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Personal Loans

Loans Acceptable – Personal and Home Loans – A client can apply for a personal loan of up to R20 000.
Loans Acceptable provides different types of loans and these include: personal and home loans.

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Apart from providing cash to South Africans the creditor provides cell phone contracts, funeral plans, insurance, second bonds and motor vehicle financing. Worth noting is that the creditor does not take into consideration a client’s credit records when offering loans hence all blacklisted people can apply for loans at Loans Acceptable.

The financial institution abides with the New National Credit Act that was enforced on 1 June 2007.

Loans Acceptable can be visited at ERN – Ric Building 280 Voortrekker Street Gezina, clients can also send emails to loans@loansacceptable.co.za

 

Personal Loan

Personal Loan

Car Finance for Blacklisted people

If you are looking for car finance then you are at the right place. CAR FINANCE is a referral company designed to meet the need of clients struggling to get a Vehicle or Finance for a Vehicle. We have products to assist Blacklisted clients as well to get a car With all our different options available we can help you to get driving! You don’t have to go stand in a queue – everything is done online and you can apply in the comfort of your own home.

Get a Car of your Choice

Car Finance offers a wide range of vehicles and will do their best to help you find the vehicle you want for your budget. Whether you are looking for an entry level car like a Volkswagen Citi Golf or Hyundai Getz or need a sedan like a Volkswagen Jetta, Toyota Corolla or Yaris, we will help. If you qualify you will even be able to drive a more expensive car like a BMW or Mercedes-Benz we are there to assist you every step of the way. We are able to work within your budget, and we are even able to offer No Deposit Cars.

 

Benefits of applying for car finance here:Easy repayment terms. Applying and getting approval is is done online. You will get your cash within hours, and also it is quick and easy application.

Qualifying Criteria:
You as the application MUST:
. Be over 18
. Be a South African citizen
. Earn R4 000 or more per month

contact details:

Tell: +27 87 550 1929 Email: info@safinancialgroup.co.za

Just Group Africa Vehicle Loans

Just Group Africa ranks amongst the Top 5 car dealerships in the country. They have achieved this through what seems to be an innovative business model; offering consumers partly subsidised monthly instalments in exchange for displaying advertising on the rear windows of their vehicles.

The low premium offered is made possible by entering into an advertising contract with Just Group Africa. In exchange for displaying an advertisement on your back window, and agreeing to drive a pre-determined amount of kilometres every month, Just Group Africa subsidises part of the monthly instalment you owe the bank. A video clip on their website explains:

[Just Group Africa advertisement] Let’s look at an example of this. If the price of your car was R100 000, and the advertised instalment R899 over 72 months, with the interest rate at 11,5%, and assuming that you drove the full 2000km, then your monthly instalment would be R1910, 80, and your subsidy R1011, 80.

Changing Vehicle Ownership in South Africa

About changing owner and or titleholder particulars

Any changes to the particulars of the vehicle owner or titleholder must be communicated to the appropriate registering authority within 21 days after such change on form NCP (Notification of change of address or particulars of person or organisation).

When you sell your vehicle, you must notify your registering authority on form NCO (Notification of change of ownership/Sale of motor vehicle) and the new owner must register the car in their name.


How to change owner and or titleholder particulars

Go to your nearest registering authority.
If you are changing your address, you must bring the following:

A copy of your identity (ID) document if you are a South African citizen. If you are a foreign citizen, you must bring both the original and certified copy of your ID issued by your country of origin and your temporary residence permit.
Proof of the new residential address.
If you are a South African citizen, you must complete and submit form NCP only. If you are a foreign citizen, you must complete both forms NCP and ANR (Notice in respect of Traffic Register Number).
If you are selling the vehicle:

The seller must complete form NCO and submit it to their registering authority.
The seller must hand over the registration certificate to the buyer.
The buyer must complete form RLV (Application for registration and licensing of motor vehicle) for submission.
The buyer must submit the vehicle registration certificate, if the vehicle was registered in South Africa.
A mass measuring certificate if the vehicle’s tare was changed.
The buyer of the vehicle must submit the forms at the registering authority within 21 days of purchasing the vehicle, along with the registration form obtained from the seller and current roadworthy certificate (it is the responsibility of the buyer to ensure that the vehicle is roadworthy).

