Introduction
Endorsements
FAQ's

Lending Opportunity

Traditional investments such as shares, unit trusts, endowments, bonds and even money market funds are all ultimately, directly or indirectly, linked to the stock market and investor sentiment. They are all therefore impacted by market corrections and suffer from downside risk. In addition, the investment manager's actions can also negatively impact the returns if they incorrectly engage with the stock market. A last point to note is that any managed assets attract fees, which also impact on the net returns.

Investors usually ask the question "Where is it possible to deploy money in a manner which is as uncorrelated to the stock market and still earn a reasonable return?"

BC Bridging Solutions (Pty) Ltd offers individuals the opportunity to lend funds to a Sectional Title Body Corporate and earn an interest return linked to the Prime lending rate. Importantly, this return is uncorrelated to traditional asset classes such as equities and bonds markets, or banks.
Download the Capital Growth Plan Application Form
Download the Monthly Income Plan Application Form
Download the Capital Builder Plan Application Form
View our product brochure

BCBS offers three lending opportunities:

1
Capital Growth Plan - The interest rate will be changed to Prime plus 5.0% per annum.
2
Capital Builder Plan - offering an interest return of Prime plus 7.5% per annum, compounded monthly (before tax):
Deployed as a monthly amount.
3
3. Monthly Income Plan - The interest rate will be changed to Prime plus 3.0% per annum
BCBS's lending opportunity offers individuals the opportunity to earn a Prime plus interest return in an environment where the placing and repayment of their funds, to their Body Corporate clients, is regulated in terms of the STA and STSMA.

A Sectional Title Body Corporate is a defined legal entity and a unique borrower protected and secured by Legislation, contained in both the STA and the STSMA.

Sectional Title Bodies Corporate are protected from insolvency in the form of Section S15B(3)(a)(i)(aa) of the STA and Section 15 of the STSMA. Section S15B(3)(a)(i)(aa) protects the income of the Body Corporate while Section 15 protects the rights of Body Corporate creditors.

In terms of Section 15B(3)(a)(i)(aa) no transfer of a Sectional Title Unit can take place until the Body Corporate has issued a Levy Clearance Certificate ("LCC") confirming that all outstanding amounts owed to the Body Corporate, by the unit owner of the unit that is to be transferred, have been paid. This requirement protects the income due to the Body Corporate ahead of ANY of the unit owner's other creditors. Effectively the unit, the property asset, is unencumbered in the hands of the Body Corporate to settle all debts due to it.

In terms of Section 15 the Body Corporate creditor is protected against any default by the Body Corporate by allowing its creditor to recovery their claim from each of the unit owners in their participation quota share.

Lending to Sectional Title Bodies Corporate does not attract fees against the capital and interest advanced. That is, funds placed in this environment are not reduced by asset management or other fees.

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