financial forecasts

The Fundamentals – Financial Forecasting

When assessing business lending applications, financial forecasts are one of the key pieces of information that lenders will ask for.
bank finance

Is Finance Killing the Viability of your Property Development?

Sometimes cheap bank debt is not actually so cheap. Sometimes non-bank finance that seems to be a great alternative can kill a project. At STAC we’ve written before about non-bank finance being a great alternative, but then we’ve negotiated plenty of bank development finance deals.

Case Study: Maison New Farm by GRAYA

GRAYA is one of Brisbane’s most high-profile residential building and development companies, having completed many iconic residences over the past few years. Headed up by brothers Rob and Andrew Gray they wanted to branch out and bring their construction and design pedigree into the multi-residential space.

Acquisition & Growth Funding for Independent Supermarket Group

A corporate privately-owned supermarket operator had already acquired a number of supermarkets in SE Qld and was seeking debt funding to continue expanding their footprint and take advantage of opportunities quickly and confidently.

Business on a Cliff Edge, worried about the Bank?

Based upon what we’re seeing thus far, we are expecting banking relationships to mean even less as we enter this economic recession. So what should you do, if you’re not absolutely 100% certain that your bank will look after you?

Banking & Finance COVID update (Aug-20)

LVRs pulling backs, increased interest rate margins, appetite reducing in general; all of the above have definitely happened since March, in some cases quite markedly. There’s plenty of talk about banks being closed for business, whilst all of the banks profess “we’re open for business”. It’s pretty fair to say this has all been pretty typical – and the goal posts have been moving almost weekly – BUT… Whilst there absolutely are now some closed doors, this is NOT across the board. Our guess is that it’s not over yet though…

Development Finance deal examples amidst COVID19, with Everett Development Management

Mark Trayner was the guest presenter on Everett Property Development Management’s “Property Feed”, discussing development finance amidst COVID19, with a few live examples of deals recently financed, including: Luxury $3m Spec Home renovation & construction 5 Lot in-fill residential land subdivision with high LVR including Mezzanine debt Multi-Stage 45 Townhouse development with a Bank Commercial […]

Distressed Debt Restructure – Case Study

Industry: Professional Services Funding: $5m Leverage: >4x EBITDA, ~2x adjusted for WIP Term: 2 years Purpose: Refinance Bank, ATO, Unsecured Creditors Security: Charge over Firm entities, Personal Guarantee A professional services firm with gross revenues of circa $7m pa had found itself under significant financial pressure – not because of a lack of profitability, as […]

COVID-19 Support from Banks & Govt – for Individuals

In this incredibly daunting time, there’s plenty of confusion out there as to what help is available for businesses; we’re fielding so many calls & emails that we thought it best to lay it out (although please note that it may be a challenge to keep this up to date, given how fast this is moving).

COVID-19 Support from Banks – for Businesses

In this incredibly daunting time, there’s plenty of confusion out there as to what help is available for businesses; we’re fielding so many calls & emails that we thought it best to lay it out (although please note that it may be a challenge to keep this up to date, given how fast this is […]

Debt Strategies amidst the COVID-19 Crisis

I’ve been trying to put together an update of banking & finance as I see it for the last week, but the world is moving at such an incredible pace wherein 2 day old news is obsolete. As a perfect example, Westpac’s chief economist was just late last week forecasting unemployment of 7%, but just […]

Corporate Deal Case Study – UCG

Banks have become increasingly conservative, particularly for true cash-flow lends with no tangible assets as security. But STAC achieved an outcome far beyond that expected by its client.

4 Critical Factors to getting Commercial Finance Approved

Getting banks to approve commercial deals is no easy game anymore. Go back 10 years (actually, make that about 11 and a half to 12, before that dirty 3-letter word “GFC” came into existence), if a deal made sense, then just about every bank would write it. It came down to who you had a […]
John Howard & Peter Costello

Is Government Debt Good or Bad? (and did Kevin07 destroy Howard & Costello’s outstanding economic work?)

Is ScoMo right that that it would be irresponsible to rack up more debt now, by fast-tracking infrastructure spending? And did Kevin07’s government destroy all the good economic work that Howard & Costello did, by going on a typical Labor spending-spree racking up stupid amounts of debt after the slate had been wiped clear after […]
Prime Minister Scott Morrison

RBA’s hammer finds only screws, no nails: Parliament House full of tools, none of them screwdrivers

Lowering the RBA rate is no longer going to do what traditional economic theory expects, and Philip Lowe knows it. In fact, he’s shouting it (as best he knows how) at ScoMo & Frydenberg. But ScoMo has the latest noise-cancelling headphones on, with the volume turned up to the latest Christian Rock song, singing “everything’s […]

How Low can the AUD go?

