Mainstream Products

1) Property Bridging Finance
1.1) Seller's Proceeds

Your commercial, residential or industrial property has been sold and you are expecting a profit from the sale. The proceeds will only be paid to you by the transferring attorney once the property has been registered in the new owner's name at the Deeds Office. Bridging finance is a short-term cash advance against these proceeds which is then arranged while you wait for the property to be registered.

1.2) Rates and taxes

When a property is sold, a Rates and Taxes Clearance Certificate must be produced before registration of the Deeds Office can take place. Council requires payment in advance before this certificate can be issued.

Account arrears, and the required advance payment to settle these, are often not budgeted for when selling a property and can be bridged given sufficient provision in the proceeds of the sale.

1.3) Transfer duties

Surprisingly, very few purchasers actually consider the transfer duty and attorneys fees required for purchasing a property. These costs can range from 5% to almost 8% of the purchased price. If not budgeted for, coming up with such an amount of money on such short notice can pose a major problem.

Even if your bond for the purchase of a property includes the transfer costs, these allocated funds only become available on registration of transfer. However, the transferring attorney will require these funds well in advance to pay the transfer duty and to proceed with the registration. This is where we can help you to access these funds in order to facilitate the transfer. Please note: We are only able to assist purchasers if the approved bond includes transfer costs.

1.4) Bonds

Genrand can advance up to 80% to you on a further bond or a bond switch to another bank.

1.5) Estate Agent's commission

In the current difficult market Estate Agent Commission Bridging helps Estate Agents to unlock commissions due faster. Genrand can advance up to 80% of the net commission due to an Agent before registration.

2) Residential Bonds
Residential

Genrand, with our in-house Bond Originator, will expertly assist you applying for a residential bond. We collate all the necessary documents and assist you in all aspects, while fighting to get you the lowest rate on your home loan.

3) Commercial Bonds
Commercial Bonds

When applying for a commercial bond, many obstacles can deter you. We at Genrand aim to make this process to easy as possible by applying and structuring finance in a way that will best suit your needs.

4) Debtors Financing/Invoice Factoring

We have structures in place which makes it possible to free-up your cash flow for projects which you may require finding.

This is achieved by either one or more of the following products:

4.1) Full Factoring

This is the standard service offered. It comprises the following:

  • Total management of the debtor's ledger, including the provision of monthly debtor statements, computer reports to customers showing the state of the ledger. GST reports and debtor collections, trial balances etc.;
  • Investigations of credit-worthiness of prospective and existing debtors;
  • Up to 75% advance of the debtors book ( sometimes more);
  • The facility is disclosed to the customer's debtor;

This facility is suited to the small to medium size business in need of debtor administration as well as finance.

4.2) Invoice Discounting/Selective Invoicing Discounting

Invoice Discounting/Selective Invoice Discounting is an agreed service between the financier and the customer whereby:

  • The entire debtors' ledger need not be factored (depending on the customer's cash flow);
  • Only agreed debtors' invoices are factored following the usual 75% advance criteria;
  • The service may be disclosed or "confidential".

This facility allows the customer the flexibility to select either specific invoices, specific debtors or a variation within his debtors or invoices.

4.3) Trade Finance

The complete "cash out to cash in" solution. This enables businesses to increase their working capital by funding the complete operation cycle – provides cash payment or letters of credit to local and foreign suppliers.

Process:

  • You receive an order.
  • The financier pays your supplier or opens a letter of credit.
  • You deliver the goods and Invoice your customer.
  • You provide the financier with the Invoice and proof of delivery.
  • The financier discounts your Invoice and pays you 75% (less fees and amount paid to the supplier).
  • On due date your client pays the financier directly.
  • The balance gets paid to you.

The most important aspects here are an irrevocable order from your client, and a Pro-forma Invoice for goods delivered.

4.4) Supplier Chain Finance (Reverse Factoring)

This is an integrated solution where suppliers can find finance for a large percentage of their accounts receivable, from the moment they receive an order. The financier receives the full payment from the corporate buyer and repays the supplier the remaining discounted portion of the invoice – opportunity to support BEE & SME initiatives.

Please note that this facility would be disclosed to the corporate buyer (debtor) as they will be paying the Invoice to the financier.

Process:

  • We are introduced to SME/BEE suppliers and an agreement is signed.
  • We receive the corporate buyer's permission to proceed.
  • The corporate buyer, our client (you) and the financier enter a tri-party agreement.
  • You provide the financier with the Invoice and they advance 75% (less fees) of the Invoice.
  • The corporate buyer pays the financier directly and the difference goes to the supplier (you).
5) Medium Term Loans

We can advance funds against property which is unbonded or has a very small bond registered against it. Funds can be used to expand your business, finance a transactions or whatever financial needs you might have.

  • Applicant must be a legal entity (not a private individual) with immovable property that is bond free or has 'n very small bond. The Property may be registered in the name of a (different) private individual, as long as the applicant is a legal entity.
  • ITC record must be clean
  • Minimum property value of R 500 000 as rule of thumb
  • Normally a maximum Loan to Value equal to 50% of the valuation
  • Term: 4 – 12 months
  • Interest payable monthly
  • Capital repayable at the end of the term
  • Exit route must be clear from inception – how will the capital be repaid – what future event will generate enough capital (example: receipt of payment of large invoice/order; sale of stock; normal commercial/residential bond, sale of property, etc)
6) Home Rescue

A Home Rescue is aimed at assisting those who:

  • are in arrears with their bond repayments
  • need to release equity from their homes to settle debts
  • are about to have their homes repossessed by the bank (received summons from the bank)
  • are under Administration or bankrupt
  • are about to have their homes auctioned
  • want to stop repossession
  • face foreclosure and need to stop foreclosure
  • want to avoid repossession or house being attached
  • need a quick home sale

We will prevent the home owner from being financially ruined, as a result of their homes being attached by the Sheriff, the home being auctioned off by the bank, being evicted from their homes, blacklisted, prevented from being granted credit for a very long time and emotionally embarrassed.

