Dear Sir / Madam,

Re : Pension / Provident Fund Bridging

Thank you for your enquiry regarding bridging your pension / provident fund.

We would like to take this opportunity to draw your attention to a few important points with regard to this type of funding.

Due to very strict lending criteria which are governed by the new Credit Act and other financial acts, the time to process applications can be up to 10 working days. Please allow for this when applying for this facility.

Our systems are all linked to the credit bureaus. Their systems are not always 100 % up to date. If you have a bureau listing but have settled the debt and have proof thereof, please send this with the application.  NOTE: Bureau listings can result in the application being declined or a lesser amount being advanced, than what has been applied for.

Please be sure to submit all documents called for and also submit them all on one day. If some documents are submitted today and others much later there can be a mismatch and this causes delays.

The process cannot start without the ALL the right supporting documents and so it is much safer to submit all the documents together.

We may have to submit your application to alternative lenders to get an approval. Each of them has a different application form and so you may be asked to fill in the same information a few times. We apologise for this but it is necessary.

We will do what ever we legally can to get an approval for you. However, we cannot assist if you have other pension bridging loans on the same policy.

Our livelihood depends on approvals and so do what we can to get these loans approved. We ask your patience during this process as it can be quite difficult to get approvals.

Please see further information with regard to the process below.

Yours faithfully

New Heights Finance

Step 1 Application and Agreement - Bridging Finance  Pension / Provident

A. Lead Provider Details:
Company Name   _____________________________Consultant Name _______________________
Consultant Tel Number ________________________ Consultant Email ___________________

B. Applicant Details
Client Full Names       _________________________________________________________________
ID Number                  _________________________________________________________________
Email Address             _________________________________________________________________
Phone Number (home)_________________________________________________________________
Cell Number                _________________________________________________________________
Fax Number                _________________________________________________________________
Address                       _________________________________________________________________

Reason For Loan ( Choose three and make an X )
Business   ______                   Education   _____                  Consumption   ______
Housing    ______                   Debt Settlement   _____
Other ( Describe)         ________________________________________________________________

Employment
Current Employer you are leaving or have left _____________________________________________
Effective date              ________________________________________________________________   
New Employer            ________________________________________________________________

Pension / Provident Fund Details
Pension / Provident Fund Name          _____________________________________________________

Administrator Details
Name of Fund Administrator              _____________________________________________________
Administrators Tel Number                 _____________________________________________________
Administrators Fax Number                _____________________________________________________

General                                 

Do you have any Credit Bureau listings?                                                        Yes or No     _____________
If yes, have the accounts been settled?                                                            Yes or No     _____________
If no, what is the total amount outstanding?                                                    ________________________
Are you a homeowner?                                                                                   Yes or No     _____________
If you have resigned, been retrenched or retired, have you secured
new employment ?                                                                                          Yes or No     _____________
If no employment secured, what will you be doing after pensions payout ? ________________________
Have you resigned yet?                                                                                   Yes or No     _____________
Have you completed your Pension/ Provident fund withdrawal notice?         Yes or No     _____________
If so, please indicate when anticipated payout                                                 Date  ____/_____/ _____
What is the total value of your pension?                                                          R______________________
How much of the pension, would you like to bridge? Approximately            R______________________

Please submit the following supporting documents with this Step 1 form

• ID
• 2 month current bank statement
• Last pay-slip
• Pension / Provident Fund benefit statement
• Letter from employer confirming and accepting severance package / medical disability (where applicable)
• Letter of appointment with new company (where applicable)
• Divorce settlement (where applicable – i.e. if you are wanting to bridge a pension payout which is part of a divorce settlement)
• Copy of latest Bond statement (where applicable)
• Any document reflecting your Tax number

DECLARATION:

I (applicant name) _______________________________________________ hereby:

- accept the conditions as set out above and authorize New Heights Finance to irrevocably proceed with the arrangement of a bridging loan on my pension / retirement annuity for me.

-  acknowledge that New Heights Finance has earned professional fees in the amount of 5 % (Five Percent)  for arranging my bridging finance and that the professional fees are only due and payable on final approval of the bridging finance. Should no approval be granted no fees are due or payable.

-  agree that the professional fees to be paid to New Heights Finance, will be included in the loan amount.

