Home loan servicing companies (Mortgage Plus cc) are one-stop-shop for mortgage needs. They offer a range of products and services to meet individual loan requirements of their customers.

Home Loan Servicing: Types of Programs

With lending companies vying to increase their customer tally, loan quotes are an essential method to select a mortgage program. A home loan servicing company (Mortgage Plus cc) can offer loan quotes from several reputed lenders. Once you apply, as part of the process, the individual has to provide essential personal data, such as:

Home loan servicing firms (Mortgage Plus cc) offer home loan products through different lending institutions. They act as a retail store for buying suitable loan products. All the individuals who qualify for minimum loan requirements can apply for a mortgage with these companies. These companies also offer down payment assistance and legal support to realize loan purchase.

Home loan refinance options are available for individuals who want a shift to a lower interest rate program, or wish to extend the loan term. Loan servicing companies offer refinance options through different institutions. A loan refinance involves documentation and legal processes which are taken care of by the servicing company.

Home loan servicing companies also offer specialized loan products as well.

Some of these products are:

1. First Time Buyer Home Loans
2. New Home Loans
3. Second Bonds
4. Further Home Loan / Re-advance
5. Building Loans
6. Debt Consolidation Loans
7. Bond Switches
8. Development Finance
9. Commercial Loans

Specialized loan products have specific eligibility conditions. They offer low interest rates and require less documentation. Take care to examine the eligibility conditions and if possible compare loans from different specialized loans.

Loan servicing companies offer consultation to customer to help them understand loan products, interest rates and relative terms and conditions. These companies help their customers to prevent foreclosure. They advise customers on all possible options to prevent a foreclosure such as refinance, negotiations and repayment exemption.

Many home loan servicing companies offer online support as well. One can simply register with the company and enjoy their services sitting from the comfort of home or office.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

UNDERSTANDING ASSET-BASED FINANCING

Asset-based financing is a way for rapidly growing, cash-strapped companies to meet their short-term cash needs. In general, companies can tap their assets to generate cash flow through asset-based loans or through factoring.
The asset-based financial services industry has burgeoned in recent years, and small businesses have fueled much of its growth. Although a stigma is still associated with using your assets to get cash, this type of financing is becoming more popular.

Asset-Based Loans

When you apply for an asset-based loan, you pledge assets to secure a loan from a bank or a commercial finance company. You still own your assets, but if you don’t make good on your payments, the lending institution can seize them.
Asset-based loans are typically for companies with less-than-perfect credit. Interest rates and fees on these types of loans have fallen in recent years due to intense competition, but generally they are higher than traditional bank loans. As with all commercial lending, rates are negotiable. Lenders will look at your credit record, how long you’ve been in business and whether your assets are liquid.
Accounts receivable and inventory are common collateral, but any asset might qualify. When you use accounts receivable to secure a loan, you can expect to get about 60 – 75 percent of the face value of your fresh invoices. The loan-to-value ratio drops rapidly for older accounts.
When you use inventory to secure loans, your lender will most likely use a bonded warehouse — an approved warehouse used to store goods and monitor inventory — and pass the cost on to you. Loan amounts vary widely from about 30 to 80 percent of the value of your inventory.

Advantages and Disadvantages

The main advantage of asset-based financing is that small companies can usually get more cash more quickly than they could from a traditional bank loan. Also, asset-based lenders offer an array of services.

The drawback of asset-based loans is the expense. Using your assets to generate cash flow increases your cost of funds and cuts into profits. You need to weigh your situation carefully and determine whether this type of financing is necessary to expand your company or keep it afloat.

In Short

This product is for clients who have valuable assets, but are in need of short term liquidity. Funds will be advanced against the security of commercial property for a maximum period of twelve months, affording clients ‘breathing space’ to realise their assets without pressure or providing them with the time to secure long term financing from a commercial bank.

Minimum Requirements:

The Borrower must be a Juristic Person in terms of the National Credit Act

• Maximum transaction value not to exceed 60% of valuation
• Valuation of property to be done at clients’ expense.
• Minimum advance of R1 000 000 (no maximum).
• A first bond is to be registered over the property
• Maximum term of the loan of 12 months

If you’re looking for this type of financing, Please consult with Morne Prinsloo .

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za