Business Debt Consolidation Using Property
- Need a loan for your business?
- Own a fully-paid property?
- Property worth more than R 650 000?
- Your business is a legal entity Pty, CC or Trust ?
Then a loan of R 250 000 or more could be available to you, RIGHT NOW !
Business Consolidation Loans are quick and easy, using bond-free property as collateral. Use your unbonded personal property or business property as security for a ‘term loan’.
Use the money to:
- Clear your business debt, using your bond-free property.
- Inject cash into your business.
- Pay outstanding invoices.
- Take advantage of a new contract by getting a business loan against
Please note : Our secured loans are aimed at business entities, not private individuals.
You need to own a business and it must be registered in a legal entity name ie (Pty) Ltd., CC or Trust.
Take Advantage of a Business Opportunity
General Loan Conditions :
Legal Entity – Applicant has to be a business entity- CC, Pty or trust
Trusts – To have a minimum of 3 trustees;
Security – The property needs to be fully paid up (Bond free)
Value – Property to be valued at more than R650 000
Types – Preferably residential but others also considered
Loan Amount – Minimum R250 000;
Loan term – 6 to 12 months
Affordability – Proof of income to service loan required
Documents reqd – Financial statements, bank statements, management accounts, proof of
Exit strategy – Clients need to show how the capital can be paid back at end of the loan
Pay Creditors Early and Get Your Settlement Discount
Approximate Costs ( Refer to lender quote when you apply )
Property Value R 1 000 000
Loan Granted R 400 000
Bond Reg Costs R 12 000
Attorney Fees R 8 000
Initiation Fee R 12 000
Funds Available R 368 000 ( to Client)
Interest Rate 3 % per month
Once off Costs 3 %
Clear Business Debt by Offering Your Property as Security
Please note the applicant must be a business entity that can offer a private property or business property as collateral
Can you assist private individuals?
Only if the applicant is a registered legal entity like a (Pty) Ltd, CC or a Trust.
The property can be owned by an individual but the loan goes to a business.
Any upfront fees to be paid?
No. All costs are deducted from the loan granted.
Can you assist if I have a bad credit profile?
Sometimes. The reason for the credit listing needs to be assessed.
Can you assist if I have a good credit profile?
Yes, but this is not the only criteria considered.
Is there a minimum and maximum property value?
Dependent on the lenders conditions. Submit your application and we will advise.
What is the maximum Loan-to-Value?
40 % of the value of your home / property can be borrowed.
Maximum Loan Term?
12 months is allowed to pay the loan back.
Maximum loan amounts?
This application is for amounts up to R 2 million. Please go to our website to see programs for higher loans. CLICK HERE https://nhfinance.co.za/property-related-bridging-finance/loans-against-property-5mil-50mil/ for loans from R 2 mill to R 50 million.
How long does it take?
4 to 6 weeks. A bond is registered over the property. The property stays in your name.
How much does it cost?
Interest at 3 % per month and a once-off initiation fee of 3 %. Bond registration costs and attorney fees are for the applicant. These costs vary and are dependent on the loan amount.
How much do I get out?
The amount left after the initiation fee, attorney costs and bond registration fee, are deducted from the amount granted and paid to the applicant. See example above.
Option 1 : Interest only for 12 months, then the full capital amount paid within 12 months
Option 2 : Interest and Capital repayments, then balance of capital paid at the end of 12 months
Can I stay on in my home/property?
Can I rent my home /property out?
Does the property stay registered in my name?
Yes. A bond is registered over the property to secure the loan but the property stays in your name.
Is there any risk to me?
No, as long as you abide by the Terms and Conditions of the loan and make all repayments as agreed. If you do not, then the lender has the right to secure his money.
What types of property can be used?
Residential is ideal but others such as rental producing properties in urban areas can be used.
Use a Secured Loan to Settle Business Debt by Getting a Private Bond on Your Un-Bonded Property.
How does property backed finance work?
Private lenders take a higher risk and lend money to clients that banks won’t lend to, by registering a bond over your property. The property has to be bond free ( fully paid for). The lender uses the property/house as collateral for the loan. This is called secured finance or collateral loans. These loans against a paid-up property, can be used to settle debt but the loan has to be granted to a legal entity like a Pty, CC or Trust. It cannot be given to a private person.
You have 12 months to pay back the property backed loan. These private business consolidation companies need security to lend money and so they will register a 1st bond over your property to secure their loan.
A collateral loan against property, is a recognized method to secure business funding. It is risk free to the borrower as long, as the borrower complies with the terms of the loan agreement by making the monthly repayments. So, using your home to pay off debt is safe and easy. It is essentially a mortgage backed loan offered by a private company instead of a bank. This “business debt rescue” program, is available in South Africa and Namibia only.
We look forward to assisting you to pay off those business debts or take advantage of some new contracts to grow your business.