BRIDGING FINANCE
You sold the property and the purchaser has paid, but the money remain in a lawyer’s trust account until registration. This may take months, with you losing lucrative opportunities.
Beneficio can advance the funds, on condition that the lawyer issues a guarantee for the amount plus costs plus interest, in favour of the credit provider, to be paid when the funds are released. Bridging finance must be considered carefully, as interest rate amount to 1.25% per week.
FINANCING OF TRANSFER FEES
Conveyancers must ensure that the interests of sellers and purchasers are protected. They are only remunerated when the sale is registered in the deeds office – often months after some of the work has been done.
In the meantime, however, all business responsibilities have to be maintained. Beneficio can provide an advance on the fees, ensuring business as usual. The advantages of financing transfer fees must be carefully calculated, as an interest rate of 1.25% per week is charged.
DISCOUNTING AGENTS’ COMMISSION
Estate agents operate in a highly variable business environment. Like everyone in the property value chain, they only receive their compensation on registration of the property. This may be months after the actual work has been done.
This pose a major challenge to the agent with regular expenses but irregular income. With a guarantee from the conveyancing lawyer, Beneficio can finance the commission. It is important to remember, however, that a weekly interest rate of 1.25% is charged.
ALTERNATIVE BRIDGING FINANCE
Real estate may lock up a considerable part a business’ capital. Despite the inconvenience, the business may wish to retain the property. The expression says one can’t have your cake and eat it, but with Beneficio one can.
Registration of a mortgage on an unbonded property can bridge the liquidity gap. Beneficio can register a mortgage within 2 to 3 weeks, enabling the businessperson to lever its asset, rather than selling it. This should always be a well-considered business decision, as an interest rate of 1.25% per week is charged.