- Maintain Momentum: You are never sidelined. Your capital is always ready to be deployed.
- Compound Your Growth: By reducing the downtime between projects, you can complete more flips per year, significantly accelerating the growth of your portfolio.
- Reduce Risk: You no longer risk losing out on a perfect investment opportunity because of administrative delays beyond your control.
Don’t let the 90-day waiting period dictate the pace of your success. If you’ve sold a property and have your eye on the next one, contact us. Let’s unlock your profits and ensure your investment journey never loses momentum.
Business Finance, Personal Finance, Property Loans
Emergency Loans When You Need Them
A financial emergency arrives without warning. It’s the phone call from the mechanic with a repair bill that costs more than the car. It’s the crucial piece of business equipment that fails during your busiest season. It’s the unexpected medical bill or the perfect new home that requires a deposit now, long before your current property sale goes through. In these moments, a feeling of panic can be overwhelming. The ground feels like it’s shifting beneath your feet, and your most urgent need is to find stability – and fast. The key to navigating these situations isn’t just finding cash; it’s about finding the right kind of cash. A rushed decision can lead to long-term problems. This is where understanding the different types of loans for emergency situations becomes crucial. The right financial tool can not only solve the immediate problem but can also act as a powerful bridge, carrying you from crisis back to control. Let’s walk through common emergency scenarios and show you how various specialised loan options can provide the stability you need.
Scenario 1: The Business Emergency
Your business is your livelihood, but it can be incredibly vulnerable to sudden shocks. Having access to fast, flexible loans for emergency situations can mean the difference between weathering the storm and shutting your doors.
The Crisis
A key piece of machinery at your Durban-based factory breaks down. Without it, production halts, and you risk losing a major contract. You need R200,000 for repairs or a replacement immediately.
The Solution: Unsecured Business Loan
A traditional bank loan would take weeks you don’t have. An unsecured business loan is designed for this exact emergency. Based on your business’s recent turnover and cash flow, you can often get approved for significant funding within 24 to 48 hours, with no need to pledge property as collateral. This speed allows you to get the machine fixed, restart production, and save your contract without missing a beat.
The Crisis
You run a small business and land a massive purchase order from a major retailer—it’s a game-changer! The problem? You need to pay your supplier upfront for the materials, and you don’t have the cash flow.
The Solution: Purchase Order (PO) Funding
Instead of letting this golden opportunity slip away, PO funding bridges the gap. A finance company pays your supplier directly based on the confirmed purchase order. Your supplier delivers the goods to the retailer, and once they pay, the finance company is repaid, leaving you with the profit. It turns a potential cash flow crisis into a massive win.
The Crisis:
Your biggest client is late on a R300,000 payment. You’ve already completed the work, but you have salaries and rent due at the end of the week. You need to explore loans for emergency situations to get your business out of the red.
The Solution: Invoice Discounting
Your sales ledger is full of money that’s rightfully yours, but you can’t access it. Invoice discounting allows you to unlock that cash immediately. You can get an advance of up to 80% of your outstanding invoices’ value, providing you with the R240,000 you need to cover your urgent operational costs. It stabilises your cash flow, ensuring your business runs smoothly while you wait for your client to pay.
Scenario 2: The Personal & Property Emergency
Emergencies don’t just happen at work. Life can throw curveballs that impact your personal financial stability, often involving property or life transitions.
The Crisis:
You’ve sold your home in Kloof and found the perfect place to downsize, but the seller wants a deposit within 48 hours. The proceeds from your sale are tied up for another three months in the property transfer process.
The Solution: Property Bridging Loan (Seller’s Cash Advance)
This is the classic scenario where a property bridging loan is the perfect fit. You can get a cash advance of up to 80% of the proceeds from your confirmed sale. The funds are often available within 24 hours, allowing you to secure your new home without the risk of losing it. It’s your own money, just made available when you actually need it.
The Crisis:
An urgent family medical situation arises, requiring a significant upfront payment of R150,000. Your savings won’t cover it, but you own your home, and it’s bond-free.
The Solution: Loan Against Property
In a serious emergency, the equity in your property is a powerful asset. A loan against property allows you to secure funding using your home as collateral. Because the loan is secured, you can often access larger amounts of capital quickly, providing the funds needed to handle the medical crisis without delay. It’s a responsible way to leverage your biggest asset in a time of critical need.
The Crisis:
You’ve just retired, but you’ve been told your pension lump sum will only be paid out in four months. In the meantime, you have regular living expenses and an unexpected, costly car repair.
The Solution: Pension Bridging Loan
The gap between your last salary and your first pension payment can be a source of immense stress. A pension bridging loan is specifically designed to cover this period. It provides you with an advance on your confirmed pension payout, ensuring you can manage your day-to-day finances and handle emergencies like that car repair without worry. It brings stability to a period of major life transition.
From Crisis to Control with Loans for Emergency Scenarios
No one chooses to face a financial emergency, but you can choose how you respond. By understanding these specialised loans for emergency situations, you can select a tool that is perfectly suited to your specific crisis. Instead of a one-size-fits-all approach, these solutions offer a tailored, rapid, and responsible path back to financial stability, giving you the breathing room you need to get back on your feet.
