Case Study 3

John has been a business owner for 20 years. In addition to his $4m loan he held with a major bank, he wanted to borrow a further $2m. Despite a positive credit history and $10m in securities, the bank refused to loan him the additional amount.

They deemed this loan application a 'high portfolio risk'.

John was referred to Checkpoint by his Accountant. He asked Checkpoint to refinance his existing $4m loan with a bank that would lend him the additional $2m. But during the first meeting Checkpoint learned John was also planning to obtain additional finance again in six months to raise funds for property construction. Refinancing twice would double his exit and establishment fees unnecessarily.

Instead of refinancing, Checkpoint advised John remain with his current financier and hold back refinancing until he had DA approval on the construction site.

In the meantime, to secure $2m worth of investment funds, Checkpoint renegotiated the security position of his current loan. By releasing this security, Checkpoint was able to organise the $2m loan from another bank.

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