If the vehicle is registered under a company, you must also submit a certificate of incorporation or name change as issued in terms of the Companies Act and a founding statement or a certificate of name change issued in terms of the Close Corporations Act if the vehicle is to be registered to a close corporation.

The registering authority will perform an assessment on your application and you will pay the fees as prescribed by your province. If required by the registering authority, proof of the right to be registered as titleholder of the motor vehicle concerned, e.g. invoice, a sales agreement, etc. It is advised that you phone your nearest call centre or registering authority to establish whether they accept or require any other document as proof.
How long does it take?

The applications are processed on the same day.
How much does it cost

The service is free. However, a fee is charged for motor vehicle registration and licensing.
Forms to complete

Notice of change of particulars (NCP)
Application for registration and licensing (RLV)
Notice of change of ownership/Sale of motor vehicle (NCO)
Forms are obtainable at the registering authority or you can download them from the eNaTIS website.
Who to contact

Contact the relevant provincial department of transport for details of your nearest service centre.
PROVINCE CONTACT NUMBER
WEBSITE URL
Gauteng 0860 428 836 (Gauteng Shared Service Centre) http://www.transportandpublicworks.gpg.gov.za/
Western Cape 0860 142 142 (Cape Gateway) http://www.capegateway.gov.za/
Eastern Cape
Visit website for most current number(s) http://www.ectransport.gov.za/
Free State Visit website for most current number(s) http://www.freetrans.gov.za/
KwaZulu-Natal 033 395 1800 http://www.kzntransport.gov.za/
Limpopo Visit website for most current number(s) http://www.ldrt.gov.za/
Mpumalanga Visit website for most current number(s) http://www.mpumalanga.gov.za/
North West Visit website for most current number(s) http://www.nwpg.gov.za/transport/default.asp
Northern Cape 053 802 5527/28/30 ( rbarlow@ncpg.gov.za) http://www.northern-cape.gov.za/

For details of participating South African Post Office branches at which you can renew your vehicle licence, visit http://www.sapo.co.za

Age Limit for Loans

Too old for a loan?

Question:
Johannesburg – Fin24.com’s Money Clinic recently received this query:
“I am over 75 and selling a house which should net me R1m. I am marginally overdrawn with Nedbank and applied for a loan as advertised; despite offering the unmortgaged deeds of five properties as security, the loan was refused as I was over 75. The bank manager would also increase my authorised overdraft. I was told there was some credit available on my Visa credit card and I would have to live on that. I have banked with Nedbank for 25 years. Will another bank lend me money?” the user asked.

Answer:

“Although the National Credit Act does stipulate that one cannot be discriminated upon when applying for finance on grounds of race, religion, sex and age, it is the bank’s discretion to approve or decline loans”, said Uzile Gugushe, marketing officer of Ombudsman for Banking Services. “No one can compel banks to approve or grant loans.”

Gugushe said Nedbank has a loan age limit of 63, because their minimum repayment period is 24 months. “They do not approve loans to people who are 64 years old and older, as these persons would be turning 65 in a year’s time and would be retiring or retired.”

Absa and Standard Bank do not have an age limit for their loan applications, but they will look at the risk profile of the applicant.

Look beyond banks

“I would advise the customer to look for other banks to seek loans from, and to bear in mind that risk profile would be the determining factor. I would also advise the customer that banks are not the only financial institutions that grant loans. Other non-bank financial institutions – like insurance companies – do have loan facilities, and he could contact them,” Gugushe said.

Gerrit van Heerde of Sanlam Personal Finance said Sanlam does not place any age limit on loans – but there are other criteria. One requirement of the National Credit Act is for clients to pass an affordability test, and to prove that they will be able to repay the loan.

