How PMA helped a business expansion with a $1.4M loan for debt consolidation and working capital
Scenario
The Borrowers have a background in property investment and development. They specialise in developing residential properties with prefabricated materials which they import from New Zealand.
The purpose of this loan is to refinance an existing loan and to provide funds for the importation of stock.
The security offered in Tasmania, consists of two residential properties and one large block of land for future subdivision. The first property is on 668 sqm of land, includes three bedrooms, one bathroom with four parking spaces. The second property is a 1.6-hectare vacant lot intended for future subdivision. The third property on 668 sqm of land comprises of three bedrooms, two bathrooms and a covered garage.
Why PMA?
The Borrowers can’t get bank finance as they need the funds quickly and can’t wait for bank approval.
PMA Solution
PMA was able to provide sufficient equity release against the security to allow the borrower to consolidate debts and provide working capital to commence development works on the project and prepare the property for subdivision.
Details
Loan Amount: $1,387,500 (First Mortgage)
Property Value: $2,345,000
LVR: 59.17%
Term: 4 months prepaid plus 4 monthly extension
Broker Commission*: Referrer Fee 0.75% + GST = $11,446.88 + Service Fee 2% + GST = $30,525. Total collected by the Broker $41,971.88
*with no clawback
Exit
The exit strategy is to sell the residential properties and then refinance the vacant block of land for subdivision.
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!)
