While many Managing Agents, Bodies Corporate and Homeowner’s Associations will try and initially deal with debts owed by trying to collect arrear levies themselves, not all cases can be handled without legal help or assistance from a partner that specialises in dealing with these challenges.
At Stratafin we specialise in offering our clients real cashflow solutions to help restore your positive cash balance. Stratafin understands the stress arrear levies can cause for Managing Agents, Homeowner’s Associations and Bodies Corporate. We take on the risk and the cost of the collection process and provide assistance every step of the way as well as resolving the conflict situations and restoring your balance sheets by giving you immediate access to cash.
Stratafin looks at several key factors which includes the following: the value of the property; the age of debt; a comparison between the debt amount and the property value; legal compliance; the time period of collection; whether the property is bonded or not, as well as, the outstanding bond amount and the debtor’s individual credit status. These factors are fed into our unique actuarial credit risk model, which then analyses the risk involved on each individual unit and gives us an adjusted debt purchase price related to the individual unit. Our product is not a loan but an outright purchase!
Because of our unique model and because the risk is individually accessed, we are prepared to buy all or any debt that we have accessed the risk of and which the Body Corporate is willing to sell. If the Body Corporate wishes to sell the entire outstanding levy book, we are your choice services provider. Alternatively, should they wish to sell selected debtors of the outstanding levy book, we are your still happy to assist. There is no monthly repayment to Stratafin by the Body Corporate.
To get the process off the ground, we require a copy of the levy roll or age analysis as well as the monthly individual levy statement for every debtor. We will then obtain all the remaining information ourselves, in respect of such unit, for example: the valuation; bond information; owner details and owner credit information, to enable us to supply the Body Corporate with a preliminary debt assessment.
Our Legal Department will do a full due diligence inspection prior to the agreement being entered into and will require various documents. These documents are in accordance with the Sectional Title Schemes Management Act and are to be produced and kept by the Body Corporate. In the event that some of these documents are not available, our expert team will assist you in remedying these errors to get your Body Corporate fully compliant.
No, Stratafin specialises in the purchase and collection of arrear levies and leaves the management of schemes in the hands of those professionals, that manages schemes on a day to day basis. We trust you in your choice of Managing Agent and we trust your Managing Agent in their handling of your affairs, in accordance with your instructions.
Yes, we do. We will offer a higher amount and take the risk of collecting over as well as the legal proceedings.
No, we collect the funds from the debtor through a legal process. The Body Corporate is no longer involved. Our solution is not a loan.
No, the funds remain outstanding regardless of the purchase, however Body Corporates do often give 2-week’s notice to the homeowner, whilst proceeding with the sale.
Yes, in accordance with IFRAS, the Trustees need to act in the best interest of the financial status of the Body Corporate.
New debt still belongs to the Body Corporate and Stratafin does not get involved in the management of the Body Corporate. The Body Corporate can choose to resell the new debt in a few months, should they need more assistance. Stratafin only purchase the historic debt and not future levies.
As soon as we have received all the necessary documentation from the Body Corporate, payment is made withing 48 hours.
The monies are paid into the Body Corporate’s trust account. The only time it is paid to the Managing Agent is if the Body Corporate provide a fidelity fund certificate.