New Standard Bank deal will make it easier for self-employed professionals to qualify for a bond

Ever since the tightening of credit rulings in the South African economy which followed on from the global financial collapse, self employed people (even those with flourishing businesses) have battled to qualify/be considered for bond finance. Qualified professionals, one category of self-employed people, will now find it easier and quicker to obtain bond finance if their business are in working order. A certified copy of their degree or other academic qualifications and three months business cheque account statements will be required. The bank does however reserve the right to call for business financials where these are thought to be necessary.

This is in marked contrast with the in-depth data required from most self employed people: they have to produce verification from an accountant or auditor to confirm their earnings (not older than 60 days), two years' audited financial statements (not older than 12 months) or where these are not available, the latest management accounts, plus the previous year's audited financials and a signed and dated statement of personal assets and liabilities over the last six months..

Self employed professionals who are eligible for the streamlined application process include accountants, actuaries, advocates, architects, IT specialists, engineers, financial managers, medical doctors, dentists, pharmacists, statisticians and many others in lesser known professional positions.

Esme le Roux, Property Finance Consultant associated with Alexander Swart Property but also operating freelance, reports that under the traditional system, self employed applicants sometimes lose out on a good buy because the extensive financial data required, can take accountants and auditors four to six weeks to assemble. Once an offer to purchase, subject to award of a bond is made, it expires if the bond is not granted within 21 days.

"The best advice I can give to such a bond applicant, is to get financial statements drawn up and signed by the relevant auditors BEFORE actually requesting the person handling your bond application, to go ahead.  However, with the new deal from Standard Bank, our consultants will be in a far stronger position to get applications from professionals in faster and with less paperwork - this could well lead to more bonds being awarded."