What is ‘supplier finance’ and how can it be used to fund strata maintenance?

While supplier finance means improvement works can commence quickly and the immediate financial dependence on lot owners and their strata contributions is reduced, not all suppliers offer finance which may lead to a more limited choice of contractors. Owners corporations should also be aware that some supplier finance can include contracts for longer term maintenance, again potentially limiting the freedom to choose and review suppliers in the future. Supplier finance can involve a combination of up-front and ongoing payments, with strata levies often needing to be increased to meet the costs of the works as well as any additional charges or margins.