Levy finance refers to financial solutions specifically tailored to address the cash flow challenges arising from unpaid levies and related legal collections costs in community schemes. Trafalgar’s Levy Solutions is an advanced levy finance product that guarantees a fixed monthly levy cash flow on the 1st business day of each month. This solution is designed to alleviate cash flow constraints and provide a reliable income stream to support ongoing property management and maintenance as well as the continuity of municipal and other services.
Levy Solutions employs several key features to ensure effective financial management, reliable cashflow, continuity of services and property maintenance:
1. Immediate Cash Flow Relief: Upon the inception of Levy Solutions, Trafalgar Financial Services advances up to 90% of the property levies that are in arrears. This immediate cash injection helps alleviate cash flow constraints, enabling the organization to address overdue accounts, catch up on maintenance, and prioritize other essential financial obligations.
2. Ongoing Financial Stability: Levy Solutions ensures that the full levy complement less an agreed financing fee is paid on a monthly basis, guaranteeing a predictable and stable cash flow. This consistent financial support allows bodies corporate, HOAs, and share block companies to manage their finances more effectively and predictably to avoid disruptions in their operations.
3. Legal Fee Financing: One of the significant advantages of Levy Solutions is that it covers all associated and necessary legal collections fees on a cash flow basis. This ensures that the legal process for recovering unpaid levies continues without interruption, allowing for a swift resolution of arrears and minimizing further financial strain.
4. Intensive Debt Collection Support: Levy Solutions includes comprehensive credit control support managed by in-house attorneys. This professional oversight helps streamline the recovery process, ensuring that appropriate actions are taken to prevent future arrears and maintain financial stability.
Implementing Levy Solutions as part of your levy finance strategy can transform the financial health and operational efficiency of community schemes. Here’s how:
• Regular Maintenance: With a predictable cash flow from Levy Solutions, regular maintenance can be carried out as scheduled. This prevents the property from deteriorating and ensures that communal areas are well-maintained, contributing to overall property value and lifestyle benefits.
• Increased Property Value: Consistent maintenance and timely repairs positively impact property values. By utilizing Levy Finance, properties can avoid visual deterioration and maintain high standards, leading to increased asset value over time.
• Higher Rental Income: Well-maintained properties attract higher rental income for property investors. With the support of Levy Solutions, the financial stability provided by consistent levy finance enables property managers to keep up with maintenance and enhance rental returns.
• Enhanced Marketability and Resale Value: Properties that are in good condition are more appealing to potential buyers. Levy Solutions helps maintain property value and makes it easier to market and sell units, while also easing difficulties in securing bonds for prospective buyers.
• Financial Flexibility: Levy Finance through Levy Solutions provides the flexibility to set aside funds for emergencies or unexpected expenses. This financial cushion reduces stress and prepares the community scheme to handle unforeseen challenges effectively.
• Easier Bond Approvals: Properties with stable financial management, effective governance, and good maintenance records are more likely to secure bond approvals. Levy Solutions ensures a steady cash flow, which contributes to improved financial health and higher approval rates for bonds.
• Improved Community Well-being: A well-maintained property and stable financial management contribute to a happier and more content community of homeowners. Levy Solutions supports this by ensuring that funds are available for ongoing upkeep and community needs.
Failure to address levy arrears can have several detrimental effects on bodies corporate, HOAs, retirement complexes, golf estates, and share block companies:
• Deterioration of Property: Without adequate funds and cash flow in particular, maintenance and repairs are delayed, leading to visual deterioration, accelerated and expanding maintenance requirements, and reduced functionality of the property.
• Unpaid Municipal and Creditor Accounts: Cash flow issues can result in overdue municipal bills and unpaid creditor accounts, leading to service interruptions and potential legal issues.
• Reduced Returns on Investment: Poorly maintained properties lead to decreased rentals and returns on investment for property owners, and lower resale values.
• Compounding Debt: Accumulating debt may necessitate special levies, placing additional financial pressure on homeowners and potentially causing more defaults.
• Insurance Claim Denials: Insufficient maintenance and unresolved financial issues can result in the refusal of insurance claims, increased insurance premiums, and policy endorsements, exacerbating financial difficulties.
• Community Discontent: Financial instability and property neglect can lead to a stressed and unhappy community of homeowners, impacting the overall quality of life.
Trafalgar’s Levy Solutions, powered by effective levy finance, offers a proactive approach to overcoming these challenges. By ensuring a reliable cash flow, covering legal fees, and providing expert debt collection support, Levy Solutions helps bodies corporate, HOAs, and share block companies stabilize their finances and maintain their properties.
With Levy Solutions, you can expect regular maintenance, increased property value, higher rental income, uninterrupted service delivery, and improved resale opportunities. It also provides the financial flexibility to manage emergencies, facilitates easier bond approvals, and enhances the overall lifestyle of homeowners.
Contact Trafalgar today to learn more about how our Levy Solutions and levy finance can transform your property management and financial stability.
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