According to the broker, the conventional bank lender had always been a problem. Across the entire loan term, the bank had failed to deliver the minimum expected level of customer service. Furthermore, the bank failed to understand the needs and industry-specific challenges of its client. The construction industry is entirely project-driven, and that means it needs significant levels of cash flow to make rapid expenditures.

This construction company had ambitious plans in the property renovation space. Its lender could not supply the vital cash-out loans that the company needed to execute its vision. This caused the company’s broker to recommend severing ties with the bank and instead establishing a relationship with a more flexible, understanding, and client-focused alternative lender.

In the initial engagement, it became clear that the client had a shortfall of $1.2 million. This was required for both loan refinancing and to fund renovation projects. Because it had the potential to stall work and result in lost revenue, the company also needed this matter addressed urgently. In response, Titan Capital swiftly sought a loan enhancement from its credit team, and requested that the financing be secured quickly to meet the client’s immediate needs.

Following the authorisation, additional challenges emerged, as the existing loan with the bank needed to be resolved to register Titan Capital’s mortgage. This was made difficult because the bank continued to drag its feet, and this was impacting both Titan Capital, and the client.

However, Titan Capital remained steadfast in refinancing the client’s loan and fulfilling the necessary funding for renovations. This meant managing the delays and lack of communication imposed by the former lender, and honouring commitments to the intermediary and the client. A lender that was less committed to the client experience would have given up, however, Titan Capital instead took ownership of the problem, and was ultimately able to obtain the increased loan and navigate the complex loan discharge process with the bank, ultimately achieving a positive outcome for the client.

The client company now has favourable terms for their loan, with a 24% Loan-to-Value ratio, a competitive interest rate of 7.05%, and a 12-month settlement period. This is in addition to the peace of mind that the client has that they are now being looked after by a lender that is proactive, works quickly, and is never a barrier to communication.

Most of all, though, the client now has access to a lender that understands their unique needs as a business, as well as the construction sector and its specific challenges and opportunities. Having access to that flexibility and understanding will be critical – and very valuable – moving forward.