Business Loans (unsecured)

Business Loans (unsecured)

NOT FOR BUSINESS LESS THAN 6 MONTHS OLD
SALES OF R 1 MILLION IN THE LAST 12 MONTHS IS ESSENTIAL

Business loans South Africa from R 50 000 to R 1,5 million.
3 day approval.

No Security needed

Unsecured business finance, for small and medium businesses
Use as you please

Small business funding and quick funding for business.
Quick business loans by private lenders gives you funds for business.

Are you looking for funding companies or investors, then our SME funding, SMME funding, private business loans, funds for small business, company funding, business finance loans and business investors have sources of funds to assist to grow businesses, which includes purchase orders, invoice discounting,
Unsecured business loans fast and easy.

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Loan Conditions

Loan Term: From 2 month to 6 months options
Minimum Loan: R 50 000
Maximum Loan: R 1 500 000
Interest: 25 % for 6 months term
Business Age: Minimum 1 year old
Business Turnover: R 1 million per annum or more
Premises: If leased, then leased for minimum of 1 year. If owned, then at least one year old
Start Ups: NO START UP business applications will be considered

Ideal Business Profile
Businesses that have a regular income flow into their bank accounts via EFT or Credit Card transfers. Companies that have contracts that ensure a regular flow of cash into their bank accounts have a high chance of loan approval.
Loan Requirements

Bank Statements: 6 months
Credit Profile: Owners / Shareholders / Members, Trustees and business, to have a 100 % clean credit profile
Ideal income profile: Credit Card sales or EFTPOS
Repayment: Weekly by Debit Order in 26 equal instalments
General: The lender will undertake other checks and request other information to assess the applicant’s loan service capability. All loans are granted at the lenders sole discretion. The lender’s decision is final.

NOTE NO START UP BUSINESSES LOANS WILL BE CONSIDERED Businesses MUST BE older than 1 year

Cost Schedule

  • Minimum Term – 6 months
  • Maximum Term – 6 months
  • Minimum APR – 50 %
  • Maximum APR – 50 %

Example :

  • Loan R 100 000
  • Term 6 months
  • APR 25 %
  • Repayment R 125 000

Subject to lenders Terms and Conditions at time of quote

Commercial Property Finance

Commercial Property Finance

Choose The Type Of Commercial Property Finance You Are Interested In From The List Below: 
Commercial Property | Industrial Property | Equity Funding | Joint Venture Partnership | Equity Release | Affordable Housing

About Us

New Heights Finance specialises in securing the right finance package for your commercial property purchase, industrial property purchase, retail property purchase, office block purchase or block of flats property purchase.

Funding solutions include equity release, mezzanine finance, private and institutional mother-bond finance, property secured bridging, guarantees, partnerships, JV, equity funding, bridging finance and BEE deals.

Cost Schedule

  • Minimum Term – 60 months
  • Maximum Term – 120 months
  • Minimum APR –  10 %
  • Maximum APR – 15 %

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.

COMMERCIAL MORTGAGE BOND

100 % Ownership, full deposit (70% funding)

Bank Loan to value of 70 % secured and then you as the applicant put up 30 % of the funding (deposit).
You are then 100 % owner.
Disadvantage:
You lay out 30 % of the property purchase price.
Advantage:
You need not share the profits nor have partners.

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EQUITY FUNDING AND MEZZANINE FINANCE

Buyers of medium to large sized commercial and industrial properties now have access to 100 % loans.

Some funding models require equity sharing, some profit sharing.

There are 2 basic formats :

100 % Ownership, with profit share but no deposit (100% funding)
Bank Loan to value of 70 % secured and then we have our funders put up the 30 % deposit with the proviso that they keep 30 % of the profit generated within the first 3 years. You are the 100 % owner but you have to pay the mezzanine funders back their 30 % within 3 years plus 30 % of the property profits. Advantage : You need only layout a minimal amount of own cash. Ideal if you are not very cash flush BUT identify a good opportunity.

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Part  Ownership part deposit (100% funding)
Bank Loan of 70 % secured and our funders can put up all or a part of the 30 % required deposit. Disadvantage : The bridging company  will take equity in proportion to the amount they contribute to the deposit. You retain the balance of the equity.
Advantage : If you do not have the required deposit, the bridging funders will make up the shortfall. Ideal for tenants wanting to own their own premises and do not want to part with operating cash.

