How We Helped a Self-Employed Business Owner with Credit Below 600 Secure $600,000 Across 3 Properties
When the bank said no, we said yes. Here's how we helped a manufacturing business owner rebuild their financial future after COVID challenges.
The Challenge
Our client is a successful manufacturing business owner who faced repayment challenges during COVID-19, resulting in a credit score below 600. Despite being turned down by traditional banks, they needed immediate financing to seize a major business opportunity that would generate $800,000 in profit over 2 years.
$600,000
Total Financing
5 Weeks
Time to Close
3 Properties
Refinanced
The Client's Situation
Meet John (name changed for privacy), a hardworking manufacturing business owner who built his company from the ground up. Like many business owners, the COVID-19 pandemic created unexpected financial challenges that impacted his credit score, dropping it below 600.
The Problem
- •Credit score below 600 due to COVID-19 related repayment challenges
- •$100,000 in high-interest unsecured debts draining monthly cashflow
- •Major business opportunity requiring $400,000 for materials
- •Traditional banks declined the application due to credit issues
- •Time-sensitive deal - needed to secure financing quickly
The Opportunity
John had secured an 18-month manufacturing contract that would generate an estimated $800,000 in net profit over 2 years. However, he needed $400,000 upfront to purchase materials and begin production. Without this financing, he would lose the opportunity.
Traditional banks looked at his credit score and immediately declined. They wouldn't consider the business opportunity or his equity position in three properties. John needed a lender who understood business and could move quickly.
Our Solution: A Strategic Refinance Across 3 Properties
We saw what the banks missed: a successful business owner with substantial equity, a solid business opportunity, and the determination to succeed. Here's how we structured the deal:
Leveraged Equity Across Multiple Properties
John owned three properties with significant equity. We refinanced all three properties at 70% loan-to-value, unlocking the capital needed for both debt consolidation and business growth.
Property Portfolio Approach:
- • Property 1: Refinanced for business capital
- • Property 2: Refinanced to consolidate high-interest debts
- • Property 3: Refinanced to maximize available funds
No Tax Documents Required
Unlike traditional banks that would require 2 years of tax returns, Notices of Assessment, and detailed financial statements, we approved John's application based on:
- Property equity: Substantial equity in all three properties
- Business verification: Confirmed active manufacturing business
- Ability to service debt: Strong business cashflow demonstrated
- Exit strategy: Clear 18-month contract with substantial profit potential
Fast-Track Approval: Closed in 5 Weeks
Time was critical. John needed to secure materials for his manufacturing contract. We fast-tracked the approval process and closed all three refinances within 5 weeks - a timeline impossible with traditional lenders.
⏱️ Timeline Breakdown:
Overlooked Credit Issues
Traditional lenders focus heavily on credit scores. We understood the context:
- • COVID-19 created unprecedented challenges for business owners
- • Credit score didn't reflect current business performance
- • Strong equity position reduced lender risk significantly
- • Clear path to credit recovery with improved cashflow
We focused on what mattered: equity, business opportunity, and exit strategy.
The Financing Structure
Deal Summary
Total Financing Package
Loan Terms
Fees & Credits
The Results: Life-Changing Impact
Immediate Cashflow Improvement
$2,000/month
By consolidating $100,000 in high-interest unsecured debts into the refinance, John immediately improved his monthly cashflow by $2,000. This gave him breathing room and reduced financial stress.
Business Growth Capital
$400,000
With $400,000 available for materials, John was able to accept the manufacturing contract, purchase all necessary materials, and begin production immediately.
Projected Profit
$800,000
Over the 18-month contract period (completed within 2 years), John expects to generate $800,000 in net profit - transforming his business and financial situation.
Credit Recovery Path
With improved cashflow and successful contract completion, John is now on track to:
- ✓ Rebuild credit score over the 2-year term
- ✓ Refinance to traditional lender at lower rates
- ✓ Establish stronger banking relationships
- ✓ Position for future growth opportunities
The Bottom Line
Without this financing, John would have lost an $800,000 opportunity. Traditional banks said no, but we said yes - because we understand business.
5 Weeks
To Close
$600K
Financed
3 Props
Refinanced
5.50%
Rate
Why This Deal Worked When Banks Said No
1. We Focus on Equity, Not Just Credit
Traditional lenders stopped at the credit score. We saw substantial equity across three properties (70% LTV means 30% equity cushion) which provided strong security for the loan. The equity told us John was a successful business owner who had built wealth over time.
2. We Understand Business Context
COVID-19 created temporary challenges for millions of business owners. We understood that a credit score from 2020-2021 didn't reflect John's current business performance or his ability to execute on a major manufacturing contract.
3. We Saw the Exit Strategy
With an 18-month contract generating $800,000 in profit, we had confidence that John would: (a) successfully complete the loan term, and (b) be in a strong position to refinance to traditional lending at the end of 2 years with rebuilt credit and proven business success.
4. We Move Fast
Business opportunities don't wait for 3-6 month bank approval processes. We understand that time is money, especially for self-employed business owners. Our 5-week closing timeline allowed John to seize the opportunity.
5. No Tax Document Requirements
Self-employed borrowers often optimize their tax returns to minimize taxes (which is smart business). Unfortunately, this makes it difficult to qualify with traditional lenders who require high reported income. We don't penalize smart tax planning.
Could This Work for You?
If you're self-employed and facing similar challenges, you might qualify for this type of financing if you have:
Substantial Equity
At least 30% equity in your property or properties. The more equity, the better your terms.
Operating Business
An active, verifiable business with provable income or contracts (even if tax returns are low).
Clear Purpose
A defined use for the funds - business growth, debt consolidation, or investment opportunity.
Exit Strategy
A realistic plan for how you'll refinance or pay off the loan (business profits, property sale, traditional refinance).
Common Scenarios We Can Help With:
Your Success Story Could Be Next
Don't let credit challenges or traditional bank rejections stop you from seizing business opportunities. Let's discuss your situation and find a solution.
Pre-qualification takes 2 minutes. No impact on credit score.
Sami Juneja
Self-Employed Lending Specialist
Sami has helped hundreds of self-employed Canadians secure financing when traditional banks said no. He specializes in finding creative solutions for business owners with non-traditional income and credit challenges.