At Formation Finance, we’re all about providing tailored and straightforward finance solutions.

We take a holistic view of each case, avoiding unnecessary complexities and serviceability assessments. By doing so, we keep costs low for our clients while offering competitive rates and terms.

Recently, we had the pleasure of assisting a community-owned not-for-profit organisation facing short-term cash flow challenges. They owned an unencumbered investment property, surplus to their requirements, and required a swift equity release to cover operational expenses. The plan? Use the property sale to repay the loan.

To make things easy for our not-for-profit client, we provided a loan secured solely by a Registered First Mortgage. No need to complicate matters with company security or director guarantees. After all, this loan was for a charitable organization with volunteer board members, so we took a practical approach and provided a non-recourse loan.

Our solution? A simple six-month loan with prepaid interest, no minimum term, no early repayment penalties, no guarantees, and no security over the company – all at a fixed rate (8.xx%).

Just one month into the loan, the property sold at auction, and our client’s cash flow challenges were resolved. Simple problems deserve simple solutions.

“Simplicity is the ultimate sophistication”. – Leonardo da Vinci