--- title: $1.2m Business Loan Providing Time to Refinance and Execute a Planned Property Sale description: $1.2m business loan secured by a second mortgage, helping a renewable energy consultant refinance existing debt and execute a planned property sale. image: https://fifocapital.com.au/hubfs/Social%20Image%20-%20Property%20Loan%20%231.png --- # $1.2m Business Loan Providing Time to Refinance and Execute a Planned Property Sale ![Property loan #1](https://fifocapital.com.au/hs-fs/hubfs/Property%20loan%20%231.png?width=1800&height=1260&name=Property%20loan%20%231.png) Industry Property Challenge The client required urgent refinance funding to repay an existing high-cost lender and relieve short-term cash flow pressure caused by delays in expected project payments. Results Fifo Capital approved a $1.2 million business loan, refinancing existing debt and providing the time required to execute a planned property sale and repay the facility. Key Product Business Loan 9 Months Capitalised Interest $1.2m Funding secured 85% LVR, 2nd mortgage ## "Fifo Capital understood the timing challenges we were facing and structured a solution that provided certainty while we executed our planned exit strategy." Tim Director and Owner ## The Challenge The client had previously secured short-term funding against a residential property, with the expectation that upcoming consultancy payments would repay the facility. However, delays in project-related payments created an unexpected funding gap, requiring a refinance solution.  Complicating matters further: - An existing non-bank lender required repayment.  - The client was managing arrears with a major bank lender.  - Timing delays on renewable energy projects had impacted expected cash inflows. - Traditional cash flow servicing metrics were not the primary strength of the deal.  The key requirement was a structured solution that would provide sufficient time for a planned property sale while reducing funding pressure and preserving equity. ## The Solution Fifo Capital structured a $1.2 million business loan to refinance the existing private lender and reduce arrears with the client's primary bank. The facility was secured by a second-ranking mortgage over a premium residential property in Melbourne's inner east, supported by director guarantees and a first-ranking All PAAP over the borrowing entity. From a broker perspective, several factors underpinned the transaction: - A recently completed valuation supporting a property value between $4.0 million and $4.25 million. - A clear exit strategy via sale of the security property.  - An initial LVR of approximately 75%, increasing to approximately 85% including capitalised interest and fees over the loan term. - Significant remaining equity within the security property.  - Interest capitalised for the term, reducing immediate cash flow pressure on the borrower. Importantly, the structure focused on asset quality, equity position, and a defined exit pathway, rather than relying solely on immediate cash flow servicing. ## The Results With the funding in place, the client was able to refinance an expensive existing facility, address short-term funding pressures, and focus on executing a planned asset sale. The facility provided: - Immediate repayment of the existing private lender.  - Additional support to reduce banking arrears. - Time to realise value from the security property through an orderly sale process.  - Reduced pressure on working capital while project payments continued to progress. This transaction demonstrates how a well-structured property-backed solution can provide brokers with an alternative when timing issues and lender policy constraints create obstacles for otherwise viable borrowers. Ready to fund your next opportunity? Apply for a business loan online today. [![Apply Now](https://no-cache.hubspot.com/cta/default/5367608/interactive-206256581735.png) ](https://fifocapital.com.au/hs/cta/wi/redirect?encryptedPayload=AVxigLLi%2BlAO5yGMxkv22CXREPeHiROgSKzk%2FExEExYffrMs8c5Q6ws%2B7orC7dBDyAV4Jzw1jOnZZDIZfCJXMrGhuI2jDbJj%2FF1%2FQdReXOL%2BGnqMl6tzENODuhbSmi%2BsoEglETya3HvmnBgkZUzQ%2FT9gZAJULyv7SG%2B7BXPErIwOQZ%2BsapRjhZXp%2FEORRbJ0PA%3D%3D&webInteractiveContentId=206256581735&portalId=5367608&hsLang=en)