How we helped a client with a Complex Refinance / Loan increase
Our Clients had previously borrowed a sum of money to complete a construction project, however, they had exhausted all their funds and required a loan increase to finish the project.
Increasing a loan for construction purposes can be incredibly difficult as Lenders find it very hard to place a market value on a partially completed security property.
Adding to this, as the client had been focused on completing this project for themselves, it had taken their attention away from their own business during the Covid period. Profits were subsequently down in that year, which is not a true reflection of the performance of their long term established business.
Fortunately, the client owned a couple of established properties which had sufficient equity to enable the loan increase. i.e. we decided to borrow against a different established property, rather than trying to increase the loan against the partially completed security.
Income was substantiated using BAS Statements (i.e. Low-Doc as opposed to Full Doc), as the business had been trading well in the 2022 financial year to date.
At the same time we were able to consolidate a number of debts, reducing the overall costs for the client who is now happily completing their construction project.