Summary
Loan Type: Bridging Loan secured with a First Mortgage
Loan Amount: $1.8 million
Location: Sydney, NSW
Loan-to-Value Ratio (LVR): Approximately 70%
Challenge: Delayed settlement of existing property sale jeopardising the purchase of a new commercial property
Solution: Secured Lending provided a $1.8 million bridging loan, enabling the client to proceed with the new acquisition while awaiting the sale of their current property
The Challenge: Timing Mismatch Threatens Business Expansion
A Sydney-based small business owner identified an ideal commercial property to expand operations. However, the sale of their existing premises was delayed, creating a financial gap that threatened the acquisition of the new property. Traditional lenders were unable to provide timely assistance, putting the business’s growth plans at risk.
Understanding Bridging Loans with First Mortgages
A bridging loan with a first mortgage is a short-term financing solution that allows borrowers to purchase a new property before selling their existing one. The loan is secured against the borrower’s current property, providing immediate funds to complete the new purchase. Key features include:
Security: The existing property serves as collateral.
Loan Amount: Determined by the equity in the current property and the value of the new acquisition.
Term: Typically ranges from 3 to 12 months.
Repayments: Often interest-only, with the principal repaid upon the sale of the existing property.privatemortgagesaustralia.com.au+21commbank.com.au+21canstar.com.au+21
This type of financing is particularly useful for businesses needing to act quickly in competitive property markets.richmondresidential.com.au
Secured Lending’s Solution: A Tailored $1.8 Million Bridging Loan
Recognising the urgency, Secured Lending structured a $1.8 million bridging loan secured by a first mortgage on the client’s existing property. The loan featured:
Fast Approval: Expedited processing to meet tight deadlines.
Flexible Terms: Interest-only repayments to ease cash flow.
Customised Structure: Aligned with the anticipated timeline of the existing property’s sale.ausfirstlending.com.au
This solution enabled the client to secure the new property without delay, ensuring business continuity and positioning for future growth.
How Secured Lending Can Assist Your Business
If your business faces similar challenges, Secured Lending offers a range of short-term financing options, including:
First Mortgage Finance
Second Mortgage Finance
Caveat Loans
Bridging Finance
Short-Term Business Loans
Our team understands the complexities of business financing and is committed to providing swift, tailored solutions to meet your needs.
Contact us today to discuss how we can support your business’s financial requirements.
