BC Bridging Solutions - The Benefits | The Benefits

There are enormous benefits to be gained from this type of financial assistance for all the members of the body corporate. From our experience the main ones are:

Immediate recovery of the property

Remember in a sectional title development all the members jointly approve their budget for the year. In this budget are all the costs necessarily incurred to maintain your property to the standard you require. If some members don’t pay, then there isn’t enough money to meet all these necessary costs, and it means everyone suffers, payers and non-payers alike. Thus if the shortfall means your lifts can’t be repaired, then everyone uses the stairs. If it means the perimeter fence can’t be maintained, then everyone’s security is at risk.

The result of this is that everyone’s standard of living is compromised and everyone’s home value is eroded. Even though you may be meeting your levy obligations faithfully each month, the value of your home (your most important and valuable asset) has declined and you’ve become poorer.

When the loan goes in, the money is immediately there to ensure all the budgeted property costs are met. The lifts work; the fence is secured and so on. Your home immediately returns to its rightful value and your wealth has been immediately restored. It also gives the trustees the necessary time to work with the non-paying members to remedy their arrears. Even the non-payers home value has been improved, possibly making it easier for him to find the necessary finance to rehabilitate his debt. Everyone wins.

Improved understanding

By and large we find the need for financial assistance has arisen out of a lack of understanding. Trustees don’t always understand why they should be vigorously ensuring everyone pays their levies, or they don’t know what to do if members simply refuse to pay.

Members don’t understand the consequences of their non-payment, both to themselves and to their fellow home owners.

Justin, one of our directors, has worked tirelessly to try and address this. In his interactions with the major South African banks they asked him to develop a training program for trustees and members of bodies corporate. This he did and implemented the Joint Banks Sectional Title Training and Compliance Program. BCBS is prepared to make this training available free of charge to anyone of the sectional title schemes who have received bridge funding assistance from us.

In addition, our management and compliance division provides a monitoring role that is of enormous help to the body corporate in understanding the collection process. Through seeing what can and should be done, the bodies corporate learn how to ensure these situations are contained and rectified much earlier on in the future.

Overall rehabilitation

Ultimately what we have observed is that our financial help (supported by training and more rigorous collection regimes) has been the catalyst to the entire scheme becoming financially rehabilitated. Usually once the loan is repaid, the trustees and the members understand why they need to meet their obligations as described in the Sectional Titles Act and the scheme continues to operate as it should without our repeated intervention.

We are delighted that our client no longer has need of our services and that their homes continue to give them the joy and security they dreamed of when they purchased them.

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