Lease Rental Discounting (LRD) to help fund future increases to the expected rental of self-owned commercial property. The use of rental income as security to obtain loans from banks is known as lease rental discounting. A loan will be given based on an exact amount after the bank examines long-term cashflow. The promised rents will then be used to repay this loan. LRD loans operate under the assumption that a set amount of rent is owed for rental properties. Lease agreements are made between tenants and the property's owner. This contract requires a recurring payment known as rent. Rental receipts created for the period of the lease may be used as collateral when the property owner applies for a loan.
Factors the Bank Takes into Account Before Making a Loan: The bank will evaluate a number of factors, including the following,
To determine your eligibility for Lease Rental Discounting:
- The worth of your property
- Your financial capability
- Additional assets you hold
- The technical and legal aspects of your property
- Liabilities that could arise
The property must be occupied by the tenant. Similar to loans against
property, LRD can be offered for the personal needs of the customer.
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