Bank couldnt help
Small Business Owner in trouble
Our client had a very successful business which he had been operating for over 20 years. That all changed when his staff decided to leave all at once and take his customers with them.
Due to his customers jumping ship, his overdraft went through the roof and he was also financially stressed mainly due to currently constructing a house. The bank wanted him gone but we was not in a position to pay them out. They had security over 2 of his 3 properties plus equipment and personal guarantees.
He required funds to complete the house and allow him time to get the business back on track. Then he could refinance back to a bank from our private loan.
Our Solution
The equity that he possessed in his properties was sufficient to allow the original bank loan to be refinanced, cover all costs, pre-pay the interest on the new facility for 12 months and complete the construction of the house.
No income verification was required due to the prepaid interest and the plan that once completed, the house was going to be sold.
As the interest was pre-paid there was no requirement for monthly payments which gave him extra cashflow to get his business back on track.
The house was duly completed and sold which resulted in a reduced loan amount, which put him in a financial position to enable a refinance back to a bank.