Is inadequate finance stalling your business growth? Are you facing difficulties in meeting your working capital requirement?
It’s time for you to take a sigh of relief. One of the most lucrative options available for you is Lease Rental Discounting. Rent receivables from a self owned commercial property is used as collateral for LRD. The repayment of the loan is based on the rent received which is directly credited to the lender by the occupant via escrow account over the decided lease period. During this period, the borrower receives only surplus rent; after EMI Deduction; if any. Only 100 percent complete properties are considered for lease rental discounting. The loan amount for LRD can be funded up to 70% of the market value. It is a simple Rent Discounting Product in which Loan is given by discounting the Future Rent Recievables.
With time, the valuation of the property raises and one can use a LEASE RENTAL DISCOUNTING to unleash the value locked in the asset. With the Positive Economic Cycle in the Country, “ACCHE DIN”, Businesses need easy access to Cheaper Funds for their Expansion Plans to ensure they capitalise on the Fantastic opportunities. Their Biggest Asset is the Property; this is the right time to utilize it for funds.
It has its own distinct advantages in terms of Pricing; the Rate of interest is lower than personal loan or loan against any security such as shares, gold etc. The entire Interest Paid Component can be claimed as Business Expense to avail Tax Benefit.