Function Venue Buyers Secure $560k Loan in 10 Days | Go For Broker
Business Loans, Commercial Property, Bank Declined, Private Lending, Case Study
Discover how Go For Broker helped South Australian function venue buyers secure a $560,000 property-backed loan at a genuinely competitive 7.99% per annum, settled in 10 days - the day before Christmas Eve - after their business partner withdrew mid-deal and banks couldn't work around a covenant on the security property fast enough.
A business partner walked away mid-deal, taking the cash with them. A liquor licence, every booked function, and a $200,000 deposit were riding on settling before Christmas. The lender who said yes didn't need to charge a premium to do it - they just needed to be willing to work around a covenant.
There's an assumption that fast, private finance always comes at a steep price. This deal is the counter-example: 7.99% per annum - genuinely competitive - on a facility most of the market wouldn't touch. The obstacle here was never the rate. It was finding a lender willing to solve a structural problem under a hard deadline.
First, Why the Banks said No
Every reason given was really the same reason: the deal no longer looked like the deal the lender had originally assessed.
The funding structure changed mid-stream. When the original business partner withdrew, the cash contribution went with them - and the revised structure needed a new lender look, on a timeline that had also just gotten shorter.
The timeline was extremely tight. With settlement due before Christmas, there was no room for a standard bank process to run its course.
The security carried a covenant. A covenant on the property added a layer of complexity that many lenders simply aren't set up to work around, regardless of how sound the underlying deal is.
Our Thinking
This wasn't a bad business - it was a time-sensitive situation created entirely by someone else's decision to walk away. If the deal didn't settle before Christmas, the liquor licence was at risk, every booked function would need to be cancelled, and the clients stood to lose a $200,000 deposit. What the deal needed wasn't a different price. It needed a lender who could move fast and was willing to structure around the covenant.
The Numbers
Loan Amount: $560,000
Security: Property, with an existing covenant
Rate: 7.99% per annum
Settlement: 10 Days - the day before Christmas Eve
What people miss
The assumption is that a private lender says yes where a bank says no because they charge more for the extra risk. That's not what happened here. The rate on this deal was competitive by any standard - the difference wasn't price, it was capability. Most lenders, private or otherwise, simply aren't set up to assess and structure around a covenant on a tight deadline. The client didn't pay a premium for speed and flexibility; they found one of the few lenders actually equipped to deliver it.
The point isn't that one is better
This isn't a case for "private is always cheaper" any more than it's a case for "private is always expensive." It's a reminder that price and capability are two different things. A bank might well have matched or beaten 7.99% - if it had been able to assess and settle the deal in time. It couldn't. The right lender for this deal wasn't defined by rate; it was defined by who could actually get it done.
The Outcome
$560,000 secured, property-backed facility arranged
Approved and settled in 10 days - the day before Christmas Eve
Final rate of 7.99% per annum
Liquor licence retained and every booked function honoured
Business went on to have a bumper season
Could Your Clients Benefit from a Similar Strategy?
If you're an accountant, adviser, or agency working with a client whose funding has collapsed mid-deal - a partner walking away, a complication in the security, or a deadline no standard process can meet - this case shows what's achievable with the right lender and the right structure. For businesses and SMEs across Australia, a deal falling apart partway through doesn't have to mean losing the deposit, the licence, or the opportunity altogether.
Whether the underlying pressure is a withdrawn funding partner, a covenant or restriction most lenders won't work around, or a hard, calendar-driven deadline, the right private lender - backed by experienced brokers who know which lenders actually have the capability to structure around complexity, not just the appetite to charge more for it - can still get a deal done in time, often at a genuinely competitive rate.
FAQs
What happens if my business finance falls through because a partner pulls out? A broker with access to non-bank and private lenders can often restructure a deal quickly around a new funding partner or additional security, even where the original plan has collapsed partway through.
Can I still get finance if the security property has a covenant on it? Yes - some private lenders will work around covenants that a bank won't, provided the underlying deal and exit are clear, though it typically requires a lender experienced in structuring around that type of restriction.
Is private finance always more expensive than a bank loan? Not necessarily. Rate depends on the specific risk and structure of a deal, not simply which type of lender is involved - in some cases, a private lender with the right expertise can offer a genuinely competitive rate, particularly where the real obstacle is complexity or timing rather than credit risk.
How fast can a property-backed business loan settle before a hard deadline in Australia? Timeframes depend on the lender and complexity, but with clear security and a motivated lender, deals have in some cases settled in around 10 days including around tight, calendar-driven deadlines like a pre-Christmas settlement.
