Cafe Start-Up Secures $160K Loan with PMA for Commercial Property for Fit-Out
Scenario
The Borrowers have extensive experience in operating cafés and restaurants, as well as in property development.
The loan was used to fund the payout of the current tenant to break the lease and vacate the premises, in addition to covering the costs for a new cafe fit-out.
The security offered was a commercial property located in Victoria. The property is situated on a 4,700sqm lot within a business park.
Why PMA?
The Borrowers were unable to secure bank financing because the project was classified as a start-up, and the bank’s policy limited lending to such businesses.
PMA Solution
Provided a second mortgage to cover fit out costs and consolidate other debts as well as working capital support to complete construction of development project to be sold as part of exit strategy
Details
Loan Amount: $160,000 (Second Mortgage)
Property Value: $1,200,000
LVR: 70.00%
Term: 12 months prepaid plus 3 monthly extensions
Broker Commission*: Brokerage of $1,760 plus mandated Referrer Fee of $1,760
*with no clawback
Exit
The Borrowers plan to exit by using proceeds from the sale of three houses currently under construction and nearing completion.
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!)
Scenario
The Borrowers have extensive experience in operating cafés and restaurants, as well as in property development.
The loan was used to fund the payout of the current tenant to break the lease and vacate the premises, in addition to covering the costs for a new cafe fit-out.
The security offered was a commercial property located in Victoria. The property is situated on a 4,700sqm lot within a business park.
Why PMA?
The Borrowers were unable to secure bank financing because the project was classified as a start-up, and the bank’s policy limited lending to such businesses.
PMA Solution
Provided a second mortgage to cover fit out costs and consolidate other debts as well as working capital support to complete construction of development project to be sold as part of exit strategy
Details
Loan Amount: $160,000 (Second Mortgage)
Property Value: $1,200,000
LVR: 70.00%
Term: 12 months prepaid plus 3 monthly extensions
Broker Commission*: Brokerage of $1,760 plus mandated Referrer Fee of $1,760
*with no clawback
Exit
The Borrowers plan to exit by using proceeds from the sale of three houses currently under construction and nearing completion.
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!)
Scenario
The Borrowers have extensive experience in operating cafés and restaurants, as well as in property development.
The loan was used to fund the payout of the current tenant to break the lease and vacate the premises, in addition to covering the costs for a new cafe fit-out.
The security offered was a commercial property located in Victoria. The property is situated on a 4,700sqm lot within a business park.
Why PMA?
The Borrowers were unable to secure bank financing because the project was classified as a start-up, and the bank’s policy limited lending to such businesses.
PMA Solution
Provided a second mortgage to cover fit out costs and consolidate other debts as well as working capital support to complete construction of development project to be sold as part of exit strategy
Details
Loan Amount: $160,000 (Second Mortgage)
Property Value: $1,200,000
LVR: 70.00%
Term: 12 months prepaid plus 3 monthly extensions
Broker Commission*: Brokerage of $1,760 plus mandated Referrer Fee of $1,760
*with no clawback
Exit
The Borrowers plan to exit by using proceeds from the sale of three houses currently under construction and nearing completion.
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!)
