buying business using house at home as collateral!!
Jun 10th 2012, 7:59 am
#1
BE Enthusiast
Thread Starter
Joined: Feb 2007
Location: Was Angus Scotland Now Mandurah WA
Posts: 362
buying business using house at home as collateral!!
I want to the business in which i work in, using the house that i own outright at home in Scotland as collateral to fund the finance needed.
Does anyone know of a company that will allow me to do this in Australia?
Any info will be greatly appreciated.
Does anyone know of a company that will allow me to do this in Australia?
Any info will be greatly appreciated.
Jun 10th 2012, 9:18 am
#2
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Joined: Mar 2009
Posts: 471
Re: buying business using house at home as collateral!!
it won't be easy and unless youve got an extensive background within the industry youre seeking to take over the business (and the business has red hot financials and youre maintaining its successful management), you may find it difficult to acquire via a mainstream lender.
you could use clydesdale whom are primarily a scottish bank, have them value the property and provide a letter of credit (effectively a bank guarantee) as security for your lending here... then walk into nab who'll accept clydesdale LC's on face value at 100%.
i suspect others will do the same but failing that, refinance your existing property take cash and bring back to australia - cash is king.
you could use clydesdale whom are primarily a scottish bank, have them value the property and provide a letter of credit (effectively a bank guarantee) as security for your lending here... then walk into nab who'll accept clydesdale LC's on face value at 100%.
i suspect others will do the same but failing that, refinance your existing property take cash and bring back to australia - cash is king.
Jun 11th 2012, 7:33 am
#3
Forum Regular
Joined: Jan 2011
Location: Brisbane, Australia
Posts: 92
Re: buying business using house at home as collateral!!
Agreed - the path of least resistance will be to draw the equity from your property in Scotland and then bring to Australia. No bank will lend against an overseas security given they cannot sell (easily) should they need their money back, nor do they have the resources to work out if it is acceptable security etc (by doing valuations and so on).
