Asset Backed Loan

Do You Qualify?

You may qualify for a property-backed loan if your business:

1. Has at least 12 months of trading history
2. Generates an average monthly revenue of R60,000 or more
3. You or your business owns an un-bonded property that can be used as collateral
   (Figures are for example purposes and may vary by lender.)

How It Works

Property-backed loans are medium- to long-term secured loans using property as collateral.

Loan structures can include:

• Term loan: Repayments of capital + interest in equal monthly installments
• Revolving loan facility: Pay interest monthly on borrowed amounts, draw as needed
• Balloon repayment: Interest and capital repaid in full at the end of the term

Loan amounts typically range from R100,000 to R50,000,000, depending on property value and lender terms.

Being secured, these loans generally have lower costs than unsecured loans.

Collateral protects the lender; in case of default, the property can be sold to recover the loan.

Common Use Cases

Property-backed loans are flexible and can be used for:

• Growth capital: Expand your business or fund new ventures
• Upgrading business premises or facilities
• Purchasing new property for business operations
• Starting a new business venture
• Acquiring another business