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...
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...
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...

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...
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...
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...

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,...
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...
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...

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...
4 Critical Factors to getting Commercial Finance Approved

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...

read more
How Low can the AUD go?

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...

read more
Site Acquisition at 65% LVR

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...

read more
I have a Strong Relationship with my Bank

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,...

read more
In-Fill Subdivision Finance with No Pre-Sales

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...

read more
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...

read more
Leigh Blain Joins STAC Capital

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...

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Credit Tightening & the need for Professional Debt Advice

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?

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2 Common Major Mistakes in Business Finance

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.

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Opportunities & Risks in M&A

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…

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

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…….

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

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.

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Time, Money & Missed Opportunities……

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…..

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Tougher funding for business ahead

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”.

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