what is lease rental discounting (lrd) and how lease rental discounting works

Lease Rental Discounting is a way for property owners to get loans by using the money they earn from rent as a promise to pay back the loan. Here’s what you need to know on understanding how lease rental discounting (LRD) works:

• What it is: You can get a loan if you own a property that you rent out.

• What banks look at: They check how much your property is worth, if you can pay back, what other things you own, legal stuff about your property, and any debts you might have.

• How it works: You rent out your property, use the rent to get a loan, and then pay the bank with the rent money.

• Benefits: You can grow your business, save on taxes by owning more property, have a steady flow of money, and spend less of your own money on new investments.

• Who can do it: People with jobs, professionals, business owners, and companies with good financial standing.

• What you need: Good tenants who can pay rent for a long time.

In short, Lease Rental Discounting helps you use your rental income to borrow money for growing your business without spending too much of your own money. If you want to know more about how long you can borrow for, interest rates, or need advice, just ask us!

By Mihir Desai

FinSecure Consultants.