If you’re wondering what it takes to get approved bridging finance for your business, this is for you.
Today we’re unpacking what is involved in obtaining a gap loan for business. If you understand and meet the minimum requirements, you’ll get faster approval. Giving you access to the critical working capital cash you need to get through your dry season.
Short-Term Loans Designed For Businesses
Bridging finance is a product specifically designed to help businesses grow when capital is tied-up, and the funding requirement is urgent. A bridge loan is a short-term (12-month) loan that is secured against a business or the business owners’ property while waiting for money from another transaction to materialise.
For example, let’s say that you need a deposit to buy bigger premises for your business, but you don’t have the liquid cash available right now (when you need it most). You’ll have more than enough money once your current property is sold, though. A bridge loan (also known as gap finance) covers the gap in between the two transactions.
How to Get Bridging Finance from Transaction Capital Business Solutions
Make sure you meet the minimum qualifying criteria
- The loan must be for business purposes. Transaction Capital Business Solutions does not offer personal finance whatsoever.
- The applicant must a juristic person. Either you or a shareholder (as a natural person with authority to act on behalf of the business) or the company (as a legal entity) may apply for the loan.
- Only prime commercial or residential property can be used to secure the loan. No other collateral will be accepted as surety. You (or your business, the applicant) must own a property to apply.
- You will need to supply business financials. Even though we use your property as collateral to secure the loan, we will still need to conduct a credit assessment and evaluate your business finances to approve the loan.
- You must be applying for R500 000.00 or more.
- You must be able to demonstrate how you will repay the loan at the end of the loan term.
- The loan period must be less than 12 months. You must be able to repay the loan and interest within a year.
To help you ensure that you have everything you need to apply, and for guidance with your application, we encourage you to speak to one of our business advisors.The advisor will carefully assess your needs and viability to secure the loan.
Understand the process from application to approval
- You will need to complete and submit your application form along with all the required documentation
- The property will be evaluated by Transaction Capital Business Solutions, and only our valuations will be accepted.
- Transaction Capital Business Solutions must be the primary bondholder on the property. That means that the property will be transferred to Transaction Capital business solutions for the duration of the loan period.
- Once the bond is registered with the deeds office, you will receive advanced payment on the approved loan amount.
What else do I need to know?
As with any other type of business loan, you’ll need to understand your responsibilities and obligations regarding repaying the debt.
There are three repayment options available with Transaction Capital Business Solutions bridge loans. To choose the option that is best suited to your business, we recommend chatting with our knowledgeable business advisors as soon as possible.