artisan bakery

requirement

$2,700,000

facility

Term Loan

client background

An experienced operator within the industry had been trading their new business for nine months and wanted to acquire the factory they operated from, which they had under option for $3.2m. Since the option has been entered into, the value had improved, to reduce the LVR under 80%.

client challenge

The client contacted the BDM directly. They were familiar with the ways we can assist. The challenges were as follows: a short trading history; high Loan to Valuation Ratio on purchase price - 84%; servicing evident on forecasts not historical information; allowing vendor finance to be provided via a 2nd Mortgage and Deed of Priority, and, structuring the repayments to meet the cash flow profile of the business.

moneytech's solution

Moneytech provided the client with a $2.7m Secured Term Loan. We worked with the client to understand their forecasts and were comforted by the positive monthly performance and upcoming work. We allowed a second mortgage so the client could secure the property and take advantage of the opportunity to acquire the property at the favourable price the option was agreed at. By understanding the business and background of the owners, Moneytech was happy to support the business.

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