Is a Property Secured Loan the Right Fit for your Needs?

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Simply put, a Property Secured Loan is a loan that uses your Property as collateral against the funds that have been borrowed.

But you knew that... right?

  • The upside of going the “Secured Loan” route, is that you don't require an exceptional Credit Record. The lender is likely to be lenient as long as you own valuable assets that offset their risk.

  • The downside, of course, is that you stand a chance of losing those Valuable Assets if things do not work out as planned.

Many Business Owners come from certain industry categories, like those operating in the Building Industry, where Progress Payments are irregular and difficult to predict due to factors beyond the Contracting Company’s control.

In such instances a Short-Term Property Secured Loan is a great source of convenient, dependable access to help alleviate pressure on immediate cash flow.

You can’t bank on it

South African Banks, notoriously conservative and, in some instances, rightly so – are not that bullish in providing access to Finance, especially to SME's (Small to Medium Enterprises) – with most not that progressive in taking Personal Personal Assets as leverage for Transactions.

This then leaves the alternative Lending Space as a sensible option to pursue.

To give you a brief idea of global trends, according to this article, in the United Kingdom alone, Asset-Based Lenders have provided finance of close to £2bn (R40bn), to Individuals and Businesses . . . and that was in the last quarter of 2014.”

Secure Loans R5m or more...

Locally, FundingHub offers a simple Online Application Process and Supporting Services where Business Owners can secure Business Loans against property, in excess of R5m.

“Your Business Cash Flow and Profitability is not as important as the underlying Security offered to the Lender,” says Barry Leonard, co-founder of FundingHub. “Because there is Security, the risk is lower than an Unsecured Loan and so the interest rates charged by the Lender are normally lower than an Unsecured Loan.”

While Repayment Terms are around 5 years – it is strongly advised that Loans of this nature are repaid as quickly as possible.

Nonetheless, potential Loan Seekers do have some leeway in Structuring Repayments to suit their financial reality.

Unsure of what type of Loan is the right one for your current Business Requirements? Use FundingHub’s free online application process to access a host of approved Alternative Lenders and Secure the right Funding for your Business TODAY!