How PMA Helped a Company Refinance a Loan and Pay Out ATO Debt

Scenario

The Borrowers have backgrounds in operating a company that sold, maintained, and repaired agricultural machinery.

The purpose of this loan was to refinance an existing loan and pay out an ATO debt.

The security offered was the Borrower’s principal place of residence in a large town northwest of Melbourne, Victoria. The property sat on 605 square meters of land and consisted of three bedrooms, two bathrooms, and a garage.

Why PMA?

The Borrowers could not obtain bank finance due to the ATO debt.

PMA Solution 

Outstanding ATO debt was putting road blocks in borrowers ability to do business with flexibility and agility to buy stock and be competitive. PMA quickly obtained valuation report and offered client sufficient funds to not only pay out the ATO debt but consolidate other prohibitive debts that were causing cash flow issues. PMA offered fully capitalized interest.

Details

Loan Amount: $300,000 (Second Mortgage)

Property Value: $900,000

LVR: 73.94%

Term: 12 months prepaid plus 3 monthly extensions

Broker Commission*:  Referrer Fee 1.1% inc GST = $3,300 Service Fee 1.1% inc GST = $3,300

*with no clawback

Exit

The exit strategy was to refinance with a current bank once the ATO debt had been cleared.