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BIB Finance

Bike Finance 101

Obtaining bike finance is a daunting prospect to many, but a pleasant opportunity for most. Buying a new motorbike is a dream come true for most bike fans, and with BIB Finance, you can rest assured that we are here to guide you every step of the way.

2019-05-21

Bike Finance 101

Obtaining bike finance is a daunting prospect to many, but a pleasant opportunity for most. Buying a new motorbike is a dream come true for most bike fans, and with BIB Finance, you can rest assured that we are here to guide you every step of the way. It is our job and our duty to assist you with your bike finance application and approval, and to ensure that the process is as painless as possible. 

Why BIB Finance

BIB Finance’s team is dynamic, dependable, and transparent. We have an excellent track record of success and client satisfaction and are confident in our ability to secure a bike-finance deal that suits you. We work with the major financial institutions, such as Standard Bank, WesBank, ABSA, and MFC (a division of Nedbank). You can expect that these financial institutions will have terms and conditions, for example; a minimum loan amount or a minimum repayment period. They will also be insisting that the bike is insured for the duration of the repayment period. This is understandable, considering that loans are a risk to the lender.

What Documents You Need for Bike Finance

You will have to consent to financial institutions carrying out credit, identity, and fraud-protection checks and the documentation needed for bike finance is as follows:

A copy of your identification document.

Proof of residence no older than three months (e.g., utility bill, store account, or any accepted, formal document with your name and physical address on it).

Details of the motorbike (year, make, model).

Three months’ payslips (or six months, if you are self-employed).

Proof of your banking details.

Proof of affordability, i.e. your income and expenditure details.

Your income tax number and proof thereof.

Affordability

The financial institution will also look at your debt to income ratio, your earning power, and your net surplus income (the money that is left over from your salary after all monthly deductions and expenses). There are many free online calculators you can use to assist you.

The Difference Between Prequalification, Preapproval, and Approval

- Prequalified: The financial Institution believes you are a sound candidate for a loan based on the information you supplied, but prequalification does not necessarily mean that your loan will be approved.

- Preapproval: Even at this point, there is no guarantee that you will get the loan; however, it does mean that you are able to repay the loan under the stipulated terms. It is always a good idea to obtain preapproval before you apply for finance, so that you have proof of your ability to obtain the finance. You will still need to apply for the actual loan, and the terms and conditions are still subject to change at this stage.

- Approval: Your loan have been approved and all you will need to do is sign the paperwork within the allotted timeframe in order to obtain your bike finance. 

The BIB Finance Difference

Of course, with BIB Finance, the loan-application process is quick and easy, with our secure online application portal and a highly professional team always willing to assist you. Need more help? Contact us today.