Johnny’s Butchery - Business Expansion
Background:
John is the owner of a butcher shop operating under an ABN for the past 3 years. John saw potential in an investment opportunity and wants to expand his operations. With a monthly turnover/monthly sales (MTO) of $80,000, John approached Emperor Lending for an unsecured loan of $110,000. Note* John is not a property owner.
Next steps:
Emperor Lending requested for the following documents to commence assessment:
Emperor Lending evaluated and examined John's financial situation and found that John could potentially service a loan for $150,000. We brought forward Ondeck, Prospa, and Lumi as options for lenders.
John chose to proceed the application with Ondeck and received an approval after 4 hours of submission. Ondeck offered John a higher unsecured loan amount of $150,000 based on his business's performance and potential as predicted by Emperor Lending.
Settlement:
John decided to not borrow the entire $150,000. John chose to borrow an extra $10,000 for unforeseen circumstances bringing the total loan amount to $120,000.
Steven is interested in purchasing a house and land package valued at $2,300,000.
Land contract = $1,200,000.
Build contract = $1,100,000.
Steven intends to secure an 80% Loan-to-Value Ratio (LVR) for financing. (This can differ case by case.)
Here's how the application unfolded:
Land Component Finance:
Steven secured finance for 80% of the land contract, which amounts to $960,000. To complete the land settlement, he was required to contribute a 20% deposit, totalling $240,000.
Additionally, Steven and Emperor Lending factored in extra expenses such as stamp duty, lender fees, and government or council fees. (We allow 5% buffer for safety (case by case).)
Build Component Finance:
Steven prompted for the full 20% contribution to be paid at land settlement resulting in 100% of the construction cost being borrowed.
Note:
Alternatively, if the same 20% contribution is applied to the build component, the lender will require the client to contribute their funds before construction begins.
Settlement:
Steven chose NAB for his loan.
Emperor Lending considered NAB, ANZ, and Bankwest for this scenario.
Daniel and Sarah, a married couple in Sydney, NSW, approached Emperor Lending for a home loan after years of renting. With limited knowledge of the process and only $80k saved for a deposit, they needed guidance on their options and affordability.
Engagement:
Decision Making:
Property Search:
Settlement:
Summary:
Both Daniel and Sarah's journey with Emperor Lending enabled them to navigate the complexities of home buying, securing their dream home within their budget. Through strategic planning and expert guidance, they achieved homeownership using the NSW first home buyers assistance scheme saving Daniel and Sarah close to $24,000, whilst optimising their financial position.
Background:
Abby, a self-employed carpenter with over two years of trading experience, expressed interest in purchasing a 2020 Hilux SR5 dual cab. With Abby not being a home owner and some concern stemming from a past default with Vodafone, he was referred by an existing client for some finance assistance.
Engagement:
Given Abby's unique circumstances, we streamlined the process, requiring only 3 months of business statements and stated income instead of extensive documentation typically needed. However, Abby encountered a setback due to a less-than-ideal credit score, necessitating a shift to a different lender.
Settlement and summary:
Through persuasive efforts by Emperor Lending and building a strong case for Abby, the lender "latitude" offered a $42,000 loan with no deposit necessary, enabling him to acquire the vehicle he desired. Our commitment to finding solutions tailored to each client's needs ensures successful outcomes even in challenging situations.
Background:
Joe, a joinery business owner, sought financing to purchase a TMC-1500 machine crucial for his operations. Emperor Lending offered Joe to step in and assist him offering our negotiation services due to his limited proficiency in English and confidence. Joe agreed with the assistance and commenced our work!
Engagement:
With our expertise, we negotiated the loan down from $21,000 to $18,200, resulting in substantial savings of $2,800 for Joe. With our great efforts and responsibility, our commission which is 20% of the saved capital, is not due upfront! This also provides Joe with financial flexibility. ($2,800 x 20% = $560)
Settlement and summary:
Ultimately, Joe secured financing through Shift for $18500 (Establishment fee = $300), enabling him to acquire the necessary machinery for his business while optimising his financial position. With our great efforts and responsibility, we saved Joe $2,500 not taking into account the interest he saved on that. Our remuneration which is 20% of the saved capital, is not due upfront and provides Joe flexibility. ($2,500 x 20% = $500).
All names used in the case studies have been changed for privacy reasons.