Stratafin offers clients, such as trustees and directors, real cash flow solutions to restore their financial balance and, ultimately, their peace of mind.
Stratafin’s innovative business model for Trustee peace of mind
Stratafin purchases historical arrear levies (or debt) at an agreed rate from the trustees of Bodies Corporate or Home Owners Associations. Stratafin takes on the risk and cost of legal collection. We give the Body Corporate or Home Owners Association the cash flow they need to sustain their operations and achieve their long-term vision, thus giving trustees peace of mind.
Like most innovative solutions, it was born from necessity in the midst of South Africa’s rising economic uncertainty. Our country has a long and well documented history of inequality and economic disparity. Add to that, the challenges companies face with rolling blackouts, overextended credit and the downgrade of currency. The truth is that businesses are struggling.
Now, with the added impact of Covid-19 leading to ordinary people losing their jobs or having to accept a cut in salary, many people are finding themselves in financial trouble. They have overextended their credit and overcomitted on various obligations to service providers and, as a result, more and more people are falling in arrears in the payment of levies.
Conventionally, Bodies Corporate or Home Owners Associations would take action via civil litigation in the courts or take the route of appealing to the Community Schemes Ombud Services (CSOS). Stratafin’s pioneering approach, however, suggests that trustees of a Body Corporate or directors of a Home Owners Association could potentially conclude an agreement for the sale of book debts comprised of arrear or “irrecoverable” levies at a pre-determinable discounted rate.
There is no legal impediment for a Body Corporate or Home Owners Association to sell its book debts at a discounted value, thereby ‘writing-off’ the discounted amount, for so long as the trustees (by way of trustee resolution) act responsibly, in good faith and in the interest of the body corporate. These agreements are permissible and legally competent.
For an obligation free assessment of your current levy arrears, please contact us.
