Case Study: Four Week Turnaround on Debt Settlement Loan

Onate has been providing loans to complete debt settlements with funds who can, in certain circumstances, offer discounts to borrowers on the basis that they are able to act quickly. For this and many other reasons, Onate has completed a significant amount of these loans over the last number of years.

In early 2023, a business owner approached Onate with a proposal to part-fund a debt settlement. The borrower engaged in negotiations with the fund for a number of months and had succeeded in negotiating a discount for himself, despite the property holding significant equity. One of the settlement conditions was that the loan was to be completed within four weeks of the agreement. 

The borrower had banking facilities with a number of the pillar banks and had maintained an excellent relationship with them. When approached with the proposal to fund the loan, they advised him that they were interested in funding the deal but they would not be able to complete it in the required timeframe.

When the promoter approached Onate and highlighted the time pressure, the team in Onate acted quickly and provided a term sheet the very next day. Within the same week, a valuation was completed on the property and despite a slight delay receiving the title deeds, the loan was completed and drawn down within the four week timeline.

The loan was secured on a mixed use property with a petrol station and two residential properties. The valuation of the property was €1m and the loan amount was €265,000.

The borrower was able to refinance the loan on a longer term with one of the pillar banks.

This case study exemplifies Onate’s ability to complete a deal at speed. All decisions are made in house and as shown here, the team reacts to the specific needs of the borrower.

For those ready to explore new opportunities and in need of a financial partner, contact John Ring at john@onate.com / 087 830 5276 or Michael Gavin at michael@onate.com / 085 145 4200.