$90,000 Second Mortgage – Maitland & Beresfield NSW
Assurity Capital recently provided a $90,000 second mortgage to assist business owners with short-term cash flow requirements.
The borrowers required funding to pay a Director Penalty Notice and outstanding strata fees associated with a commercial property.
The Security - Second mortgage
The loan was secured by:
A residential property in the Maitland area
An industrial warehouse in Beresfield
Combined estimated leverage of less than 60% LVR
Given the strong overall security position and low leverage, no valuation was required, helping keep the transaction straightforward.
The Scenario
The borrowers had previously operated their business from the Beresfield industrial warehouse.
Their strategy was to relocate the business and lease the warehouse to a third-party tenant, creating a new rental income stream from the property.
The funding provided the borrowers with the working capital required to address their immediate obligations while implementing this strategy.
The Exit Strategy
The loan was structured as short-term funding, with the borrowers intending to refinance after approximately six months.
This period would allow them to establish evidence of rental income from the industrial property, strengthening their position for a refinance to longer-term finance.
The Result
Loan Amount: $90,000
Loan Type: Second Mortgage
Purpose: Business working capital – Director Penalty Notice and strata fees
Security: Residential and industrial propertyEstimated Combined LVR: Less than 60%
Valuation: Not required
Exit Strategy: Refinance following approximately six months of rental income history
At Assurity Capital, we consider the overall transaction, including the available security, loan purpose and a realistic exit strategy.
For business-purpose first and second mortgage scenarios that may not fit traditional lender requirements, contact Assurity Capital to discuss the transaction.
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