With Secured returns, you become the direct lender for business owners.
WHO ARE THE BORROWERS?
Your borrower could be a hairdresser, a car dealer or a resort owner. Essentially, any business owner with a 'Pty Ltd.' can be a borrower as long as she/he has Australian real estate to put as the security.
Some of the borrowers have been:
A usual client is always at the mercy of the banks whether it is getting into the next project or finishing the last. In this example the Property Developer needed funds to complete his last project and settle on a new acquisition. The bank was unable to accommodate settlement within the given time period of two weeks. We sought and received a mortgage over both developments and the family home as security.
Small businesses need funding for expansion, purchase of goods and most importantly for starting new ventures.
Short Term Loans come in handy in these kinds of situations like the one we recently encountered with a local car dealer.
An opportunity presented itself for a local dealer to purchase a number of cars cheaply from another car yard that went into liquidation. The ‘car dealer’ needed to refinance his home as he had a shortfall and settlement had to proceed within 7 days otherwise, the opportunity would pass him by. He was effectively going to double his money within a matter of months.
The ‘car dealer’ decided to call us as we could arrange a loan and settle within the given time frame whereas the bank could only book an appointment with a local manager under the same conditions. We settled as expected and everyone was a winner!!!
Short term loans can be granted to both new and existing businesses. Therefore, a promising entrepreneur can finance the startup costs of their business by obtaining a short term business loan.
Many businesses are cyclical in nature and there is often a gap between cash coming in and cash going out. If you know this is a temporary situation and your accounts receivables will be coming in the near future, a short-term caveat loan or second mortgage will help the entrepreneur and enable them to bridge the gap without falling behind on their bills and other business expenses. In this instance the young entrepreneur of a budding technology business needed to bridge the gap for a few months to keep her staff paid while waiting for an approved government grant to come through.
Although there was available security the bank decided against lending her the money needed. Again we saw the loan for what it was and provided the funds desperately needed within 72 hours taking a mortgage over real estate and also locking into the grant payment which arrived within 90 days.
Cash flow is the lifeblood of any business enterprise. Any business must first invest money and expect returns after a certain period of time. Therefore, the intervening gap between investment and returns must often be supported by short term loans. As was the case with a holiday resort owning couple who ran into trouble during the winter downturn.
Although this couple were asset rich they became cashflow poor and were unable to pay a large tax bill. When the couple went to the bank they asked their manager if they could have a temporary increase on their overdraft while they offloaded some properties to pay tax bills, to which the bank replied “sorry we are unable to assist until we can see business has picked up.”
We got the call and settled the deal on a four month prepaid term which fixed up the tax bill and allowed them to keep trading until they sold one of their investment properties.
Without our help, a likely scenario may have seen a forced liquidation of assets, below market value, undoing years of hard work.