Capitec Bank does have loans options available to people receiving a monthly pension, said Sumarie Brand of the microlender’s corporate affairs division. “Pensioners that receive their monthly pension payment in a Capitec Bank account have more credit options than those that don’t. “Capitec Bank offers unsecured lending and our business model provides and determines credit amounts and terms available to each individual on that specific individual credit and risk profile, as per our business model’s formula.”

In reality, few banks will be eager to lend to older people. And few pensioners will be able to pay back longer-term loans without difficulty, said Paul Rosenbrock, a director of the SA Association of Retired Persons.

In his experience, many people who retire comfortably find that after 10 years they struggle to cope financially, as medical expenses start to bite and inflation chips away at their savings. “It is a very big problem.”

Many think that they can sell their property and use the proceeds to tide them over, but that can be uneconomical, said Rosenbrock.

Reverse Mortgage Option:

The cost of selling a house of R1m can run up to R250 000 if estate agent commission, moving expenses, transfer fees, bond registration costs and other charges are considered, he said. Another option for older people is a reverse mortgage. This involves taking a big loan with your house as security. The bank usually pays you a tax free amount, which is then subtracted (with accumulated interest) from the value of your house when it is sold.

Reverse mortgages are popular overseas because they offer pensioners hard cash, while they can stay on in their house.

Usually the reverse mortgage is only paid back when the house is sold or when the owner and his/her spouse have both died. If the amount owed on the house is more than the value of the house, it has to written off in terms of the rules of the SA Home Equity Release Protection Association (Saherpa), a consumer protection organisation. The owner’s estate can’t be liable for the shortfall.

Rosenbrock warns that reverse mortgages are only suitable to a small group of older people – ideally substantially older than 65, “who are property rich and cash flow poor”. An example would be an 80-odd-year old who gets about 30% of the value of a R1m house in cash. Interest of, say, 12.5% is levied on the loan. After 12 years, when the owner and his spouse have both died, the loan amount has run up to R1.334m.

Consider the Pros and Cons:

If the value of the house increased by 3% a year, the home will then be worth R1.425m and the difference (R91 645) will go to the estate of the owner. If the property value doesn’t increase at all over the 12 years, the bank will have to write off R47 000 in terms of Saherpa rules. The big advantage is that the struggling pensioner will get a cash injection, which can be used to buy a life annuity with a monthly payout or settle urgent medical bills.

But the drawbacks are significant, and it should be regarded as a loan of last resort. Interest is usually about 2% above the prime rate and the costs – which can include mortgage registration and professional property valuation fees – are substantial. There is also very little regulation governing the products.

While reverse mortgages were first launched some 90 years ago in the US and are established in many countries, the concept has not gained much traction in SA.

The big banks have reportedly considered reverse mortgages, but only Nedbank initially introduced a product to the market which it ultimately decided to withdraw. While a number of smaller institutions are offering reverse mortgages, only Seniors’ Finance, owned by Alexander Forbes and the New Zealand-based Seniors Money International, is accredited by Saherpa.

Older people in particular have to consult an independent financial adviser before making decisions, said Rosenbrock.

Fin24

Buying vs leasing a Car

The question of buying vs leasing a vehicle is a critical one for businesses that rely on a fleet of vehicles to deliver their products or complete their services. Buying multiple vehicles can become an expensive burden for a business and put strain on cash flows. Leasing a vehicle is a good way to gain a fleet of vehicles and spread the cash outflow over the useful life of the asset.

Before making up your mind about buying vs leasing a vehicle, it’s integral to understand what leasing a car entails. In a vehicle lease agreement the lessee will agree to pay a monthly amount for the use of a vehicle. The lessee and the lessor will agree on a payment schedule that is determined by the value of the vehicle and the estimated kilometers that will be travelled.

You need to pay a monthly fee for a specific period of time when you lease a car and at the end, you have to pay a residual charge in order to take ownership of the car. The car will revert to the dealer if you do not pay that residual cost. Considered a s a good option for repeat customers or those who change their cars regularly is leasing.

