Debt Purchase

We understand that financial speed bumps can come with an unstable economy, which can have a lasting impact on your community scheme’s financial stability. Stratafin is the first community scheme funding company in South Africa to offer arrear levy debt purchasing.

Debt Purchase

We understand that financial speed bumps can come with an unstable economy, which can have a lasting impact on your community scheme’s financial stability. Stratafin is the first community scheme funding company in South Africa to offer arrear levy debt purchasing.

Debt Purchase

With our debt purchasing solution, we buy your debt upfront. We’ll offer you a fixed settlement price you agree on, in exchange for acquiring your Scheme’s historic levy debt, as well as your legally raised charges and utilities such as water and electricity.

Because there is no repayment, interest, or fees payable by the Scheme, we take on all the risk while your community scheme gets access to immediate funding. In doing so, you avoid a debt trap.

business deal
The benefits

Why choose Stratafin’s debt purchase solutions?

Cash Flow

You get instant cash flow to attend to all your scheme's needs

Scheme Liability Free

Defaulting owners are held liable – not the Scheme as a whole

No Legal Hassle

The legal process is removed from the Scheme, so you don't pay any legal fees nor undertake any legal processes

No Hidden Costs

No monthly payments, interest, or other costs are payable by the Scheme

Freedom

Funds can be used for anything you decide

Payers Left Unaffected

No additional payments are due from paying owners

Improve the Community

It allows you to replace non-paying owners with paying owners

Increase Investment Value

It increases your property value and the property investment as a whole

The Process

How does debt purchase work?

We evaluate the risk of every debtor individually according to our proprietary actuarial model.

DEBT PURCHASE PROCESS

1

A Stratafin representative will ask you for information regarding your community scheme's outstanding levies.

2

Stratafin will provide a preliminary offer to purchase debt.

3

Once preliminary offer is accepted, we follow a Due Diligence process whereby we ask for the relevant compliance documents.

4

Final offer is provided based on findings in the Due Diligence process

5

Contract is drawn up and signed by the Community Scheme Members.

6

Debt purchase amount is paid to your Community Scheme

Owners in arrears are pursued for their outstanding contributions, and repayment can be structured over a period of up to three years. If no such arrangement can be made, Stratafin will follow the legal process.

LEGAL PROCESS

1

Call to owner - try to arrange payment or acknowledgement of debt.

2

Letter of Demand

3

Summons

4

Default Judgement

5

Attachment of moveable property

6

Application to attach immovable property

7

Sale and execution

We don't get involved in your Scheme's day-to-day management, and we don't dictate how you should spend the funds.

Want to know more about how our debt purchase solution can help your Community Scheme?

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