Borrowing against a TD(s)

Discussion in 'Loans & Mortgage Brokers' started by The Butler, 12th Mar, 2017.

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  1. The Butler

    The Butler Well-Known Member

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    I have some cash set aside for a future ppor purchase which I would be happy to place into a TD.
    I wish to get an LOC of approx 30% of the value of the above TD to fund business expansion.
    Also, would possibly like to split into multiple smaller TDs/LOCs with different institutions to take advantage of federal guarantee and minimise risk.
    Can anyone advise on the feasibility, and recommend any providers/products and a ball park on rates?
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It's possible.
    You need to borrow from a deposit taking institution so go for a major bank. Keep in mind there would be a loss.

    Since you mention business this would likely be in a different entity to yourself so another alternative may be to simply lend the money to the business operating entity.
     
  3. The Butler

    The Butler Well-Known Member

    Joined:
    24th Jul, 2015
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    Location:
    Sydney
    Thanks Terry.
     
    Terry_w likes this.

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