Quirindi, NSW – 11.01% p.a. ATO Debt Repayment

INVESTMENT OVERVIEW

This loan has now been repaid. It originally had terms of 12 months, however, was repaid after 13.5 months which meant we collected bonus interest and delivered a 12.3% p.a. return to our investors. A great result, particularly for a loan secured by a first mortgage.

When the Sponsors applied for funding they had a home loan, business loan and outstanding ATO debt. This purpose of the loan provided  was a refinance and new loan. The Sponsors lost their child to cancer in 2017 after an extended period of illness. During the grieving process the business was somewhat neglected and the ATO debt accumulated. The ATO debt payment was under arrangement but the Sponsor wished to clear this in full.

They weren't able to obtain bank finance due to the outstanding ATO debt.

The security property offered was the Sponsor's principle place of residence and their owner occupied commercial property from which they operate a smash repairs business.

The Sponsor's exit strategy was to clear the ATO debt and prepare their financials for FYE 2019 then refinance the debt to a bank.

• The loan was secured by a First Mortgage
• General Security Agreement over Corporate Sponsor + PPSR Charge
• Two Personal Guarantees from Individual Sponsors