PMA Helped a Start-Up Secure Capital Without Traditional Bank Finance

Scenario

The borrowers have extensive experience in property investment and development and are now expanding into the real estate sector with the launch of a new agency.

This facility was arranged to provide the working capital needed to support the business's launch and early-stage operations.

The loan was secured against a substantial residential property, set on a 601sqm allotment. The home features six bedrooms, five bathrooms, two car parking spaces, and beachfront views.

Why PMA?

As a newly established business, the borrowers were unable to secure funding through traditional bank channels, however PMA thought the loan had a strong business case and was willing to fund the borrower in their start-up stage.    

PMA Solution 

PMA was able to provide a second mortgage to allow an equity release for working capital for the clients new real estate business.

Details

Amount: $470,000 (Second Mortgage)

Property Value: $4,800,000

LVR: 40.13%

Term: 8 months prepaid plus 4 monthly extensions

Exit

The loan is set to be repaid through cash flow generated by the borrowers' ongoing business operations.