SECURED LOANS

We offer secured loans starting from R10,000, available to both individuals and businesses. Loan amounts are based on the value of your pledged asset — up to 50% of its appraised value.

We accept a variety of high-value movable assets, including: Cars, Trailers, Trucks, Yellow equipment (e.g. excavators, loaders, graders) And more

We also do third party cession contract agreement;

What is a Cession?

A cession is a legal act of transferring a personal right from one person to another.

A cession deals with the transfer of personal rights (as opposed to real rights). A person’s estate is made up of real rights (ownership) and personal rights (claims to performance).

Accordingly the method of transfer of personal rights is by cession.

A cession agreement is an agreement which provides that one party (i.e. transferor or cedent) transfers a right to the other party (i.e. transferee or cessionary).

Since there can be no physical delivery of a personal right, cession is affected by mere agreement. There are two type of cession agreement

An Out & Out Cession

An out-and-out cession is a bilateral agreement where all rights are entirely ceded to the cessionary. This means the rights no longer belong to the cedent but instead belong to the cessionary. It’s a reversionary interest, which means the cessionary must re-cede the rights to the cedent when the secured debt has been paid off. However, this is not automatic and requires a re-cession agreement unless otherwise stated. Failing to re-cede the debt can have severe consequences for both parties. 

Cession in Securitatem Debiti

On the other hand, a security cession, also known as a pledge and cession in securitatem debiti, is when the cedent pledges or encumbers their rights against their debtor and transfers these rights to the cessionary to secure an obligation owed to them. For example, a security cession is typically used to create a security interest in the cedent’s rights to book debts, bank account funds, insurance policies, or shares. It has been legally recognized that a cession in securitatem debiti is similar to a pledge of corporeal movable property. 

A cession in securitatem debiti is also known as a cession in security or a security cession.

The following are legal requirements for compliance

Written agreement: Cession agreements must be in writing and signed by both parties to be legally binding.

Notice requirements: The cedent must give notice to the debtor or other relevant parties of the cession, to ensure that the cessionary has legal rights to collect the debt or exercise the assigned right.

Registration: Some types of cession agreements, such as mortgage cessions, may require registration with the relevant authority.