Overview
Lease Rent Discounting: Monetizing Your Rental Income
Lease rent discounting (LRD) is a financial instrument that allows property owners to convert their future rental income into immediate cash. It essentially involves selling your future rental payments to a financial institution at a discounted rate. In simpler terms, you are borrowing money against your rental income.
Benefits of Lease Rent Discounting:
- Immediate access to cash: LRD provides immediate access to a lump sum of money, which can be used for business expansion, debt consolidation, personal emergencies, or any other financial need.
- Improved cash flow: By converting future income into present cash, LRD can improve your cash flow and provide you with greater financial flexibility.
- Unlocking capital: LRD allows you to unlock the capital tied up in your rental property without selling it.
- Flexibility: LRD offers various loan tenures and repayment options to suit your financial situation.
Eligibility for Lease Rent Discounting:
- Property type: LRD is typically available for commercial properties like office spaces, retail shops, and industrial units. Residential properties may also be eligible in some cases.
- Lease agreement: You must have a valid lease agreement with your tenants with a fixed rental income.
- Rental income: Your property should generate a stable and consistent rental income.
- Creditworthiness: You must have a good credit history and financial standing.
