bridging loan

In South Africa and abroad, the popularity of bridging finance has increased dramatically over the past two to three years.

Overseas too, this type of financing is becoming much more common. In the UK, the quarterly publication Bridging Trends noted that bridging finance volumes in 2018 were £232.8 million higher than in the previous year – totalling a whopping £766.9 million (around R14.2 billion)! The bridging finance market is much larger than many would have guessed.

Partly, this is because the number of reputable bridge finance providers has increased in recent years, and more people are becoming aware of bridging finance as an alternative.

Also though, bridging finance have certain advantages that make them particularly attractive.

Wait…so what is bridging finance?

Often, there’s a potentially long interval between the time you secure a sale or settlement and when you actually get the funds that are owed to you.

During this time, you may have to cover a range of expenses, including costs directly associated with the transaction. Bridging finance is useful for seeing you through this period.

When can you get bridging finance?

Bridging finance may be given in any situation where funds are owed but there’s a waiting period before they’ll be paid.

For example, funds might be owed to you as part of a legal settlement, for work on a project or for sale of an expensive asset.

The most common type of bridging finance in South Africa is financing for sale of a property. At lamna, we offer this form of bridging finance, as well as financing for Road Accident Fund (RAF) settlements.

What are pros and cons of bridging finance?

Advantages of bridging finance include:

  • fast, easy access to the funds you need
    If you qualify for bridging finance – for example, because you’re awaiting a settlement of funds for property you’ve sold – you can access the funds very quickly indeed. The funds may even make it into your account on the same day you apply.
  • low risk, for both parties
    Bridging finance is secured through a pending settlement of funds. Generally, it’s understood that the amount will be repaid from these funds, once they become available. This means that when you take bridging finance, you won’t be putting your other funds, income or assets at risk. For the same reason, the finance provider doesn’t need to complete a lengthy application process.

Depending on your perspective and needs, a disadvantage is that bridging finance is available only to those awaiting confirmed settlements of funds.

To get bridging finance through lamna, you must have sold and transferred a property but be awaiting registration of the transfer by a Deed’s Office – a process that can take three months or sometimes even longer.

Alternatively, you must have a settlement agreement or court order confirming a pending settlement by the Road Accident Fund (RAF).

Why people take bridging finance

According to Bridging Trends, bridging finance in the UK are most often obtained to fund property refurbishments or for business purposes.

In South Africa, bridging finance is commonly used to help cover costs in the period between selling a residential or commercial property and receiving the sale proceeds.

Bridging finance may also help cover medical, legal and other costs in the period before a legal settlement of funds is finalised.

Why get bridging finance from lamna?

Advantages of getting bridging finance from lamna:

  • we’re a trusted, registered credit provider (registration number NCRCP7428)
  • our bridging finance service is fast, transparent and completely discreet
  • our interest rates are competitive
  • we comply fully with the terms of the National Credit Regulator
  • we have physical branches in several major South African cities.

For more information about the bridging finance we offer at lamna, contact us on 086 111 2866 or simply complete and submit our online application form.

Complete our Online Application Form

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APR & Loan repayment period

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.


All accounts may be renewed if they are up to date.


All payments are made via EFT or direct deposits into Lamna’s bank account. There are no debit orders.


Non-payments may result in the matters being escalated.

Illustrative example

Client borrows R10,000 for 90 days.

Loan Amount Repayment Period Monthly Repayment Total Cost of Loan Initiation Fee Monthly Fee
(Interest + Service charge)
R10 000 3 months R568.40 R12 902.20 R1 197 R560 60%