How PMA Helped Business Owners Overcome Tax Issues and Consolidate Debt

Scenario

The Borrowers successfully operated a general store in rural Victoria.

Unfortunately, during the Covid pandemic and subsequent business lockdowns, their business was adversely effected and eventually had to shut down, being placed into external administration.

To regain control, they sought funding to consolidate the debts of the administration and amounts owing to the ATO into a single facility, simplifying their obligations and reducing financial pressure.

Security offered was two regional properties located in South Gippsland.

Why PMA?

Due to the significant ATO liability, the borrowers were unable to secure financing through traditional banks. They required a flexible, timely solution that mainstream lenders could not provide.

The regional security properties (acreages) offered as security were also outside other private lenders risk appetite parameters.

PMA Solution 

PMA provided a hybrid first and second mortgage loan facility on a 12-month term secured by both properties.

Details

Loan Amount: $701,630 (First Mortgage) $46,500 (Second Mortgage)

Property Value: $1,930,000

LVR: 67.68%

Term: 12 months prepaid plus 3 monthly extensions

Broker Commission*: $16,458.66

*with no clawback

Exit

The broker is very confident of refinancing with a traditional lender once their tax liability is resolved and their financial position stabilised.