Income Energiser
The Income Energiser lending solution is ideal for private individuals, corporate entities and trusts who are risk averse and require monthly interest income to supplement their living and/or ongoing business activities.
Similar to the ongoing struggles that Community Schemes face with non-paying unit owners, large capital and maintenance projects require significant reserves, which are not often held in cash. Community Schemes, therefore, face the situation where they can raise a special levy and save up for the project or borrow funds and provide unit owners with the time to pay their special levy over a period of time.
The Income Energiser lending solution is utilised to fund arrear levy, project maintenance funding needs of Community Schemes.
The perfect post-retirement income generator.
INCOME ENERGISER LENDING SOLUTION FEATURES:
Minimum amount
R 100 000.00
Interest rate
Prime plus 3.0% per annum, with simple interest earned on a monthly basis. Interest is capped at 20.0% per annum, due to industry restrictions imposed on interest chargeable to levy debtors.
Interest repayment
Interest is serviced (i.e. paid to lenders on a monthly basis)
Repayment
Loans are typically repaid on an amortising basis over a period of five years. However, to ensure that lenders receive a steady interest income every month, BC Funding Solutions will automatically redeploy the capital portion of the monthly repayment to other Community Schemes for capital projects and maintenance and/or in respect of other arrear levy debts subrogated in terms
of levy guarantee insurance policies. On the fifth anniversary of the advance of the loan by the lender, lenders are able to select repayment on an amortising basis for the next five years, or
choose to continue to automatically re-advance into the Community Scheme environments.
Underlying legislation and security
The Sectional Titles Schemes Management Act 8 of 2011, the Sectional Titles Act 95 of 1986, and the Community Schemes Ombud Service Act 9 of 2011, including important case law.
Liquidity
Loans to Community Schemes are illiquid. The secondary market for this asset class is well established and sales can be facilitated by BC Funding Solutions to willing buyers.
Fees and charges
None, as all fees and charges are paid by the debtor.