-  expressly authorize and instruct the bridging finance company to pay to New Heights Finance their  professional fee for the agreed professional services executed, from the loan advanced.
-  authorise and give my consent to New Heights Finance and/or their agent and/or credit provider to make enquires from time to time through any credit bureau or similar institution as to my personal circumstances, my credit profile, bank records and credit worthiness.
- consent to and authorise New Heights Finance and/or their agent and/or credit provider to disclose the information provided herein, the information obtained from any credit bureau or institution referred to above, as well as my payment and credit performance, to any other person, company or bureau without further reference to me.
NOTE : If married in Community of Property (COP) then both spouses are to sign ALL documents.

Signed at _________________________ this _______ day of ________________________20_____.

_________________________                                        ___________________________
Client                                                                            Witness

_________________________                                        ___________________________
Co-Applicant                                                                  Witness

Fax to 0866 033843   or    Scan and Email to: info@nhfinance.co.za

Dear Sir / Madam,

Re Pension / Provident Fund Bridging Process

Please find the general process that is followed for bridging pension funds. This can vary from lender to lender.

We essentially have two major options :

• Up to 70 % of net fund proceeds facility
• Up to R32 000 advance

• If a client has resigned, has alternative employment, is a homeowner or has a family member who is a homeowner and who will sign surety on their behalf, then up to 70 % of the available pension can be advanced. If the client does not meet these criteria, or is a member of the Government Employees Pension Fund or one of the industry funds, then Option 2 is available, where 10% up to a maximum of R32 000 can be advanced.

• The bridging fees range from approx 0.15% to 0.16% per day plus a once off admin fee of up to 5%.

General Process for Option 1.

• The 70 % that can be bridged is calculated off the net benefit  (being the benefit reflected on his benefit statement, less 40% tax and less any home loans or divorce orders or other legal deductions payable from the benefit).

• The client completes the application forms and returns them to us via fax or email together with their ID, retirement fund benefit statement, home loan bond statement, resignation notice, and a recent utility bill (or a copy of their lease agreement).

• A credit check is done through ITC and a “certificate of good standing” is requested online, from SARS.  The tax clearance certificate is to ensure that the client has no outstanding tax affairs which would delay the payment of his benefit.

• If the application is approved by the credit department, the attorneys are instructed to open a  Nedbank Corporate Saver account in the Client’s name.  Over the counter transactions cannot be done with these accounts so we are not able to provide bridging to privately administered funds as the majority of these funds make payment by cheque.

• A master discounting agreement is drawn up and sent to the member for signature together with a letter to his fund administrator instructing them to change the banking details on the claim form to the Nedbank Corporate Saver details.

• The lender confirms with the fund administrator that the person is leaving the fund, that the benefit according to the benefit statement we received is correct and that there are no other claims against his benefit (like divorce orders, medical aid shortfalls etc).  The fund administrator needs to also confirm that they will transfer the benefit to the Nedbank account that was opened.  If the client approaches us before he withdraws from the fund, the banking details can be inserted directly onto his withdrawal form and his HR department can confirm the banking details.

• On receipt of confirmation from the administrator, the bridging finance is paid to the member’s account.

• When the fund administrator pays the benefit to the Corporate Saver account, the lender settles the bridging finance loan and transfers the excess to the member’s own bank account and then the Corporate Saver account is closed.

• The length of the bridging finance is ideally as short a term as possible.  We expect clients to contact the fund administrator to arrange to have the benefit paid as soon as possible after the date of bridging withdrawal, so as to reduce the total discounting fee payable to the bridging company.

Funds that can be bridged up to 70 % (subject to the lender’s terms and conditions) are insurance companies such as Sanlam, Old Mutual, Liberty, Alexander Forbes etc. With respect to Old Mutual, it does depend on which department is handling the settlement because some departments not change the banking details. 

General Process for Option 2

The maximum we can bridge for the following funds is 10% up to R32 000 of the net benefit :

• Government Employees Pension Funds (GEPF)
• Industry Funds (motor, clothing, electrical etc)
• Privately administered funds where they make payment by cheque and not EFT

The reason for this is that there are delays of up to 13 months to payout by these funds.  Bridging this type of pension causes massive costs to the client and a lot of discontent.

In many instances this can all be arranged in 5 working days but if the fund administrators do not process the application in good time, there can be delays in setting up the bridging facility. The lenders are very anxious to get the facility in position for you and will do what is necessary to make this happen. Where possible, the client can assist by urging the fund administrators to process the application as fast as possible.

We look forward to assisting you and will do our best to secure a loan to your satisfaction.

Yours faithfully
New Heights Finance