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Term loans

Own fully paid up property? Use it as security for a business loan.

Leverage your property’s value for flexible, short-term business financing.

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

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Using property for a term loan

At New Heights Finance, we understand that accessing capital quickly is crucial for business growth. If you own property valued at R1.5 million or more, you have a valuable asset that can unlock the financing you need. Our term loans, secured by your paid up property, offer a streamlined and efficient way to access significant funds for your business ventures.

Why Choose a Property-Secured Term Loan with New Heights Finance?

  • Significant Loan Amounts: Leverage the equity in your property to access substantial capital.
  • Flexible Terms: We partner with a wide network of lenders to offer loan terms tailored to your specific business needs.
  • Competitive Interest Rates: Benefit from competitive rates, thanks to the security provided by your property.
  • Fast Approval Process: Our streamlined application and approval process gets you the funds you need quickly.
  • Diverse Lender Network: We are a finance broker and partner with many private lenders, providing a variety of loan options.

A business term loan is for you if…

Bond-free property

You’re a business owner with property valued at R1.5 million or more that is fully paid up

Ready to grow

You’re looking for short-term financing for expansion, working capital, or other strategic initiatives.

Good track record

Your turnover is generally high and you have a good sales track record (demonstrates you can repay the loan)

Quick short term loans

You need a quick and efficient way to access large sums of capital

Loan Conditions

Loan Term: From 6 month to 12 months 

Property Status: Bond-free, owner holds title deed

Property Value: Over R1.5 million

Maximum Loan: 50% of open market value

Interest: 2.8 – 4% per month

Cost Schedule

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

    Funds Available: R 368 000 ( to Client)

    Interest Rate:  2.8% – 4% per month

    Once-off Costs: 3% fee

    Term: 6 – 12 months 

    Subject to lenders Terms and Conditions at time of quote

    How Does a Property-Secured Term Loan Work?

    At New Heights Finance, we offer two distinct repayment options to cater to your specific business needs:

    1. Short-Term, End-of-Term Repayment:

    • This option is designed for businesses awaiting a significant payout from a concluded deal within six months.
    • It’s ideal when traditional monthly repayments are challenging, allowing for a single, comprehensive repayment of capital and interest at the loan’s conclusion.
    Key Features:
      • Loan term: 6 months.
      • Security: Unencumbered assets, typically property.
      • Repayment: Full capital and interest repayment at the end of the term.
      • Minimum advance: R500,000 (no maximum).
      • Maximum transaction value not to exceed 40% of the property value.
      • Borrower must be a Juristic Person.
      • Property valuation at client’s expense.
      • Satisfactory exit strategy/repayment mechanism required.
      • Assessment of assets and liabilities of borrower and/or sureties.
      • SARS affairs in order.
      • Pricing varies depending on the deal.
    When This Option Suits You:
      • Cash flow is currently tight, but a substantial payout is imminent.
      • The payout is expected within six months.
      • You can provide unencumbered assets as security.

    2. Monthly Repayments:

    • This option allows you to leverage the equity in your fully paid-up property for flexible financing.
    • We lend up to 50% of the property’s open market value, subject to expert valuation and credit committee guidance.
    • Funds are disbursed rapidly, often within hours of bond registration, and there are no early repayment fees.
    • The typical loan term is 6-12 months.
    • At the end of the loan period, you have the option to repay, extend, or keep the bond in place.
    Key Features:
      • Loan term: 6-12 months (flexible).
      • Security: Title deed of the paid-up property.
      • Loan amount: Up to 50% of the property’s open market value.
      • Fast funding: Disbursement within hours of bond registration.
      • No early repayment fees.
      • Monthly interest rates vary.
      • All payments via EFT or direct deposit.
      • Loans are not automatically renewed.
    Advantages:
      • Quick estimates from in-house appraisers.
      • Fast funding upon agreement and bond registration.
      • Optimal valuation to maximize loan amount.
      • 100% private.
    This Option is Ideal For:
      • Clients seeking funds for further property acquisition while their current property is on the market.
      • Bridging shortfalls during cash purchases.
      • Taking advantage of time-sensitive financial opportunities.
    Requirements:
      • Property must be fully paid-up (no outstanding debt).
      • Property value typically exceeding R1,500,000.
      • Bond registration and title deed possession by New Heights Finance.

