$270k Bridging Facility Supporting Time-Sensitive Opportunities

The client held two residential development sites that were already listed for sale and supported by recent independent valuations. While the underlying equity position was strong, there was a timing gap between the need for capital and the expected settlement of the properties.

The client required:

• Fast access to working capital.
• A short-term funding solution aligned to the property sale campaign.
• A structure that could be assessed primarily on asset position and exit strategy rather than business cash flow.

Given the time-sensitive nature of the opportunity, the client needed a lender that could take a pragmatic view of the available security and the clearly defined exit pathway.

Fifo Capital structured a $270,000 bridging facility over a six-month term, with interest capitalised for the full loan period.

The facility was secured by:

• Second-ranking mortgages over two residential properties.
• Personal guarantees from the director.
• Corporate guarantees from related entities.
• General Security Agreements across the borrower and related entities.

For brokers, the strength of the transaction was the security position. The two properties carried a combined valuation of approximately $1.79 million, with existing first mortgages of approximately $933,000.

Following the Fifo facility, total exposure increased to approximately 67% LVR, providing a substantial equity buffer while maintaining a realistic pathway to refinance if required.

The transaction was structured around a clearly identifiable exit strategy, with both security properties actively listed for sale and sufficient equity available even after allowing for enforcement costs.

With funding in place, the client was able to access immediate working capital without waiting for property sales to complete.

The facility delivered:

• Fast access to capital for business opportunities.
• A short-term structure aligned with the active sale campaign.
• No ongoing monthly servicing requirements due to capitalised interest.
• Multiple exit pathways supported by significant property equity.

This transaction demonstrates how Fifo Capital can support brokers with smaller bridging opportunities where strong asset backing, clear exits, and speed of execution are the key drivers of the deal.