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Propell, the Cape Town-based financial specialist, has launched a form of debtor finance to cover the shortfall left by owners who default on their levy obligations. This helps to ensure that community schemes can continue operating.
More information can be found at: https://propell.co.za/what-we-do
The program ensures that community property schemes can rely on debtor finance to cover levy shortfalls. As debtor finance South Africa specialists, they aim to simplify the debtor finance process and provide reliable revenue streams in times of hardship.
Propell explains that when property home owners don’t pay their levies, it places undue pressure on the community scheme. Furthermore, when cash is tied up in arrear levies, it’s unfair to rely on paying owners’ contributions to cover all the expenses.
Added to this, the legal cost for the collection of arrears can create further strain and financial burden. When levy default occurs, it can often create a cycle in which buildings are not maintained as well as they ought to be.
Propell launched its debtor finance solution to ensure that community schemes had a reliable and steady cash flow. The program provides a revolving loan of up to 80% of levy arrears.
The community scheme is then monitored monthly and the debtor finance balance is adjusted to cater for further increases or decreases in arrear levies. If the levy arrears increase, Propell is able to advance credit equal to 80% of the increase. However, if the levy arrears has decreased, the community scheme would pay an amount equal to 80% of this.
Propell states: “Debtor Finance is a revolving loan that provides up to 80% of home owners’ levy arrears. The revolving line of credit allows community schemes to meet their budgets without requiring owners to cough up more or dipping into reserves meant for a rainy day.”
This game-changing offering helps to ensure that community schemes can run efficiently. They rely on a dependable source of income each month to function as needed. This funding helps to provide the necessary maintenance and project development to add value to the property.
Additional information is provided at: https://propell.co.za/debtor-finance-explained
Further details are also available here: https://propell.co.za/how-community-schemes-can-rely-on-debtor-finance-to-cover-levy-shortfalls
Release ID: 88979245