Lease Rental Discounting (LRD) is a financing solution that enables businesses to leverage their rental income to raise funds for operational and investment activities. LRD is a flexible financing option that provides medium to long-term funding based on rental incomes from the properties owned by the business. At Do Wealth Partners, a leading financial advisory firm, we help businesses understand the benefits of LRD and provide comprehensive knowledge and expertise to obtain the financing they need.
What is Lease Rental Discounting?
Lease Rental Discounting is a form of secured lending based on the lease rent derived from leased commercial properties. With LRD, the lending financial institution provides a loan based on the discounted value of future rentals from the leased commercial property. The property-owner pledges the future lease income to the lender and receives the loan based on the collateral.
Businesses use LRD to raise funds for various purposes, including working capital, debt consolidation, capital expenditure, and project finance. LRD offers long-term financing options, and the repayment terms are based on the lease tenure and lease amounts of the commercial property. It offers businesses the flexibility to maintain ownership of their property while securing vital funding.
Advantages of Lease Rental Discounting
1. Low-interest rates: LRD loans usually have lower interest rates than other unsecured loans, providing businesses access to cheaper financing options.
2. Asset ownership retention: Businesses retain the ownership of the property even after leasing it, allowing them to benefit from any future capital appreciation.
3. Long-term financing: LRD provides long-term financing options ranging from five to fifteen years, providing businesses with the flexibility to repay the loan as per their lease parameters.
How Do Wealth Partners Help
Incorporating LRD into a business's financing strategy can be quite beneficial in a competitive environment. At Do Wealth Partners, we are committed to providing comprehensive advice on leasing rental discounting to help businesses make informed financial decisions.
Our team of experts works closely with clients to understand their specific business needs and recommends tailor-made solutions based on their goals. They possess expertise in analyzing the lease rental income of commercial properties and offer comprehensive advice to clients, including lease structures and discounting methods.
We have extensive networks across leading financial institutions and banks, ensuring our clients have access to competitive financing options. Our team provides complete assistance with loan application and documentation, authorization, and disbursement stages of the LRD process.
Final Thoughts
Lease rental discounting can be a valuable financing option for businesses that own commercial properties. With the assistance of a trusted financial advisor such as Do Wealth Partners, organizations can leverage their assets' income to obtain long-term and flexible financing on favorable terms. By working with us, businesses can access our extensive expertise in LRD, our extensive networks in the financial industry, and our personalized service to secure the financing they need to achieve their goals.