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Introduction: A Game-Changing Solution for Growing Businesses
Refinancing to improve cash flow is often the key to unlocking new opportunities for businesses, but finding a flexible, competitive loan without the hoops of traditional banks? That can feel like searching for a needle in a haystack.
At Innovate Funding, we helped a Melbourne-based business refinance with an 8.75% interest rate on a 65% Loan-to-Value Ratio (LVR) secured by a first mortgage. This refinance reduced their financial stress and provided a cash top-up to boost working capital and stock purchases.
Here's how we made it happen – and how businesses like yours can benefit, too.
Case Study: A Melbourne Business Ready to Grow
Our client, a mid-sized retailer in Melbourne, faced a common challenge: they were asset-rich but cash-strapped. With growth opportunities ahead, they needed:
Refinancing of their existing business debt at a more competitive rate.
A working capital boost to support daily operations.
Funds to purchase stock in bulk and take advantage of supplier discounts.
While the client owned property that could be collateral, banks offered slow processing times and little flexibility. That's when they turned to Innovate Funding, specialists in fast, tailored commercial loans.
The Challenge: Traditional Lenders Were Not Delivering
When our client approached traditional lenders, they encountered several hurdles:
Rigid Loan Criteria: Banks required detailed financials, which slowed the process.
High Rates Elsewhere: Alternative lenders offered funding, but with interest rates pushing above 12%.
Lack of Support: Banks must understand the client's growth strategy and cash flow needs.
This created a significant roadblock. Their plans to bulk-purchase stock and support operations were on hold, impacting future revenue.
The client needed a partner who could deliver:
Fast approval and funding.
A fair, competitive interest rate.
A top-up to ensure sufficient working capital.
The Solution: Securing a Competitive Business Loan at 8.75%
At Innovate Funding, we take a tailored approach to every business we work with. After a deep dive into the client's financial position and objectives, we secured:
A first mortgage loan at 8.75% interest.
A Loan-to-Value Ratio (LVR) of 65%.
A flexible, structured repayment plan suited to their cash flow.
Top-up funds to provide a working capital boost and enable bulk stock purchases.
This loan was secured against a commercial property the client owned in Melbourne. We could structure a loan that suited their immediate and long-term needs by leveraging their existing equity.
Why This Solution Worked for the Client
Competitive Interest Rate: At 8.75%, the rate was lower than other private lenders offering double-digit options, keeping repayments manageable.
65% LVR: By borrowing against 65% of their property's value, the client accessed sufficient funds without over-leveraging.
Fast Approval: Unlike traditional banks, Innovate Funding processes the loan efficiently, helping the client secure funding quickly.
Top-Up for Working Capital: The additional funds allowed the business to maintain daily operations and purchase stock in bulk.
By refinancing and accessing additional capital, the client saved money on supplier discounts, stabilised their cash flow, and unlocked future growth opportunities.
The Benefits: More Than Just a Loan
The success of this loan had tangible benefits for the Melbourne-based retailer:
Improved Cash Flow: Refinancing existing debt reduced monthly repayments, easing financial stress.
Bulk Stock Purchases: The working capital top-up allowed the client to take advantage of bulk discounts, improving profit margins.
Operational Stability: With cash readily available, the business could run smoothly without disruptions.
Future-Proof Growth: The loan structured by Innovate Funding allowed the client to focus on long-term goals instead of scrambling for short-term cash flow fixes.
In the words of our client:
"Innovate Funding understood our needs better than anyone. They didn't just give us a loan – they gave us a strategy to grow and succeed."
How Innovate Funding Delivers Results
At Innovate Funding, we specialise in commercial non-bank lending solutions that empower businesses to thrive. Our approach focuses on:
Understanding Your Needs: We take the time to analyse your business goals and challenges.
Tailored Solutions: Whether it's refinancing, working capital loans, or property-backed funding, we design loans to fit your needs.
Speed and Flexibility: We pride ourselves on fast approvals and flexible structures, unlike the rigid processes of traditional banks.
Competitive Rates: We have access to a network of private lenders, so we negotiate rates that keep repayments manageable and sustainable.
Innovate Funding is a partner you can trust for businesses in Melbourne and across Australia.
Is Refinancing Right for Your Business? Key Takeaways
If your business owns the property and you're considering refinancing, ask yourself:
Are you paying a higher-than-necessary interest rate?
Could you benefit from additional working capital to fund growth?
Is your current lender too slow or rigid to meet your needs?
Refinancing could be the right move if you answered yes to any of these. At Innovate Funding, we'll help you unlock equity in your property, secure better rates, and structure a loan to suit your goals.
Conclusion: Grow Your Business with Innovate Funding
Refinancing at 8.75% with a 65% LVR was a game-changer for this Melbourne-based retailer. By reducing their debt burden and boosting working capital, they set themselves up for long-term success.
Whether you need to refinance, secure funds for stock purchases, or inject working capital into your operations, Innovate Funding can help. We provide fast, flexible, and competitive lending solutions tailored to your business needs.
Ready to refinance and grow? Contact Innovate Funding today to explore how we can help your business unlock its potential.