Commercial Property finance is not easily secured unless you have all the required documentation and signed leases that are able to service the loan.

Some important facts with respect to commercial property finance :
  • Tenant lease of 8 years and longer are ideal
  • Net Yield to be in the order of 10 %, calculated as net income ( gross income less expenses) divided by the asking price
  • Property must be in a good position and in good condition
  • Banks do not normally lend more than 70 %  but we can arrange 100 % loans ( see above)
  • Minimum transaction size is R 1 million
  • Interest rates are generally at prime
  • Valuation costs, admin costs, professional fees, legal fees are for the account of the applicant
  • Transfer costs and legal fees ( if non VAT entity) are in the order of 10 %, so you need to have this in cash
  • Industrial, Retail and Offices buildings are preferred properties to fund
  • Residential buildings normally require a 50 % deposit

EQUITY RELEASE

If you currently own an UNBONDED property, you can access your equity ( convert equity to cash) to use as you wish.

Loan Conditions :

Bonds – Your property HAS TO BE TOTALLY UNBONDED Value – Minimum property value is R 2 million or more
Loan Amounts – Only loans of a R 1 million or more are considered.
Max. Amount – The maximum equity release possible, is 50 % of the property value
Repayment Term – Ideally 9 months but deals up to 24 months can be structured
Repayment Option – It is normal that there are monthly ‘interest only’ repayments and settlement of the capital at the end of the loan term
Security – A first bond is registered over the property as lenders security
Default – If you are not sure you can settle the loan within the agreed term, please do not apply
Key Element –  Key to unlocking the equity, is the loan settlement proposal. You must be able to demonstrate that the loan can be settled

We look forward to assisting you in securing your finance.

JOINT VENTURE FOR DEVELOPERS OF AFFORDABLE HOUSING

If you have project of R 140 million or more, have completed at least 3 projects, own land that is rezoned and ready for development, have done all the feasibilities, EIA’s studies, have received the ROD (Record of Decision), have all the local authority permission to proceed and have homes that are targeted to sell at between R 200 000 and R 480 000 and are ready to start the project but lack funding, we have associates that will provide all the capital needed to proceed, subject to due diligence.  This project finance is provided on a JV (Joint Venture) basis with you owning 70 % of the project and the lender / investor taking up 30 % of the shares.

Click Here to go to the information page on this facility to see if you wish to partake.

Debt Consolidation Using Property

Commercial Property Finance

Choose The Type Of Commercial Property Finance You Are Interested In From The List Below: 
Commercial Property | Industrial Property | Equity Funding | Joint Venture Partnership | Equity Release | Affordable Housing

USE YOUR PROPERTY TO SETTLE DEBT

How :  Sell –  Rent –  Buy   Using the Seller Buyback method.

 

The Sell and Buy Back – Process

Sell your property and use profits to settle debts

Rent the property back for 2 % of the purchase price, per month

Buy your property back within 24 months

 

Requirements for the sale of your property :

Types of property                              All types

Loan to Value ratio                            50 % ( bond and debt to be less than 50 % of the property value  )

Minimum Property Value                No minimum

Maximum Property Value               No maximum

Buy-Back price                                    Plus 20 % per annum

Credit Profile                                       All credit profiles welcome

Exclusions                                             Certain locations (TBA)

Property Types                                   Any

  

SELL AND RENT BACK TO PAY OFF DEBT

 

The Rental Agreement

You will pay 2 % per month ( of the purchase price) while you stay in the property

The rental agreement can be for 12 to 24 months

Rent escalation is 10 % in the 2nd year of the lease

You can buy the property back anytime within 24 months

 

USE YOUR HOME TO PAY LOANS

 

Buy-Back Option

You have the option to purchase your property within 12 months:

The Buy Back price is the purchase price plus 20 % in the first 12 months and plus further 20 % after month and before 24 months:  

Your Buyback option can be exercised at any time in the 24 months period.

 

Financial – Example

If you have a property worth R 1 million,  access up to R500 000 ( 50 % of the property value ) through the sale of your property, with the option to buy it back within 24 months.

