When an owners corporation or body corporate needs money for renovation or rectification works, insurance premiums or even litigation costs there are essentially three options to choose from:
- To use money from the sinking fund.
- To raise a special levy where all owners contribute to fund the works.
- Using strata finance where money is made available quickly to complete works.
Strata finance is not new and has been used by strata communities as an effective and efficient way to cover unexpected costs for many years. A strata loan provides non-mortgage funding direct to an Owners Corporation or Body Corporate so there is no need for financial information from individual owners, plus the loan requires no personal guarantees or mortgages. Contact us today to find out more.
How it Works
All you need to do is supply the following information:
1. How much is the corporation looking to borrow?
2. What will the funds be used for?
3. How many lots in the strata community the funding is required for?
We will then provide you with a proposal including terms of borrowing and costs involved.
You are then able to use this proposal to put a motion forward at the next AGM or EGM for acceptance to gain funding for the works (a loan agreement and credit check will be required).
The funds may be used as a progressive draw-down as and when the owners corporation or body corporate needs them or taken as a single draw-down. Either way there is still only one repayment required each month. Interest is only paid on the actual money drawn.
Find out more about StrataLoans and how they can help with your strata finance.