Commercial Business Loan in Moffat Beach

Brokering a Business Loan for a Fabric Manufacturer

How Loanright Financial Services Helped a Business Owner Secure Their Commercial Property at Moffat Beach

Loanright Financial Services recently had the pleasure of working with a small business owner in Moffat Beach, who has spent years building a successful small fabrics manufacturing operation. Like many small business owners, this client had been renting their premises from a landlord, relying on the stability of the location to keep up with the demands of their business. Recently, the client was given the unique opportunity to purchase the property directly from their landlord at a discounted rate, an offer that would ultimately allow them to reduce monthly expenses and build long-term equity. Loanright Financial Services stepped in to make this vision a reality, securing financing that suited the needs of the client and helping them achieve the benefits of property ownership.

The Challenge: Limited Loan-to-Value Ratios

One of the biggest challenges facing small business owners in similar situations is finding a lender willing to offer a high loan-to-value ratio (LVR). For many commercial properties, lenders typically cap their LVRs at around 70% of the property’s value. This leaves the borrower responsible for covering the remaining 30% through personal funds or other sources, which can be a substantial amount, especially for small business owners who may not have large cash reserves.

This was precisely the dilemma facing our client. The discounted price offered by the landlord was attractive, but without sufficient upfront capital, the client would have found it difficult to close the deal. However, our team at Loanright Financial Services was determined to find a solution. We knew that securing a higher LVR would be crucial in allowing the client to make the purchase without depleting their working capital, which they needed to keep their fabric manufacturing business running smoothly.

Going Above and Beyond: Securing 80% LVR

Recognising the client’s unique needs, our team began an extensive search for lenders who were willing to offer a more favourable LVR. After assessing several lending options, we found a lender who was willing to go beyond the standard 70% LVR and extend financing for up to 80% of the property’s value. This made a significant difference in the client’s ability to move forward with the purchase.

The 80% LVR meant that our client only needed to provide a 20% deposit, freeing up funds that could instead be reinvested into the business. This higher LVR also lowered the immediate financial burden, allowing the client to keep more working capital available for their operations. By finding this lender, Loanright Financial Services enabled the client to secure the property and benefit from a more manageable upfront investment.

Monthly Savings and Financial Stability

Once the financing was secured, the benefits of the property purchase became clear. By purchasing their premises rather than continuing to rent, our client was able to reduce their monthly costs by approximately $2,200. Instead of paying rent to a landlord, these funds now go toward mortgage repayments, contributing to building equity in the property and securing a long-term home for the business.

This monthly savings of $2,200 is transformative. Over the years, these savings accumulate and give the client more room to reinvest in the business, explore growth opportunities, or even weather unexpected financial challenges. Owning the premises also shields the client from rent increases, providing a sense of stability and security that would have been unavailable while renting.

Added Benefits of Ownership

Beyond the immediate financial benefits, owning the premises offered our client a range of long-term advantages. For one, they now have control over the space, which allows them to make any necessary upgrades or adjustments to suit their manufacturing operations without seeking landlord approval. Additionally, ownership provides potential tax benefits and may increase the value of the business itself, creating a valuable asset that could contribute to retirement planning or succession planning down the line.

Moreover, this acquisition represents a significant investment in the business’s future. With the property secured, the business is now in a stronger position to grow and operate without the looming possibility of losing their location due to landlord decisions or market pressures. It also gives them a unique asset that can appreciate over time, providing a pathway for wealth accumulation that was previously inaccessible as a tenant.

The Loanright Financial Services Difference

This successful outcome is a testament to Loanright Financial Services’ commitment to helping small business owners thrive. We understand that each client’s needs are unique, and we go above and beyond to identify solutions that truly work for them. Our expertise in navigating commercial financing and our relationships with a range of lenders allow us to find options that others may overlook.

For our client at Moffat Beach, this meant securing the financial stability they needed to own their premises and keep their business moving forward. Our team worked diligently to make the process as smooth as possible, managing each step from initial consultation to final settlement. By taking the time to understand the specific requirements and challenges faced by our client, we were able to provide customized support and ultimately deliver a successful outcome.

Conclusion

Loanright Financial Services is proud to have played a role in helping this fabric manufacturer secure their business premises, achieve significant monthly savings, and build a foundation for the future. Whether you are a small business owner looking to purchase your property or in need of tailored financial solutions, Loanright Financial Services is here to help you achieve your goals with flexible, innovative, and client-centred support.