When our client—a self-employed nurse and healthcare worker—hit retirement age, she noticed her lender slowly hiking up the interest rate on her property. It was time to find a better deal.
After contacting her lender to explore options for refinancing, she learned her interest rate was actually set to rise again, and extending her loan term wasn’t an option either. That’s when she reached out to us.
Unfortunately, for business owners within the ‘retirement’ age bracket, successfully applying for finance is notoriously difficult, as is finding a lender who will offer a fair rate and decent term.
Lenders have to consider the risk of default when deciding on eligibility for finance and the rate they’ll charge. But for most of us, isn’t age just a number?
Business owners of retirement age who know their company is solid and are confident they’ll be able to meet their repayment commitments as well as anyone else, just need a way to prove the facts.
After learning more about our client’s situation, our lending expert, Nic, clearly articulated her exit strategy to lenders, strengthening her case for finance. According to Nic:
The biggest challenge was mitigating the risk lenders would likely find concerning. We had to correctly articulate the fact that there was a clear exit strategy in place, and explain why our client was a good candidate for finance regardless of her age.
At Valiant, we understand lending isn’t black and white. Our client’s suitability for finance should be based on her creditworthiness, the health of her business and the security she has in place. Not her age.
“Our client had significant savings and a number of assets under her belt that she could use as security,” Nic explained. “So it was really a matter of communicating this to the right lender, and having them understand that our client really was in a good position to borrow.”
Nic focused his efforts on making sure our client’s new lender, Liberty, saw her assets and exit strategy as an adequate means to mitigating age as a risk factor.
Eventually, Liberty offered funding at a much better rate than our client had been paying. They also extended her loan term, making repayments more manageable and affordable.
As our client is from Victoria, Nic also had to work with stringent approval criteria set by lenders due to COVID-19.
“With COVID-19, it’s generally harder to get everything approved at the moment. It’s become much more difficult to send documentation across to lenders and get applications over the line due to the uncertainty the pandemic has created.”
Nonetheless, he had the application approved and funds settled within the standard timeframe for a traditional business loan.
Affordable repayments and a saving of $12,389 per annum
Our client was able to refinance her property with a much lower interest rate (4.21% down from 6.5%) and an extended loan term, saving her $12,389 in interest per year.
With more manageable repayments and an affordable interest rate, our client has been able to increase cash flow within her business. She was grateful to Nic and really happy with the outcome.
This is just one example of how we’ve helped a customer cut through the red tape and get to yes, even if they aren’t the ideal borrower on paper.
Age shouldn’t be the difference between a yes and a no, and by leveraging our knowledge and relationships with lenders we can provide fairer outcomes for our customers.
If you’ve had trouble securing finance—or affordable finance—in the past, it can be frustrating and disheartening.
But there is a way to find fair financing that takes your whole situation into account, not just a figure that lenders see at first glance (like your age or turnover).
Speak to a Valiant lending expert today and finally get the outcome you deserve.
Nicholas is a commercial lending specialist here at Valiant, working with Australian business owners to secure the right funding for their property. He’s passionate about helping customers in unique circumstances find the perfect solution for their goals.
Related Posts
Exciting growth ahead for Skein Sisters, with 100K approved in one week. Click to find out how we helped Sydney’s destination yarn store.
Despite credit issues on her account, this Aussie hair salon owner settled an unsecured loan of $35K in just one week. Here’s how.
How we helped our client increase cash flow within her business, lower her interest rate and extend her loan term despite being knocked back due to her age.
The Butter Chicken Shop faced huge challenges thanks to Covid, but with a term loan of 10k, we had the solution. Read the full story.
With stock drying up on supermarket shelves as a result of Covid, our client knew he needed to grow the business quickly. Here's how he did just that.
After securing 60k with us, Wayne is back on the road helping Australia beat Corona. Read his story.
Don’t let a temporary cash flow issue get in the way of your business’ long-term success. Click to find out how we helped a new gaming arcade take off…
In the lead up to International Women’s Day, we reflected on our favourite success stories from female entrepreneurs. Here’s a glimpse into our world.
Valiant Finance's commercial loan team brought Excel Physiotherapy back on track with a debt consolidation loan saving them time and money on repayments.
We helped Retreat Bar with an equipment finance solution that got them on-the-road with a new vehicle to reach new customers.
Don't let a cash-flow gap get in the way of a growth opportunity.
Valiant helped Australian-owned catering business, Order-In Pty Ltd, find finance to buy a new van and grow their customer base.
Finding the right business loan doesn’t have to be difficult. See how we helped Mark’s Wholesale Steel Business find the right business loan for them.
Here's what we did for a small business owner who needed to repair and register one of their removal trucks.
Here's how our Product Specialist, Graeme, helped a small business owner purchase a drone.
The path from personal trainer to business owner can be both challenging and rewarding. Check out our top tips for making the transition.