📊 Deal Snapshot
| Loan Amount | $2,445,000 |
| LVR | 74.09% LVR |
| Asset Type | Residential House & the Neighbouring Vacant Land |
| Security | First Mortgage |
| Location | Hawkesbury Region, NSW |
| Interest Rate | 9.85% p.a. (+0.15% monthly management fee) |
| Loan Term | 12 Months |
| Conditional Approval | 3 Business Days |
| Exit Strategy | Refinance |
The Client
The client is a regional company operating in the agricultural machinery manufacturing sector, based in the Hawkesbury Region, NSW.
The Problem
The client secured a major contract to manufacture and supply equipment, requiring an immediate cash injection of $2,445,000 in working capital to purchase raw materials and secure production inventory.
To fund this expansion, they sought to release equity from a valuable holding of a residential house and the neighbouring vacant land. However, traditional lenders rejected the application due to two primary issues:
- Unacceptable Security: Mainstream banks heavily discount or completely reject the vacant land, rarely lending above a 50–60% LVR. Meanwhile, the residential house is not sufficient to release the capital required.
- Credit Impairment: The company’s credit file contained instances of small arrears, which triggered automatic rejections from standard bank credit scoring algorithms.
The Solution
Instead of letting an automated credit scoring system kill the deal, our BDM, Emma Harbort, worked closely with the broker to understand the actual story behind the business.
Recognising the strength of the manufacturing business and the solid value of the land holdings, Emma and the Rhodes Finance team structured a customized private lending solution:
- Equity Release: We approved a $2,445,000 loan at a 74.09% LVR against the residential house and the neighbouring vacant land with first mortgage security, providing the maximum leverage the client needed.
- Flexible Credit Policy: We accepted the client’s minor credit arrears, structuring the loan at 9.85% p.a. (plus a 0.15% monthly management fee).
- Speed: We issued a Conditional Approval in just 3 business days, giving the broker and client rapid certainty.
The Outcome
While borrower-side documentation delays extended the final settlement window, Emma was there every step of the way. She worked hand-in-hand with the broker, actively answering every phone call, replying to emails instantly, and resolving issues in real time. Once the outstanding borrower requirements were met, our dedicated settlement team managed to settle the loan smoothly and efficiently within just 3 business days.
The client now has a stable runway to run their operations, with a structured exit plan to refinance once their credit history is fully rehabilitated. The broker provided highly positive feedback and has committed to sending more commercial scenarios to RFS.
