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La Trobe Financial’s Lease Doc is helping finance brokers find a flexible loan solution for their customers. Senior manager of client partnerships Suzanne Hemsworth provides a case study.
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The scenario
Clients had a successful business that was growing rapidly and to fund some of this expansion they mistakenly used the GST that they collected to fund their growth.
So, when they submitted their tax returns they found they had a substantial tax debt.
After talking to their finance broker, he suggested a Lease Doc product from La Trobe Financial may be a solution. The clients owned a set of offices that were leased to a third party. La Trobe Financial’s Lease Doc product accepts servicing via the third-party lease and proof of payment under the lease terms.
The solution
The clients were able to refinance the current business loan, pay out the tax debt as well as obtain cash out to help them fund the growth of their business. The tax portion was paid as part of the settlement so the clients’ accountant was pleased that they no longer had an outstanding tax debt and now had funds available to assist with future growth.
In summary
All of this was achieved without having to refinance any of the clients’ personal loans and the key requirement was the interest coverage ratio at 1.2 times.
