1 May 2013
?When the lift in an apartment block breaks down, a water pipe bursts or the roof starts to leak during a terrible storm, for example, the trustees need to act fast to address health and safety issues or stem the possibility of major damage to the scheme,? says Johann le Roux, executive director of Propell, a company that provides financing to bodies corporate and operates throughout South Africa.
?However, in situations like these, when the contractors called out to fix the problem will most likely want to be paid immediately, the chances are that the body corporate will not have those funds readily available and that there probably won?t be enough time to go through the processes of raising a special levy to collect them, and this is where we come in.
?Propell now offers a revolving overdraft facility to assist bodies corporate in emergency situations. It costs nothing to sign up and there are no monthly or annual fees. Costs are only incurred when the facility is used and we only charge a withdrawal fee and interest on the funds drawn.?
This facility, says Le Roux, was specifically developed as a safety net for bodies corporate to cover any costs for unforeseen events, which might also include a large legal bill, for example, or an unexpectedly large water bill form the coty council because of a leaking pipe.
?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.?