A Valuable Partnership

REAL CONNECTIONS
REAL SOLUTIONS

Do any of your clients need more support than you can give them?

Sometimes getting financing can make life difficult. If you know someone who needs a hand in this area, we can help you help them.

The following case studies outline the value of getting together and helping each other out. Everybody wins.

Case study - Solicitor

Ben is a 32 year old PAYG carpenter who would like to pay out legal fees accrued during a messy divorce from his ex-wife as well as consolidate a number of unsecured debts.

Income
  • Ben’s income is $1,800 per week / $93,600 gross per annum (inclusive of overtime)
Assets
  • Existing home with a value of $400k
  • Personal vehicle, also used for business with a value of $25k
  • Tools used for the business with a value of $12k
Liabilities
  • Mortgage with CBA for $150k
  • Car loan with Toyota Finance for $15k
  • Personal loan for $20k
  • Credit card with CBA with a limit of $25k
  • Credit card with Coles with a limit of $20k
  • Credit card with NAB with a limit of $10k
  • Credit card with Westpac with a limit of $10k
  • Credit card with ANZ with a limit of $5k
Credit Impairment (Equifax)
  • ANZ default listing for $5k listed in September 2017, remains unpaid
  • Vodafone default listing for $500 in January 2019, remains unpaid
Summary

Ben divorced from his ex-wife 18mths ago and was left with all debts to pay out and manage including the legal fees accrued during the court battle.

Ben’s mortgage with CBA is up to date but consistently late each month. The limit on his credit cards are over the limit during the month before being brought back below the limit prior to end of month.

THE CONNECTED LOANS SOLUTION:

Ben’s requirement and objective was to pay out the legal fee accrued from the divorce with his ex-wife. Due to the mis-management of the mortgage, credit card and personal loan facilities as well as the default listing on Ben’s credit file (Equifax), our solution was to place Ben with one of our non-conforming lenders.

Solicitor

Types of scenarios

  • Clients going through divorce Clients needing to pay out another party
  • Clients splitting assets due to divorce
  • Amicable separation and need to raise cash from equity to assist in purchase of a property to move in to
  • Clients failed business, chased by creditors, who need to be paid out but client have adverse listing on Equifax

Benefit to your business

  • Client retention
  • Client’s confidence in your business
  • Word of mouth referral by your client who you have helped in time of need
  • Finding a solution for your client who will  become loyal to you and your business
  • Achieve outcomes for your mutual client

Benefit to your client

  • Finding a solution which will allow the client to keep the existing property rather than selling
  • Finding a solution to settle without having to go to court
  • Pay out creditors and avoid further proceedings ie bankruptcy
  • Peace of mind that the issue has been resolved
Case study - Real Estate Agent

Ian and Mel are looking to purchase an investment property, at the same time, selling an existing investment property as they try to capitalise on the current property market.

Ian is 31 years of age, PAYG primary teacher while Mel is a 32 year old self-employed painter. They have a 2 year old dependant.

Income
  • Ian is employed by the local primary school with an income of $80k gross per annum
  • Mel is taking home $30k per annum after expenses from her painting business
Assets
  • Existing owner-occupied property (unencumbered)
  • Existing investment property # 1 with a value of $550k
  • Existing investment property # 2 (being sold) with a value of $320k Liabilities Mortgage with ANZ # 1 for $50k Mortgage with ANZ # 2 (being sold) for $100k
Credit Impairment (Equifax)
  • Ian has a Westpac default listing for $2,300 listed in January 2019 which is showing paid on his credit file
  • Mel’s credit file is clean
Summary

While in the process of selling one of their existing investment properties, Ian and Mel put down a deposit to purchase another investment property.

Unfortunately, during assessment of the new investment mortgage with ANZ, a default listing appeared on Ian’s credit file. Because of this, Ian and Mel are now having difficulty finding a lender who will fund the purchase of their investment property which means they may lose the deposit already paid.

THE CONNECTED LOANS SOLUTION:

Connected Loans have over 25 lenders on the panel, five of which specialise in situations like this. We will identify whether someone is credit impaired during initial assessment and will act swiftly, finding a lender to ensure Ian and Mel do not lose the deposit they have already paid.

Real Estate Agent

Types of scenarios

  • Clients who have paid a deposit with no approved finance
  • Clients who are successful at auction, but does not have enough funds to complete the purchase
  • Clients that have purchased a property but has not sold existing property (Bridging Loan)
  • Clients that have issues with credit file (Equifax) and cannot get a loan from the bank to complete the purchase

Benefit to your business

  • Client retention
  • Business can proceed with the purchase or sale transaction
  • Increase database / portfolio
  • More sales
  • Maintain connection with past clients
  • Opportunity to help clients
  • Achieve outcomes for your mutual client
  • Cross over marketing promotions

Benefit to your client

  • Proceed with the purchase or refinance of property
  • Grow property portfolio
  • Achieve the dream of owning a home
  • Have a positive outcome
Case study - Accountant

Henry is a 35 year old self-employed architect, looking to refinance his home to access equity and release cash to complete non-structural renovations, converting his indoor balcony into a home office.

