Property Bridging Finance

1. What is property bridging finance?

This is a way to access funds that will be available in the future when a property transaction is registered in the Deeds Office. The transaction is effectively the discounting (purchase) of the future receivable due to either the seller, or the owner obtaining mortgage bond finance, or the estate agent with a claim for commission. We also obtain a written undertaking from the attorney attending to the transfer process, to make repayment on the date that the transaction is registered.

2. How do I apply for property bridging finance?

Simply complete the application form [[insert link]] as thoroughly as possible and forward the signed form to info@combinedfinance.co.za. We will obtain the undertaking from the attorneys, together with any other documents we may require.

3. What is the cost involved?

Request a quote using the calculator spoput to the right. We do not charge a raising or administration fee, and this typically makes our quotes extremely competitive. Please remember to factor in these fees when comparing quotes. The easiest way to do this is to request a quote for the total cost for 30 days and then to compare our quote against those from other financiers.

4. How long will it take before the property bridging finance is paid to me?

This depends on two variables: firstly, whether the property transaction is ready for bridging; and secondly, how quickly we can obtain the undertaking and other requirements from the attorneys. Our steadfast aim is to pay all applications on the day on which they are received. If there are no problems with the credit of the applicant, then payment is made as soon as the application is approved. This can take place as soon as we have received everything we require, unless the client instructs otherwise. Once we have everything, payment can usually happen on the same day, unless the application is declined.

5. Who qualifies for property bridging finance?

You can qualify if you are the seller of fixed property, who has sold the property and is expecting payment of cash on registration, or if you are the owner of the property who is receiving money from a new/further/switch bond on registration of the bond in the Deeds Office. If you are an estate agent who has a claim for commission as a result of a sale achieved but not yet registered, you also qualify for property bridging finance.

6. Does property bridging finance relate only to the sale of property?

No, it is also available for the proceeds of new/further/switch bonds.

7. How much finance can I get?

You can apply for up to 80% of the cash that will be owed to you upon registration of the relevant sale or bond in the Deeds Office.

8. What can bridging finance be used for?

This finance may be used for any purpose without limitation. For our own purposes, we classify applications into the following categories: transfer duty; rates and taxes; seller's advances; and further switch bonds.

9. Who does not qualify for bridging finance?

As a general rule we do not approve applications from unrehabilitated insolvents, persons under debt review, or those who have seriously impaired credit records. We do however evaluate each application on its merits, and should you fall in one of these categories, we invite you to contact us so that we may try to assist you.

10. I am blacklisted. Can I get property bridging finance?

This depends on the nature and severity of the credit impairment(s). We evaluate each application based on its merits. Please contact us, as an impaired credit record does not necessarily mean your application will be declined.

11. Do you work with attorneys?

We only approve applications if we can obtain an undertaking from the conveyancing attorney, who must also be on our panel of approved attorneys. If your attorney is not on our panel, we will try to approve him or her for addition to the panel. However, this process may not always be successful. If your attorney is not on our panel, that is not necessarily cause for alarm. We have a very stringent panel attorney selection process, including references that we find acceptable. This is not always possible, even with reputable firms and attorneys.

12. You have declined my application. What now?

Our credit department will indicate the reasons for your application being declined. Contact us for further clarification here.

13. I am purchasing property. Can you bridge the transfer duty?

Absolutely, provided you are also selling a property. If you are not selling a property as well as buying one, then we will not be in a position to assist.

14. I hear there is an interdict registered against my property. Can you bridge this for me?

An interdict is registered by judgment creditors to ensure that they are paid when you sell your property. We may be able to assist, though usually only once the interdict has been uplifted. This is a formal process which will be co-ordinated by the conveyancing attorney. We do however analyse every application on the merits, so please do submit your application which we will pay as soon as it is possible.

15. Can you bridge my pension proceeds?

No. Unfortunately we only offer property bridging finance.

16. Do you provide personal loans?

No. Combined Finance only offers secured finance, such as property bridging finance and other asset-backed finance.

17. What is the minimum and maximum transaction size?

There is no minimum transaction size. We do not consider exposures of larger than R2-million per bridging finance client. Should your transaction be larger, then we may be able to assist by partnering with a competitor to provide the finance you require. Please contact us for further information.

18. I need bridging finance for my business but I have not sold any properties. Can you help?

Yes, although possibly not through our property bridging finance solution. We may be able to assist with one of our other products. Please contact us so that we may assess your requirements and see whether we can assist, or refer you to a financier who can.

Asset-backed Finance

1. Do you finance equipment, vehicles or other movable assets?

We are willing to finance your acquisition of such items, although we would not use those assets as primary security. We do not give hire purchase or instalment sale finance. Should you have any fixed property that we can use as primary security, then we may be able to assist.

2. What is the minimum and maximum transaction size?

We do not have a minimum transaction size, although transactions for commercially very small amounts, such as R10, 000, may entail disproportionate finance and transaction charges. As a general rule, our maximum exposure per client is R3 million, although we do consider and often approve larger applications as well.

3. What is a mortgage bond?

This is a form of security for a loan, which is registered in the Deeds Office. Any creditor can, with consent of his property owning debtor, register a mortgage bond as security for the debt. Banks are the largest category of mortgage bond holders, but other types of creditors can also validly acquire security by way of a mortgage bond.

4. Must I wait for payment until the mortgage bond is registered?

Not necessarily. We can assist our asset-backed finance clients with property bridging finance to speed up payment of the advance.

5. How quickly can you approve and pay finance?

Compared to traditional banks, we move at the speed of light. However, the time taken is dependent on a number of factors such as the kind of finance applied for, the circumstances, how quickly you respond, and the co-operation of all other parties including banks, the Deeds Office, external attorneys, etc. We have instances of meeting a client on a Tuesday, and having bond documents in the Deeds Office for registration by the Friday. Once we are in possession of your application, we will provide a rough roadmap to approval and payment, which will be the best possible indication in your circumstances.

6. What forms, documents or information do you require?

First, please call our offices and tell us what you need. We will immediately advise whether and how we can assist, or refer you to a suitable service provider if we cannot. Once we know what you need, we will forward you a list of our requirements for the application. As a general rule, we will require financial information (such as audited and/or management accounts and personal balance sheets of directors/members/trustees), a short summary of the situation and the finance requirement, and details of the property available as security. Further information may also be necessary depending on the circumstances, and we will keep you informed throughout the process.

7. What kinds of property do you use as security?

We use fixed property such as land with buildings or sectional title units. Properties may be residential, commercial, industrial or of any other nature. We do not usually take vacant land as primary security, although this depends on the circumstances. You are welcome to contact us with details, and we will be able to advise whether we can proceed.

8. What kinds of property are not considered suitable security?

We generally shy away from avoid using vacant land as primary security. We do not use movable assets such as equipment or motor vehicles as our primary security. As a general rule, security is suitable if the value is sufficient and the security is of a tradeable nature. Exceptionally specialised assets, or assets for which the market is small or illiquid, will usually not be considered suitable.