From costly debt to a conventional business loan
A business owner had moved from an expensive cash flow facility to a second mortgage with heavy costs. Write Finance refinanced the remaining debt into a conventional business loan.
Discuss Your Business Finance
$88,000
Estimated saving in fees and interest
8% p.a.
Rate on the arranged business loan
25 years
Term of the refinanced loan
The client
One owner. Three businesses.
The client ran a trading business, an engineering consultancy and a not-for-profit he wanted to expand. Expensive debt was adding pressure across an already complex financial position.
The challenge
An expensive cycle of borrowing
A $170,000 cash flow facility required $250,000 in repayments. A subsequent second mortgage refinance carried a rate of 25% p.a., with heavy fees on top. The remaining debt needed a more manageable structure.
Our approach
Replacing the remaining debt with conventional finance
We refinanced the remaining debt into a conventional business loan at 8% p.a. over a 25-year term. This replaced the previous facility with a different loan structure and lower interest rate.
01.
Remaining debt
Refinanced the balance left from the previous facility.
02.
Conventional loan
Arranged a business loan at 8% p.a. for this client.
03.
Loan term
Structured the new finance over 25 years.
The outcome
An estimated $88,000 saving in fees and interest
Interest over the following 15 months was $17,000. The case recorded an estimated $88,000 saving in fees and interest compared with the previous facility.
Talk to Write Finance
Is expensive debt holding your business back?
Tell us about your existing lending and business income. We’ll help you understand whether another finance option may better suit your circumstances.
The $88,000 saving is the estimate reported for this case. The rate and term relate to the client’s loan at the time. Current lending options and costs depend on individual assessment.
