Stay abreast of COVID-19 information and developments here

Provided by the South African National Department of Health     

Fast access to credit

– using existing assets

author image

SPW Contributors

Sanlam Private Wealth

Immediate access to capital – to buy a property or car, fund a business venture, or diversify an investment portfolio – can be onerous and time consuming. The regulatory environment within which lending institutions such as banks operate makes applying for and obtaining credit an administratively complex and often expensive process. At Sanlam Private Wealth (SPW), we offer our clients the option of using their assets to secure credit. The service is fast and flexible, and offered at highly competitive rates.

Investors needing quick capital to grab what could be an impassable opportunity often find themselves having to liquidate an investment portfolio in order to sidestep the cumbersome and sometimes drawn-out process of applying for a bank loan. But market conditions may not be particularly conducive to selling, and there is the added disadvantage of capital gains tax (CGT) being triggered when assets are sold.

Our credit offering provides an efficient opportunity for our clients to access immediate finance without having to cede fixed property or sell a portfolio. A client may need bridge funding or working capital for a particular project, or may want to make use of our credit offering to buy a house instead of taking out a mortgage loan from a bank.

Alternatively, a client may have a concentrated single stock position and wish to build a diversified portfolio. For example, a JSE-listed company director may have a need to diversify offshore, but could be reluctant to sell the shares of the company of which he or she is a director, since it would trigger a significant CGT event. The transaction would also need to be reported on the Stock Exchange News Service (SENS) and could send the wrong signal to the market.


  • Clients use their existing equity portfolios as collateral for a loan – the top 100 companies by market capitalisation listed on the JSE. International investments as per Sanlam Private Wealth’s house view also qualify as collateral.
  • Clients can borrow up to 50% of the market value of their portfolio. This is monitored on a daily basis, and a client’s portfolio manager is expected to maintain levels below 70%.
  • The minimum portfolio required to act as collateral is R1 million. There is no requirement to service the loan, and interest is calculated and capitalised monthly, using the daily outstanding balance.
  • The criteria used to determine the interest rate charged include the size and duration of the loan, and the quality of the collateral offered (for example, diversified versus single stock exposure).


  • Fast access to capital – Since we’ve already recognised our clients’ credentials, we know they’re FICA-compliant and thus don’t need a statement of assets and liabilities. We can therefore offer quick turnaround times, with loans approved within 48 hours. Our established business relationship with our clients is an advantage when it comes to assessing collateral requirements.
  • Peace of mind and portfolio continuity – Clients’ existing mandates remain in place, with people who understand their individual needs, and assets continue to be managed by a team they know and trust.
  • The assurance of real-time pricing – Clients are informed of their risk at all times, and we can react immediately to changes that may affect the value of the assets provided as collateral for the loan.
  • Competitive rate – The rate we offer is linked to the prime interest rate and competitive with the best in the market. We keep our margins tight as our main focus is to provide a service to our clients. There are no origination, service or cancellation fees involved.
  • Flexible repayment terms – Interest can be capitalised as long as clients don’t breach the 70% loan-to-value requirement. The loan can be repaid at any time, without penalties. The interest rate is linked to the prime interest rate, which is advantageous in a declining interest rate cycle.
  • Easy admin – Our facility is simply structured as an addendum to an existing investment mandate, which can be obtained directly from a client’s portfolio manager.

Sanlam Private Wealth clients who would like to make use of our credit service offering should contact their individual portfolio managers.

We can assist you with
Thank you for your email, we'll get back to you shortly