Australian Strata Levy Finance Options [An Update]

I was wrong about strata levy financing options, so here's an update ...

An update and correction about Australian strata levy arrears funding options [with my apologies].

[1.00 minute estimated reading time, 230 words]

Last week I wrote about a different way to think about strata levies and overdue payments [see my article ‘Other Ways with Overdue Strata Levies’]. And, when highlighting an innovative South African financial product focused on strata levies said ‘Although there are similar kinds of strata lenders in Australia, I’m not aware of any of them offering this kind of debt factoring service.  At least not yet’.

Well [shock/horror], I was wrong!

An Australian strata lender is doing something similar, and that’s Lannock with its Levy Assist product.

It’s not exactly debt factoring like the Stratfin product, but more like cashflow funding or a working capital loan to cover the impact of unpaid strata levies or strata owners’ reduced capacity to fund strata building operating and capital works costs.

As yet another approach to strata funding, it demonstrates my view that ‘strata levies [including overdue levies] are one of the best things in strata land which we’re not leveraging properly to the strata building’s advantage.’

So, my apologies for missing this Australian strata services innovation, and thanks to Paul Morton at Lannock for reaching out to let me know about it.

June 16, 2021

Francesco ….