Property-Backed Solution

A property backed loan is a fast, convenient way to access business funding at lower interest rates than traditional lines of credit.

This solution provides a secured business loan using your residential, commercial, or prime industrial property as a guarantee. The value of the loan depends on the type of property and current valuation of the property.

Property backed loans can be structured in two ways to suit working capital or cash flow needs:

Fixed Term Loan:

A lump sum payment, repaid in equal instalments over a fixed period, generally up to five years.

Revolving Credit Facility:

Access to cash as needed similar to an overdraft, servicing the interest portion of the loan monthly for the initial 12 months, thereafter amortising to a loan to value of approximately 40% at the maturity of month 36.

Perfect for a business looking for:

  • An affordable and reliable alternative to traditional lines of funding. This may be to avoid excessive interest, where a fast cash injection is needed (and cannot afford the tedious process of waiting for bank approvals), or other lending options have been exhausted.
  • A large loan to purchase or repair capital equipment. One may not be able to get the full amount needed from an unsecured loan. This method of trade finance is that the value of the loan is based on the value of the property and not the Customer’s credit score
  • Funds tied up in unpaid invoices. A business may offer its clients credit where unexpected project/ production delays which delay payments
  • Want to take advantage of early-bird or bulk discount offers
  • Need to prepare for increased demand due to seasonal fluctuations
  • Acquisition or Management Buy-Out funding
  • Contract based funding
  • General working capital requirements with a more flexible repayment profile

How it works:

The business must have at least one year’s audited financials

Cash flow forecasts for the next 12 months to show that the business can afford the loan or revolving facility

The ownership of a residential, commercial or prime industrial property (original title deed)

A bond is registered on the property

Lump sum loans are repaid in equal instalments over a fixed period. This is usually up to five years

On the revolving credit facility, you have the option to select how much you want to borrow and pay it back whenever you want within three years, only servicing the interest monthly for the first 12 months (12 month capital holiday)

Access working capital through a property you own, to grow your business!