Case Studies.
Case Study - Ophthalmology Practice
The problem
Three Ophthalmologists came to us after being let down part way through a finance process. The lease had been signed, the contractor had commenced on site, but the deal was at a stand-still, with millions of dollars on the line. An issue had arisen between the bank and the landlord over security requirements, forcing the doctors into costly non-bank funding to plug the gap.
The clients had 4 weeks to find a solution.
What we identified
Drawing on our background in both property and healthcare, we were able to clearly identify the issue and navigate a work around through an alternative product selection and security structure.
Our structure had a few deliberate design choices that solved the issue at hand and provided additional benefits for our clients.
Using a variable term loan product meant the client was not locked into fixed rate and could benefit from future rate reductions. It also meant the availability of redraw, which was particularly useful as the client was entitled to $900k in cash payments from the landlord as part of their lease agreement that could be parked in the loan to reduce interest costs, but could be accessed at a later date.
To protect against timing slippages during the process, we secured commitment for a temporary overdraft to bridge the gap between approval and settlement, ensuring contractor payments could keep flowing without disruption.
The outcome
We facilitated indicative terms from four major banks within a week. Formal approval and settlement occurred within the following two weeks, which included:
$2.09m term loan for fitout, redrawable
$1.81m term loan for equipment, redrawable
$230k bank guarantee facility, no cash security
$250k overdraft for working capital
Limited personal guarantees, relative to shareholding
A GSI (general security interest) over the new practice
No real estate security
We delivered on our promise in a very short timeframe, getting the project back on track. For three doctors who'd already been through a stressful process, having a clean, workable structure land quickly made an immediate and meaningful difference.
Frequently Asked Questions
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Simply put we are unbiased, we save you time by managing the competitive process between lenders and we ensure the best prospect of securing the capital you need. We have great respect for the relationships clients hold with their lenders, but what happens if you have a material project you require capital for and they say no? By engaging Precision Capital, we can work with your existing lender and get a feel for their appetite early. If any doubt, from a risk management perspective it would be prudent to run a process with 2 or more lenders to ensure a greater chance of success. In our opinion, the opportunity cost of not using a broker is far too high.
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No one is more persistent in getting a deal done than Precision Capital. The difference being, we have the experience to match that persistence. Combined with an expansive network and relationships that have been cultivated over 20 years, no one is better equipped to set clients up for success.
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Yesterday. Over the past 20 years, we have assisted a broad range of clients at various different stages in their lifecycle. Again, in our opinion, the opportunity cost of not engaging a broker is too high. Talk to us so that we can get a sense of where you’re at and what you’re looking to do. We can then give you our honest advice as to what the next steps should look like. At Precision Capital we like to be the architects of your financial success, but we do not do it alone. With an expansive network and relationships with lenders, project & development managers, sales agents, leasing agents, quantity surveyors, valuers, solicitors, accounting firms and more, we will ensure we find the right partner and that your project maintains momentum.
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Absolutely. At Precision Capital we go where the deals take us. We have had clients in QLD, NSW, VIC, SA, WA and TAS. Like everyone, we have the tools available to meet virtually and where necessary we are happy to travel.