DRUM - - Money -

The fees and in­ter­est charged by fi­nanc­ing com­pa­nies are only sub­ject to the Na­tional Credit Act if they’re reg­is­tered as credit providers with the Na­tional Credit Reg­u­la­tor (NCR).

When bridg­ing fi­nanciers award an ad­vance, re­ferred to as a dis­count­ing agree­ment, it’s not clas­si­fied as a credit agree­ment. It doesn’t mean you get a dis­count, but rather that their fees and in­ter­est could be higher than pre­scribed by law. Exactly how much de­pends on the par­tic­u­lar fi­nancier.

Ask for all fees, in­ter­est and levies to be ex­plained be­fore you sign for the loan, and make sure you know what the to­tal cost to you will be. By choos­ing a fi­nancier reg­is­tered with the NCR, you’re as­sured of pro­tec­tion by the law.

WHEN IS IT USE­FUL? Bridg­ing fi­nance could be a great help, pro­vided you can pay the loan back quickly. It’s usu­ally used as a de­posit on a new prop­erty, for trans­fer du­ties, re­moval ex­penses or out­stand­ing mu­nic­i­pal tar­iffs and rates.

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