Premier Finance case studies

Case study 1

This client owned a retail property with two other business partners from whom he was purchasing the business itself and the balance of its premises. A refinance by the current lender was required to raise the required funding which amounted to a Loan to Valuation Ratio (LVR) of 87.5%, i.e. much higher than the industry standard of 70% for Commercial and Retail properties.
Having prepared a detailed submission on behalf of our client and negotiated with lenders, we were able to secure funding at 87.5% on the retail property. Without this assistance, the client would have been forced into selling the property and having the disruption of moving the business to alternative premises.

Case study 2

We were approached to assist with the purchase of a residential investment property in regional Victoria. There was a high level of equity in the principal place of residence and our brief was to keep the gearing as high as possible to maximise tax deductibility.

Rather than seeking to borrow 80%+ LVR against the proposed purchase, where onerous and avoidable Lenders Mortgage Insurance premiums would have applied, we arranged funding at 80% LVR against the proposed purchase on a stand alone basis. The balance of the equity plus stamp duties etc was raised against the principal place of residence in which the client had a strong level of equity.
This structure allowed for optimal tax deductibility and the client did not need to use any of their own cash reserves. The fact that these properties were secured on a 'stand alone' basis, rather than 'cross collateralised' means the client will have less restrictions in terms of the Lender’s Credit Policy when it comes time to sell, restructure, refinance etc in the future.

Case study 3

One of the major banks had been our client's lender for decades. The need for a full review of lending facilities was driven by their business’s internal funding restructure and strategic growth requirements.

Our client is a well-established retailer in Bayside Melbourne with a strong equity position in the owner-occupied premises. Premier Finance went to the market then presented the client with a proposal for funding with an alternative lender, which offered significant cost of finance savings.

Not only did Premier finance negotiate with the existing lender to match this pricing, we were able to have interest rates decreased by a further 0.25%, as well as a massive decrease in renegotiated set up fees.
Our client was able to save well in excess of $20,000 in the first year alone without having to get involved in negotiations, undertake a refinance or pay brokerage fees to Premier Finance. Had this lender not been challenged on current pricing arrangements, our client would most likely have continued to pay excessive finance costs.

Case study 1

This client owned a retail property with two other business partners from whom he was purchasing the business itself and the balance of its premises. A refinance by the current lender was required to raise the required funding which amounted to a Loan to Valuation Ratio (LVR) of 87.5%, i.e. much higher than the industry standard of 70% for Commercial and Retail properties.

Having prepared a detailed submission on behalf of our client and negotiated with lenders, we were able to secure funding at 87.5% on the retail property. Without this assistance, the client would have been forced into selling the property and having the disruption of moving the business to alternative premises.

Case study 2

We were approached to assist with the purchase of a residential investment property in regional Victoria. There was a high level of equity in the principal place of residence and our brief was to keep the gearing as high as possible to maximise tax deductibility.

Rather than seeking to borrow 80%+ LVR against the proposed purchase, where onerous and avoidable Lenders Mortgage Insurance premiums would have applied, we arranged funding at 80% LVR against the proposed purchase on a stand alone basis. The balance of the equity plus stamp duties etc was raised against the principal place of residence in which the client had a strong level of equity.

This structure allowed for optimal tax deductibility and the client did not need to use any of their own cash reserves. The fact that these properties were secured on a 'stand alone' basis, rather than 'cross collateralised' means the client will have less restrictions in terms of the Lender’s Credit Policy when it comes time to sell, restructure, refinance etc in the future.

Case study 3

One of the major banks had been our client's lender for decades. The need for a full review of lending facilities was driven by their business’s internal funding restructure and strategic growth requirements.

Our client is a well-established retailer in Bayside Melbourne with a strong equity position in the owner-occupied premises. Premier Finance went to the market then presented the client with a proposal for funding with an alternative lender, which offered significant cost of finance savings.

Not only did Premier finance negotiate with the existing lender to match this pricing, we were able to have interest rates decreased by a further 0.25%, as well as a massive decrease in renegotiated set up fees.

Our client was able to save well in excess of $20,000 in the first year alone without having to get involved in negotiations, undertake a refinance or pay brokerage fees to Premier Finance. Had this lender not been challenged on current pricing arrangements, our client would most likely have continued to pay excessive finance costs.