How PMA Provided a Second Mortgage Equity Release When the Banks Said ‘No’
Scenario
The borrowers are experienced business operators with a strong background across multiple industries, including mining maintenance, rail services, plant hire, labour hire, and vegetation management.
The purpose of this loan was to refinance several existing business facilities held with their current lender.
Security provided was a residential property situated on a substantial 6,832 m² landholding, featuring a well-maintained four-bedroom, two-bathroom home with four car spaces in the Hunter Valley, NSW.
Why PMA?
The borrowers were unable to secure traditional bank funding following a recent downturn in business performance. The decline occurred after a major contract was unexpectedly withdrawn, despite significant upfront investment in staffing and equipment to support the project.
As a result, the borrowers required a flexible funding solution to consolidate existing debt and improve their financial position while pursuing future refinancing opportunities.
PMA Solution
PMA was able to release equity as a second mortgage to consolidate multiple debts.
Details
Loan Amount: $538,500 (Second Mortgage)
Property Value: $1,350,000
LVR: 75.00%
Term: 6 months prepaid plus 3 monthly extensions
Broker Commission*: 1% + GST or $5,923.50
*with no clawback
Exit
The proposed exit strategy is refinancing with an alternative lender to fully repay the loan facility.
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!)
