Banks offered 40%. We delivered 55%.
A caravan park acquisition the majors had sat on for six months. We split the security: a private lender on the freehold, a cashflow specialist on the goodwill, and a renegotiated purchase price on the way through. $537,000, settled as one deal.
The challenge.
The buyer had a caravan park under contract, freehold and leasehold together, and six months of bank knock-backs to show for it. The finance clause had been extended twice, and the vendor's patience was close to done. The asset was the problem. A caravan park is half property, half business, and bank credit doesn't like halves. Assessed as one deal, the best the majors would offer was 40% of the purchase. The buyer didn't have the other 60% in cash, and no amount of resubmitting was going to change the answer.
How we structured it.
So we stopped asking one lender to swallow both halves. The freehold went to a private lender on our panel as a first mortgage at 60% of valuation. The goodwill went to a cashflow specialist that lends against the business itself. Each lender took the security it understood. Pulling the deal apart did something else: it put the purchase price back on the table. The goodwill component was renegotiated down by almost half before settlement. Different lenders. Different security. One settlement.
The outcome.
It settled at $537,000 over a two-year term. That's 55% of the purchase against the 40% ceiling the banks had held for six months, and the buyer paid materially less for the business than the contract they'd been trying to fund. The park trades under its new owner now. The two-year term is the runway: bank two years of trading history, then take the refinance back to the banks on their own terms.
Services behind this deal.
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