Fico Finance

Funding Structures. Terms. Deal Breakdowns.

This deal came to us from the client's existing lender. The business needed urgent working capital while it sold off a non-performing division, and the first mortgage security didn't stretch far enough on its own. Rather than let the deal stall, their funder brought us in. We approved funding with first and second mortgage securities and issued a conditional offer the same day the application arrived. Some refinances replace an existing lender, some bring another one to the table. If you've got a file that needs speed, flexibility, or a lender willing to work with what's in place, call Fico Finance.

Long-standing advisor relationships are built on more than a competitive offer. They also depend on open conversations and support that helps clients feel confident throughout the process. Brent Lattimore from Apex Advice Group has worked with Fico Finance for several years. We value his feedback and his business. Thanks, Brent. Have a deal you’d like to talk about or a structure you need feedback on? Talk to Bruce Yelverton or Alicia Vickery today.

Self-funding a project takes discipline and can tie up every dollar you have. This Canterbury developer had cash flowed a multi-unit residential spec build most of the way through, and a timing mismatch left the project short of the finish line. They needed two things at once: an equity release against WIP and progress payments to finish the job. We funded both, providing a $2.5m capped facility so there was nothing to service while construction ran through to completion. Experience and a great project weren't the issue; timing was. If you’re working on a deal like this, contact Bruce Yelverton at Fico to see what your options look like.

Funding 90% of a commercial property’s purchase price isn’t an everyday ask. A social housing developer needed to: • Settle a commercial site • Obtain resource and building consents • Finalise lease agreements • Secure development finance With equity already committed to project costs and other developments, the transaction needed additional security support. We funded 90% of the contract price, supported by second mortgages over two unrelated properties behind main bank debt. Does your client's deal need a tailored security structure? Get in touch with Bruce Yelverton or Alicia Vickery to talk it through.

The interest rate matters. So do the fees, conditions and assumptions sitting behind it. Before your client signs a lender’s offer, ask these five questions. 1. What’s the full cost? Check establishment, line, non-utilisation, legal and early repayment fees - as well as any equity participation or profit-sharing arrangements. 2. Can the pricing change? What could trigger a change before or after drawdown, and when do the terms become firm? 3. What still needs to happen before funds are available? Is the loan fully approved? What due diligence or other conditions remain outstanding? 4. What happens if the project takes longer? Check the extension options, additional fees and default provisions. An extension isn’t automatic. 5. Does the exit strategy stack up? Test the proposed sale or refinance timeline, and what happens if it slips. These questions are worth asking every lender, including us. For your client’s next property-backed deal, talk it through with Fico. www.fico.co.nz