 

Property Value                                   R 1 000 000

Less Debt :

   Bond                  R 300 000

   Credit Card       R 100 000

   Other Debt       R 100 000

Total Debt     –     R 500 000      –     R 500 000

Property Purchase Price                  R 500 000

Debt ( after transaction )                Nil

 

Rental      +/- R10 000 p/month for 12 months and +/- R11 000 p/m for months 13 to 24.

Option      Buy-Back price  R 600 000 ( within 12 months or  R720 000 – 12 to 24 months)  

 

DEBT CONSOLIDATION WITH PROPERTY

 

Explanations:

Debt Settlement using property, is also known as the Buyback Sale, Sale and Leaseback, Sale and Rent, Sale and Rent Back and even Rent to Own. Essentially you settle debt using property equity.

 

We also facilitate Bond Consolidation, Loan Consolidation and Debt Consolidation Loans for Homeowners. This is when you consolidate your debt into your bond, with home equity loans South Africa.

 

If you are looking for homeowner debt relief, a mortgage debt settlement or homeowner equity loan look no further. We can assist to pay debt.

 

Essentially, we buy homes to settle your debt and then you stay in your home and buy your home back, within 24 months. This also applies to all other types of properties.

 

FAQ’s

 

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

No.

 

What is the maximum debt amount

50 % of the value of your home / property

 

How long does it take

A few days to a few weeks

 

How much does it cost

See example on home page

 

Can I stay on in my home

Yes

 

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

Yes

 

Can I buy my home / property back

Yes, within 24 months

 

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.

 

What Documents Needed :

 

  • Proof of 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)

  

Ideal Property Profile

 

Any type of property that has a bond of less than 40 % of the value of the property. Eg Property R 1 million Bond R 400 000.

  

USE PROPERTY EQUITY TO CONSOLIDATE DEBT

Use the Sale and buy back method.

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.

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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.

Equity Release

Equity Release

Choose Which Type Of Equity Release You Are Interested In: 

Property Equity Release | Property WarehousingMezzanine Finance – Developers | Mezzanine Finance – Commercial

Sold your property ?

Waiting for profits to pay out ?
Get your money now !

UP to 80 % of the net proceeds can be advanced in 24 hours. 

Cost Schedule

  • Minimum Term – 3 months
  • Maximum Term – 24 months
  • Minimum APR –  24 %
  • Maximum APR – 30 %
  • Broker Fee –  2 %

Example :

  • Loan                        R 1 million
  • Term                        3 months
  • APR                          24 %
  • Repayment             R 2 080 000

Subject to lenders Terms and Conditions at time of quote.

Property Equity Release

Equity Release in Property

You can now access up to 50 % of the equity in a UNBONDED residential, commercial property, industrial property or agricultural land  in as little as 10 days.

LOAN CONDITIONS

Existing Bonds–  The property HAS TO BE 100 % UNBONDED
Property Value–  R 2 million or more
Loan Amounts–  Minimum of R 1 million or more
Max. Equity Release    –  50 % of the property value
Repayment Term– 3 months to 24 months
Repayment–  Monthly ‘interest only’ repayments and settlement of the capital at the end of the loan term
Security– First bond registered over the property
Default– Please do not apply if you cannot settle within the loan term agreed
Key Element–  You must be able to demonstrate that the loan can be settled in the agreed term

Choose Which Amount
You Would Like To Apply For

R 2 million to R 5 million Click Here to apply
R 5 million to R 50 million Click Here to apply

What is equity

What is equity : Equity is the “current value less the current bond” or if no bond, then the current value.

EXAMPLE With 10% Bond No Bond
Property Value R2 000 000 R2 000 000
Less Bond R200 000 R0
Equals Equity R1 800 000 R2 000 000
60% of equity available to you R1 080 000 R1 200 000
Equity release plans

Examples of where the release of equity is applicable:

A client has a property that is being renovated or is being built. Cash is needed to complete the project. If completed then the property is worth more than the amount that has been invested in the renovation and so equity release will enable the person to complete the project. The client MUST HAVE a buyer that has lodged securities with the transferring attorney. Property equity release can take place.

A business owns a property (commercial, industrial, residential or agricultural) and needs to access equity quickly to take advantage of some opportunity. Equity finance can be arranged and a cash advance provided in 10 days, using the property as security for the loan granted….as long as there is a guarantee of repayment provided.

