South Africans today are living in an era where having a stable income is considered to be a luxury.

With a volatile economy, there are many businesses that simply can’t afford to keep employees on in the numbers they originally had, and have had to cut staff through retrenchment and the likes thereof. Since job security becomes unstable as a result, a lot of people resign and move on to safer and greener pastures.

Are you due for a pension fund payout?

But what happens to your pension fund that you’ve been contributing to all these years with your current employer? The first order of business is for your employer to apply for the withdrawal of your pension fund and ultimately this is due to you once all the paperwork has been completed.

Have you just resigned? Have you perhaps been retrenched? If you answered yes to any of these questions, then you’re in for an uncertain period where your finances are concerned and that is where pension bridging finance offers a solution!

Pension bridging finance has been tailored to meet the financial needs of those individuals who need access to funds whilst awaiting a large sum of money from their pension payout. If this is you, then a pension bridging loan is the best solution.

It’s time to apply!

There is a fair amount of paperwork that needs to be completed when it comes to applying for a loan through the bank or credit provider of choice. Due to this, it is vital that you prepare for the time you’ll be left out of pocket from your usual monthly income. Bridging finance will get you through that period without having to fret over expenses and the daily cost of living. Cash flow in any household is important, so get online and choose a lender that meets your needs as soon as possible so that you have the peace of mind that your finances are taken care of until the moment your payout is received.

Understanding the application process

If you’re unsure about which way to go when selecting the credit provider for your new loan, find out from friends and family if they have been in a similar boat and who they used before hitting the online market. Your preferred bank might offer a product like this, and if not, there are a plethora of lenders out there that are happy to assist you with the product you’re after. Once you’ve decided, going online and finding the application page is the easy part. You’ll find a list of criteria that you need to meet before applying and as mentioned above, a few documents that are necessary to do the standard credit checks.

For pension fund finance, you have to request a recent statement of the fund naming the beneficiary, total value and other pertinent information for the approval of the loan. Make sure you have proof of employment and recent pay slips. The other documents include a South African ID and current proof of residence.

What can I expect to pay for bridging finance?

Well, how much do you need to borrow? All rates charged abide by the National Credit Act, so you can be sure that whatever the charge is, you’ll be covered in terms of fairness. The total cost, however, depends on the amount borrowed and the repayment term.

Your rates are going to be determined through a few contributing factors such as your current credit score, as well as your risk profile. Try and get your credit score in order before applying for this loan since it will impact the rate you incur on your agreement. Each lender will have an admin fee that needs to be taken into account when applying too.

How soon do I have access to the funds?

Once your online application has been submitted and thus received, a credit check will be performed by the consultant handling your application. Provided all is in order in terms of your paperwork and details, your wait shouldn’t be too long. All the checks need to check out, and when they do, they’ll send the agreement to you for approval and final sign off. Assuming you’re happy with the terms, conditions and rates, you can send it back with a grin on your face and count the days on your one hand until the funds appear in your account!

Isn’t that amazing! No mess, and certainly no fuss! In just a few days, you’ll have access to the funds that assist your daily life until the lump sum pension is in your bank account.

What if I don’t get approval?

Unfortunately, this can be the case for some. However, don’t feel as though it’s the end of the road, you simply need to find out the reasons behind the rejection of the application and get those few things in order.

Your affordability is the key factor for any loan. So, if you aren’t approved, the chances are it’s for a very good reason. Do what you need to remove the blacklisting off of your name, or improve your credit profile and re-apply as soon as possible. It doesn’t matter how many times you apply. If you’re awaiting your pension fund, that means you are going to have access to funds pretty soon and the creditors are quite comfortable with this as its security on the loan. That’s exactly the reason why it’s quite unlikely that you’ll get rejected, but still, it’s a good idea to play it safe.

Losing your job or resigning is a very challenging position to be in, but creditors have got you covered with pension bridging finance. If you’re approaching your new position soon, then the period in between will certainly feel less stressful without having to endure the burden of no income. Choose a provider that understands your needs and you’ll be grateful that you applied!