    FAQs

    How does a term loan work?

    A property term loan provides your business with medium to long-term financing, secured by the value of your real estate assets. This type of loan utilizes a fixed repayment period, offering predictable financial planning.

    To qualify, you’ll leverage a tangible asset – typically a building or land owned by your business – as security. This collateral ensures that, in the event of repeated default and loan delinquency, the lender has the means to recover the outstanding loan amount through the sale of the property.

    At New Heights Finance, we understand that your property represents a significant asset. By using it as collateral, you can access substantial capital to fuel your business growth, manage cash flow, or pursue strategic opportunities. We work with a network of lenders to offer competitive terms and tailored solutions, ensuring your property-backed loan aligns with your specific business objectives.

    What factors affect the cost of my term loan?

    At New Heights Finance, we recognize that transparency in pricing is crucial. The cost of your term loan is determined by several key factors, ensuring a tailored financial solution:

    • Monthly Turnover: Your business’s consistent revenue stream is a vital indicator of repayment capacity.
    • Business Tenure: A minimum of one year in operation is generally required, demonstrating business stability.
    • Asset Value: The higher the value of your property, the more favorable the financing terms may be.
    • Asset Type: Commercial properties, while valuable, may present unique considerations due to liquidity, which can influence loan pricing.
    • Credit Assessment: While property value is paramount, some lenders may consider credit scores as part of their evaluation.
    • Lender Priorities: Lenders focused on rapid funding may accept higher risk, resulting in potentially higher loan costs.

    Risk and Pricing:

    A fundamental principle in lending is that increased lender risk correlates with higher loan costs. This explains why unsecured loans typically carry higher interest rates than property-backed, secured loans.

    Process Duration:

    The term loan process, while slightly more involved than unsecured loan applications, is designed to ensure thorough due diligence and secure optimal financing terms. This comprehensive approach safeguards both the lender and the borrower.

    At New Heights Finance, we work diligently to navigate these factors, securing competitive rates and terms that align with your business’s financial objectives.

    What can I use my term loan for?

    At New Heights Finance, we understand that your business needs are diverse. While lenders rarely dictate the specific use of funds from a property-backed loan, it’s important to recognize that your intended purpose can influence the loan’s terms.

    For instance, if you plan to use the loan to acquire an asset, lenders will assess how that asset impacts your repayment capacity. A strategic purchase that enhances your business’s revenue stream will be viewed more favorably than one that poses potential financial strain. In these cases, the lender will factor in your use of funds as a consideration when deciding how much to loan, and how much it is going to cost.

    Common Applications for Property-Backed Loans:

    • Growth Capital: Fuel expansion through new ventures or increased investments.
    • Business Premises Upgrades: Enhance your facilities to improve operational efficiency.
    • Property Acquisition: Purchase new business premises to accommodate growth.
    • New Business Ventures: Launch innovative projects to diversify your revenue streams.
    • Business Acquisitions: Expand your market share by acquiring complementary businesses.

    By offering flexible funding solutions, New Heights Finance empowers you to leverage your property assets and pursue your business goals with confidence.

    What documents do I need?

    Due to the inherent nature of these loans, which involve substantial collateral, a comprehensive documentation set is necessary. Here’s a guide to the standard documents required:

    • Identification/Registration Documents: Proof of identity for the property owner, whether an individual or a registered entity.
    • Original Property Deed: The official document confirming ownership of the property.
    • Business Bank Statements: 6-12 months of current business bank statements to assess financial health.
    • Management Accounts: The latest management accounts to provide insight into your business’s financial performance.
    • Annual Financial Statements: The most recent annual financial statements, offering a comprehensive overview of your business’s financial standing.

    While this list provides a solid foundation, additional documents may be required depending on the specific lender and the complexity of your application.

    THE BELOW FORM ONLY APPLIES TO LOANS AGAINST BOND-FREE PROPERTY. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.