FUNDING AND TREASURY

Solutions for underlying levy debtor problems, municipal arrears, maintenance, and/or capital projects.

ARREAR LEVY FUNDING

Immediate and ongoing access to a bespoke funding facility for up to 100% of arrear leviesRead More »

PROJECT FUNDING

Project funding packages that provide Community Schemes and unit owners with flexibilityRead More »

BESPOKE AND COMBINATION FUNDING

Facilitation in loan funding to Community Schemes by offering various lending solutions

CREDIT CONTROL POLICY AND FUNDING FACILITY

Financial management assistance ensuring financial security and legislative complianceRead More »

ARREAR LEVY FUNDING

SUSTAINABLE AND RELIABLE FINANCIAL SOLUTIONS
Funding and treasury

In Community Schemes

There are a vast number of Community Schemes in South Africa that struggle to operate functionally as a result of levy non-payment by unit owners. This often results in paying unit owners either having to subsidise non-paying unit owners levy amounts via special levies or doing without vital services and maintenance to the common property.

In some cases, the consequences of non-payment of levies are even more severe. This occurs when even necessity expenditure (such as basic utilities) cannot be paid. In these cases, there is an immediate negative impact on ALL unit owner’s property values, daily living conditions and financial obligations to their Community Schemes.

What are the benefits of the STS Arrear Levy Funding facility?

IMMEDIATE AND ONGOING ACCESS TO FUNDING FACILITY

BESPOKE FACILITY WITH NO SIGN UP OR INITIATION FEES

FUND UP TO 100% OF ARREAR LEVIES (NO DISCOUNTING APPLIED)

RETAIN CONTROL AND MANAGEMENT OF LEVY COLLECTIONS

SIMPLE AND EASY APPLICATION PROCESS

KEY FEATURES OF THE ARREAR LEVY FUNDING FACILITY

Repayment only occurs when the Community Scheme collects its arrears
The Community Scheme can operate effectively on a fully-funded basis as if all unit owners were paying their levies
Interest costs incurred are added to the arrear levy debtor accounts (i.e. interest on arrears is matched to the loan interest rate), therefore the paying unit owners aren't prejudiced by the costs of the arrear levy funding
The Community Scheme and its managing agent maintain control of the legal process and the collection of arrears (arrear levy debtors remain on the Community Scheme’s balance sheet)

WE'VE HELPED MANY COMMUNITY SCHEMES GO FROM SURVIVING TO THRIVING

PROJECT FUNDING

FUND YOUR COMMUNITY SCHEME’S PROJECTS FLEXIBLY AND RESPONSIBLY
Funding and treasury

In Community Schemes

Community Schemes are often left in the unenviable position where they require an urgent ad-hoc service or project to be completed, but don't necessarily have the funds in reserve at the time for this to happen. The Community Scheme is then forced to raise a special levy to gain the funds necessary for the service or the project, thereby placing undue financial pressure on unit owners.

STS offers bespoke project funding packages that aim to provide Community Schemes and its unit owners with the flexibility to choose their funding period and ensure that it can commence with their property maintenance, repairs, improvements and efficient energy-related projects when required and without delay.

WHY CHOOSE OUR PROJECT FUNDING SOLUTION?

Repayment flexibility when needed
Unit owners can select funding term based on own unique circumstances – no early repayment penalities
Interest is only charged on drawn down amounts
No capital raising fees or fees of any kind are charged
The only cost associated with this funding model is the applicable interest rate
Facility amounts can be extended on request – subject to credit committee approval

DON'T LET YOUR BUDGET THROW A SPANNER IN THE WORKS

BESPOKE AND COMBINATION FUNDING

A FUNDING FACILITY DESIGNED TO MEET SPECIFIC COMMUNITY SCHEME NEEDS
Funding and treasury

In Community Schemes

STS specialises in facilitating loan funding to Community Schemes, offering various lending solutions to clients that have underlying levy debtor problems or require funding for municipal arrears, maintenance and/or capital projects, but whose unit owners cannot immediately raise the necessary upfront cash. Our primary goal is to understand the funding requirements of your unique Body Corporate and provide Trustees and/or Managing Agents with the best possible solution.

While many Bodies Corporate are efficiently managed and are financially sound, many have levy defaulting unit owners and, as a result, struggle to function operationally, often leading to the general decay of a building and therefore unit value. STS works with its clients to achieve an operationally functional entity without prejudicing the paying owners within the Body Corporate. The STS team offers its clients specialist skills in both Sectional Title Law and funding structures, which has allowed us to put together unique funding packages for Bodies Corporate who require tailor-made solutions.

Sectional Title Solutions bespoke funding

WE'VE ASSISTED OVER 1500 COMMUNITY SCHEMES WITH BESPOKE FUNDING FACILITIES

CREDIT CONTROL POLICY AND FUNDING FACILITY

ENSURING THE FINANCIAL STABILITY, SUSTAINABILITY AND COMPLIANCE OF COMMUNITY SCHEMES
Funding and treasury

In Community Schemes

By accessing adequate, flexible and long-term funding facilities, Trustees/Executive Committees can ensure the financial sustainability of their Community Scheme, whilst arrear levies are being collected. This is a vital component of any sustainable financial management process, which aims to protect the paying unit owners from having to subsidise non-payment of levies, maintain property values for all unit owners and enable the Community Scheme to assist its arrear levy unit owners to retain their property asset and avoid expensive legal processes and fees. The burden of having to fund expensive legal fees, whilst the Community Scheme collects its arrear levies, as well as the assurance that funding is available for any unforeseen urgent expenses, is critical to any Community Scheme. STS aims to assist Managing Agents, Trustees/Executive Committees in Community Schemes to adopt the correct financial management processes to ensure the financial security and legislative compliance of these entities.

The requirement for a robust and efficient Credit Control Policy in managing the financial affairs of the Community Scheme cannot be stressed enough. By adopting, adapting and improving how the Community Scheme manages its credit control policies, whilst being cognisant of the roles and responsibilities that have been legislatively and contractually imposed upon them, the Trustees/Executive Committees and the Managing Agent can ensure the financial stability and sustainability of the Community Scheme. Together with STS, all Community Schemes can embark on a formidable approach to financial integrity and sustainability.

With our funding facilities, Community Schemes can:
  • Maintain their legislative and/or contractual obligations
  • Protect paying unit owners from subsidising the non-paying unit owners in their Community Scheme
  • Enable the Community Scheme to offer their non-paying unit owners debt rehabilitation opportunities so as to protect their property asset and to avoid expensive legal costs
Download the brochures
Sectional Title Solutions - Funding and treasury - Credit control

MAINTAINING THE FINANCIAL STABILITY OF COMMUNITY SCHEMES