Second Mortgage

Many businesses or related party business in Australia own the premises the business trades from. A fast and effective way of raising funds will be through a Second Mortgage.

A second Mortgage will attract a much higher interest rate compared to that of a first mortgage with a traditional lender. Blackbird Capital offers Second Mortgages against company property. If the company does not own property but the Director provides a personal guarantee for the business loan and offers security by way of a Second Mortgage, Blackbird Capital will consider lending so long as the borrower can show serviceability for the loan.

In certain circumstances and depending on the nature of the loan, we may be able to offer a Capitalized Interest loan meaning all interest and costs are payable upon the due date of the loan.

An example is where a small builder (company) requires funds to finish a project for a developer. The builder has already been placed on stop credit with his suppliers and the suppliers are threatening to walk off the job site. A business loan is required to pay the builders creditors however the company does not have any assets to lend against however the director has a property with a 50% LVR.

Within 48 Hours a business loan was in place with a Second Mortgage and the funds were directed to the creditors to keep the project trading. The risk if the funds were not raised, is the developer would terminate the building contract and the Liquidated damages would have signed the end of this company. The loan was paid upon completion of the building project 10 weeks later.