There has been continued downward-pressure on the AUD recently, this morning sitting below 68c on what has been a consistent downward trend for about 18 months (late January 2018 was ~81c). Below is the 5 years chart for the AUD/USD (Source: OFX), which provides food for thought as to how much it has moved in the past.  […]
50% equity is NOT necessary to acquire development sites

Site Acquisition at 65% LVR

Banks are even more increasingly uncomfortable with providing finance terms on site acquisitions that developers want or need – on large sites there’s next to no appetite, on smaller sites the LVR will often be capped at 50% at best, or pulled back to around the 35% mark particularly if the development is not proceeding in the […]
Leveraging STACs Business & Corporate finance capabilities to gain more favourable pre-sales terms

Bank funding $8.8m for 32 Townhouses with less than 25% Debt Cover

Being an expert ONLY in Development Finance can be like having the blinkers on, particularly if the Developer’s wider Group includes other income sources. In this case, with the developer wishing to only have minimal pre-sales prior to commencing, the standard train of thought would have been that a non-bank lender would be the necessity. However, based […]

I have a Strong Relationship with my Bank

If we had a dollar for everytime we’ve heard this, particularly over the last 12 months… “I’ve been with my Bank for [insert big number here] years, I have a really strong relationship with them, my banker has always looked after me.” Good for you. Unfortunately, far too many times to count now, we’ve subsequently […]
Unlock Opportunity with STAC Captial

In-Fill Subdivision Finance with No Pre-Sales

Small-lot in-fill subdivisions can be great little projects – getting in & out quickly with good profit margins can result in solid returns on an annualised basis (IRR, for the finance geeks!). For small projects and relatively inexperienced developers though, banks often aren’t keen; particularly when there aren’t yet any pre-sales (which are notoriously hard to get […]
STAC Capital Townhouse Development Finance with No Pre-Sales

Townhouse Development Finance with No Pre-Sales

With projects requiring less than $10m in debt, when we present our clients with the pros & cons of Bank vs Non-Bank development finance options, it is increasingly rare for developers to choose the cheaper bank option. Why? With this project, the developer “just wanted to get going” on this small townhouse project, with no […]

Think that a Commercial Interest Rate in the 4’s is cheap? Think Again…

In a record-low interest rate environment, if you’re not aware of where the market actually is, it’s very easy to think you’re getting a great deal, when you’re actually paying overs. Commercial Property Investment is a perfect example at the moment. Think that a rate in the 4’s is amazingly cheap? Depends. If your debt […]
Leigh Blain

Leigh Blain Joins STAC Capital

We’re really excited to announce that Property Finance expert, Leigh Blain, has joined the STAC team! Leigh is a leading expert in Property Finance, with over 15 years experience in development & commercial investment, having held Senior Management roles in Westpac and NAB. In the 5 years prior to joining STAC in 2019, Leigh was […]

2.5% Interest Rates creating opportunities for Developers & Investors

The RBA’s announcement today saw the cash rate drop to a historical low of 1.25%. Add (subtract?!) to that, many economists are tipping another cut, which does tend to be the RBA’s norm (the previous rate cuts being May & August 2016, February & May 2015, May & August 2013, October & December 2012…). Some […]
Dont give everything away video image

Credit Tightening & the need for Professional Debt Advice

Too often we’re seeing the goalposts getting moved when businesses and property developers/investors seek debt, as many funders have been changing their appetite. In business, you’re already juggling 100 things - can you afford to be doing 101, particularly when debt is such a high risk game these days? What opportunities are you missing out on by spending your time doing something that we've got the expertise and the time to do?
Dont give everything away video image

2 Common Major Mistakes in Business Finance

2 Common & Major Mistakes in Business Finance - (1) giving every asset as security for every loan to your bank; and (2) Not providing clear communication to your bank around the strategic direction of the business.
Increasing Opportunities in M&A Diagram

Opportunities & Risks in M&A

Mark recently presented on the opportunities and risks in using debt & equity for M&A (mergers & acquisitions) to grow a business. Have a flick through the slides and brief commentary…
Declined stamp

So the Bank Declined your loan….. now what?

Often the “Declined” conversation is short and uncomfortable - after all most people hate bad news. But these events can be a rich source of information to build a better business & banking relationship…….
10 most important things that a good quality banker will ask

10 Questions your Banker Should be Asking

Do you have a good business banker? If they haven’t asked you these 10 questions, chances are you don’t have the right support on your finance team…
Mark Trayner - Smiddy Charity Ride

Smiddy Charity Ride – the brief story & pics (and WHY I did it)

As I write this now, I’m thankful for being lucky enough to be sitting in a warm and comfortable hotel room in Adelaide, injury free and off the saddle, as I think about what has just been a week of highs & lows on the Smiling for Smiddy charity fundraising ride in South Australia.
Time is money clockface

Time, Money & Missed Opportunities……

Are we there yet?”. This old chestnut from the kids in the backseat is increasingly heard from the mouths of Bank customers as they seek to navigate the paths to finance approval. This week we explain a little of why it’s taking so long to get finance & also why the finance you do get approved is likely for a shorter term…..

