$346k Bridging Loan Supporting Studio Expansion

The client had a clear growth opportunity to expand its Pilates studio but required additional capital before longer-term funds became available.

While the intended exit was straightforward through the sale of an investment property, there was a timing gap between the need for funding and the expected property sale proceeds.

The client required:

• Fast access to capital to support studio expansion.
• A short-term facility aligned to a defined exit strategy.
• A lender willing to assess the strength of the available property security and overall asset position.

Fifo Capital structured a $346,000 bridging loan with a six-month term, providing the client with immediate funding while preserving flexibility around the planned exit.

The facility was supported by:

• A second-ranking mortgage over a residential investment property.
• A first-ranking AllPAAP over the borrowing entity.
• A personal guarantee from the director.

For brokers, the strength of the transaction was the security position. The property was independently valued at approximately $1.08 million and, even after the Fifo facility, total exposure remained at approximately 69% LVR. This provided substantial equity cover and a clear refinance pathway if required.

The structure also included prepaid interest, providing additional certainty throughout the initial loan period.

With funding in place, the client was able to proceed with expansion plans while maintaining flexibility around timing of the property sale.

The facility delivered:

• Fast access to growth capital.
• A short-term solution matched to a clear exit strategy.
• Strong equity protection through a low‑to‑moderate LVR position.
• Multiple exit pathways, including refinance, property sale, and broader personal asset support.

This transaction demonstrates how Fifo Capital can support brokers with lower-value bridging opportunities where speed, property security, and a clearly defined exit are the key drivers of the credit decision.