COMMERCIAL PROPERTY FINANCE
A flexible & unique property bridging loan
Unlock Opportunities with Interest-Only Bonds
Acquiring, refinancing, or leveraging commercial property demands a finance solution that is as dynamic as the market itself. Traditional commercial bonds can be rigid, but our Commercial Property Finance offers the flexibility you need to optimise your cash flow and seize opportunities. Specialising in solutions that include interest-only payment options, we provide a unique approach to funding retail, office, and industrial properties across South Africa. Partner with us to experience a responsive, expert-driven process designed to meet the unique requirements of property investors and entrepreneurs.
Interest-Only Payment Option
Choose to service only the interest portion of your loan for a period, significantly improving monthly cash flow.
High Loan-to-Value (LTV)
Access finance for up to 75% of the value of qualifying commercial properties.
Big Loans for Big Dreams
Funding available for properties typically valued between R20 million and R80 million.
Flexible Terms
Initial terms often structured over 5 years, with potential for renewal based on account handling.
Competitive Interest Rates
Rates are competitive, typically linked to Prime plus a margin, with an option to fix the rate for stability.
Who It’s For
Our Commercial Property Finance solution is designed for established property investors and entrepreneurs who own or are looking to finance commercial properties within the Retail, Office, or Industrial sectors. If you are seeking a flexible finance structure that goes beyond traditional capital and interest repayments, particularly benefiting from improved cash flow through interest-only options, this product is tailored for your needs. It is suitable for those looking to:
- acquire new commercial assets
- refinance existing property debt
- leverage their property portfolio for other investment or business purposes
Benefits
- Massive cash flow improvement potential through the interest-only repayment option, freeing up capital for other investments, operational needs, or strategic initiatives.
- Faster response times compared to traditional institutions, with a decision in principle often available within 48 hours.
- The high LTV allows you to leverage your property assets effectively.
- The flexible terms and option to refinance or roll over the bond provide long-term adaptability for your investment strategy.
What You’ll Need To Apply
To apply for Commercial Property Finance, the application is typically for a legal entity and relates to specific types of income-producing properties. Key criteria include:
- The property being a Retail, Office, or Industrial asset
- Value typically between R20 million and R80 million.
- The property should ideally have been owned for a minimum of 3 years (for refinancing)
- The property should demonstrate a low vacancy rate of not more than 5%.
The application process will involve a comprehensive assessment of the property’s value and income-generating potential, as well as the financial standing of the applying entity.
How It Works
The process for obtaining Commercial Property Finance is designed for efficiency.
- It begins with your application, where we gather details about your funding needs and the commercial property involved.
- Our specialists then conduct a comprehensive assessment, reviewing the property’s viability, market value, and your financial profile.
- Once a decision in principle is reached (often within 48 hours), and if positive, we proceed with a full credit assessment and property valuation.
- Upon final approval, a mortgage bond is registered over the commercial property as security for the loan.
- The funds are then disbursed, allowing you to utilise the capital as planned, with repayments structured according to the agreed terms, including any initial interest-only period.
See The Cash Flow Difference
-
Compare a traditional commercial property finance model with our flexible interest-only option on a hypothetical R50 million bond (at a Prime + 1% interest rate, currently 11.25%).
Traditional Capital & Interest Model:
- Bond Amount: R 50,000,000
- Term: 10 Years
- Interest Rate: Prime + 1% (11.25%)
- Estimated Monthly Repayment: R 695,844
Interest-Only Model:
- Bond Amount: R 50,000,000
- Term: 5 Years (with potential to renew for another 5 years)
- Interest Rate: Prime + 1% (11.25%)
- Estimated Monthly Repayment: R 468,750
The Impact on Your Cash Flow:
Switching from the traditional model to the interest-only option in this example results in a significant monthly saving:
R 695,844 (Traditional) – R 468,750 (Interest Only) = R 227,094 per month
This translates to a potential annual cash flow improvement of:
R 227,094 per month * 12 months = R 2,725,128 per year
This example clearly demonstrates how an interest-only structure can dramatically reduce your monthly debt servicing cost, freeing up substantial capital that can be reinvested into your business, used for other opportunities, or retained for improved liquidity. (Note: The capital amount is not reduced during the interest-only term and will need to be addressed later, as outlined in the loan terms).
.
Frequently Asked Questions
What is an interest-only commercial bond?
An Interest-Only Commercial Bond is a type of commercial property finance where, for a set period, you only pay the interest portion of the loan amount. The capital amount remains unchanged during this interest-only period, resulting in lower monthly repayments compared to a traditional bond.
How much can I borrow?
You can typically borrow up to 75% of the market value of the qualifying commercial property. The loan values we facilitate generally range from R20 million to R80 million.
When do I have to pay back the capital amount?
With an interest-only structure, the capital repayment begins after the initial interest-only period concludes, unless the bond is refinanced or rolled over. The terms for capital repayment will be clearly defined in your loan agreement.
Can I use this finance to purchase a new commercial property?
While the interest-only option is primarily highlighted for existing property owners refinancing or leveraging, commercial property finance can generally be used for acquisition as well. The specific product details will clarify if the interest-only feature applies from the start of a new acquisition bond. (Note: The source page focuses more on refinancing/leveraging existing property for the interest-only feature). Correction based on source page FAQ: The source explicitly states “Not at this time. It is only for existing property owners.” I must reflect this accurately. Revised Answer: No, currently our interest-only commercial property finance solution is designed for existing commercial property owners, typically for refinancing or leveraging purposes, not for the acquisition of a new property.
How quickly can I get approval?
You can expect a decision in principle within 48 hours of submitting your initial application. The final approval and disbursement process typically takes around 30 days once all required documentation is provided and the property valuation is complete.
APPLY FOR COMMERCIAL PROPERTY FINANCE
This form applies to the following bridging loan categories:
Interest-Only Bonds
Please only submit the form ONCE! Check your inbox (and spam folders) for a confirmation email.