How our client Secured a $200K Second Mortgage in Concord: When the Banks Said No

Accessing a second mortgage can provide a highly effective solution for business owners who need fast capital, especially when banks are unable to assist.

That’s precisely what happened to one of our recent clients who required a second mortgage in Concord. Despite owning a local business previously and holding substantial property equity, he was unable to secure funding through a traditional lender due to a lack of financial history in his new business. The timing was critical. He required $200,000 in working capital to seize a business opportunity, but the banks declined his application.

At Innovate Funding, we arranged a flexible second mortgage, which was settled within two weeks, allowing him to unlock the property’s equity and fund the next phase of business growth by utilising a second mortgage on his property in Concord. Here’s how we made it happen.

The Challenge: No Financial History, Urgent Need for Funds

Our client, a business owner based in Concord, was experiencing rapid growth in his new company. While the growth was exciting, it created an urgent need for working capital. The business required an immediate $200,000 to:

• Purchase additional inventory to meet rising demand

• Pay key suppliers to maintain supply chains

• Support new marketing campaigns to fuel further growth

However, like many small businesses in Australia, the client lacked a complete two-year set of tax returns or clean financial statements required by traditional banks. The company had only recently achieved strong cash flow.

With limited historical financials, several major banks declined the application despite the client’s growing revenue pipeline and excellent business potential. Time was running out; suppliers were demanding payment, and missing the window for expansion would mean lost revenue.

The Security; Strong Property Equity in Concord

Although the banks had said no, the client had an excellent asset position that could be leveraged: a residential property in Concord with substantial equity. The property details were:

• Market value: $1.2 million

• First mortgage: $580,000

• Available equity: over $600,000

This opened the door to an alternative funding pathway: a second mortgage in Concord through private lending channels.

Why Private Lending Was the Right Solution

Private lending offers several advantages in scenarios like this one. Unlike traditional banks, private lenders take a more holistic view of the borrower’s position. They focus on the strength of the asset, the purpose of the funds, and the overall exit strategy rather than rigid income verification.

In this case, private lending was the ideal fit because:

• The client had significant property equity

• The business had strong short-term revenue potential

• The client had a clear exit plan to refinance after six months

• A fast settlement was essential to securing the business opportunity

  
  

The Deal: Structuring the Second Mortgage in Concord

At Innovate Funding, we structured a tailored second mortgage in Concord that met the client’s needs. The deal terms were:

• Loan amount: $200,000

• Loan type: Second mortgage in Concord (behind existing first mortgage)

• Combined Loan-to-Value Ratio (LVR): 65% (inclusive of first mortgage)

• Interest rate: 1.25% per month (equivalent to approximately 15% per annum)

• Application fee: 1.5%

• Loan term: 6 months

• Purpose: Business working capital

• Exit strategy: Refinance to a longer-term facility once financials improved

By structuring the deal as a second mortgage, the client was able to access the necessary funds without refinancing or disturbing the existing first mortgage.

Execution: Funds Settled in Two Weeks

The timing was critical in this transaction. The client required urgent funding to pay suppliers and execute time-sensitive business activities.

Thanks to our private lending network and streamlined process, we were able to deliver:

• Conditional approval within 48 hours

• Valuation completed within five business days

• Loan settlement finalised within two weeks of initial enquiry

This allowed the client to secure the funds and keep the business on track, something that would not have been possible through traditional lending channels, which can take 6–8 weeks or longer to process.

The Outcome: Business Growth Funded

With the $200,000 secured through the second mortgage in Concord, the client was able to:

• Purchase additional inventory to meet demand

• Pay suppliers on time and maintain good relationships

• Invest in marketing to drive new customer acquisition

Six months later, with stronger financial records in place, the client successfully refinanced to a lower-rate non-bank loan, completing the exit strategy as planned.

Key Advantages of a Second Mortgage in Concord

This transaction highlights several significant benefits for business owners and property investors considering a second mortgage:

• Flexibility in income verification: Private lenders can assess deals based on asset strength and borrower profile rather than strictly on tax returns and financial statements.

• Speed: In this case, the second mortgage was settled in just two weeks, helping the client seize an opportunity quickly.

• There is no need to refinance the first mortgage; A second mortgage allows the client to access equity without disturbing an existing loan facility.

• Custom structure: The loan term and repayment plan were tailored to match the client’s projected business performance and refinance timeline.

Is a Second Mortgage in Concord Right for You?

If you are a business owner, property investor, or developer with substantial property equity, and you’re facing delays or roadblocks with traditional banks, a second mortgage in Concord could be the solution.

Typical scenarios where a second mortgage can assist include:

• Working capital for business growth

• Bridging finance between property purchases or sales

• Development funding

• Short-term funding to consolidate debts

• Urgent capital for time-sensitive opportunities

At Innovate Funding, we specialise in structuring flexible, fast private lending solutions for Australian businesses and investors. Our experienced team can help you assess your options and move quickly when opportunities arise.

Why Choose Innovate Funding?

We understand that many borrowers today face increasing challenges when seeking funding through traditional banks. Changing lending regulations, complex verification requirements, and lengthy approval timelines can make it challenging to access capital when needed.

Our approach is different:

• Speed: We regularly settle second mortgages and private loans within 1-3 weeks.

• Flexibility: We work with a wide range of borrower profiles, including clients with limited financial history.

• Tailored solutions: We structure each deal to suit your unique needs and goals.

• Experienced team: Our in-depth knowledge of the private lending market allows us to deliver competitive terms and exceptional outcomes.

Whether you’re a property owner in Concord or anywhere across Greater Sydney, we can help you unlock your equity and fund your next opportunity.

Final Thoughts

A second mortgage in Concord is an innovative and practical way to access working capital quickly, especially when banks decline your request. Whether you need funds to support business growth, secure property deals, or consolidate debt, private lending offers an efficient and flexible pathway to achieving your goals.

If you’d like to learn more about how a second mortgage could work for you, contact the team at Innovate Funding today for an obligation-free chat. We’ll review your options and help you get the funding you need fast.