Bridging Finance South Africa

4. Bridging Finance South Africa

One of the Great Things About Financing is Finding a Bridge

No, we don’t mean you need to look for a bank located near a bridge. We’ve got something better! Finding a loan to help you when you need it has just gotten better. You can utilize a small bridging finance loan for debts like using a line of credit to help with personal debts. Maybe you have credit card debt, and you want to consolidate into one bill and pay one smaller amount over time that may have a more flexible term with it.

Interest Rates

Maybe you’re just looking to have a lower interest rate or let’s say for example that you want to put a deposit on a new home and you want to start the process of selling your old home. That’s where bridging finance can come in and help you. Another benefit to bridging finance is that it can help you to pay off your much higher interest rates, or you could even pay tax bills that may be outstanding.

Debt Consolidation and Closings

Another area where you can use bridging finance loans is to help you consolidate debt where you can make one small payment and end collection agency calls. Bridging finance loans are here to help you when and where you need it. They are also designed and set up to help you reduce the delay of having a lack of cash flow from one area when you need to apply it to another in a quick and timely manner, like when you close on a house.

Easy Loans

Another benefit to bridging finance loans is that the money is easier to secure, you can get this kind of loan the same day in some occasions. Because the loans are financed through banks and or their private lenders, they’re easier to receive and you can have your money right away. When you’re ready to consider a bridging finance loan in South Africa, there are many options that are available to you. Consider debt consolidation. Even if the banks tell you no you can’t refinance for a traditional debt consolidation loan, try a bridging loan. When you are ready, gather all of your bills together and have it paid off in one lump payment.

Factors in Bridging Finance to Consider

When you consider setting up your bridging finance loans things that you want to look out for are you want to ensure that you have the proper security to put down as collateral and that you can pay off your loan. Keep in mind if you use your house as collateral you want to ensure that you’re able to make the payments. You also want to consider repayment terms and their options and make sure that when you set up the payment process that the payments are affordable and the monthly amount is something that you can meet, as well. Even with your interest rate, try to negotiate the best rate that you can afford and budget out how much it will cost you over time to ensure you’re not taking a loan that’s going to put you in over your head.

When we work with the Bridge and Finance Association of South Africa or BFASA, we want to ensure that you have lenders who are going to help you and these can include legal firms, banks, real estate agencies and private lenders that can help you with setting up a bridging finance loan. You also want to work to see if there are any transfer duties included under new property or handles and check to ensure that any sellers advances are taken care of in advance, and be sure to see if the state agent commission is included or if there will be anything that will be tied into your bridging finance loan that you are unaware of so you know how your terms are set up and what you have to pay back.