The Borrower was a civil construction company seeking urgent finance to consolidate a variety of business debts. They were unable to obtain traditional bank finance because of their bad credit files having a number of outstanding listed payment defaults and imminent court actions.
Private Mortgages Australia was engaged to provide a short-term Registered Second Mortgage while the Borrower’s advisors fixed their bad credit files. It was evident that payment arrangements were entered into with the different creditors prior to PMA’s loan advance, meaning that a refinance exit strategy was a very possible outcome.
Security was taken over their personal place of residence which was a semi-rural property in regional Victoria. PMA’s loan was three months prepaid, plus three monthly extensions. Five months later, the loan was refinanced by a non-conforming lender to a traditional 30 year home loan once the credit files were cleaned up.