Background
Our customer is a successful professional. She urgently needed funding to settle outstanding tax arrears with the IRD. Although an arrangement had previously been in place, the IRD subsequently demanded full and immediate repayment.
Challenges
She approached her bank first but was declined despite her strong overall financial position. Her bank believed she’ll have difficulty to sevice the loan as her business income was not clearly reflected in her accounts.
Mitigants
Working closely with her adviser, we thoroughly assessed her credit history and income. It was clear to us that she has –
- Strong asset base, supported by multiple profitable business interests.
- Excellent credit profile, with a high score noted on the credit check.
- Robust security position, with loan funds to be used to fully settle the IRD liability.
- A caveat loan can be lodged over the customer’s existing residential property.
- The property was scheduled for sale within a year, enabling full repayment of the loan on settlement.
Solution
To meet the IRD’s deadline, our team swiftly tailored the lending solution and approved a 12-month caveat secured loan with capitalised interest, eliminating the need for regular servicing.
The client was very relieved after she got the funds to clear her tax arrears with IRD.
LOAN AMOUNT
$86,055
INTEREST RATE
13.85% p.a.
LVR
72%
TERM
12-month with Capitalised Interest
ADVISER FEE
$860
AVANTI FEE
$735
CASE STUDIES - PROPERTY LENDING
“Our Caveat Secured Loan is a versatile solution for customers who want to maintain their main bank relationship while accessing funding to meet pressing financial needs, which the main banks often can’t meet.
Common scenarios include:
> Debt consolidation
> IRD / tax bills
> Capital injection into a business
> Cost overruns on a build
> Balance of a deposit on investment properties or owner-occupied
> Renovations
> Equity release for holidays, vehicle purchases, medical, weddings, separations, etc.
If you have customers in a similar situation, get in touch with your local Avanti BDM.“
Mark Nolan
Business Development Manager, South Island