A developer has nearly completed a residential or commercial development and needs to release the profit made, before the transfers to new owners take place. An equity loan is ideal.

A cash deposit is needed to secure another loan. A property can be offered as security and a Home equity loan is then provided by release of home equity.

How to release equity

Basic requirements

Adequate security for the loan to be provided such as, permission from first bond holder to take a first bond over the property.

Loan settlement plan needs to be achievable. For example, proceeds due from other activities, policy payout, investment maturing, contract proceeds being paid out etc.

Property bridging facilities are granted to juristic persons i.e. companies / legal entities.  Company details and financials, FICA, property and repayment motivation documents to be presented.

Equity to be approximately double the value of the bridging loan required.

Minimum loan to be R2 Million Maximum almost unlimited !

Longest term of loan is 24 months but ideally 3 to 9 months.

R2 million – R5 million: Click Here to apply
R5 million – R50 million: Click Here to apply

Equity release loans are a quick way to secure finance but the borrower must be able to show the home equity lender that they can settle the loan. Contact us to arrange a quick and effective way to access your property’s equity! No bank delays. Personal service. Quick decisions. Competitive Rates.
Further Information

Equity Release / Property Secured Bridging / Term Loans using Property

Up to 60 % of the residual or “free equity” in a building and up to 30 % in vacant land, can be released to the owner of the property by the registration of a first bond or covering mortgage bond over the property.  Equity is, the value of the property less the outstanding bond and if no bond, then the properties value as determined by the lender.

In current market conditions lenders are however only granting up to 50% of the equity where no other security can be offered and ideally the property should be bond free or not have a bond of more than 10 % of the market value. Eg. Value R2 million, less bond say R200 000, Equity R1 800 000.  Maximum grant would be R900 000 UNLESS the exit plan (repayment of the loan) is very secure.

An Approval in Principle (the first step in this process) takes up to 5 working days to secure. This is very dependent on the availability of supporting documentation.

Conditions :

–  Minimum loan size is

R 1 million.
–  Interest rate 2% to 4.5% per month (subject to change without notice)
–  Once off professional fee of between 2% and 5% .
–  Loans can be settled earlier with no penalties (subject to negotiation)
–  Ideal loan duration is 3 to 9 months. Loans of up to 24 months can be arranged.

General Conditions :

Two very important elements:

  1. Security
  2. Loan Repayment

A. Security

A first bond needs to be registered over the property offered as security. Second bonds are not acceptable so the current bond will have to be settled and this amount will be added to the bridging loan applied for and should be settled by the proposed transactions, profits.

To determine the value of the property offered as security, the credit provider arranges to have the clients property valued. If you have a valuation, please submit for initial desktop assessment.

The client can then use the funds as they feel fit but with the understanding that the loan needs to be settled at a negotiated and agreed to time in the future ( 3 months to 9 months ideally) and interest hs to be serviced monthly.

In addition, the credit providers may  also require additional security in that they will ask that directors:
1. Resign as directors of the entity (in blank) and
2. Subordinate any loan accounts in the company to the lenders
3. Pledge the shares in the company across to the credit provider for the duration of the facility.

It is necessary to keep these documents in the credit providers possession in the event of non-performance on transactions. However, to date, the credit providers have very seldom had to resort to
harsh action to enforce deal conditions, as a result of careful due diligence investigations being conducted.

In order to give comfort to the client  credit providers are willing to sign letters addressed to the client confirming that changes to the company structure will only be effected should the deal run into extreme difficulties and / or only after all means to resolve the situation have been explored and that no other course is possible.

Credit providers are not in the business of taking over businesses or properties as they are pure money lenders and so these measures can be viewed as a last resort.

B. Loan Repayment

The loan repayment proposal is more important than the security. Security is easy to confirm.  Both you and the bridging company need to feel 100 % comfortable that the loan can be settled in the time negotiated. The focus of all equity release applications needs to be the loan settlement proposal. The Security is only used in the event of a default on the loan settlement and no lender ( or client) wants to call in the security to settle the loan, so please focus on providing a clear and concise explanation and proof, of the ability to settle the loan in the future.

