SME Blog & News

Success Story – Facilitating home loans for out of the box scenarios

If you are finding dealing with your Bank CHALLENGING, with outcomes not in your favour - you are not alone. Read how our Mortgage Expert Brendan Barry-Murphy helped an existing client secure a home loan for business purposes when their bank could only provide a heavily conditioned indicative offer for a much smaller amount. Glad, our partner lenders willingly go out of their way to help clients in tricky solutions. Unlike most banks, they find ways to assist.

“An existing client controls a large and very successful Manufacturing Business as well as Self Storage and Property Investment activities.

Total turnover of $18m plus and yearly EBITDA of $3m+.

The client has a long term relationship with a major Bank who provide commercial facilities totalling in excess of $10m.

Client has an opportunity to purchase a property and associated business assets for approximately $3m.

This will provide a unique opportunity to re-locate their premises and provide significant expansion opportunities.

For various reasons that property cannot be easily mortgaged as it is on a Crown Lease.

The owners have an unencumbered home property valued at $5m which they are willing to pledge for a $3m loan to assist with the purchase.

The incumbent major bank were provided with the opportunity but have prevaricated and stalled and made what should be a straightforward deal way too complex and in the end came up with an “Indicative Offer” of $1.5m with fully cross collateralised group guarantees etc. and numerous onerous conditions.

The clients CFO who used to work for me at the major bank approached me with the deal and I was able to secure an approval of $3m against the owner’s home with only 1 guarantee.

The loan is essentially a home loan for business purposes over a 30 year term at an interest rate of 4.99%pa.

The loan provider is Victorian Mortgage Group who are like old style lenders ie. they look at every deal with an open mind and are not just box tickers.

The process was easy and straight forward and done with a minimum of fuss.

The Lender knows that they are dealing with a client of quality.

In the end the loan has been drawn down and we have exceeded all of our customer’s expectations which the incumbent Bank should have but was unable to do so.

A real success story this one!

Brendan Barry-Murphy”

Brendan is SME Finance Group’s highly experienced Mortgage Broker and Finance Professional with over 33 years of experience in the Banking industry. He can be contacted on 0424 919 193 / (03) 8825 8888.

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