Case Studies - click on images for more details
Builder Facility
Residual Stock Loan
Builder Facility
Developer Loan
Residual Stock Loan
Builder Facility
Residual Stock Loan
Residual Stock Loan
Small Business Solution
Small Business Solution
Small Business Solution
Small Business Solution
Recovery Solution
Small Business Solution
Recovery Solution
Bridging Solution
Small Business Solution
Recovery Solution
Builder Facility
Scenario
A well respected local custom home builder approached Acquire Capital to take their business in a different direction. The builder was frustrated with contract builds which created problematic variations, a large volume of communication and very little creative control. Although the borrower qualified for bank style funding they were disappointed with the lack of flexibility and the length of time to make drawdowns and receive approvals. The guarantor was an experienced builder with a proven formula, and a high-quality balance sheet. Acquire Capital worked closely with the borrower to tailor a funding solution for several projects back-to-back, delivering many positive outcomes for the builder.
Key Benefits
- Creative control allowed the builder to deliver on trend designs, streamline inputs and reduce build times.
- The tailored rolling facility allowed the builder to seamlessly transition their workforce from one project to the next.
- The builder now had the ability to take on profitable projects, over a fixed builder's margin.
- All these benefits led to an increase in the builder's brand value, and awareness.
Developer Loan
Scenario
A local Brisbane, developer approached Acquire to assist with purchasing a property in Ascot Brisbane. After purchase the borrower successfully applied for a development approval to build 13 units. The incoming construction funder refinanced 70% of Acquire debt and the remaining loan stayed in place as mezzanine funding. The developer was experienced and had a comprehensive balance sheet with substantial property holdings which Acquire took comfort from and security over. On several occasions over the term of the project the construction draws have not covered 100% of costs. Acquire Capital Solutions has been able to step in and provide further funding from time to time to cover the developer's cash flow.
Key Benefits
- Without mezzanine funding the developer couldn’t execute this project. This demonstrates Acquire's flexibility to convert form a first mortgage to a second.
- Developer prefers to deal with Acquire despite cheaper funding options being available.
- Ability to take a commercial view as opposed to a “credit policy view”.
- A long term relationship has been built with potential for future projects.
Residual Stock Loan
Scenario
A developer client constructed 13 residential units in the inner West of Brisbane. During the construction period they were able to sell 9 units prior to completion. Upon final certification and call for settlements of the presales 4 units remained unsold. The existing construction funder had a pending maturity date on their facility and demanded repayment on the residual debt outstanding. Acquire Capital provided a refinance of the remaining 4 units, capitalised the interest and provided a modest amount of cash out so the developer could secure their next project deposit. Acquire's assistance enabled the developer to bridge the gap between projects, manage their financier obligations, and maintain a strong position in the market. All 4 units were sold at or above value estimates over the subsequent months and the loan repaid in full.
Benefits
- Preservation of sales prices.
- Avoid higher interest charges.
- Provide cashflow for next project.
- Reputation and goodwill remains.
Small Business Loan
Scenario
The client owned and operated a small business with his wife, which had been in the family for the past 80 years. The landlord has sold their property to developers. They had the chance to buy the block next door, providing not only the opportunity to retain but also expand the family business. They signed a cash unconditional contract on the block, but the bank was taking too long and with only two days until settlement and an extension knocked back by the vendor, they needed a solution fast. Acquire jumped in offering a 1st mortgage on the land as well as a 2nd mortgage on their principal place of residence providing the full amount required to settle two days later. The client was ecstatic and three months later they refinanced the total loan and settled with their bank.
Benefits
- Borrower saves valuable family asset.
- Reputation and goodwill remains.
- Purchase contract deposit preserved.
- Unprecedented service to turnaround this process in 2 days which enhances Acquire's reputation with the introducing broker.
Recovery Solution
Scenario
Acquire lent a developer several hundred thousand dollars as a second mortgage to complete the speculative construction of a luxury house build in Ascot Brisbane. The developer’s intent was to sell the property upon completion and exit the loan. The loan matured and the developer hadn’t sold the property. An extension of time was granted and Acquire supported the developer by funding a marketing campaign. The property was taken to auction and passed in by the developer. An external offer which was considered strong and at market value was received. Despite Acquire providing encouragement to accept the offer which was in line with a registered valuation the developer chose to reject the offer. In consultation with the developer Acquire then took possession of the property, completed several minor finishing’s, put together a strong marketing campaign and took the property to auction. The property sold several days after auction and the loan was repaid in full. Acquire kept the developer abreast of the process at all times.
Benefits
- Acquire gives borrowers the opportunity to extend loans on the understanding that they are actively working towards their exit strategy.
- Default/recovery/taking possession are the least favourable options for all parties so they are avoided where necessary.
- In the event of default we tend to keep our borrowers onside and involved/informed.
- We always have an obligation to the borrower to get the best possible result (completing finishing’s, strong marketing campaign, best agent etc.).
Bridging Solution
Scenario
Our borrower is a recent divorcee and had purchased a unit off the plan to live in Brisbane City. The intended proceeds of purchase was via the divorce settlement payment from her ex-husband. The matrimonial home was agreed to be sold but the sale price came up short. As a result the borrower had a $50,000 deposit on the line and had been granted several extensions. Time was of the essence and Acquire funded the deal within 5 days of receiving the request by taking security over the subject property and the borrower’s investment property.
Benefits
- Saved $50,000 deposit.
- Gained benefit from any uplift in value since the off the plan purchase in 2014.
- Capitalised interest allows the borrowers income not to be affected.
- This is a genuine short term consumer loan where the loan is deemed “not unsuitable”.