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In the fast-paced business world, securing funding quickly can mean the difference between seizing an opportunity and watching it slip away. Innovate Funding recently demonstrated its ability to deliver with lightning speed, helping a business based in Broadbeach, Gold Coast, access $500,000 in funding secured by a first mortgage. From initial contact to final approval, the process took three business days—an impressive feat in any lending scenario. Here's how it unfolded step by step, showcasing the meticulous approach that sets Innovate Funding apart.
Step 1: Initial Contact and Agreement
The journey began when the Broadbeach business owner reached out to Innovate Funding with an urgent request. The client needed funds fast to capitalise on a critical growth opportunity. After an initial consultation, it became clear that a private lending solution was the most viable route. Traditional banks, known for their lengthy approval processes, simply wouldn't suffice.
Key Actions Taken:
Consultation and Needs Analysis: Innovate Funding's experts conducted an in-depth analysis of the client's financial position, funding needs, and property details. This step ensured that Innovate Funding understood the client's unique circumstances, from cash flow requirements to the value and condition of the property offered as security.
Quick Decision Making: Within hours of the initial conversation, a preliminary agreement was reached, detailing the amount sought, the security on offer (a 1st mortgage), and the client's preferred timeline. The ability to move swiftly without cumbersome red tape was essential in establishing a mutual understanding and building trust early in the process.
Step 2: Sourcing a Private Lender
Private lending requires robust networks and a strategic approach. Innovate Funding's extensive database of private lenders proved invaluable in this situation. The team could rapidly assess which lenders matched the client's criteria by tapping into trusted, high-net-worth individuals and boutique financial institutions.
Key Actions Taken:
Database Matching: The team used proprietary tools and systems to match the client's profile with suitable lenders known for their quick turnaround times. This tailored approach meant only highly relevant lenders were approached, ensuring that responses returned quickly.
Initial Proposals: Innovate Funding reached out to multiple private lenders simultaneously, presenting them with the Broadbeach business's detailed financial profile and security package. This proactive step ensured competitive offers were in the pipeline within the first day.
Shortlisting: Within a day, responses were compiled and assessed based on interest rates, fees, and repayment flexibility—the careful vetting process aimed to balance speed with cost-effectiveness and terms favouring the client's financial health.
Step 3: Comparing Rates and Finalising Terms
While speed was critical, Innovate Funding also prioritised securing a competitive rate. After receiving proposals, a comprehensive comparison was made to ensure the client would benefit from optimal lending terms.
Factors Considered:
Interest Rate: Offers ranged, but a standout proposal with an 8.95% rate on a 65% loan-to-value ratio (LVR) emerged as the most attractive. This rate aligned with the market for private first mortgage loans and represented a manageable cost for the client.
Fees and Transparency: The chosen lender's terms, including any associated fees, were evaluated for clarity. Innovate Funding's commitment to transparency ensured that there were no surprises that could impact the client later.
Repayment Options: Flexible repayment structures were also considered to align with the client's cash flow needs and to safeguard future financial stability.
Key Actions Taken:
Client Briefing: The client was updated with a detailed briefing on the pros and cons of each proposal. Innovate Funding took the time to explain each offer, empowering the client to make an informed decision.
Decision: With the client's approval, Innovate Funding swiftly moved to secure the chosen deal, finalising the terms in writing to prevent delays or miscommunications.
Step 4: Legal Processes and Due Diligence
The next hurdle was completing the legal and due diligence work. This step often trips up even well-prepared applications due to complexities or slow response times from third-party partners. However, Innovate Funding's proactive coordination ensured this phase ran smoothly. A critical component of this step was leveraging cutting-edge technology to expedite the property valuation process, and Propti played a crucial role in this.
Key Actions Taken:
Document Preparation: All necessary legal and financial documentation was prepared in collaboration with the client's legal team, ensuring compliance with lending regulations and transparency for both parties.
Valuation and Compliance: Innovate Funding partnered with Propti to conduct an independent property valuation within 24 hours. Propti's platform offered an innovative solution by leveraging digital tools to speed up the typically laborious property valuation process. This efficient approach allowed the team to quickly verify the 65% LVR and move to the next stage without delays.
Streamlined Communication: Legal professionals and the lender's representatives communicated constantly, facilitated by Innovate Funding, to iron out any issues before they arose. Innovate Funding maintained momentum by anticipating potential roadblocks, saving the client precious time.
Propti's use of advanced technology streamlined the valuation process, ensuring that this vital due diligence step was completed promptly without compromising accuracy or thoroughness. This collaboration underscored Innovate Funding's commitment to using the best tools in the industry to serve clients more effectively.
Step 5: Final Approval and Disbursement
After the legal and due diligence checks were completed, the final step was the formal approval and transfer of funds. Unlike traditional banks, private lenders often have more streamlined internal processes, contributing to this deal's quick finalisation.
Key Actions Taken:
Signing and Verification: The client signed the final loan documents, which the lender then verified. Innovate Funding ensured that all formalities were completed with attention to detail, safeguarding both parties.
Transfer Coordination: Innovate Funding coordinated with the lender to ensure the smooth and timely disbursement of the $500,000. This step involved a clear communication chain and efficient handling of all logistics.
Client Support: Post-approval, Innovate Funding's relationship with the client did not end. The team provided ongoing support, answering any questions about repayment obligations and addressing any concerns that arose during the initial stages of using the funds.
The Outcome: Success and Satisfaction
The client received $500,000 in funding in three business days at an 8.95% interest rate secured against a 65% LVR. This rapid and efficient process allowed the business to act quickly on its growth plans, reaffirming the critical role that a non-bank lender like Innovate Funding plays in the Australian commercial lending market. The client's satisfaction was evident, as the swift process met and exceeded their expectations.
Why Innovate Funding Stands Out
Innovate Funding's ability to deliver quick, customised solutions lies in its:
Deep Network of Private Lenders: Connections to an array of trusted financial partners enable rapid sourcing of funds.
Proven Process: Streamlined steps prioritising efficiency without sacrificing due diligence or compliance.
Client-Centric Approach: Full transparency and consistent updates, ensuring client comfort and confidence throughout the process.
Technological Integration: Partnerships with innovative platforms like Propti help accelerate processes that would otherwise slow down traditional lenders.
For Australian businesses, especially in thriving hubs like Broadbeach, having a financial partner that can act swiftly and effectively is invaluable. This successful case underlines Innovate Funding's commitment to providing rapid, reliable, and competitively priced private lending solutions, empowering businesses to capture opportunities without delay.