At Private Mortgages Australia, there are a lot of things we do that are different to the traditional bank lenders. Your clients can take advantage of this when they need help with a particular situation. Let’s look at the scenarios that are perfect for a private loan:
This is a common scenario. Your client needs funding urgently and cannot wait the usual 4-6 weeks that a traditional bank loan takes. They need funds within one to two weeks, so need someone who specialises in getting the funds for them with speed. This is a perfect scenario for a private loan.
Read an urgent funding case study here.
For times when your client needs a first mortgage (Senior) or second mortgage (Mezzanine), draw downs, or completion finance for a development project. A lot of the banks will not consider completion finance because they do not like lending on incomplete security. This type of private loan particularly assists your clients when something happens towards the end of the project and they need funding to complete it (think budget blow-out).
Read a development funding case study here.
In this scenario, your client needs to release equity for a business purpose but cannot show serviceability. They want to borrow purely against the value of an asset. A private loan can be made against real estate, where we do not need to look at the client’s income and serviceability.
Read an asset lending case study here.
ATO Debt Finance
If your client has been denied a payment plan and the ATO has marked their credit file and issued a letter of demand, a short-term facility for 6-12 months at an affordable rate can assist. Banks will not loan funds to anyone who has an ATO debt. We pay out the ATO debt for them, so they have a clear ATO portal. This allows them to go back to the bank and get a traditional loan.
Read an ATO debt finance case study here.
Valuation Not Contract Price
Your client has purchased a property under the market value and needs to settle the transaction. They want to borrow against what the property is worth and not what they paid for it. Most banks will only lend the lesser of contract or valuation price. We can lend on the higher valuation rather than the contract price, which may be lower. Sometimes we have lent more than 100% of the purchase price because we can see that it is worth a lot more (think uplift in value due to a development approval).
Read a valuation not contract price case study here.
Paying Out Business Partners
Say your client is splitting up a business partnership for example, if one of the partners is retiring, they require funding to pay out that business partner as part of an agreement or settlement. We assist by providing a private loan so they can complete this.
Read a paying out business partners case study here.
Urgent Business Opportunity
Your client has a business opportunity which requires some funding to complete. They may have an opportunity to purchase stock at a discount and need funds quickly to secure the opportunity. Once purchased, the stock can be sold to pay back the loan or they can arrange a more traditional loan, which takes longer to organise.
Read an urgent business opportunity case study here.
Your client is unable to attain traditional finance due to credit issues. Usually something has happened to cause the issue and your client needs time to work through the issues. The process can be lengthy and they may need access to business finance while their credit file is being repaired. If they have real estate with available equity, then we may still be able to help. We take into consideration how much we are lending against that asset opposed to how much income the client has.
Read a credit repair case study here.
Private Mortgages Australia offers cost-effective loans to small-to-medium businesses that cannot get finance from the banks. Our lending process offers greater flexibility and quicker turnarounds than traditional lenders, so that your clients can get the best solution for achieving their goals.
For further information about private loans for business projects, give us a call on 1800 856 683 or contact us via our website: www.privatemortgagesaustralia.com.au/contact-us/