Man in apron working in warehouse

Burning a Hole in the Pocket

Client: Retail Industry, NSW

A fire broke out in our client’s NSW-based retail store, and when the bills started piling up, things went from bad to worse. Soon, our client was at risk of defaulting on a $124,000 unsecured loan. Not wanting to see his good credit history tainted, he registered his interest in the Elev8 Business Relief Program. 

First, we connected our client with a Commercial Broker who took a deep dive into the holistic financial position of not only the business, but our client (personally). The broker learned our client owned a residential property valued at $1.4 million with $900,000 in equity. Relieved to have a viable option on the table, our client was very happy to apply for a secured loan with an alternative lender. Within days, our client was approved for a $200,000 caveat loan (i.e. secured against his property), giving him the funds he needed to pay the outstanding debt, and additional working capital to assist in rebuilding the store. As the loan fees and interest were all capitalised within the loan over a 6 month term, this solution also gave our client the time he desperately needed to get back on his feet, renovate and reopen for business. He was able to avoid a default and maintain his clean credit file. 

Meanwhile, our Bookkeeping team jumped in to sort out our client’s books, which were now in disarray. We tidied everything up, put new processes in place for improved efficiency ongoing, and armed our client with a swag of educational tools to achieve best practice management of his finances ongoing.