Equity Release and Debt Consolidation to Support Business Growth
Scenario
The borrowers are experienced business operators specialising in tour logistics for the entertainment industry, offering a diverse range of services including Big Top hire, stage hire, caravan hire, transport hire, tour management, and entertainment equipment.
This facility was arranged to release equity for debt consolidation and provide additional working capital to support the continued growth of the business.
The loan was secured against a residential property in Greenbank, QLD, comprising 980sqm of land, including a four-bedroom, two-bathroom home with a double carport. As additional security, the borrowers offered a second property in Plainland, QLD on a 33,308sqm lot, featuring a double-storey home with three bedrooms, one bathroom, and a car garage.
Why PMA?
The borrowers were unable to secure traditional bank finance as their personal and business financials did not yet meet the debt servicing requirements, despite the business being profitable.
PMA Solution
PMA provided a second mortgage on the two security properties to allow the borrower to consolidate their existing loans and also pay out an ATO debt.
Details
Amount: $1,038,299 (Second Mortgage)
Property Value: $2,250,000
LVR: 75.00%
Term: 12 months prepaid plus 3
monthly extensions
Broker Commission*: Referrer Fee: $5,710.65 inc GST Broker Service Fee: $17,131.93 inc GST
*with no clawback
Exit
The exit strategy was to either refinance to a traditional lender or sell one of the properties to repay the loan in full.
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!)
