Bridging Finance Companies

In South Africa, bridging finance companies are licensed and regulated by the National Credit Regulator, and offer a much-needed financial service that is designed to help homeowners sell and purchase their old and new property respectively.

Bridging finance companies provide people with a temporary loan or instant finance to 'bridge' the financial gap created while they are waiting to receive the proceeds from the sale of their old property in order to facilitate the purchase their new one.

Typically under South African property law, property sellers only receive the proceeds from the sale of a property once the property has successfully been registered and transferred into the name of the new buyer, which can take up to three months or even longer.

It is this period where money can be tied up for months that spurned the birth of bridging finance companies. Unfortunately, homeowners that are dependant on the funds from the sale of their old home to buy their new home may experience a financial shortfall and thus miss out on their new property.

So thanks to bridging finance companies, people can rest easy that they can take out bridging finance in the form of a temporary loan that they can use in the short term in order to purchase their new property, with little hassle or stress.

Then, once they have finally received that funds from the sale of their old property, they can pay their respective bridging finance company back and enjoy their new dream home with peace of mind.

South African Bridging Finance Companies