Make sure you understand what fees you will be liable for. Things you may need to pay for could include title fees, registration, and license. Your other responsibilities can also include acquisition fees and local or state taxes. It’s likely that you may have to pay a disposition fee and any charges for extra mileage and excess wear at the end of the lease. Be sure to discuss acquisition and disposition fees when you lease the car because these fees are negotiable.

Nearly all leases impose an excess fee per mile over a certain limit and the mileage per year are also limited. Knowing your average annual mileage will help you work out whether a lease is the right way to go. You could end up with thousands of dollars in excess due at the end of the lease if your mileage is a lot higher than the limit. To prevent this from happening, try to negotiate a higher mileage limit or pad the excess at the beginning of the lease.
The benefits of buying vs leasing a car vary from case to case, as it depends on many different factors (such as the time period of the lease and the number of vehicles being leased). Generally speaking, the cost of leasing a car is less than the cost of buying the car once off.

Buying vs leasing a car for your enterprise

When considering whether to lease or buy a vehicle, there are a number of factors that come into play. One definitive element is that leasing a vehicle will be more cost effective than receiving a loan to buy a vehicle. Below are some Bidvest Bank tips on whether buying vs leasing a vehicle is right for you:

  • Does your business have the time and expertise to ensure that you source and procure the right vehicle at the right price for the task?
  • Do you have the expertise to ensure that you are able to re-sell the vehicle at the end of the contract for the best possible price? Do you have the
  • experience necessary to ensure that you are able to adequately manage the repair and maintenance costs of the vehicle during the life of the contact?

If the answer to the above questions is yes, then buying is the best option for your business. If the answer to the above questions is no, then leasing is the best option for your business. Additionally leasing is the better option if your business prefers not to have to pay a deposit or you wish to use the vehicle for a period less than 5 years, or if you wish to reduce your cash out-flow.

Negotiating a Payment Arrangement with a Debtor

Elements in the Negotiation Process

“… negotiations commonly follow a four-step path: preparation, information exchange, explicit bargaining, and commitment. … Negotiation is, in short, a kind of universal dance with four stages or steps. And it works best when both parties are experienced dancers.”
Richard Shell

Negotiations with delinquent customers can be stressful and difficult. The customer may feel they are on the defensive. The collector may be under pressure to produce certain collection results.

The negotiation process can be divided into three stages or phases:

STAGE 1: PRE-NEGOTIATIONS

The pre-negotiation stage entails preparing for your negotiation with the debtor to get his/her repayment as soon as possible. It involves getting all the information you need with regards to the debtor and the account that is overdue and analysing the situation thoroughly.

This stage also entails evaluating your leverage in other words how much influence or control you have over the situation as well as the control or influence of the debtor in the situation. You need to determine what you will do to enhance or increase your level of influence on the debtor. For example the threat of handing the account over for legal collections or blacklisting a person on a credit bureau may give you more leverage to get what you want.

You also need to build rapport with the debtor to determine early on if the debtor will cooperate with you or will be difficult to move to action.

Identify and set goals for your negotiation with your debtor. It gives you a clear guideline of what you want to achieve with your negotiations e.g. “I want to get full payment of the outstanding amount within 7 days.”

Set out a clear negotiation plan i.e. how are you going to ensure that you realise the goals you have identified for the negotiation process with the debtor.

STAGE 2: NEGOTIATIONS

The second stage of the negotiation entails deciding on the logistics of the negotiation process i.e. when are you going to make the call to the debtor to negotiate repayments. You also need to be clear on the offer you are willing to make and accept.

You also need to decide on the tactic you will use. I.e. will you state your case, clearly and completely to get the debtor to understand the severity of the matter or use threats to get the debtor to pay his outstanding debt. Will you set a time limitation on making payment? Will you use requests to get payment? What tactic would you use?

