How Innovate Funding Secured a Business Loan at 8.75% on a 65% LVR in Melbourne

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 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, and funds to purchase stock in bulk.

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 rigid loan criteria requiring detailed financials, high rates elsewhere (above 12% from alternative lenders), and a lack of understanding of the client's growth strategy. 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, and a top-up to ensure sufficient working capital. For businesses with impaired credit or those needing no doc finance, private lending offers a path forward.

The Solution: Securing a Competitive Business Loan at 8.75%

At Innovate Funding, we take a tailored approach to every business. After a deep dive into the client's financial position, we secured a first mortgage loan at 8.75% interest with a 65% LVR, a flexible structured repayment plan suited to their cash flow, and top-up funds for working capital and bulk stock purchases. This secured business loan was secured against a commercial property the client owned in Melbourne.

Why This Solution Worked

At 8.75%, the rate was significantly lower than other private lenders offering double-digit options. The 65% LVR allowed the client to access sufficient funds without over-leveraging. Unlike traditional banks, Innovate Funding processed the loan efficiently, helping the client secure funding quickly. The additional working capital allowed the business to maintain daily operations and purchase stock in bulk at supplier discounts.

The Benefits: More Than Just a Loan

The success of this loan had tangible benefits: improved cash flow from reduced monthly repayments, bulk stock purchasing power improving profit margins, operational stability with readily available cash, and future-proof growth allowing focus on long-term goals. Whether a business needs a second mortgage, bridging loan, or short-term business loan, the right structure makes all the difference.

How Innovate Funding Delivers Results

At Innovate Funding, we specialise in commercial private lending solutions that empower businesses to thrive. Our approach focuses on understanding your needs, tailored solutions across construction, development, and working capital, speed and flexibility, and competitive rates through our network of private lenders.

Innovate Funding is a partner you can trust for businesses in Melbourne, Sydney, and across NSW. Browse our full range of services.

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.