Project Type: Purchase of 2 x established going-concern childcare centres
Loan Amount: $5,040,000
The Right Angle: Negotiated with the Bank to arrive at a favourable loan approval, despite perceived hurdles relating to the valuation. High loan ratio being 70% of the business only value of the centres.
Why Right Angle Group?
An existing client entered into contracts to purchase two going concern childcare centres. The rent agreements for both centres were considered to be at rates substantially below market, and so while the valuation read well, negotiation was required in order to have the bank accept the values and commentary. Further, the contracts had a very short finance clause which left no room for delays during the approval.
What our client required:
- An Approval for finance to assist with the purchase of the two centres
- A quick approval was required since the Finance Approval date was fast approaching
- Minimal cash contribution required
What we achieved for our client:
- Arranged approval through a major bank for a loan with 70% LVR against purchase price
- The valuation which supported the purchase price was ultimately accepted by the Lender
- Formal approval was given prior to the expiry of the finance clause