Tougher funding for business ahead

The Royal Commission handed down plenty of recommendations, many of which hit the headlines. But one that didn’t, relates to “small business” lending - which isn’t so small, and poses the risk of further credit tightening for businesses that nobody would call “small”.
New apartment units

Considering using Mezzanine Debt on your next Development, because your Equity is still tied up in the last one? There can be a better way…

With sales now taking longer to lock in and settle, property developers often have unsold stock when construction has completed, which can leave them either being unable to payout the construction debt, or having equity tied up that is needed for the next project. This is often a problem because equity and profits naturally lie […]
Professional advisers asking questions to clients

3 Questions Professional Advisers should ask when completing Client Reviews

Ponder this thought for a moment: How often does a client hand you a detailed scope of required services, clearly defining exactly what it is that they want you to consider/analyse/produce/etc.?
House Stac of playing cards

The Danger of having One Bank & Cross-Collateralised Securities

Loyalty used to truly mean something in banking. Aside from questioning whether the loyalty is returned, being loyal to just one bank can actually be a dangerous game to play.
Atlas Apartment Project

STAC secures Construction Funding with favourable FIRB terms for high-rise apartment project

STAC recently had quite an impressive achievement with a funding approval that, to be frank, we expect that many people may not believe – because it’s a good deal even in the good times, let alone the current funding environment. The developers of an inner-city project had recently completed stage 1, comprising more than 100 […]
Mark Trayner & Dale Sparke

Is Tightening Credit Creating a Risk of a Recession in the Australian Economy?

We’ve been discussing the increasing risk of a recession being triggered, as a result of continuing tightening of availability of debt funding from Banks to SMEs, for quite a while now (probably about a year or so); perhaps not publicly, but definitely on a weekly basis over coffees and by phone with many professionals in […]
Mark Trayner

Personal Reflection on 2018

New Year’s Resolutions Everyone does them – or everyone is “supposed to” do them, right? Our plans for being a better person or achieving more, which we’re so passionate about on the 31st December… But often by the time the 31st January comes around, they’re usually long forgotten! So this year, based upon some very […]
Martin Millard & Brendan Whipps from Harcourts Solutions Group

Buying your Home at Auction with Confidence

f 2019 is your year to buy a new home, the dream home you find may well be sold at auction… But do you have the confidence to buy at auction? “BUYER BEWARE” Thanks to the Royal Commission, the process and timeframes to get a home loan approved is causing problems in the market. But […]
Happy New Year

Happy New Year!! (and brief 2018 reflections & 2019 forecasts)

2018 saw some pretty reasonable changes in the economy… What do we see for businesses and property in the Australian Economy for 2019?
Aerial site view

“WHERE IS OUR $14,000,000??”, said the developer to their banker, for the umpteenth time.

Having gone around in circles with their existing banker for over 3 months, trying to lock in the consistently promised approval for construction of their 54 townhouse project, they were getting beyond frustrated. Well to be honest, having completed earthworks and a fair number of slabs – off the back of the promises that approval […]
Brendan Whipps, CEO Harcourts Qld, and Martin Millard, MD Harcourts Solutions

Where is Brisbane’s Property Market heading in 2019?

We recently caught up with Brendan Whipps, CEO Harcourts Qld, and Martin Millard, MD Harcourts Solutions, to ask them what they see in store for Brisbane’s property market in 2019. Check out these two 50 second videos to find out what they see ahead! Video 1 of 2: Video 2 of 2:
Business people shaking hands

What’s the REAL Cost of Business Debt?

Think that a “good deal” in business finance is all about the interest rate & fees? Think again. Before you sign on the dotted line, realise that business finance is rarely that simple… We look at true cost of asset finance, working capital finance, as well as the VALUE OF EQUITY, and whether it pays to pay more.
Tom Kelly

How much does a mortgage broker cost you?

Have you avoided using a mortgage broker because you think you'll get a better deal by going directly to a bank? In this episode of Tom's Tips, Tom explains how most mortgage brokers don't charge anything to their clients - and that it doesn't cost you in any way, in fact you probably have a better chance of getting a better deal than if you went to a bank yourself!
Tom Kelly

Is your Home Loan Rate Over 4%?

