Credit impaired loans are for company borrowers or people who have credit impairments such as defaults and judgments on their credit files and cannot demonstrate serviceability through traditional means, however can obtain an accountants letter confirming that the corporate borrower or individual can afford the loan repayments.
The loan purpose must be specifically for business purposes only.
Loan to Value Ratio LVR up to 65% for Commercial Properties
Loan to Value Ratio LVR up to 70% for Residential Properties
Short Term Loans can be provided up to 85% of valuation
Interest Rates a quoted on each loan application.
Prudential Finance can assist companies in Administration, Receivership or Liquidation.
Through Prudential Finance’s experience and talented consultants we are able to solve the most complicated debt workouts for the benefit of our clients.
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Q&A
A credit impaired loan is a property-secured loan provided to borrowers with a history of defaults, judgments, prior bankruptcy, tax debt or other adverse credit events, where mainstream lenders have declined.
Yes. Prudential Finance can facilitate property-secured loans for borrowers with paid or unpaid defaults. Unpaid defaults typically need to be paid out on settlement of the new loan.
Loans can sometimes be arranged to pay out debts where the borrower is in administration, receivership or liquidation, with a view to stabilising the position and refinancing later at better rates.
Yes. Due to the elevated risk profile, credit impaired loans typically carry higher interest rates and fees than standard loans. Pricing is quoted on each application.
LVRs are typically lower than standard loans, generally up to around 65 percent for commercial and 70 percent for residential security, depending on the nature of the credit issues.
Considered issues include paid and unpaid defaults, court judgments, ATO debt, prior bankruptcy, arrears on existing mortgages and mortgagee-in-possession situations.
Yes. Paying out Australian Taxation Office debt is a common use of private property-secured credit impaired loans, often as a bridge while the borrower stabilises cashflow.
Yes. Many credit impaired loans are structured as short to medium-term facilities designed to stabilise the borrower's position, after which refinance to a lower-cost lender becomes possible.
Prudential Finance does not arrange loans covered by the National Consumer Credit Protection Act 2009. All loans are for business, commercial or investment purposes secured by property.
Settlement can often be achieved within two to four weeks given the urgency that typically drives these enquiries, subject to valuation and legal documentation.