$450k Bridging Loan Funds Clinic Refit Ahead of Property Sale

Industry

Health and Fitness

Challenge

The Client needed $450,000 to upgrade equipment and refit one of its clinics, with the directors planning to repay the funding from the sale of a residential property already on the market. They needed the capital now, on a structure that matched the sale timeline rather than a long-term amortising loan.

Results

Fifo Capital provided a $450,000 bridging loan secured by residential property, approved within three weeks and settled within six. The Client was able to start the refit straight away while the property sale progressed.

Key Product

Bridging Loan

Months Interest Only

$450k

Funding secured

75%

LVR, 2nd mortgage

"We were ready to upgrade the clinic but didn't want to wait for our property sale to settle. Fifo Capital understood the plan and structured a loan around it, so we could get the refit under way straight away."

Director

Allied Health Practice

Client Overview

The Client is an established allied health business operating a multi-site physiotherapy practice in Sydney. Trading for more than 25 years, the business runs three clinics with a team of five physiotherapists and is owned and managed by its directors.

The Challenge

The directors had identified a refit of one of their clinics as the next step in growing the practice, with most of the budget allocated to fit-out and the balance to new equipment. They expected the upgrade to lift the clinic's profitability once complete.

The repayment plan was clear. A residential property owned by the directors was listed for sale, and the proceeds would repay most or all of the funding.

The Client needed:

Funding available before the property sold
A structure aligned to the sale campaign
An assessment focused on security and exit, not only the latest year-end accounts

The Solution

Fifo Capital structured a $450,000 bridging business loan over 18 months on an interest-only basis, with interest paid monthly.

The facility was secured by:

Second-ranking mortgages over two residential properties
Personal guarantees from the directors
A corporate guarantee from a related entity
General Security Agreements over the borrower and the related entity

With a combined property value of approximately $4.3 million, the new facility sat within a combined LVR of approximately 75%, leaving a clear equity buffer.

The repayment structure was built around the sale: a portion of the sale proceeds is applied to the loan on settlement, with the balance repayable at the end of the term or refinanced.

The Results

Approved within three weeks of enquiry and settled within six weeks
Clinic refit able to proceed without waiting for the property sale
Term aligned to the sale campaign, with room if the sale takes longer than planned
Monthly interest-only repayments protect cash flow during the refit
Multiple exit pathways, supported by equity in a second property and the ongoing cash flow of the business

Have a client in a similar position? Talk to our team, or apply for a bridging loan online today.