BUSINESS RESCUE PROPERTY FINANCE

Vital funding for business rescue practitioners managing property transfers

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Facilitate Property Sales in Business Rescue: Unlock Funds for Transfer

Selling immovable property is often a critical component of a Business Rescue plan to generate much-needed capital. However, outstanding municipal rates, taxes, and other property-related debts can significantly delay or even derail the transfer process, hindering the execution of the plan. Our specialised funding solution is designed specifically for Business Rescue Practitioners, providing the necessary cash injection to settle these property-specific liabilities, obtain clearance certificates swiftly, and facilitate the timely transfer of assets to buyers. Unlock the value of the property through sale and keep your rescue plan on track.

Targeted Property Funding

Provides finance specifically to cover outstanding municipal rates, taxes, levies, and other costs essential for property clearance certificates and transfer.

Enable Quick Transfers

Accelerates the property transfer process by immediately addressing the financial hurdles preventing clearance.

Unlock Sale Proceeds

Ensures that planned property sales, critical for the success of the rescue plan, can actually be finalised.

Flexible Access for Business Rescue Practitioners

A funding tool available to the Business Rescue Practitioner to manage property assets effectively within the rescue framework.

Secured by the Asset

The finance is typically secured by the property being sold, aligning the funding risk with the asset being dealt with in the plan.

Avoid Lost Deals

Prevents the collapse of property sale agreements caused by delays in obtaining necessary clearances for transfer.

Who It’s For

This specialised funding solution is designed for Business Rescue Practitioners (BRPs) appointed to oversee companies formally under Business Rescue. It is specifically for situations where the approved Business Rescue plan involves the sale of immovable property owned by the distressed company, and where outstanding debts linked to that property (such as municipal accounts, body corporate levies, etc.) are preventing or delaying the issuance of necessary clearance certificates required for the property’s transfer to a buyer. This service empowers BRPs to proactively remove financial obstacles hindering property disposals.

Benefits

  • Acceleration of property sales, turning illiquid assets into cash much faster than waiting for potential alternative funding or payment structures.
  • Improves cash flow for the company under rescue, providing funds needed for distribution to creditors or essential working capital as outlined in the plan.
  • Helps prevent valuable sale agreements from collapsing, protecting the intended outcomes of the rescue plan.
  • Facilitating these key asset disposals can significantly reduce the overall timeline and increase the likelihood of a successful Business Rescue outcome.

Costs

Frequently Asked Questions

What is the funding actually used for?

This finance is specifically used to cover outstanding debts linked to immovable property (like municipal rates, taxes, and levies) owned by a company in Business Rescue, enabling the BRP to obtain necessary clearance certificates and facilitate the property’s transfer as part of a sale.

Who applies for and manages this finance?

The appointed Business Rescue Practitioner is the party who applies for and manages this funding on behalf of the company under Business Rescue.

How does this help the business rescue process?

By providing funds to clear property-related debts, it removes a major obstacle to selling property. This speeds up asset disposals, improves cash flow, helps prevent sales from falling through, and can shorten the overall time the company spends in Business Rescue.

How quickly can funds be accessed?

The process is designed to be responsive to the urgent needs of Business Rescue. Once the application and property details are assessed and approved, funds can be made available to settle the outstanding property costs relatively quickly.

How is the loan repaid?

The loan, plus agreed fees and interest, is typically repaid from the proceeds generated by the sale of the property for which the funding was provided.

What happens if the property sale falls through after I receive the loan?

The terms and conditions of the finance agreement, including provisions for scenarios where a planned property sale does not materialise, will be clearly outlined. As the finance is secured by the property, alternative arrangements or recourse against the asset would be considered within the legal framework.

APPLY FOR BUSINESS RESCUE FINANCE

 

This form applies to the following bridging loan categories:

Business Rescue

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