Turning a Rate Rise into a Cash Flow Win
Problem
Following the recent RBA rate rise, a senior fund manager was referred to Distinctive Finance by a colleague who had previously engaged the firm’s services. The client held multiple lending facilities across major banks and had become increasingly concerned about the impact rising interest rates were having on repayments and overall cash flow.
Strategy
Leighton Packer, Director at Distinctive Finance, conducted a detailed review of the client’s lending facilities, pricing and loan structures. This review identified opportunities to consolidate and restructure the client’s debt across lenders. Leveraging Distinctive Finance’s lender network and established relationships within private banking teams, improved pricing and a more appropriate lending structure were negotiated.
Outcome
The restructure materially improved the client’s lending position. Despite the recent RBA rate increase, the revised structure effectively neutralised the impact of higher rates from a cash flow perspective, improving the client’s overall repayment position while delivering a more efficient and flexible lending structure to manage future rate movements.
Key Takeaway
In a rising rate environment, lending structures should be reviewed regularly to ensure pricing and terms remain competitive. Engaging an experienced independent debt advisory specialist provides access to a broad lender network, creating pricing competition through strategic negotiation and analytically driven structuring. This proactive approach can materially improve outcomes and help ensure debt arrangements remain efficient and fit for purpose.
Leighton Packer – Director
leighton@distinctivefinance.com.au
0457 030 533
