There are sometimes situations that arise, where a lift in a sectional title scheme might break, a water pipe bursts or during a terrible storm it is found that sections of the roof need repairing straightaway and there is a risk of major damage to the building, says Johann le Roux, executive director of Propell, a company that provides financing to bodies corporate and operates throughout South Africa.
In situations like these the contractors called out might need their callout fee as well as any labour and supplies used covered immediately, and the chances are that the body corporate will not have those funds readily available (if at all) to be able to pay upfront and there probably will not be enough time to go through the processes of raising a special levy and collecting such funds.
There are other extraordinary situations that might also arise that might not have been budgeted or planned for, such as a large legal bill or excessive municipal bill due to a leaking water pipe.
This is where Propell saw a need for immediate access to funds and launched their Overdraft Facility to bodies corporate.
“We offer a revolving overdraft to assist in emergency situations,” says le Roux, “but there are many bodies corporate that are not aware that this service is available.”
The overdraft facility costs nothing to sign up and there are no monthly or annual fees. Costs are only incurred when the facility is used. Propell only charge a withdrawal fee and interest on the funds drawn.
“This product has been developed as a safety net for bodies corporate to cover any costs for unforeseen events. It’s a product that you can sign up for and possibly never use, but if the need for funds suddenly arises, you are able to draw on them at a moment’s notice. Furthermore, no surety is required from any owner or trustee,” said le Roux.
“An overdraft facility would also help managing agents as they often draw from their own funds to assist their clients in emergency situations. Eliminating this sort of scenario helps them do their jobs more effectively.”
For further information please contact Johann le Roux from Propell on 0861 33 34 35 or email firstname.lastname@example.org.
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