What is your home loan rate? If it’s over 4%, LISTEN UP. Want to know whether you can get a better rate on your home loan? Here’s where you start. Check out your loan statement or your online banking and figure out what you’re paying right now. If it’s more than 4%, drop us a […]
Westpac sign

Be careful what you believe

Disappointing to read yet more media fear mongering from a writer who either doesn’t understand what he’s talking about, or chooses to miss the facts. Whilst it can be difficult to see through BS, there are a range of points presented here that we have the insight to challenge.
House rooftop

Home Loan Myth Busting with Tom Kelly

There’s a lot of confusion about what’s involved in getting a home loan. Let’s kick things off with three of the biggest myths.
60 Minutes Bricks and Slaugher

“Bricks and Slaughter”

Do we have a major economic problem in Australia? In our opinion, yes and no, which is exactly what we’ve been saying to people for a long time now. Here’s our perspective on the recent 60minutes episode, which ‘exposes’ Australia’s housing crises.
Aerial view Brisbane at dusk

A Spring in Brisbane’s Property Market Step

Well, here we are…Spring. Where life begins, flowers blossom, days get warmer, and we start to think about how fast the year is going. Well at least that’s the case for most. I start to think about the real estate market.
Child stacking toy boxes

Childcare – is it the cash cow it’s cracked up to be?

It’s safe to say there is a lot going on in the childcare sector at the moment. But is making good returns as easy as people would suggest? We explore the critical success factors to a successful business.
Business people looking out window

Mezzanine Debt. The Good. The Bad. The Ugly.

It's understandable that people are pretty confused about the difference between Mezzanine, Preferential Equity and Joint Ventures. Are they as bad as people say they are? Mark Trayner discusses.
Looking up at sky from city

Queensland Budget 2018

The Queensland State Government announced the budget for 2018 - 2019 earlier in June. Here’s our summary of the key announcements and changes that relate to property development, including a reduction to The First Home Buyers Grant.
Notepad pen and phone on organised desk

Deal Breakers

Securing finance is one of the biggest and most important stages in the project lifecycle. And, it can be an extremely time consuming process, depending on the size and complexity of the project. But, it’s also one area that tends to be the least understood, and not given its due preparation, which can lead to negotiation breakdown.
Coins with GST

1 July GST Changes

Disclaimer: GST is possibly the most boring topic known to man. We did our best to make this update bearable. We don't think we succeeded. However, it's none the less important to understand what is happening as it effects just about everyone operating in the property sector.

Budget in Review

STAC Capital had the pleasure of attending both Westpac’s & NAB’s Budget presentation last week. General consensus appears to be that the 2018 Federal Budget is very much a pre-election budget with nothing too exciting to write home about! But in any case, here’s our review.
View of city from apartment living room

Brisbane’s Premium Market Benefits From Cashed Up Retirees

Cashed-up downsizers are propelling Brisbane into a global list of top-performing cities for the first time. An article in last Friday’s edition of the Courier Mail outlined that increased demand has propelled Brisbane into a global list of top-performing cities for the first time. For the first time in the seven year history of Knight […]
Aerial view of city

All signs are pointing to credit tightening.

The Royal Commission is in full swing. The effect on the banks is not just scaremongering – down in the trenches, we’re very much seeing significant tightening by the banks, both in commercial lending as well as in home lending. Mark Trayner outlines the changes and their implications.
Project team of developers looking at plans

There’s no “I” in Property Development Team

Think that you can run a property development by yourself, in a simple logical order? Forget about it. The best developers leverage a strong team that works in harmony to achieve outstanding results thanks to well planned strategy. Here's some key pointers from us.
Crane building large apartment building

Brisbane Property Market – Bull or Bear?!

There seems to have been no hotter topic this year than that of Brisbane’s property market – particularly, what on earth is going on with all of these apartments?! The media is of course all over it, everyone's talking about it, so to see out 2017, we’re putting in our “no BS” two cents...

Cancer Is S#@%!

This ride involves travelling about 660km in 5 days. 45 riders, with a goal to raise at least $350,000 for cancer research.
Business Warehouse

Why Review Your Business Finance Package?

What usually triggers a CFO/CEO or business owner to conduct a financial review of their funding package? Some of the most common reasons are probably pretty obvious: Stumbling over hurdles when asking their existing bankers for more money, such as when undertaking an M&A (Merger & Acquisition), buying a property or needing funds to support […]
Capital Stac in Singapore

Capital Stack in Singapore

Earlier this month, Mark did the rounds in Singapore, seeing key players in Private Equity firms, Fund Managers, Family Offices, Private Banks, as well as some fintech players. With so much talk about capital in Asia, the question is – what’s the deal? The interest in Asia, particularly Singapore and Hong Kong, is well founded. […]
STAC Capital Directors - Mark Trayner and Dale Sparke

What does STAC Capital do?

Let’s cut to the chase – first call of business – a little be bit about STAC Capital…