A second venue fit-out, funded past a default nobody else looked past
A paid-out 2022 lease dispute sat on the file. Every bank they approached stopped reading there.
- Business
- Two-site cafe group
- Amount
- $240,000
- Product
- Business loan
- Funded in
- Next day
The challenge
The owners had signed a lease on a third site and needed $240,000 for the fit-out, with a trading deadline set by the landlord.
Their two existing cafes were turning over $190,000 a month between them. None of that mattered to the four lenders who ran a credit check, found the default and declined without a conversation.
The default had been paid out eighteen months earlier and related to a lease dispute, not a failure to trade.
The solution
We read the file rather than scoring it. Defaults and prior positions are acceptable where the trading story supports them, and here it plainly did.
We funded $240,000 over twelve months on weekly repayments sized against the two operating venues, not against the projected takings of the new one.
Why the deal worked
Weekly repayments matched how hospitality revenue actually arrives, which kept the facility comfortable through the fit-out period when the third site was costing money rather than making it.
Sizing against proven revenue rather than a forecast meant the business could service the loan even if the new venue opened slowly.
The outcome
The third site opened on time. The owners paid the facility out three months early and took the early payout discount.
They came back nine months later for equipment at the same venue.
Been declined over an old default?
Tell us what happened. A human underwriter reads every file.