The CapStack Commercial Finance Value-Add: A Case Study

Read on for a case study around how CapStack went 'above and beyond' for a client in ensuring that a lender would allow a specialised valuation firm for a unique property type.

CapStack has been instrumental in helping clients secure optimal debt solutions for their diverse business needs and property acquisitions.

CapStack: Leveraging a Specialised Valuation Firm for Unique Property Types

Background

CapStack was approached by a valued repeat client looking to acquire a unique property type, specifically a combined caravan park and future residential subdivision development site in what would be considered a popular regional Victorian town.  

After a careful review of our client’s acquisition parameters, requirements, and objectives we narrowed our potential lender list down to a selection we believed would be most receptive to the deal.  After further research and banker discussions around our Information Memorandum we determined that one specific bank really understood this client and the specific acquisition type. 

The client agreed with our recommendation and we began the loan submission process. But there was a catch: the lender’s valuer panel did not include firms that the client believed had adequate expertise in valuing unique properties such as this one. Understanding the critical importance of an accurate property valuation to secure favourable loan terms, the CapStack broker took the initiative to address this challenge.

Approach

The CapStack broker conducted thorough research to identify a valuation firm with significant experience and expertise in valuing this specific property type.  Based on the client’s prior experience in having their other regional properties valued, the CapStack broker zeroed in on the client’s preferred valuation firm. 

The broker proceeded to prepare a comprehensive report outlining the valuation firm’s qualifications, including detailed case studies of similar properties they had successfully valued. The report emphasised the unique aspects of the property that necessitated specialised knowledge, which generalist valuers might lack. The broker built a strong case for using the preferred specialised firm.

Outcome

Presented with the broker’s well-documented report, the bank agreed to consider the specialised valuation firm despite it not being on the banks panel.  It is incredibly rare for a lender to be willing to even consider an off-panel valuer and without the broker’s well-researched and presented report it is highly unlikely that using an ‘off-panel’ valuation firm would have been allowed. 

The detailed justification highlighted the potential for a more accurate and beneficial valuation for all parties involved. As a result, the lender approved the use of the specialised valuer, which led to a more precise valuation of the property. Consequently, the client secured the desired loan on favourable terms, showcasing the broker's value addition through strategic advocacy and expert knowledge, ultimately fostering a successful and optimal lending agreement.

This all comes down to the broker’s experience and willingness to work for the client above and beyond general expectations. This is what we do for our clients. 

What can a CapStack Commercial Finance broker do for you?

An experienced business finance broker such as those at CapStack can help companies in the manufacturing, wholesale trade, and distribution sectors achieve their goals in 2024:

1. Securing Growth Capital: A business finance broker can help companies secure the necessary capital to invest in technology, equipment, and other resources needed to increase production and meet growing demand. This includes facilitating access to loans, lines of credit, and other financing options tailored to the specific needs of the business.

2. Optimizing Cash Flow: Brokers can assist businesses in managing cash flow more effectively by arranging financing solutions like invoice factoring or supply chain financing. These solutions can provide immediate liquidity, allowing companies to manage operational expenses and invest in growth opportunities without cash flow constraints.

3. Navigating Cost Challenges: With rising costs due to energy prices, inflation, and interest rates, a finance broker can help businesses find cost-effective financing solutions. This includes refinancing existing debt at lower interest rates or securing funding with favourable terms that mitigate the impact of these cost pressures.

4. Facilitating Technology and AI Investments: To enhance productivity and competitiveness, businesses need to invest in advanced technologies such as AI and machine learning. A finance broker can identify and arrange funding options that support these strategic investments, ensuring that businesses can implement the latest innovations to improve efficiency and supply chain management.

5. Supporting Sustainability Initiatives: Many businesses are advancing their sustainability efforts, such as adopting renewable energy. A finance broker can provide access to green financing options, including loans and grants specifically designed for sustainability projects. This can help companies reduce their environmental impact while potentially lowering operational costs in the long term.

6. Financing Commercial Property Purchases: For businesses looking to expand their operations or establish new facilities, a finance broker can assist in securing commercial property loans. These brokers can navigate the complex landscape of commercial real estate financing, helping businesses acquire the necessary properties to support their growth and operational needs.

By leveraging the expertise and resources of a business finance broker, companies in the manufacturing, wholesale trade, and distribution sectors can effectively address financial challenges, capitalize on growth opportunities, and achieve their strategic goals in 2024 and beyond.

Looking to expand your property footprint as a business owner, property investor or owner-occupier?

Let's talk. The CapStack Team is ready for you.

Planning a business expansion or acquisition or property acquisition? Let's talk finance. CapStack is ready for you.

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Why CapStack?

When it comes to securing the right financing for your business or commercial property acquisitions and projects in Australia, CapStack is the partner you can trust. With unparalleled expertise, a vast network of lenders, personalised service, and data-backed insights, we are committed to your success. Get in touch with CapStack today and unlock the full potential of your commercial ventures with our expert property finance services.

CapStack can assist with bank, non-bank, or private financing. Start here to connect with us and send through some basic information to get the ball rolling or email us directly. Our lenders are Australia-wide and ready to fund investments acquisitions and development projects. CapStack help's developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing. CapStack works directly with developers and investors who need access to capital markets.