As we all know, ongoing global supply chain issues have hit the Australian building and construction industries particularly hard. This means the construction work the unit needed was taking a little bit longer to finish and completion dates soon became just educated guesses. The renovations, repairs etc on Steve’s unit ended up taking about six months to complete but finally, everything was done and ready to go.

At last, the contract was due to settle and the unit would be Steve’s!

But there was a hitch – a big one

The big bank financing the loan weren’t going to be ready to settle in time.

Just to recap, this was a $2.7m property with a $270k deposit already paid. Steve had already been given one extension and now, because his bank wasn’t ready to settle by December 23, he would lose his deposit.

But there was some good news. Due to difficulties surrounding the titles and other crucial paperwork – the unit was built in the 90s, it was a leasehold and titles were different back then – an extra weeks extension had been granted. But Steve had to act fast if he was to get everything across the line within a few days and save himself from losing $770, 000.

So he called Strive Financial.

The solution

Luckily, this is exactly the kind of fast finance Strive Financial does and does well. When everyone else is shaking their head and saying ‘no, it can’t be done by the deadline’, the team from Strive are walking in, rolling up their sleeves and getting to work making the (seemingly) impossible possible.

You see, if Steve wasn’t able to arrange some fast finance, the unit would’ve been re-sold and the sellers would simply keep the deposit. We all know that’s how it works.

But that’s not the real sting in this story.

A local real estate agent advised, once the property had a Certificate of Occupancy, and with all the renovations now complete, the unit was now worth a cool $3.2m.

So Steve wasn’t looking at just a $270,000 loss, he stood to lose an extra $500,000 on the property’s new value. This brings Steve’s potential loss to a grand total of $770,000.

Some number crunching

So just how did Steve and the Strive team do it?

Strive Financial wrote a loan of $1.9m, at two percent interest per month for three months. This works out to be about $38,000 a month, for a total of $114,000. To be completely transparent, let’s allow for other associated costs like document fees etc and round it up to $120,000.

To put that all into perspective, it cost the client around $120,000 to save $770,000, so a net loss of $650,000. Now, even if you remove the increased value of the property of $500,000, that’s still a net loss of $150,000.

Once his bank was able to organise their finance, Strive was repaid and it was all done in just under 90 days. By taking out a short-term loan with Strive Financial, Steve saved all that money and he now owns a lovely new unit on a stunning tropical island.

This is the very definition of a win/win situation.

When we talk about short-term loans saving the day, it can sometimes seem like a rather abstract idea. But the people involved are very real so, if you have a client in a tight financial spot, a short-term loan could be the solution to everyone’s problem.