Case Studies

Assetline Capital – Specialists in Short Term & Bridging Finance

Assetline Capital is a specialist short term secured asset lender. We consider the widest range of a client’s property assets to maximise the loans advanced. Our loans are from 3 month – 12 months, secured against a wide range of property assets.  We are able to fund up to $10m per individual transaction.

The Assetline Capital Advantage

  • Accessible – No onerous ‘red tape’
  • Flexible – We lend against the widest variety of property assets
  • Fast – We can make you a loan offer and settle within 48 hours.
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These are some examples of scenarios we have funded:

Scenario 1 – Notice to Complete on commercial property settlement

A property developer who had already delayed settlement on a commercial property (Melbourne metro) was issued with a ‘Notice to Complete’ from the vendor. He risked losing a $350,000 deposit if he could not settle the transaction within 7 days. His broker had led him to believe that finance from a ‘major’ was imminent, but the finance was not forthcoming as his tax returns were not up to date.

The Assetline Capital Solution – Assetline Capital advanced first mortgage funding (70% LVR) on a 6 month term, enabling the client to settle on the property. Due diligence was completed and funds advanced within 5 days of application.

Where to next: the client refinanced Assetline Capital’s loan with construction funding.

Scenario 2 – Receiver appointed over borrower’s commercial property portfolio

The borrower owned 7 properties (3 commercial and 4 residential), all mortgaged to a ‘major’ via a cross-collateralised facility. A breach in covenant in a facility of a related company triggered a default and the bank appointed a Receiver. The client stood to lose all 7 properties which were to be subject to an imminent ‘fire sale’ by the Receiver.

The Assetline Capital Solution – Assetline Capital advanced first mortgage funding (6 month term with a further 3 month option) of $4.9m to refinance the property portfolio and retire the Receiver. The transaction, including full due diligence, was completed within 4 weeks.

Where to next: the client sold down selected assets over a multi-month period to repay Assetline Capital’s loan. The Assetline Capital loan allowed the client enough time to achieve the highest sale price on the assets he chose to sell.

Scenario 3 – Borrower needed emergency cash advance to pay Body Corporate fees on investment property

The borrower had fallen behind in payment of Body Corporate Fees and required an urgent capital injection in order to make the outstanding payments. The borrower had a substantial equity in an investment property (suburban Melbourne), which was offered to Assetline Capital as collateral for a loan.

The Assetline Capital Solution – Assetline Capital was able to advance $250,000 within 3 days of initial application, secured against the investment property (2nd mortgage).

Where to next: the client refinanced the investment property to repay Assetline Capital’s loan within 6 months.

Scenario 4 – Borrower needed fast response, short-term funding to purchase assets from Liquidator

The borrower approached Assetline Capital for a $1.45m advance, secured against property and equipment (3 month term), to purchase assets from a Liquidator. The liquidation sale represented a compelling opportunity to acquire assets with a strong strategic fit to the borrower’s core business.

The Assetline Capital Solution – Assetline Capital advanced the funds, taking Newco and all it’s assets as security.

Where to next: the borrower refinanced with a major once a 6 month trading pattern had been established.

Scenario 5 – Borrower delayed in receiving payment from sale of investment property and needed funds for corporate restructure

The client also had an unencumbered luxury car (Porsche) which augmented the security position. The loan was settled within 3 days of initial application.

The Assetline Capital Solution – Assetline Capital advanced $1.25m, taking 2 of the client’s properties as security (1st and 2nd mortgages). The client also had an unencumbered boat and luxury car (Porsche) which augmented the security position. The loan was settled within 3 days of initial application.

Where to next: Assetline Capital was repaid once the sale of the investment property went through.

Scenario 6 – Borrower’s BAS refund delayed because of ATO audit, resulting in urgent working capital shortfall

The borrower had been expecting, and counting on, a substantial BAS refund which was to be used to fund the business’s short term finding needs. The borrower had ordered a piece of manufacturing equipment from overseas and was counting on the ATO refund in order to settle the purchase. Because of the delay in receiving the funds, the borrower stood to lose a substantial deposit.

The Assetline Capital Solution – Assetline Capital advanced $150,000 to fund urgent working capital needs, secured by 2nd mortgage over the client’s investment property (70% LVR). The loan term was 9 months, with an early repayment option after 6 months.

Where to next: the borrower repaid Assetline Capital’s loan from proceeds of the BAS refund which were paid after finalisation of the audit.

Scenario 7 – Borrower had fallen behind on his tax debts (BAS) with the result that his bank would not renew his existing facility.

The borrower had tax arrears and was being pressurised by his bank to refinance.

The Assetline Capital Solution – Assetline Capital advanced $1,350,000 secured by a 1st mortgage on an unencumbered land holding (50% LVR). This advance enabled him to pay out his tax debt and the outgoing lender in full.

Where to next: the borrower sold several company assets, and subsequently refinanced the property, to repay the Assetline Capital loan.

Scenario 8 – Borrower forced to refinance when loan with major lender came to the end of term

The borrower had been a long-standing client of a ‘major’ bank, but his loan had come to the end of term and the bank had taken a strategic view that it wanted to pull back from the sector. The borrower was given a short period of time in which to seek a refinance or sale.

The Assetline Capital Solution – Assetline Capital advanced $1.2m secured by first mortgage over commercial premises, enabling the borrower to repay the loan.

Where to next: the borrower refinanced with another ‘major’ lender after 6 months.