Documentation Required

Step 1

Signed Mandate to Proceed / Professional fee agreement (Third Party Payment instruction)

Step 2

  • Name of entity requiring funds
  • Company registration documents
  • Proof of registered, head office and business addresses
  • Income tax clearance certificate
  • VAT Registration number
  • Latest Financial statements
  • Directors/Shareholders copy of ID and FICA requirements
  • Suretyships details i.e. Name, ID, FICA requirements
  • 3 months of latest bank statements
  • An audit certificate of solvency
  • Copy of title deed of property offered as security
  • An independent valuation of the property
  • Copy of the latest rates account
  • Exit strategy  –  a detailed description of how the loan will be paid back
  • Documents/undertakings/business plans/future property sales etc.

Once this has been assessed by the credit committee, a decline or AIP (Approval In Principle)  is issued. The AIP will indicate the “subject to” conditions relating to the loan.

Once all suspensive conditions have been fulfilled and accepted by the credit committee, funds are released to the client. This process should not take more than 10 days ( from when ALL the supporting documents have been presented). It is essential to have all documentation as required, in order for the process to take place quickly and effectively.

Property Warehousing – Sell and Buy-Back

If you need to release equity from your property quickly, we arrange for an institutional lender to buy your property with you having the first option to buy it back, within 12 months, at the same price plus interest, broker fees and admin costs incurred.

Documentation required :
As per Property Secured Bridging above.

Conditions :

  • The buyer will not “pay” more than 50 % of the property’s value
  • You get to buy the property back at the same price you sold it for plus interest, admin and fees.
  • Rental income from the building can deducted off the interest charged.
  • Interest is charged at between 3% per month and 5 % per month.
  • Should you not be able to exercise your option to buy-back, after 12 months, there is an option to   negotiate to extend the loan for another 12 months.
  • Professional Fee Once off 2 % to 5 % depending on deal size
  • Minimum transaction size R 1 000 000

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Mezzanine Finance – Developers

This form of bridging is aimed at property developers needing additional or temporary funds to accelerate their projects. The process for this is the same as that of the Equity Release or Property Secured Bridging above but additional information is required

Documentation required :
As per Property Secured Bridging above plus Valuation, proof of sales, rights to develop. A full list available on request.

Conditions :

  • Pre-sales in place (sale agreements concluded in respect of development units available, and be supported by finance deposits or bond grants)
  • Development loan secured
  • Adequate security
  • Developer to have track record of at least two(2) successful developments;
  • First mortgage bond over development property will be needed
  • Value of immovable property tendered as security (as determined by sworn independent valuation), to equal or exceed 125% of total aggregate encumbrances;
  • Applicants to demonstrate feasibility and demand for development;
  • All required rights, permissions and zoning for development, to be obtained and in place and/or status thereof;
  • Payout on registration date of first bond over development property.

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Mezzanine Finance – Commercial

Commercial Property Finance – 100 % loans
If you need to release equity from your property quickly, we arrange for an institutional lender to buy your property with you having the first option to buy it back, within 12 months, at the same price plus interest, broker fees and admin costs incurred.

Documentation required :
As per Property Secured Bridging above.

When purchasing a commercial or industrial property, the banks and lenders will normally only provide you 70 % of the purchase price as a loan. You as the buyer must put in at least 30 % of the property purchase price as a deposit.

Our mezzanine lenders will put in your deposit for a 30 % share of the ‘upside’ profit at year 3 of the loan. At year 3 they wish to exit the loan and so you will have to find an alternative lender to refund the 30 % deposit and also pay them out their 30 % profit share.

The advantage to you is that if you see a good property but do not have the required bank deposit, you can still buy the property on the OPM basis…Other Peoples Money. You will be 100 % owner and manage the property. Very good for persons that do not have the required funding to go into property investments and have identified good opportunities.

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Home Loans

HOME LOANS

Home Loans quick and easy. Get an affordable mortgage bond for your new home now.

We offer a free service to qualify you for a home bond, any place in South Africa.

3 Step Application Process :

  • Apply on this website
  • Provide all supporting documents
  • Answer within 48 hours

Home loans eligibility is about applying for and doing an assessment of affordability, to see if you meet lenders lending criteria.

Apply now for a no obligation house loan

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and an expert will contact you for a No Obligation discussion, on how to get access to what is rightfully and legal yours.