Grindrod Bank Personal Loans
Grindrod Bank provides property finance solutions that can be designed and tailored for the purchase or development of small to medium scale commercial properties, redevelopment projects, and refurbishments. Traditional property mortgage finance is offered where properties are geared up to a level of around 70% of their value or purchase price.
Funding over and above this traditional level is considered mezzanine finance, which is a hybrid of traditional mortgage finance and equity funding. This is utilized to bridge the gap between the available equity a client may have and the traditional mortgage loan.
Our property division specializes in providing mezzanine finance, on a select basis against quality real estate to property investors who have an established track record in the industry, with the Bank’s economic benefit being determined on a deal-by-deal basis.
Mezzanine funding allows our clients the opportunity to utilize scarce capital resources across multiple property transactions, leveraging quality assets optimally and hence enhancing their return on capital.
This is a highly specialized product that is assessed on a deal-by-deal basis, please contact one of our consultants to discuss this further.
At Grindrod Bank, we understand that the key to a successful business is a healthy cash flow. Extended terms for customers are a common business practice that can impact cash flow negatively. Debtor finance is a short-term financing solution that is used to improve cash flow. It allows a business to use the cash due to them from customers in advance, rather than waiting for them to pay. This in turn places you in a stronger position to negotiate more favorable discounts with your suppliers.
Grindrod Bank purchases the debtor’s book and will make early payments on invoices for a period of up to 120 days. The debtor finance facility is aimed at clients with one or more large debtors, which are either blue-chip companies or qualify for credit insurance.
- An improvement in your cash flow position as the Bank will advance between 70% and 80% of your fundable debtors book with the balance made available on receipt of the funds from the debtor;
- Surplus cash would enable you to negotiate better discounts and become more competitive in the marketplace; and
- A working capital facility that would grow in line with your debtor’s book
The following minimum qualifying criteria apply:
- Well-established business;
- Good spread of trade debtors with strict trading terms (not exceeding 90 days from statement);
- A debtors’ book in excess of R10 million;
- The business should have good controls, processes and financial systems;
- Good credit management and financial controls;
- We not only place reliance on the debtor’s book as collateral, but also takes guarantees from the business’s stakeholders.
Our team will not only place reliance on the debtor’s book as collateral but also take guarantees from the business’s stakeholders.