How is this achieved? We have a group of investors that will buy your home for a fair price [but not less than your outstanding bond] and who will afford you the option to repurchase your home at the same / an agreed price, within 6-12 months. You will be allowed to remain in the home – while you endeavour to put your affairs in order such as, settling debts and removing your name from the credit bureaus.

All activities are regulated by contracts drawn up by attorneys involved with normal bond registrations and property transfers for banks. Everything is disclosed to the client and gets your prior approval.

With HOME RESCUE, YOU TAKE CONTROL of your situation.

NO BLACKLISTING – keep your credit record intact

  • Stay on in your home – no need to uproot your family
  • Settle debt from available equity released.
  • Have an option to repurchase your home within 12 months (by negotiation)
  • NO monthly rental to pay (negotiable) – this improves your cash flow
  • Buys you time – to reorganise your life
  • Turns a bad situation into an opportunity
  • Option to continue to rent – no obligation to buy the home back after 12 months
  • Relief from a stressful situation – no embarrassment
  • Upfront costs disclosed – no surprises
  • Keep your good name intact
  • Avoid home repossession and financial ruin
  • Sell and rent back
  • Please note that each Home Rescue transaction differs, and the terms thereof are negotiated between the parties.
7) Medium Term Loans to Property Developers
(New Product added September 2012)

Genrand can provide assistance to property developers who require interim funding for their developments.

  • Applicant must be a legal entity (Pty (Ltd) or a Trust with at least 3 Trustees) (not a private individual) with immovable property that is bond free or has 'n very small bond.
  • Minimum property value of R 2 000 000 as rule of thumb.
  • Maximum loan value is R 4 000 000.
  • Client needs to pay initial valuation costs.
  • Maximum LTV of 50% of the valuation of the property.
  • Developer need to have existing good track-record.
  • Development land must be serviced.
  • Finance to commercial farmers with an unbonded farm can also be considered.
  • Term: 3 – 18 months maximum.
  • Interest: 3.5% p.m. – payable monthly.
  • Client must show capacity to repay loan from existing cash flow.
  • Capital repayable at the end of the term.
  • The underlying property may not be the client's primary residential property.
  • Secure Exit Strategy must be clear from inception – how will the capital be repaid – what future event will generate enough capital [example: receipt of payment of large invoice/order; sale of stock; normal commercial/residential bond, sale of property, etc]
8) Debt Consolidation - Private Funding/Non-Bank

Private Bridging Finance to Settle Debt - then normal new Bond.

  • 1. The broad strategy is to assist those Applicants who possess residential properties with positive equity in their properties, who have cash constraints (and as a result cannot find adequate relieve from the formal financial sector due to over indebtedness), but where it is possible to structure a transaction in such a way that it is affordable to the Applicants and risk-acceptable to the Financier. It is important that the Applicant make use of the opportunity herewith offered BEFORE his credit record is impacted negatively.

  • 2. For many South African citizens, the formal Banking sector is no longer within their reach because Banks mostly decline applications due to ‘over indebtedness’.  Due to inadequate financial education and earlier easy credit, these Applicants often take on very high interest bearing short term debt, such as in store credit facilities, credit cards and loans from money lenders, resulting in negative monthly cash flows, and ultimately defaulting on their debt. As soon as an Applicant is in default they are blacklisted and simultaneously registered with credit bureaus resulting in their automatic disqualification by the Banks.

3. The above Banking system has a devastating effect not only on the individuals, but also on their families because the lack of a long term financial solution results in children not being sent to university, poor health due to stress, and it also creates an incentive for crime.


4. We and our Financiers, through our extensive financial experience, recognised that although an Applicant is under pressure they can, in certain circumstances, still be helped to exit the negative spiral of over indebtedness.

  • 5. We/ our Financiers advance money to Applicants who possess positive equity in their residential properties. Through our intervention, we are able to reduce the Applicant’s monthly payments resulting in an improvement in their monthly cash flow and a significant improvement in their quality of life.

  • 6. After grant of the Application in principle, our skilled and well connected relevant Financier, provide funding [bridging finance pending the formal grant of a new bond from SA Home Loans [SAHL] from where all the loose debt of the Applicant will be settled, and Proof of Payment [POP] will be obtained and rendered to SAHL who then will be in a position to finally and positively consider the grant of a fresh and bigger home loan.
9) Unsecured Business Finance

The aim of this Product is to provide working capital finance to vendors and merchants – fuel retailers, restaurants, shops, hairdressers, beauty salons, and similar businesses.

  • 1. To qualify, a business must have regular business cash flow (eg. daily), have annual gross turnover in excess of R1 million and a track record of no less than 12 months. Loans from R50, 000 to R1, 5 million are considered.

  • 2. Term: Short term business finance over 6 to 12 months that does not require fixed security. Repayments are flexible, and can be calculated as a fixed periodic amount or as a percentage of daily sales. It is a fast finance to apply for – the time from application to pay-out can be as short as 3 business days.

Interested in Our Sevices?

Quick contact

Feel free to contact us:

Tel: +27 21 824 2332

Tel: +27 21 555 3694

Emergency No: +27 (0) 73 220 6807

Fax: +27 86 517 4051

Physical Address:
Suite 141 A, Millennium Business Park
Block E, Edison Way
Century City
Cape Town

Visits by appointment only


Business Hours:
Monday - Thursday 08:30 – 16:00
Fridays: 08:00 – 15:00