No, Propell enters into a contract with the legal entity, so there is no need for the trustees of a scheme to sign personal surety for a loan.
Sectional Title Finance
It is important to understand that Propell handles only the levy administration, so the managing agent will continue to play a key role in the day-to-day running of the scheme.
These can take the form of capital-intensive projects like security upgrades, painting, elevator replacements, or even the settlement of creditors. Propell’s Project Finance product offers immediate access to much needed funds.
The “useful life” of the improvement is the predicted period for which the improvement is likely to be useful to, and enjoyed by, the owners within a scheme. For example, a paint job will need to be redone every three to four years. By matching the repayment term to the useful life of the painting improvement, the loan will always be settled prior to the time when further painting improvements are necessary.
Should a unit be sold before the repayment of the special levy, the seller will need to settle in full their special levy obligation prior to the date of transfer.
Yes, early settlement is possible, but an early settlement fee will be charged.
No, the managing agent’s role will not change on acceptance of a Project Finance loan from Propell. The managing agent will remain responsible for the full levy administration and day-to-day management of the scheme.
Our Levy Funding product is designed to assist those bodies corporate currently facing significant arrears and monthly cash flow constraints. Our Arrears Funding product, on the other hand, is best suited to those bodies corporate that do not have a monthly cash flow problem, but would like to turn their arrears debtors into cash.
In this scenario, the managing agent remains responsible for both the levy administration and the day-to-day management of the scheme. Propell collects only on the individual accounts forming part of the arrears.