FINANCE SOLUTIONS FOR SME CLIENTS

Refinance/Debt Consolidation

Why use PMA to refinance or consolidate your client’s debt:

  • They need to refinance or consolidate existing business loans
  • Their current loan term is about to expire and need more time
  • They need to consolidate multiple debts

Refinance & Debt Consolidation Loan Terms


Loan Amount

Up to $5M (1st Mortgages) & $2M (2nd Mortgages)

LVR

Up to 75% of the ‘as is’ value (max. LVR of 75% for major metro residential property, other security at lower LVRs)

Security

1st or 2nd Mortgage

Term

3-12 months

Refinance & Debt Consolidation Loans



Refinancing a business loan involves using a new loan to pay off an existing business loan or debt. The borrower then continues to make payments on the new loan as usual.


It is generally used to consolidate multiple debts into one business loan, refinance to a loan with a lower interest rate or to access the equity in a property. By consolidating multiple debts into one loan, the borrower only has to worry about paying off a single loan rather than making repayments towards several different loan amounts. This can free up more time for the borrower to put back into their business.


Refinancing can also allow borrowers to access the equity they have built up in their business over the years to fund future spending or upgrades.


Refinancing a business loan can help a borrower access negative gearing and depreciation benefits. However, it’s best to speak to an accountant or a tax specialist for detailed advice on how this would work.


If a borrower’s current business loan is due to expire, refinancing can allow them to pay off the current loan and give them more time to arrange the payment of the new loan.

CASE STUDY: Refinance Existing Loan

The Borrowers have a background in property investment.

The purpose of this loan is to refinance existing loans from another private lender that are due to mature. The Borrowers have decided not to continue with the current lender and shop for better interest rate.

The Borrowers can’t get bank finance as they are unable to satisfy bank servicing requirements.

Security on offer comprises of six investment properties in Middleton Grange, NSW (investment property), Maitland, NSW (investment property), Leppington, NSW (investment property), Forest Lake, QLD (investment property), Nambour, QLD (investment property), and Pakenham, VIC (collateral security).

The exit strategy is to refinance to another private lender or sell to repay debt.

Details

Security Property Valuation: $6,470,000

Loan Amount: $1,555,000 (Second Mortgage)

LVR: 73.39%

Interest Rate: 17.50%

Term: 6 months prepaid plus 3 monthly extensions

Refinance Existing Loan

Ready to discover how PMA can help provide finance solutions for your business (or your client's business)? Submit a scenario now and we'll get in touch (4-business hours response time guaranteed!)

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Lending Process


application

Complete our
Quick App Form


or

Book a Call
with our head of relationships

indicative

After receiving the Application we’ll develop an Indicative Letter of Offer which includes an indicative interest rate.

Once the Offer is accepted a small assessment fee is charged to cover the searches we do in due diligence.

letter

Once we’ve completed our due diligence, we’ll send a formal Letter of Offer. Once signed the loan documents are drawn up and sent to the Borrower’s solicitor.

letter
congrats

Upon return of the fully executed documents the approval fee, legal costs and prepaid interest are deducted from the loan and the balance is paid to the Borrower.

Referrer fees are paid within 24 hours from settlement with no clawbacks.

We endeavor to make this process as quick as possible and can settle within 5 days upon receipt of all outstanding information.

Our Other Private Lending Solutions