Real Estate Investor Magazine South Africa November 2018 | Page 26

FINANCE
ADVERTORIAL
Cross the Right Bridge for finance
Get finance secured by the proceeds of the sale
B
ridging finance is ideal for those looking to raise funds
in the short term. Generally speaking bridging finance
is a cash advance that’s secured against future proceeds
deriving from the sale of a property although there are pack-
ages available that will advance money to those who have
been granted a new bond on an existing property, a second
bond, or who have switched banks and are waiting for the
new bond to be registered.
Not only do companies offering this service often
provide a competitive rate, one of the biggest advantages
is the turnaround time, mainly due to the fact that monies
advanced in this manner are secured by the proceeds of the
sale of a property.
Obviously, the time it takes to approve an advance of this
nature will differ from company to company, but using a
specialised bridging finance company will usually result in
the money landing in your account a lot sooner than with
traditional lenders.
It is imperative to deal with a reputable bridging finance
company which will provide you as the client with a
comprehensive quote, including a thorough breakdown of
costs associated with the transaction. All admin costs should
also be clearly laid out.
“We strongly suggest that those seeking bridging finance
deal with a company that is registered with the Bridging
Finance Association of South Africa (BFASA),” says
Christo Jonker, sales and marketing manager, Prevance. “All
the leading bridging finance companies in South Africa
are members, and are obliged to adhere to a strict code of
conduct.”
Jonker notes that one of the biggest dangers associated
with raising finance through an bridging finance company
that doesn’t enjoy a solid reputation within the industry is
hidden costs. “Anyone who applies for bridging finance must
ensure that the quote supplied contains a comprehensive
account of all of the relevant costs in order to ensure there’ll
be no nasty surprises further down the line.”
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NOVEMBER/DECEMBER 2018 SA Real Estate Investor Magazine
“At Prevance we understand that those who apply for
bridging finance generally need to access funds as quickly
as possible. Our product allows sellers access to as much as
75 percent of the nett proceeds before the actual transfer
goes through. Our team prides itself on not only offering
one of the most affordable bridging financing packages
available, but our highly qualified, dedicated staff also strive
to continuously deliver superior levels of professional service.
“We have always focused on building long-term business
relationships with our clients and are extremely proud of the
fact that many of our clients repeatedly use our services.”
Jonker adds that the company has gained a solid reputation
for its ability to design and create new short term financial
solutions as well as for its capacity to adapt to what’s really
needed in the ever-changing market.
“It’s important to remember that different people have
different needs, and as such those in search of pre-transfer
finance need to work with a company which not only
understands those needs, but which is in a position to draw
up a personal proposal which will afford the client maximum
benefits.”
Jonker notes it’s imperative to work with a company
that specialises in the area of bridging finance. “Some legal
firms have in-house bridging finance operations. Clients
using this type of service need to be extremely cautious and
understand that there may be a conflict of interest under
certain circumstances.”
He says Prevance prides itself on the superior and unique
financial solutions it offers, and which it believes has led to
the company being regarded as a leader in the industry.
“We have been advancing clients much needed capital on
their property transactions for 25 years and have gone from
strength to strength during that time. We look forward to
being able to help thousands more South Africans achieve
their dreams for many years to come.”
SOURCE Prevance