Bridging Finance

A unique approach to getting money fast.

Bridging finance is a money-advancing service. They'll lend you money right now, using money that is owed to you as security.

Have you just sold your property or cashed out your pension fund? Technically, you have the money – but the money could take a while before it appears in your bank account. They'll lend you the money you need until your funds become available.

Their security

Lenders are taking a risk by lending you the money on a guarantee or promise that you have the funds available but are just not able to access them as yet.

However, if things go wrong or you encounter a problem along the way, they will need to ensure there is recourse available. For this reason, you'll need to guarantee and provide security to prove that you can provide adequate security for your personal loan.

Personal loans using moveable assets

A movable asset can be used to secure your long or short-term loan. These assets are non-property assets and can include assets such as jewellery, commercial and personal vehicles, insurance plans, planes, and other equipment.

These must be valued at over R50 000 but can reach the value of R50 million or more. They'll then store the moveable asset in a secure warehouse and the asset will remain their property until the debt has been repaid in full.

Bridging Finance has different types of bridging loans available, in each case, an asset or guarantee will need to be put in place to secure credit.

The main categories of business and personal loans they'll assist with, fall into the following categoies:

• Property
• Business
• Guarantees
• Personal

Bridging loans for estate agents

If you're in the business of buying and selling houses, you'll know how horrible it is to have to wait for your commission for 2 months or more. They can bridge the gap by offering you a personal loan while you wait for your commission.

Finance for your bond

With them, you'll be able to borrow up to 80% of the approved bond amount if you're selling, switching your bond, or have been granted a second bond.

• Pension bridging loans: This type of bridging finance is available once you've resigned, been retrenched, or been fired from your current employment where you have the option of cashing out your pension fund. This can sometimes take a while to payout. In this case, you can use this as a guarantee to get a loan until the funds are available.
• Road accident fund: If you have a successful claim at the Road Accident Fund (third-party claim), you can access up to 80% of the RAF payout owed to you.
• Property secured finance: These loans use your property as equity to secure your loan. Bridging Finance will then give you an advance using your home as security for the loan.