• Empower Funding

The Bridging Finance Process Explained In Full

What exactly is the process? Alright, so let's say that I have sold my home. Now I'm waiting on R1 000 000 in profit from that sale. But right now I need R100 000 just to get by until I get paid out in three months' time.


So how can I get that R100 000 ran ahead of time? First of all, you come to Empower Funding and you say "look, I'm due R100 000 and I need that money. Can you assist me?"


We will get you the documents that you need to fill out, which are really simple. You need to send us the agreement, the sale agreement that you made, we need to make sure that everything in that sale agreement has been met. Let's say you agreed to help renovate one wall or something like that and that's in the agreement.


So we make sure that's been done, we make sure that the bond is in place if you're getting a bond, and that the deposit has been received. Once those basic steps are in place, we'll also talk to your attorney. Your attorney will sign the document, they're very open to doing that. They're very used to the bridging finance process.

After that, we'll review the final deal, usually, we'll ask to do a credit check. And I really want to say that that's about it! There are certain deals where there are some other things we'll look for. But as you can see, it's really not that much.


So it takes a short amount of time, usually under 24 hours, assuming we get the documents from you in time, assuming the transferring attorney has given what we need from them in time. And they're usually very quick, so it's a quick process.


Let's say that's all in place and we issue you the money. Now you've got your money, the R100 000 and you're comfortable. Two to three months go by and everything falls into place with the deal. The deal goes into the deeds office and it registers, meaning now you are no longer the owner, the new buyer is the happy owner of this home. When that happens and everything gets signed off, you're due the remaining amount of your money.


First of all, we get paid back the R100 000 that we gave you, the attorney is actually the one that pays us back. So you don't need to worry about that. And we'll confirm with them and with you what our interest amount is based on the amount of time that you've had the money. So we get this amount, the principal, plus the interest paid back to us and whatever is leftover, you would get.


Let's say you took R100 000 for two months, we would get back R100 000 and for two months, it would only cost R6000 in interest. So we get R106 000 and remember you were due R1 000 000. So we would deduct the R106 000 from the million, and you would then get back R894 000. The attorney pays us back and the attorney will pay you back. All we get is what we were due. We don't touch the rest of your money. You get it back. And that's it, the deal is closed. And you are now comfortable because you got your money and you had the money you needed the whole time.


That explains the whole process. And I hope that helps and makes sense.

Looking forward to assisting you. Get in touch if you have any questions about this process and we'll help you out.


Gal Ezra,

Managing Director,

Empower Funding

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