Over the years, financial institutions have scrutinized collaterals or valuable property, looking for other proofs and assurances in advancing credit.

The passage of the Borrowers and Lenders Act, 2008 (Act 773) which created the Collateral Registry and the Credit Reference Bureau has failed in streamlining activities in the credit industry.

In response to this, a private limited liability company, Ikson Properties Agency Ltd, has come out with an innovation to create a smooth path for financial institutions to realize the value of charged assets, without straining relationships with their clients.

Collateral Release and Management (CRM) is a product that pays off the outstanding loans of defaulting clients of financial institutions and in exchange temporary ownership and management of the underlying asset (collateral) used for the credit is assumed.

“This is one of the innovative products we have designed for banks to help in maintaining their clients in the event of loan defaults,” the Chief Executive Officer of Ikson Property Agency Ltd, Mr. Yawson Otoo said.

Collateral Release and Management is tied to four other products including My Rent, My House, My Property and Complete Operate Transfer (COT).

“My Rent” is a product where a client of Ikson who is desirous of renting an accommodation – residential or commercial – makes installment payments of up to 50 per cent of the rent. The company then goes ahead to rent the apartment for the client who will continue the payment in convenient bits until the full amount is paid, thus, Ikson does not charge interest.

“My House” which is also a product tied to the Collateral Release and Management offers clients of Ikson Property Agency the opportunity to make patient contributions toward underwriting the cost of a house of their choice, at any location in the country.

This could take the form of Ikson Property building on a bare land or purchasing an already completed house for the client, after an initial 50 per cent contribution.

“My Property” also follows the same installment payment plan; hence, the property under coverage extends beyond landed property to include a parcel of land, vehicles, computers, electrical home appliances and so on.

“Complete Operate Transfer (COT)” which is the last product of the Collateral Release and Management is a facility in which Ikson negotiates with owners of uncompleted property based on the value and completes them. Once it is ready for occupancy, the property brokerage firm will put it to commercial use such as looking for tenants, for a predetermined number of years and after the lapse of the management duration, the broker returns the property to the owner in good shape.

This is based on the concept that there are a lot of property idling in uncompleted shapes, which could be completed for a win-win benefit – to the owner and the accommodation seekers.

These assets complement each other as Ikson facilitates a marketplace for accommodation seekers and suppliers.

According to the CEO, these interest-free products are designed to match rent, housing and property seekers to owners or suppliers.

The intermediation role by Ikson Property enables individuals and institutions to conveniently meet either the cost of rent or property ownership.

The company’s services are in high demand and its footprints are fast spreading across the country.

Apart from the Accra branch, the unique business model has seen Ikson’s expansion caravan to Kumasi, Takoradi and Obuasi, hence, each branch is experiencing growth in all categories of clients.

Ikson Property has currently employed 36 skilled employees directly and 60 semi-skilled employees including mostly artisans, in all its branches.

The company believes that unlocking the commercial viability of the 30 per cent idle property scattered across Accra, the city’s housing deficit will be significantly reduced.

The services they offer include Property Acquisition and Sale, Property Hosting, Rentals and Leasing, Property Management, Complete Operate and Transfer (COT), Complete Payment and Transfer (CPT), Collateral Release (CR), Property Investors and investments, Property Mortgage, Property Advisory Services (Mortgage Advisory Service, Collateral Advisory Service and Investment Advisory Service) and Consultancy Services (Architecture, Project Management, General Construction, Valuation, Tender Documents, Construction Supervisory).