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LENDING FUNDS

BC Funding Solutions performs the role of facilitator between the Community Schemes requiring loan funding, and you, the lender, willing to lend funds to, or in respect of, these Community Schemes. Any individual, corporate entity or Trust, can lend funds to Community Schemes.

BC Funding Solutions sources funding leads, provides, facilitates and manages the legal documents between the two parties and monitors the collection and repayment to our lenders, until fully repaid.

The origination process follows defined lending criteria and is ultimately supported by legislation and contract. Once you, as the lender, are satisfied with the loan and have signed the legal documentation, you deposit your funds into an independent cash custody account administered by SANNE Fund Services SA (Pty) Ltd.

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LENDING CRITERIA

Community Schemes undergoing capital improvement, maintenance projects and / or suffering from non-payment of contributions from unit owners seldom have the required income to fully fund their obligations under the Community Scheme legislation or constitutional documentation.

The above forces the Community Scheme to decide to:

Do without the required services to the common property, in contravention of the Act and / or constitutional documentation;

Raise and collect a special levy – if they raise a special levy and the members contribute fully then the problem would be solved and there would be no need for the Community Scheme to borrow. If, however, the special levy is not fully paid then the Community Scheme would either need to raise a further special levy for the differential (this is where the subsidisation of the paying owners would occur); or

Borrow the differential needed to maintain their obligations and; furthermore

Loans are entered into with Community Schemes on the basis that they immediately institute levy collection protocols and commence legal action / debtor rehabilitation against non-paying unit owners.

BC Funding Solutions implements a defined set of lending criteria and follows a strict process when advancing funds to Community Schemes. BC Funding Solutions requires that a set list of documentation be submitted to BC Funding Solutions by the Community Scheme and / or its managing agent in order to enable BC Funding Solutions to assess the viability of a loan to a Community Scheme and complete an assessment on its financial position in order to confirm the underlying security of the Community Scheme.

In order to protect the paying owners, BC Funding Solutions ensures that the Community Scheme is obliged to implement interest charges at a rate equal to the amount charged in the Loan Agreement.

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