“Yolandi Erasmus from Erasmus & associates plays an intergyral part in our group of companies legal protection and governance. Her proactive approach has saved us a lot of money in possible future disputes and assists heavily in ensuring we comply with fiduciary and other compliance requirements.”
“Yolandi Erasmus from Erasmus & associates plays an intergyral part in our group of companies legal protection and governance. Her proactive approach has saved us a lot of money in possible future disputes and assists heavily in ensuring we comply with fiduciary and other compliance requirements.”
Contact details : yolandi@eailaw.co.za
Unlocking Business Potential with Special Notarial Bonds
Ever felt lost in a meeting, your mind wandering off to a million tasks waiting for you? Then suddenly, all eyes are on you, waiting for a response. The struggle is real. Let us take one crucial thing off your mind: securing the cash flow to grow your business.
You’ve found a venture capital organisation (VC) willing to assist. As negotiations progress, you hit the security hurdle. Personal sureties and company guarantees aren’t enough. What’s next?
Introducing the Special Notarial Bond (SNB)
An SNB is a form of real security—a statutory pledge over assets specifically described in the bond. Unlike common methods, this option allows using your tangible movable assets as security, often overlooked by lenders and borrowers alike.
What Assets Qualify?
Unencumbered tangible movable assets can be used as security under a Special Notarial Bond. These assets should not have any existing claims or liens against them. Examples include:
· Stock-in-Trade: Merchandise, goods, or inventory held for sale.
· Machinery and Equipment: Industrial machines, manufacturing equipment, and tools.
· Vehicles: Company cars, delivery vans, and other business vehicles.
· Office Equipment: Computers, printers, furniture, and fixtures.
· Agricultural Assets: Livestock, crops, and farming machinery.
· Retail Assets: Display units, point-of-sale systems, and store fixtures.
· Art and Antiques: Valuable artwork and antiques used for business premises decoration.
· Specialised Tools: Equipment specific to certain industries like medical devices or construction tools.
These unencumbered assets have intrinsic value and can serve as security for a loan, helping you to unlock the potential for business growth.
Pledge vs. Notarial Bond
· Pledge: Requires a physical delivery of assets to the lender, unsuitable if you need to retain these assets for business.
· Notarial Bond: No physical delivery required, making it ideal for ongoing business operations.
Types of Notarial Bonds
1. Special Notarial Bond: Over specific assets. Once registered, the lender is deemed to possess the assets, restricting your ability to alienate them.
2. General Notarial Bond: Over all movable assets. You can dispose of assets freely, making it suitable for stock-in-trade or animals on farms.
Legal Requirements
Under the Security by Means of Movable Property Act 1993, a special notarial bond must clearly describe the assets to ensure they are identifiable without extrinsic evidence. All notarial bonds must be registered at the applicable deeds registry within three months of execution.
Why Consider a Notarial Bond?
Your tangible movable assets might be the key to securing financing. A notarial bond could convince a lender to support your business.
Consult with Experts
Understanding the complexities of notarial bonds and the strength of security they offer is essential. For detailed advice, set up a free 30-minute consultation with one of our experienced commercial attorneys.
Yolandi Erasmus Erasmus & Associates Incorporated
Ever felt lost in a meeting, your mind wandering off to a million tasks waiting for you? Then suddenly, all eyes are on you, waiting for a response. The struggle is real. Let us take one crucial thing off your mind: securing the cash flow to grow your business.
You’ve found a venture capital organisation (VC) willing to assist. As negotiations progress, you hit the security hurdle. Personal sureties and company guarantees aren’t enough. What’s next?
Introducing the Special Notarial Bond (SNB)
An SNB is a form of real security—a statutory pledge over assets specifically described in the bond. Unlike common methods, this option allows using your tangible movable assets as security, often overlooked by lenders and borrowers alike.
What Assets Qualify?
Unencumbered tangible movable assets can be used as security under a Special Notarial Bond. These assets should not have any existing claims or liens against them. Examples include:
· Stock-in-Trade: Merchandise, goods, or inventory held for sale.
· Machinery and Equipment: Industrial machines, manufacturing equipment, and tools.
· Vehicles: Company cars, delivery vans, and other business vehicles.
· Office Equipment: Computers, printers, furniture, and fixtures.
· Agricultural Assets: Livestock, crops, and farming machinery.
· Retail Assets: Display units, point-of-sale systems, and store fixtures.
· Art and Antiques: Valuable artwork and antiques used for business premises decoration.
· Specialised Tools: Equipment specific to certain industries like medical devices or construction tools.
These unencumbered assets have intrinsic value and can serve as security for a loan, helping you to unlock the potential for business growth.
Pledge vs. Notarial Bond
· Pledge: Requires a physical delivery of assets to the lender, unsuitable if you need to retain these assets for business.
· Notarial Bond: No physical delivery required, making it ideal for ongoing business operations.
Types of Notarial Bonds
1. Special Notarial Bond: Over specific assets. Once registered, the lender is deemed to possess the assets, restricting your ability to alienate them.
2. General Notarial Bond: Over all movable assets. You can dispose of assets freely, making it suitable for stock-in-trade or animals on farms.
Legal Requirements
Under the Security by Means of Movable Property Act 1993, a special notarial bond must clearly describe the assets to ensure they are identifiable without extrinsic evidence. All notarial bonds must be registered at the applicable deeds registry within three months of execution.
Why Consider a Notarial Bond?
Your tangible movable assets might be the key to securing financing. A notarial bond could convince a lender to support your business.
Consult with Experts
Understanding the complexities of notarial bonds and the strength of security they offer is essential. For detailed advice, set up a free 30-minute consultation with one of our experienced commercial attorneys.
Yolandi Erasmus Erasmus & Associates Incorporated
