Case Study A
| Loan Amount | $100,000 |
| Term | 24 months, Principal and Interest |
| Interest Rate | 12.5% |
| Repayments | $4,731 per month |
| Industry | Building and Construction |
| Ownership Structure | Company with 2 directors |
| Purpose | To finance additional working capital required to meet increased demand in the business |
| Financials and Repayments Capacity | Business has operated over 2 years and is currently profitable Gross profit in line with industry benchmarks (at around 20%) Turnover is expected to increase due the working capital financing |
| Management | Directors have over 22 years experience managing the existing business and are in a strong net asset position |
| Security | Charge over the business and personal guarantees recorded on PPSR |
Case Study B
| Loan Amount | $150,000 |
| Term | 36 months, Principal and Interest |
| Interest Rate | 12.5% |
| Repayments | $5,018 per month |
| Industry | Food retailing, restaurant |
| Ownership Structure | Company with 2 directors |
| Purpose | Start a new business in addition to an existing business |
| Financials and Repayments Capacity | Existing business has operated over 2 years and is currently profitable Gross profit in line with industry benchmarks Opportunity to invest in a new business, start up will initially be at a loss but will be supported by the existing business |
| Management | Directors have over 20 years experience managing the existing business and 10 years in the food retailing / restaurant sector |
| Security | Charge over the business and personal guarantees recorded on PPSR |
Case Study C
| Loan Amount | $250,000 |
| Term | 36 months, Principal and Interest |
| Interest Rate | 14% |
| Repayments | $8,544 per month |
| Industry | Food retailing, fast food |
| Ownership Structure | Company with 2 directors |
| Purpose | To help finance the purchase of an existing food franchise business |
| Financials and Repayments Capacity | The business to be purchased has operated over 5 years It is currently profitable and is part of a national franchise Gross profit in line with industry benchmarks Current level of turnover is able to service proposed debt New owners propose to contribute $100,000 plus incidentals towards purchase |
| Management | Directors have 5 years experience managing businesses and are in a strong net asset position |
| Security | Charge over the business and personal guarantees recorded on PPSR |
Case Study D
| Loan Amount | $250,000 |
| Term | 48 months, Principal and Interest |
| Interest Rate | 14.5% |
| Repayments | $6,895 per month |
| Industry | Fitness and sporting industry, gymnasium |
| Ownership Structure | Company with 3 directors |
| Purpose | To help finance the purchase of an existing food franchise business |
| Financials and Repayments Capacity | The franchised business has operated over 3 years and is currently unprofitable, it has been badly run New owners propose to employ a new manger while remaining in their current full time jobs They plan to repay the business loan from their salary cash flows while the gymnasium business is in turnaround mode Serviceability of the business loan is dependent on their employment income Once the business becomes profitable they plan to enter the business |
| Management | Directors are full time employed in professional fields |
| Security | Charge over the business and personal guarantees recorded on PPSR |