How Cerberus Finance found a winning way to present Sandra’s situation to lenders.
Paul Zahra sat down with Sandra, who is also the building’s general manager. Through a series of conversations and several visits to the building, Paul gathered further insights into the operation and mapped out a strategy to secure more cost-effective finance and a cash-out – without going through a maze of red tape and lengthy delays.
After negotiating with a few lenders to test their flexibility, Paul determined the best application strategy. To avoid the need for paperwork on 35 tenancy agreements with varying terms and conditions, he persuaded the lender to accept documentation on just 10 agreements. As a back-up, he produced a waitlist of 30 prospective tenants to show there was no shortage of demand.
Sandra and her co-owner husband secured a 5-year interest-only loan that allowed a cash-out to pay off the investor and restructure the ownership. They were thrilled to achieve a significant interest saving of $1350 in monthly payments compared with the previous facility. The new lender also agreed to add features to provide more flexibility and help manage working capital.
When the coronavirus pandemic struck a blow to the Melbourne-based business, Paul was again in proactive mode from Day One. He contacted Sandra, advised her to approach the lender for relief, and helped her secure a 6-month freeze on her loan payments.