Affordable project funding for community schemes: overcoming financial pressure in a complex economic climate

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Category: Funding and Treasury

Affordable project funding for community schemes: overcoming financial pressure in a complex economic climate

The current economic climate has brought significant financial pressures for individuals, businesses and community schemes alike. Rising interest rates and increased living costs have rendered many individuals and families hard-pressed to maintain a balanced budget, let alone establish financial reserves for unforeseen circumstances. On top of that, ongoing issues like load-shedding and crime are adding to the difficulties faced by homeowners and community schemes. It is understandable that South Africans feel overwhelmed, but there is hope.

At Sectional Title Solutions (STS), we understand the impact of these hardships on people’s finances and well-being. We also recognise the unique financial challenges that community schemes face when it comes to urgent repairs, maintenance, or capital improvement projects, and that special levies will only add to unit owners’ financial burdens.

That’s why we offer accessible and affordable funding options tailored specifically to community schemes’ and residents’ needs. We’re committed to providing cost-effective solutions that prioritise the financial well-being of our clients. With a loan from us, you are not alone! Let us take care of the funds, while you focus on life.

Alleviating financial pressure in difficult times

For many years, our project funding has allowed immediate access to funds, enabling schemes to start essential projects without delay. Whether it’s urgent repairs, maintenance, or capital improvements, our flexible repayment terms, in addition to some of the most competitive interest rates on the market, have provided peace of mind.

We believe that businesses have a responsibility to deliver optimum value in general, but especially during challenging and uncertain financial times such as those that we find ourselves in currently.

That is why we decided to review and revise our term funding model. After a long time in the market and being recognised as one of the most reliable funding partners, we are now able to offer new clients even lower interest rates and cheaper loans without any additional terms and conditions.

Transparent and competitive funding

Taking out a loan has historically been viewed as risky or ill-advised due to unethical service providers and scammers. This has created doubt, bias, and misinformation surrounding sectional title scheme lending and funding.

However, consider the potential consequences of not addressing urgent, maintenance and/or repair projects or arrear utility bills. Could a loan be more cost-effective and viable than trying to build up cash reserves or raise a large upfront special levy?

When assessing a community scheme credit provider, it’s crucial to choose a trustworthy partner registered with and following the directives of the National Credit Act. Thorough research is advised, and peer review sites can assist in the decision-making process. Each community scheme is unique, and a funding partner should offer tailor-made solutions based on the scheme’s specific characteristics.

At STS, we take pride in having the skills required to support all your funding needs. Our ethical business practices and market-leading solutions make us the perfect partner in providing sustainable financial solutions for the future.

To further differentiate ourselves and support our community during these difficult economic times, we have introduced an interest rate reduction incentive that rewards good repayment behaviour. This unique incentive rewards good repayment behaviour, putting money back into our clients’ pockets and providing a tangible benefit for their commitment to responsible financial management. It helps pay off the loan sooner, bringing financial relief and peace of mind.

The benefits of our project funding solution

Managing finances effectively and finding a sense of stability in the current economic climate can be challenging. That’s why our project funding solutions offer flexible repayment options. Community schemes can choose a funding term that aligns with their financial capabilities, allowing them to repay the loan over a period that suits their unique circumstances. We don’t impose early repayment penalties, providing further flexibility and peace of mind.

Transparency and fairness are important to us. While everything else is going up, we have lowered our already competitive interest rate to provide some relief during these challenging economic conditions. Our goal is to provide affordable funding options that don’t exacerbate financial stress for unit owners. Interest is only charged on the drawn-down amounts, keeping costs manageable for community schemes.

We believe in providing straightforward and transparent funding solutions to community schemes. Trustees and managing agents can review our funding proposals with confidence, knowing that there are no unexpected fees or charges that will strain the scheme’s finances.

Community schemes can initiate and complete projects promptly, preserving and improving the asset value of the property. For example, schemes can use our funding to install solar panels and other renewable energy systems. This is a great way to save money on energy bills, boost property value, and reduce their carbon footprint.

To learn more about our revised project funding solution or to discuss a tailor-made proposal for your community scheme, please reach out to us. We’re here to provide the support and financial solutions you need to navigate the complexities of the current economic climate and ensure a sustainable and financially sound future for your community.