Remember: Intimidation tactics are often ineffective. One should rather make use of persuasion to reach an agreement.

STAGE 3: CLOSURE

In the closure stage you need to determine how you are going to get a “Promise to Pay (PTP)” from the debtor. You also need to confirm the agreement for payment with the debtor by rephrasing and recording the promise from the debtor.

Negotiating to Get a Promise to Pay

A collector’s main goal should always be to secure a promise to pay (PTP) from the debtor. However, finding out the reason why the debtor has defaulted may be just as important. The debtor should always be made aware of the consequences of his/her late payment. The collector’s attempts to secure a PTP should be arranged in the following order:

First Attempt

The collector’s first attempt should be to secure a PTP within the next seven days. Should you find that the debtor is only able to pay within the next ten to twenty days, it might be advisable to request a post dated cheque if possible. Should the debtor not be a cheque account holder, then simply arrange with the debtor for an additional debit order to be requested on the specified date. The collector should advise the debtor of the fees involved, should the debit order reject. This may act as a deterrent from defaulting.

Second Attempt

The second attempt should be to get the debtor to pay 50% of the overdue amount immediately and the rest over the remaining period of days until the next instalment is due.

Third Attempt

If both the first and the second attempt have failed, the collector may have to settle for payment to be made within thirty days. This should be seen as a last option to negotiate.

Constant monitoring is required on an account which has fallen into arrears. It is clear that the debtor cannot be relied upon to make timely payments. Regular reminders are therefore necessary to encourage and enforce regular payments. Should a debtor not stick to the arrangement made, it may become necessary to consider more drastic measures to secure regular payments. The National Credit Act makes provision for legal action to commence in as little as twenty days of the amount being in arrears.

It cannot be stressed enough, that the sooner a collector acts on recovering an overdue amount, the better the chance of total recovery. The collector needs to remind the debtor of the amount and date of the next payment due. Debtors often find it difficult to pay a double instalment, it should therefore be expected that the debtor will only be able to afford a lesser amount. Once the amount has been confirmed, it should be recorded on a collections management system along with the reason for the default.

Some Guidelines for Negotiating with a Debtor

These are some steps that should be taken in negotiations with delinquent debtors:

  • Ask what caused the delay in payment.
  • Ask how serious the problem is and what the customer is doing to resolve the problem.
  • Always ask for immediate payment in full.
  • Know what is the least you will accept from the debtor/customer or business entity that owes money before making the collection call.
  • Ask the debtor to acknowledge the debt in writing.
  • Request a substantial, immediate payment as an indication of the customer’s good faith.
  • Propose an aggressive repayment plan, and then ask for the debtor’s comments about your proposal.
  • If the customer agrees to your proposal, arrange for them to confirm it to you in writing – even if it only an e-mail.
  • If the customer rejects your payment plan, insist that they make a counter offer.
  • Do not accept any counter offer immediately. Think it over carefully.
  • If the customer’s proposal is below your minimum acceptable level, reject it immediately. Doing so sends a message that you are serious about the negotiation. and are not about to be “taken for a ride” by the debtor.
  • Remember that a delinquent customer’s first offer is a “sucker” deal intended for inexperienced or unprepared trade creditors.
  • Consider asking the debtor to return inventory to clear part of the debt if the inventory has kept its value, and assuming you believe there is little or no chance that the debtor will file bankruptcy within 90 days of returning the product.
  • Ask your customer to provide security or collateral in exchange for extended time to pay the debt.
  • Approach negotiations as equals. If you do not act and speak as an equal, you will be at a serious disadvantage.
  • Ask the customer for additional information that would help you to understand the scope and extent of their financial problems.

Debt Collectors and Collecting Debts

Bill collectors and collecting debts isn’t the easiest job in the world, and it definitely isn’t for everyone. These are the people who send you a letter every now and then reminding you to pay your outstanding bill; otherwise they will have to take the matter even further. When you owe someone money, it isn’t a case of if you don’t pay it now you will go to court; there is actually quite a process involved in something like this and only the techniques of qualified debt collectors know how to manage it. You could be in trouble for loans you made and didn’t fully pay up, it could be clothing accounts, school fees, rent, just about anything.

