Our client, a pharmacy owner in New South Wales, was struggling with high interest rates and restrictive cross-security arrangements that limited their financial flexibility. Their loans were split between a second-tier lender and a major bank, leading to inefficiencies and unnecessary costs. They also needed funding for a crucial shop refit but lacked the financial structure to access additional capital. Additionally, their investment property was locked up as security, limiting their ability to pursue future opportunities.
Allfin’s support:
We stepped in to restructure their existing pharmacy loans, consolidating debt into a more competitive financial arrangement. By paying out both the second-tier lender and the existing bank, we secured a significantly lower interest rate, saving them approximately $15K per annum in repayments. This refinancing also released their second pharmacy from cross-security, allowing for a potential sale if required. Also, we freed up capital for the much-needed shop fit-out, enhancing the pharmacy’s operational efficiency and customer experience.
Outcome:
After successfully settling the refinance in December, our client not only achieved substantial savings, but also gained the financial freedom to move forward with key business decisions. The released security on their investment property enabled them to proceed with future investment properties, providing further value. By reducing their interest rate, they now have a more sustainable and profitable financial structure. This strategic refinance delivered immediate cost savings while setting them up for long-term financial success.
Interested to know how we can support your needs? Reach out to the Allfin team.