How we helped our clients with a construction loan during a financially challenging Covid period
A customer recently approached us with two requests:
- Firstly, they asked us to assist them with refinancing a loan that they had previously used to purchase a block of land
- Secondly, they wanted to secure an additional loan to construct a holiday home on the block.
The customer was self-employed.
Regrettably, the impact of Covid-19 on the economy has affected our customer’s business, resulting in a challenging financial year in 2022.
Consequently, obtaining loan approval has become more difficult, and careful research and selection of an appropriate Lender have become crucial.
Through our diligent research of the credit policies of several lenders, we were able to narrow down the options to just three possible lenders.
Using the customer’s 2021/22 business financial results and a 2022/23 forecast, we crafted a solid financial story that we workshopped with the Lenders. This enabled us to choose the Lender that we felt was most likely to approve the finance application.
With the refinancing of the land loan and the approval of a new construction loan from the selected Lender, we were able to secure the necessary funds for project. The customer was thrilled with the outcome, and they are currently in the process of building their dream holiday home. Our team is dedicated to providing excellent service and support to our customers, and we are proud when we play a role in making dreams a reality.