Bridging Finance
What is Bridging Finance?
- Accessing money that is due to you EARLIER than you'd normally receive it
- Advancing you money to undertake specific transactions NOW, rather than later
With Bridging Finance, you get the financial certainty of knowing your money is available right away- for example, it can take 3 months before the profits from the sale of your house will be paid to you. This can be a serious setback if you are waiting for funds to pay a deposit on the next home, pay outstanding rates and taxes or need cash to settle debt before taking transfer of your next home.
Why use Bridging Finance Facilities?
- To unlock equity in your property or movable assets
- To IMPROVE CASH FLOW!
- To take advantage of opportunities that exist before someone else does
- To pay back debts that are due
- To pay transfer fees and bond costs
- To pay tax, rates and taxes, levies etc.
- To finance your approved property developments.
Who is eligible?
Both Business and Private individuals, as long as there is security and the ability to pay back the cash advance.Types of Bridging Finance
- Advance on Sale - proceeds of a sale in advance to sellers before registration
- Advance on Bond - proceeds of a bond to owners in advance awaiting registration
- Advance on Bond - Switching - proceeds of a bond – to owner awaiting registration
- Transfer duty and costs
- Arrear or advanced charged rates and levies
- Estate agents commission (80% of net commission)?
- Pension payout bridging (80% of net Payout)
- Deceased Estate costs (80% of Estate net value)
How much money can I get?
You are advanced up to 80% of the profits (equity) of the sale of your home or new bond value. The remaining 20% will be paid to you on completion of the standard transfer process.Example
| Proceeds of sale of house | R500 000 |
| Minus outstanding bond amount | R400 000 |
| Equals a profit (equity) amount of | R100 000 |
| Maximum amount available for | R80 000 |
| Bridging Finance | (80%) |
How to apply:
- Go to “Join Veriagent” and register.
- Login with your “USERNAME” and secure “PASSWORD”
- Submit the “Online Application” to request bridging finance NOW.
- Submit your Income and Expense sheet
- Submit your Asset and Liability sheet
- Upload your payslip or recent financial statement
- Veriagent will confirm online the status of your application
