The franchisee turned away from a bigger site

The situation

The clients ran an existing store within a national franchise system, acquired only months earlier, and the chance came up to take on a second, materially larger store. A major bank knocked the application back on serviceability. On paper, a young trading history and a bigger debt looked like a stretch.

What we did

Working with the clients and their accountant, we built the case from the system's own evidence: the franchise network's centralised sales reporting, BAS lodgements with the ATO, and the target store's own long trading history under the brand. That fed a proper business plan, the cashflow forecast and our serviceability worksheet, with the whole structure stress-tested at a conservative rate well above the term sheet.

The outcome

The finance was approved and the purchase was fully funded across a layered structure. On the rebuilt file, the store could take a revenue fall of about a fifth before cover broke, which is exactly the kind of buffer a credit team wants to see. The larger site was secured.

Details anonymised and figures materially altered. Outcomes depend on individual circumstances and lender criteria.