The lending barrier
The client owned his retail premises. His business financial statements had not improved since the purchase, and the borrowing did not fit standard bank servicing policy, despite his ability to manage the repayments in practice.
How we approached it
We arranged a refinance through a suitable lending pathway. The new facility offered lower pricing, and the valuation fee was waived. The outcome depended on finding an assessment that suited the circumstances; repayment experience alone would not establish eligibility with every lender.
The outcome
The premises loan was refinanced on improved pricing, with the valuation fee waived.
What this means for borrowers
For a commercial refinance, assess policy fit alongside pricing and transaction costs. A lower rate should be considered with fees, the repayment period and the proposed loan terms. A business that does not fit one bank’s servicing model may have another pathway, subject to assessment.
One client’s experience does not guarantee a similar result. Eligibility, documentation, pricing and terms depend on the lender and the individual application.