There may be a number of reasons why you want to acquire assets in South Africa. Perhaps you are starting up a new business, and besides premises and staff, you need some equipment. Or, you are trying to make a home, and you want to furnish it. Whatever the reason, buying assets in South Africa will probably take one of the following routes.
The most obvious method of purchase is cash. Cash purchasing in South Africa may be the preferred method of completing the transaction because it means that the seller can try to evade tax on the transaction. Be aware that, as the buyer, this is not your problem. Do not let the seller try to “twist your arm” because of their bad tax issues. Also, cash may be preferred simply because it is cash. You can also make an electronic funds transfer (EFT) to the seller’s bank account, but only do this once you are certain that you will have possession of the asset. Never pay for something that you have not seen and tested in person. Cheques are not used very often in South Africa any more. The seller may refuse outright to accept a cheque. Do not be surprised if this happens. It is common.
The second method of buying assets is to finance them. There are several options, most notably hire-purchase and bank finance. Hire-purchase is simpler than using a bank, because you deal directly with the seller. Usually, people in South Africa use a hire-purchase agreement to buy furniture and appliances from a furnisher.
The large commercial banks in South Africa will finance practically any large asset, and will also grant short or long term loans, but their requirements may be stricter than other places. This is largely due to new credit legislation that was enforced in 2007, making it harder to get finance from a bank, due to reckless lending policies seen in the past. In order to qualify for bank finance, you will need to convince the bank that you can pay off the borrowed amount. Convincing them of this may be tricky, especially if you are just starting out as a business operator, and you do not yet have proof of substantial revenues.
To transfer money to South Africa in order to buy something or place a deposit for a loan is something many people visiting MoneyTransferSouthAfrica.org want to do. Sign up on our money transfer form and get the process started today.
Money Transfers to and from South Africa - here's how:
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