23 Jul Funding Success Stories

We feel it’s important and exciting to be able to motivate and educate you about what RSP can do for you, particularly in the current COVID climate.

We hope you will draw inspiration from some of our client’s success, where the changing banking environment is benefiting those ready to put their toe in the water!

Funding Success Stories

Client Scenario 1 (Settlement in process)

Loan: (Limit)                                   $2,800,000

Enterprise:                                      Agri & Residential investments

Type:                                               Tier 1 banking, refinance

Location:                                         Central West NSW

Bankability:                                    Strong

Client’s Position

The client was seeking more competitive rates on both farm and home loan investments.

RSP’s Solution

• New bank, new manager, new facilities
• Old interest rate (yield across all facilities) 4.07%
• New interest rate (yield across all facilities) 2.36%
• (Agri 1.88%, residential investments 3.27%)
• Annual savings (calculated on current debt): $37,921
• Savings over a 5-year period: $174,860
• Year 1 Return on investment (after establishment fees): 463%
• 5 – year return on investment (margin maintained): 3497%
• Improvement in calibre of manager and service

Client Scenario 2

Loan: (Limit)                                  $2,650,000

Enterprise:                                      Residential sub-division

Type:                                                Specialised Lending

Location:                                         Regional NSW

Bankability:                                    Satisfactory

Client’s Position

The client was seeking immediate funding for 100% of the development costs to commence the development of the residential sub-division without any pre-sales.

RSP’s Solution

Specialised lender that understood the strength of the sponsor and overall feasibility of the project being undertaken

• Old interest rate: n/a
• New interest rate: 8.95%
• Establishment Fee: Yes
• Line Fee: 2.0%
• Approval timeline: 6 weeks
• Term of Loan (extension allowable): 12 months