Releasing $560,000 for a workshop’s fourth location
A mechanical workshop business needed to manage a partner exit and fund expansion into another state. Write Finance structured the lending through the commercial entity and secured $560,000 in cash-out funding.
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$560,000
Cash-out funding secured
80%
Gearing on the commercial premises
4th location
Expansion funding arranged
The client
A workshop business expanding across states
The business operated mechanical workshops across multiple states. It needed to remove an exiting partner from the business and access equity to fund a fourth location in a new state.
The challenge
Existing security tied to the exiting partner
The commercial property used as security for the existing facility was tied to the exiting partner. The business needed to access that property’s equity while working through the change in ownership.
Our approach
Assessing the lending through the commercial entity
We used specific lender policy to structure a business loan through the commercial entity. For this application, the remaining directors did not need to be assessed personally, and the lender allowed an add-back of the exiting director’s income.
01.
Commercial entity
Structured the lending as a business loan through the entity.
02.
Lender policy
Used policy that supported the assessment without reviewing the remaining directors personally.
03.
Income add-back
Included the permitted add-back of the exiting director’s income.
The outcome
Capital secured for the next location
The business secured 80% gearing on its commercial premises and $560,000 in cash-out funding. This provided the capital needed for the workshop’s fourth location.
Talk to Write Finance
Planning a partner exit or business expansion?
Tell us about your business structure, current lending and growth plans. We’ll help you understand the funding options and what lenders will need to assess.
This is a past client outcome. Cash-out amounts, gearing and director assessment requirements depend on the business, available security and individual lender policy.