Income
  • Henry’s gross turnover is $125k per annum
Assets
  • Existing home with a value of $900k
  • Personal vehicle valued at $5k
  • Drawing tools valued at $10k

Liabilities

  • Mortgage with NAB for $150k
  • Credit card with NAB with a limit of $5k
  • Credit Impairment (Equifax)
  • Henry’s credit file is clean
Summary

Henry has been self-employed for quite some time, managing his own paperwork until recently when he realised his paperwork was getting too much.

Henry then reached out to his old accountant who has since prepared his tax returns which are now ready for lodgement.

Unfortunately, while preparing the returns, Henry’s accountant has identified an ATO debt of $32k accrued over the last few years.

Henry is now looking to pay out his outstanding ATO debt of $32k, as well as accessing the equity in his home so he can complete non-structural renovations at home which is approximately $45k.

THE CONNECTED LOANS SOLUTION

Connected Loans is accredited with a number of non-bank lenders and where paying out ATO debts is a norm. Not only will Henry be able to access equity in his home to pay out the ATO debt, he will also be able to access funds to pay for his non-structural home renovations.

Accountant

Types of scenarios

  • Clients with ATO debts
  • Clients who cannot maintain their existing repayments
  • Clients who mismanage multiple accounts ie missing payments because they forget to pay

Benefit to your business

  • Client retention
  • Client’s confidence in your business
  • Word of mouth referral by your client who you have helped in time of need
  • Finding a solution for your client who will  become loyal to you and your business
  • Achieve outcomes for your mutual client

Benefit to your client

  • Clients can pay out ATO debts (high interest bearing account)
  • Clients get their finances into a manageable state
  • Increase client’s cash flow by consolidating multitude of debts
Case study - Private Lender

Nancy is a self-employed wedding dress maker, looking to bring her mortgage facility back up to date, as well as accessing cash from equity to replace a vehicle that was recently stolen.

Nancy is 36 years of age, single parent with one dependant.

Income
  • Nancy’s gross turnover of $111k per annum
  • Child maintenance of $433 per month
Assets
  • Existing home with a value of $720k
Liabilities
  • Mortgage with Westpac for $400k (currently two months in arrears)
  • Overdraft with Westpac for $50k
  • Credit Impairment (Equifax)
  • Telco default for $680 listed < 12 months ago, paid
Summary

Nancy is a single parent with one dependant, self-employed wedding dress maker.

Nancy measures her clients in the convenience of their own home, a service that is unique in her industry.

Unfortunately, during the busiest period of the year, Nancy’s car was stolen which meant Nancy was unable to service her clients by driving to their home and the business suffered. The mortgage repayment was not made for two months and is now currently in arrears.

Nancy would like to bring her mortgage back up to date and access equity in her home to assist with a purchase of a second hand vehicle but unfortunately, no lender is willing to assist due to level of arrears and recent listing on Nancy’s credit file.

THE CONNECTED LOANS SOLUTION

Connected Loans have a number of private lenders on the panel who will place a second mortgage on the security, providing Nancy with funds to bring the mortgage facility back up to date as well as access to cash to purchase a second hand vehicle to allow Nancy to bring her services to her clients.

Facilities with private lenders generally have terms ie six, 12 or 18 months. After this period, the facility can be refinanced with a non-bank lender who consider credit files with telco defaults.

Private Lender

Types of scenarios

  • Clients term loan is expiring and needs a lender that would refinance a private facility
  • Clients who still have adverse listing on Equifax (five years until listing falls off)
  • Clients who needed to settle quickly on a purchase while they wait to sell their existing property, property now sold but need a lender to refinance to

Benefit to your business

  • Finding a new lender to take on client’s facility
  • Client’s confidence in your business
  • Word of mouth referral by your client who you have helped in time of need
  • Finding a solution for your client who will  become loyal to you and your business
  • Achieve outcomes for your mutual client

Benefit to your client

  • Finding a solution which will allow client to keep the existing property rather than selling
  • Finding a solution to settle without having to go to court
  • Pay out creditors and avoid further proceedings ie bankruptcy
  • Peace of mind that the issue has been resolved
  • Clients are able to refinance to a lower interest loan (increase cash flow)

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email us at info@connectedloans.com.au
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