Q What is the cost of borrowing money?
A We typically focus on lending money for periods of 1 to 3 months. Our rates vary between 4% and 5% per month, depending on our assessment of the risk associated with the deal.
Q How much can be advanced?
A The amount that will be advanced is a percentage of the equity realised in the transation and is determined on a deal by deal basis depending on the overall credit assessment for the customer. As a general rule the advance would usually not exceed 70% of the equity realised.
Q Do you accept undertakings from any conveyancing attorneys?
A As the lawyer undertaking is our primary form of security for the bridge loan, we only accept undertakings from law firms that have been vetted by ourselves and comply with certain eligibility criteria. Among the factors we consider when assessing this are:
- Are they on one of the major banks authorised panels
- Do they have indemnity insurance in place?
- Which other bridge finance firms have accepted an undertaking from them in the past?
Q How long before the advance is paid?
A We endeavor to make the advance payments as soon as possible after the application is received. We aim for a 1 - 2 day turnaround time.
Q Are you regulated by the National Credit Act?
A Our agreements are structured as discounting agreements, whereby the property sellers claim to the net proceeds from the property sale are effectively SOLD to us at a discount, and then repurchased back from us once the sale has concluded. It is done this way in order to secure our right to the proceeds of sale in case any subsequent dispute arises from a 3rd party as to our claim to these funds. Such agreements are not governed by the National Credit Act.
Q Can the advance be repaid early?
A Yes advances can be settled early, subject to a minimum discounting fee of 1 month. Please contact us immediately before making any settlement payments.
Q What happens if BridgeProp is not settled?
AThe customer ultimately remains responsible for any advance obtained and any non repayment through the established repayment mechanisms will result in the customer having to settle BridgeProp directly. If this situation does occur contact us immediately to discuss your options.
Q Do you offer introductory commissions?
A We do offer commissions to introducers of business. Contact us for more information on this.