The Opportunity:

A Sydney property developer had an opportunity to purchase a block of land, but it was coming up to a public holiday and most lenders were closing for Christmas. Normally, a developer would need to jump through credit and legal hoops to get funding for a new property across the line, due to the absence of building plans and permits at the time of purchasing the property. But this developer didn’t have time for that; he needed the funds in time for Christmas.

The Solution:

He called Bizcap at 9am and by 2pm had the required $800,000 in his bank account, through Bizcap's Bridging Finance. Without those funds, the developer would have missed out on purchasing the property.

The Perks:

The developer was able to settle the loan less than three months later, after he refinanced another loan, which freed up capital to pay off his Bizcap facility. Because he repaid his Bizcap loan early (the original loan term was almost 7 months), he gained an early payment discount, which saved him tens of thousands of dollars on the cost of funds.

“Bizcap is quick and convenient. They understand what I need.”

So says Michael M., the founder and director of the development business. “I’ve got a good relationship with (Senior Loan Specialist) Bruno, so whenever I need cash, I give him a call.”

He also pointed to how easy it is to apply for Bizcap loans, saying the minimal paperwork at the application stage “is really good”.

The Bizcap Difference:

When assessing the developer’s loan application, our credit team looked at qualitative and quantitative factors, including the business opportunity at hand, the business’s cash flow, its credit score, the security that was provided (being a bridging loan we took a caveat over a different property) as well as other factors.

As an added perk, Bizcap gave most of our clients, including this business, a two-week repayment holiday over Christmas. If seizing the opportunity to purchase the property wasn’t enough, that surely added some holiday cheer!