Solutions
Problem? We have a Solution
The Future Financial Solution Showcase caters for loans outside the normal lending parameters.
From ABN issues to Adverse Credit History to Commercial Lending and beyond.
The Solution Products provide flexibility for borrowers by offering finance avenues that may not normally be available. This is further enhanced with the option of Short or Long Term Lending.
Below is an example of an application recently recieved by Future Financial:-
Client required an 80% loan on loan amount of $550,000 but had only been self employed for 11mths with ABN registered for 1mth and GST yet to be registered.
The client had some cash business and also future earnings were secured with new contracts which had just started where the majority of income was to be earned and which would require GST to be registered, as earnings were to be well in excess of $75,000.
However at present there was only a non conforming product available at approx 12.30% and max of only 75% with risk fee and break costs for the first 3 years.
Therefore to avoid a risk fee, higher rate and break costs we placed the loan with one of our short term lenders for a term of 24mths – sufficient for the ABN to be registered for 2 years for prime long term lending.
Applicant will have NIL break costs when the loan is discharged at the end of the 24mth term.
If the client was to take a non conforming long term loan and discharge after 24mths to go back to prime lending with a 2yr ABN he would have paid approx $24,725 more when taking repayments, break costs & set up costs into account on comparison to the short term lending.
For more information call your RM Direct today or our office on 1300 ONWARD (1300 669273)
