Background
Real estate agents looking for business cash flow support for their company while they market and sell their own property.
Challenge
Real estate income has been inconsistent in recent times due to market conditions. However, they had income in the pipeline with sales due to settle in the coming months, so we were unable to demonstrate consistent income to service the loan.
Mitigants
- Clients had personal savings they could use to service the loan
- Property was already on the market and was well presented
- Overall LVR under 80% (using iVal).
Solution
We were able to offer a caveat secured personal loan, which allowed the clients to have improved business cash flow and provided them time to sell the property in spring/summer to maximise the sale price.
Loan amount: $100,000
Interest rate: 17.2% p.a.
Term: 6-months interest only
Avanti fee: $485 plus $170 to register the caveat
Adviser fee: Adviser chose not to charge a fee as they were longstanding clients
Commission: Not applicable on our short-term products
Rates and fees were valid at the drawdown of the specific loan facility in each case study, new loans are subject to the rate at application. A copy of our current rates and fees can be found here.