Our client is an entrepreneur who sourced an opportunity to acquire a popular Queensland food and beverage franchise on very favourable terms. The customer required fast access to $300,000 of funding to acquire the franchise within the agreed deadline. If the deadline could not be met, the opportunity would disappear.
Limba Finance quickly analysed the situation and provided a term sheet to the customer. Limba was able to help the customer release equity in their personal real estate and other business interests via second mortgages, charges and personal guarantees. The loan had a 12 month term, and an interest-only payment structure. The client planned to sell a foreign asset during the 12 month period, which would generate sufficient liquidity to repay our loan. Our fast response and creative structuring allowed the transaction to proceed on time, and the client successfully closed the transaction.
Limba Finance worked closely with the broker to understand the needs of the client, and to identify a structure that would work for all parties. The client was not able to obtain funding from Australian banks due to their slow processing times and inflexible lending policies. Limba Finance was able to consider the full financial circumstances of the customer, the value of the franchise that was being acquired, and the strong track record of the client. Limba Finance was also able to work alongside the existing funding structures of the customer and was willing to provide a second ranking mortgage.
