CASE STUDIES
How we have helped our clients
Competition for business generates five different solutions
The situation
This applicant initially had discussions with a bank about funding to acquire a book of clients.
The bank outlined what it would offer, but the applicant was undecided. How would this compare with other options that might be available?
The Resurg Capital Finance solution
Resurg Capital Finance was approached to find other options. We were able to source and individually negotiate five different solutions, which were presented to the applicant in a comparative document. The solutions presented included the bank that the applicant had originally approached.
Each of the solutions had several key variables, including interest-only term, maximum loan term, interest rates, ongoing and initial fees and charges, security, and reporting covenants.
The result
The applicant chose a solution that included these negotiated terms:
- A minimum interest-only period of three years. This represented an additional two-to-three years over that being offered by the other lenders.
- A maximum initial loan amount that ranged from $125,000 to $225,000 more than the other lenders.
- A comparable interest rate.
- No ongoing fees.
- No valuation fees.
The applicant was satisfied that several options had been tested and that the solution chosen best suited their specific business and personal needs. All this was achieved without them having to exert the vast amounts of time and energy required to deal with the individual lenders directly.
An application was submitted to the chosen lender and approved as per the indicative terms provided.
Testing of market secures better deal from original lender
The situation
The applicant had an existing finance facility with a bank, but was finding the bank’s service to be poor and unresponsive.
When the applicant required additional funding to complete the purchase of a financial planning practice, he approached Resurg Capital Finance to find other solutions.
The Resurg Capital Finance solution
We started negotiations for the applicant with other lenders and with their existing bank and presented a comparative analysis of the results.
The discussions included bringing the issues to the attention of senior management within the existing bank, which enabled us to negotiate reduced interest and fees.
With our involvement, the existing bank presented a far more competitive offering in pricing and service.
The result
The applicant ultimately decided to proceed with the existing bank. The additional funding was approved and settled.
By putting the business to tender, the applicant had the confidence of knowing that the market had been tested and that it had resulted in preferential terms from the existing bank.
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