Refinance your cash flow loans into one property-secured loan

It usually starts with one cash flow loan. Then a quiet month leads to a second, and a third to cover the repayments on the first two. Before long, money is leaving the account every single business day, and the business is working for the lenders instead of the other way round.

If you own property, there’s a way out.

How refinancing cash flow loans with property works

1. List every loan. Lender, daily or weekly repayment, and the payout figure.
2. Add anything else that’s urgent. An ATO debt, overdue suppliers, a working capital buffer.
3. One property-secured loan pays it all out. At settlement, each lender is paid directly and the debits stop.
4. You’re left with one loan. Secured by your property, with up to 6 months of no repayments while the interest is added to the loan.

Why it makes such a difference

Stacked cash flow loans drain a business in a way that’s easy to underestimate. Five debits a week, from three lenders, every week, regardless of whether it was a good week or a bad one.

Replacing them with one property-secured loan means:

• No more daily debits draining the account
• Breathing room of up to 6 months with no repayments
• One loan to manage, not three or four
• A path back to a bank, because clean statements over the next few months make a bank refinance much more likely

How much you can borrow

From $20k to $5 million, depending on the equity in your residential or commercial property. No valuation is needed before approval, and funds can be in your account in as little as 24 hours.

What you’ll need

• Payout figures from each cash flow lender
• Photo ID for each property owner
• The property’s latest rates notice and mortgage statement
• A short note on how the new loan will be repaid, such as a refinance to a bank in 6 to 12 months or a property sale

Already declined for a consolidation loan?

Many cash flow lenders won’t consolidate other lenders’ loans, and banks won’t look at a business with several on its statements. A property-secured private loan is decided on the equity, not on the debits. Read cash flow lender said no for more.

When you’re ready, send your enquiry. It takes about 60 seconds, and there’s no credit check to enquire.

A worked example

A Gold Coast fitness studio has three online loans: $90k, $60k and $45k. Between them they take about $2,400 out of the account every business day. The owner also owes $70k to the ATO.

The owner has equity in an investment unit. A single loan of $290k, secured by a second mortgage over the unit, pays out all three lenders and the ATO debt at settlement. From that day the daily debits stop. With no repayments for the first 6 months, the studio rebuilds its cash reserves, and the owner plans to refinance to a bank once a year of clean statements is in hand.

Questions to ask before you consolidate

• Are there early payout fees on my current loans? Ask each lender for a payout figure that includes any fees, so the numbers are complete.
• What else is urgent? Include tax debt and overdue suppliers in the plan, so you only do this once.
• What’s the exit? A bank refinance, a sale or improved trading. Write it down before you enquire.

What happens to the old lenders?

They’re paid directly at settlement. You’ll receive confirmation from each that the loan is closed, and their direct debits should stop. It’s worth cancelling the debit authorities with your bank on the same day, just to be sure.

Getting started

Have your payout figures and property documents ready, then send your enquiry. A lending manager will usually call within 30 minutes in business hours.

Signs it’s time to consolidate

• More than one lender is debiting your account every business day
• You’ve taken a new loan to cover the repayments on an old one
• You’re juggling which payment to let bounce this week
• Your accountant has warned you that the debits are eating your margin
• A bank has said it will only look at you once the online loans are gone

If two or more of those sound familiar, it’s worth a conversation. Consolidating while you still have equity and choices is far easier than waiting until a lender starts default action.

Will consolidating hurt my credit?

There’s no credit check to enquire. Once you decide to proceed, a credit check is part of the process. Paying out several loans and having them closed can make your file look cleaner to a bank down the track.