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Industry
Property
Challenge
The client required short‑term funding to bridge from acquisition through to development finance, but was unable to secure funding from traditional lenders due to the newly established borrowing entity.
Results
Fifo Capital approved a $280,000 business loan, enabling the borrower to complete the acquisition and progress toward a refinance or development outcome.
Key Product
Business Loan
The Challenge
The borrower had secured a high‑quality development site in a strong market, with an approved development for a multi‑residential project. However, several constraints limited access to traditional funding:
- The borrowing entity was a newly incorporated SPV, which did not meet bank lending criteria
- Major lenders declined due to lack of trading history, despite strong underlying security
- Non‑bank lenders were restricted by exposure limits and development‑linked lending constraints
- Timing was critical to bridge between acquisition and securing longer‑term development finance
Despite these challenges, the deal was underpinned by strong fundamentals, including a prime location, an existing valuation aligned with purchase price, and a clearly defined exit pathway.
The Solution
Fifo Capital structured a $280,000 short‑term business loan to bridge the borrower from acquisition through to development finance.
The facility was secured by a second‑ranking mortgage over a residential property in Surfers Paradise, with an overall LVR of approximately 80 percent, providing a clear balance between leverage and downside protection.
From a broker perspective, the deal was driven by:
- Strong underlying asset quality, in a high‑demand market with an existing valuation aligned to acquisition price
- Defined development approval, supporting the next phase of funding
- Clear and credible exit pathways, including refinance or sale within the term
- Guarantor strength, with high income and demonstrated liquidity
Importantly, Fifo was able to support a newly established SPV structure, where banks declined, by focusing on asset position, equity, and exit rather than trading history.
The Results
With the funding in place, the client was able to complete the acquisition and hold the asset while progressing to the next stage of funding.
The facility provided:
- Immediate certainty to complete the transaction
- Time to secure longer‑term development or refinance funding
- Flexibility to execute on a clearly defined development strategy
Positioned in a strong property market with a pre‑approved development concept, the borrower now has a clear pathway to unlock additional value.
Ready to fund your next business expansion? Apply for a business loan online today.
