Demystifying Property Financing: Everything You Need to Know About Property Loans


    We all understand how important and necessary accessing cash quickly can be. Business is all about the time value of money and as we all know it is not that hard to make R1 million in 10 years but it is pretty hard to make R1 million in one year!

    Having accessibility to cash quickly can make or break deals and can make you lose out on a bargain or can make you suffer when you have an asset that needs fixing or renovating.

    This is why at First Advance we realise and pride ourselves on making sure you get cash quickly.

    We do this by taking an asset like a property that is paid up and unencumbered and using it as a security to give you a loan.

    We are quite Conservative with the amount of money we will allow for a property loan and we are also conservative about how much money we feel you are able to pay for the loan on a monthly basis.

    We check affordability and this is an important criteria for determining the loan we can give you.

    Once we have done this it is a very quick process for us to unlock the cash for you and have you paid.

    We have a lot of clients that use us as a revolving credit. They will leave their title deeds with our attorneys and use money as and when they need from us.

    All that is required is current bank statements and a quick sign and scan of our contract.

    This is a very clever and useful way of using your asset to realise Business opportunities and pay for them when needed.

    Also we use a ratcheting down system of interest calculation based on your timeous monthly payments. What I mean is if you are paying every month consistently we will ratchet down your Interest after six months and then we’ll reassess after a year and further reduce interest payments if you have been paying well.

    We have clients that have been using us for five years that are on very low and comparable to institutional bank interest rates.

    Unfortunately for us we are a small company still and the money that our investors put into our business that enable us to give you loans comes at a high interest rate.

    We do not have the luxury like institutional banks of getting funds from the reserve bank at very low interest rates.

    So please contact us and check out whether this is something for you to use in the future.

    In South Africa especially we are under the ball and chain of institutional banks. They like to advertise and market how much they would like to help you however they really are not interested in taking risks and helping clients. They also drag their heels so much that it makes it almost impossible to do business and be the entrepreneur that you are and that makes you driven and excited every day.


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