Urgent $2 Million Business Loan, Settled This Week

The warehouse on its own falls short. At our 70% maximum loan-to-value ratio, a $2,600,000 property supports a loan of up to $1,820,000, which leaves you about $180,000 short of $2,000,000. To borrow the full $2,000,000, the security needs to be worth about $2.86 million in total, after counting any debt already registered on it. A second property, such as your house, can be added as additional security to cover the difference, and the 70% limit is then tested across both properties and the mortgages on them.

Not quite. Seventy percent of $4,500,000 is $3,150,000, and after the $1,200,000 owing to the bank, a second mortgage could be up to about $1,950,000. Second mortgage rates start from 11.95% p.a. The company is the borrower and receives the loan funds, then pays the ATO itself. To cover the last $50,000 or so, the business could pay that part from cash, or add a second property as additional security.

• →ATO tax debt loans

It can, but there is a shortfall to plan for. You owe $2,520,000 at settlement, and against the factory alone our 70% limit allows up to $1,960,000, so about $560,000 has to come from your own funds or from a second property added as additional security. Send us the contract, the settlement date and details of any other property today. We decide in hours, and once terms are agreed we can settle within 24 hours.

• →When bank finance falls through

Yes. Seventy percent of $3,500,000 is $2,450,000, so a $2,000,000 loan fits inside our limit. The loan is secured by the premises property, never by the shares or the business itself, and it is repaid through a defined exit, such as a bank refinance once the buyout is complete or the sale of another property. Have your solicitor confirm which entity buys the shares and which entity borrows before we prepare the letter of offer.

Yes, and the property is the only security we take. Seventy percent of $3,500,000 is $2,450,000, and after the bank's $400,000, a second mortgage could be up to about $2,050,000. Second mortgage rates start from 11.95% p.a. The loan buys the materials and pays the wages. The contract is the reason the money is needed, and the progress payments can be part of the plan to repay the loan, but the contract is not the security.

• →Working capital loans

No. Our maximum loan-to-value ratio is 70%, so a $2,000,000 block supports a loan of up to $1,400,000. If the business needs the full $2,000,000, a second property can be added as additional security, and the total value across both properties needs to be about $2.86 million after any existing debt. Tell us what else the company or its directors own and we will work out the arithmetic with you.

It can be. Our rates start from 9.7% p.a. on a first mortgage, and our terms run from 1 to 24 months, so a four month loan is within our range. Put the extension rate and our rate side by side, along with any costs each option carries, and decide on the full numbers. Do not leave the decision until the last week. Ask your current lender for a payout figure now, and send it to us with the property details so we can tell you within hours whether we can refinance it.

• →Refinance business loans

Yes. We lend against real property, so the security would be a property you or your company already own, never the business being bought or its goodwill. To borrow $2,000,000 inside our 70% limit, that property needs to be worth about $2.86 million after any debt already on it. The borrower is your business, which receives the loan funds and pays the vendor at settlement. We still need to see how the loan will be repaid, for example a bank refinance once you hold the accounts yourself.

Yes. A bank refinance is a defined exit, and a short loan to settle on time, repaid when the bank funds, is what bridging finance is for. Our terms start from one month. Send us the contract and the bank's conditional approval. If the bank later declines, the loan still has to be repaid, so we will also ask what your second option is, such as the sale of another property.

• →Bridging loans

Yes. Our terms run from 1 to 24 months, and three to six months is the most common length, so a three month loan repaid from the sale proceeds is a standard request. If the buyer asks for more time, tell us as soon as you hear about it, because the loan term was set against that settlement date. Choosing a slightly longer term at the start, such as four or five months, gives the sale room to move.

For urgent situations with clear security and a defined exit strategy, we can settle a $2 million loan within 24 to 72 hours. Contact our team as early as possible to allow us to assess and prepare documentation quickly.

We accept residential, commercial, industrial, and mixed-use properties. Metro and high-demand regional locations are preferred, and multi-security arrangements across multiple titles are considered.

Yes. Refinancing out of a problematic or expensive private lending arrangement is one of the most common uses of our $2 million facilities. We assess on security value and exit viability.

Yes. As a private lender, we are not constrained by bank serviceability models. We assess the security and exit strategy first. Self-employed borrowers, trusts, and complex structures are regularly accommodated.

Yes. Second mortgage positions are available for $2 million facilities, subject to the combined LVR across first and second mortgage positions remaining within acceptable limits.

Early repayment is generally available. Specific terms depend on your loan structure. Speak with our team at the time of application to confirm early repayment conditions.

No. We need to see the property, the equity position inside 70% LVR, and documented evidence of what repays us. Trading history helps us understand the business, but it is not the test. Plenty of $2 million facilities are written for borrowers whose last two years of accounts would not pass a bank serviceability model.