Using commercial property equity to support business cashflow

2 min read

Using commercial property equity to support business cashflow

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For established business owners, pressure does not always come from a lack of opportunity. Sometimes it comes from legacy debt, timing, or a capital structure that no longer supports the way the business needs to operate.

In this case, a Wellington-based business owner was looking to refinance a commercial property and release equity to consolidate business debt that had built up over time.

The business was well established, but its existing debt position was placing pressure on cashflow and limiting its ability to focus on future income opportunities.

Finbase was introduced through the borrower’s adviser, who was looking for a practical short-term lending solution that could help the client simplify their position and move forward.

The transaction was secured by commercial property in Wellington. Finbase assessed the available equity, the borrower’s position, and the proposed exit strategy, then structured a circa $500,000 loan over a 12-month term.

The facility enabled the borrower to refinance existing property debt and consolidate business obligations into a more manageable position. Settlement was completed within three weeks.

The agreed exit strategy is a refinance to a main bank once updated financials are completed.

This case study reflects the role specialist lending can provide short-term funding solutions that give the borrowers room to consolidate debt, improve cashflow, and prepare for a future bank refinance.