You will get blacklisted if you don’t cooperative and come up with a payment arrangement with the bill collectors and collecting debt people. There aren’t really any tips on how you can avoid something like this happening to you, the only thing you can do is make sure that all your debts are made on time each month and you won’t have a problem. However, once you have a debt collector after you, you will think of nothing else but getting that bill paid, not necessarily because you want it paid, but more because they call you all the time to remind you that it has not yet been settled.

Once you have received your “Final Demand” letter, there is no turning back. If you don’t give them the money you owe them, they will take legal action and make things even more difficult for you. They have their techniques and they know how to do things; they have perfected the process already and no amount of sob story will make them change their minds. Whether you use the help of loans or not, you have to pay what you owe if you want to avoid being blacklisted. Take these tips into consideration and you will see what the bill collectors and collecting debt consultants can do.

Loans aren’t Available for People under Administration

It may be unfortunate for some, but the truth is that loans aren’t available for people under administration. If you are under administration it means that you have bad credit finance and debt reviewers or credit administrators are handling your debt. Therefore, you will not be able to take out a loan of any kind, unless you go against SA law and participate in illegal lending, but this is never recommended. Being caught in illegal lending is serious and will only get you further into trouble. You are more than likely blacklisted at this stage, but if you are not, taking out a loan illegally and not sticking to the repayments will definitely get you blacklisted.

According to the SA law, loans aren’t available for people under administration, which is fair because you already have bad credit finance, why put yourself in even more debt? Credit administrators and debt reviewers will do what they can to help you out of your situation; they will look at your financial status and negotiate with your creditors and settle on a monthly amount that you can afford to pay them off. This is what they are there for, to take some of the stress off of you, and so you don’t get those stressful phone calls from creditors demanding money that you don’t have.

Many people make use of consolidation loans, which is a loan you take out to pay off all your debt, but even this is not advised if you are under review. Taking out loans is okay if you can afford the instalments, but not when you already have so much debt that you need to go under debt review and administration. There are good reasons why loans aren’t available for people under administration, and it is important for you to stick to the rules.

Absa: Longer car loans pose risks

South African consumers are increasingly opting for longer vehicle loan monthly repayment periods in order to afford new cars.

Sydney Soundy, managing executive of Absa Vehicle and Asset Finance, said on Wednesday that 52% of vehicle finance applicants were now applying for contract periods longer than 60 months to aid affordability of more expensive vehicles.

This growing trend highlighted the risks of default on loans and reduced trade-in values.

Year on year, Absa financed about 25% more cars for the first two months of this year compared to the same period last year.

Soundy said there was a growing trend of consumers applying for longer vehicle finance contract periods.

Extending the period slowed down the redemption of capital with the results that a consumer remained locked into a specific contract longer.

“Good advice is to buy a vehicle that can be affordably paid off in as short a period as possible,” Soundy said.

Soundy also said 55% of its vehicle loan applications put no deposits upfront.

The combination of longer repayment periods and no deposit increased the risk of default, he said, adding that affordability of new vehicles was not expected to deteriorate.

“The factors that should continue to lend support to consumer household consumption include the expected growth in the economy; a more favourable inflation environment; and the expectation for nominal incomes to continue to rise modestly,” Soundy said.

“Consequently, growth in instalment sales and leases is expected to improve further after being on a rising trend in 2010,” he said.

“Based on the fact that many consumers are still highly indebted and finding it difficult to extend credit for higher priced vehicles, demand for good quality used vehicles will remain an important factor in the industry,” he said.

The debt-to-income ratio, he said, was expected to remain at current levels of almost 79%.

“This will be the result of expected rising credit growth that is further buoyed by current stable and relatively low interest rate levels that have improved debt servicing costs to levels of just under 8%,” Soundy said. – I-Net Bridge

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