SBS-SA has partnered with leading Financial Service providers to help you fund your growing business.
Our product offering allows you for fast, effective, and affordable finance. At SBS-SA, we understand the constraints that cashflow can have on your growing business.
Let's Unpack That
Let’s use an example to unpack exactly what it means to you.
If we lent you R100 000 over 12 months at a rate of 3.5% per month, then using a standard reducing balance interest calculation, your:
- Minimum monthly instalment (capital and interest payment) is R10 350
- Total interest charge over 12 months is R24 200
But remember, we give you the flexibility to:
Deposit Excess Capital
Assume that after 4 months, you landed a great deal and you repay an additional R20 000 into your facility:
- You will now repay your loan in roughly 9.5 months
- Reducing your total interest charge to around R18 550 (from R24 200)
Withdraw Excess Captial When You Need It
But what happens if after 7 months business slows down and you need to access the excess capital that you paid in? Simply withdraw it again. Drawing R20 000 back out from your loan at the end of month 7:
- Your minimum instalment will remain at R10 350
- You repay the loan in just under 12 months, but
- Your total interest charge is reduced to around R21 600 (from R24 200)
That is the power of having a facility where you incur interest only on your outstanding loan balance.
Re-Finance Your Loan
You can re-finance your facility allowing you to access the capital you have already repaid, reduce your instalment or extend your term.
Using the initial example, assume that once you have paid back 50% of your capital (R50 000), you would like to re-finance the facility to access the capital already paid.
- We would pay out to you R50 000, taking your outstanding facility back to R100 000.
- Your term would extend another 6 months, thus 12 months from the date of re-finance
- Your monthly instalment would remain R10 350