What is strata finance used for?
When an owners corporation or body corporate requires extra money to make improvements, to cover the cost of repairs, to cover insurance premiums or even for 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, or a strata loan, is not new and has been used by strata title communities as a finance option for 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.
The loan requires no personal guarantees or mortgages.
What do you need to do?
Just supply us with the following information:
1. How much the strata community wishes to borrow?
2. What will the funds be used for?
3. How many lots the funding is applicable for?
We will provide you with a proposal including terms of borrowing and costs involved.
Use this proposal as a motion at the next AGM or EGM for acceptance to gain funding for the works.
How are funds accessed?
The funds may be used as a progressive draw-down as and when you need them or taken as a single draw-down. Either way there is only one repayment each month. Interest is only paid on the actual money drawn.
Find out more about StrataLoans and how we can help with your strata finance.