If you’re managing an Enforcement workout and need fast liquidity without losing control, a second mortgage loan can create the time and breathing room to resolve matters on your terms. At Secured Lending, we’ve advised and assisted borrowers through Enforcement workout scenarios and have facilitated over 200 strategic second mortgages. When time is tight and options need to be clear, we can help you move fast with a second mortgage loan for Enforcement workout. Assess your scenario today.
What is an Enforcement Standstill and Creditor Workout Funding?
An enforcement standstill is a negotiated pause with your senior lender to stop or delay enforcement while you work through a solution. Creditor workout funding is the capital you use during that standstill to bring arrears up to date, settle payables, complete a project stage, or position for a refinance or asset sale. A second mortgage provides that funding against available equity while the first mortgage remains in place. You retain control, protect value, and buy time to implement the plan.
Why a Second Mortgage is Often the Best Tool in an Enforcement Workout
- Stabilise the position quickly: Clear arrears, cover legal costs, or meet covenant cures so the standstill holds.
- Prevent value leakage: Avoid distressed sales, keep projects moving, and preserve goodwill with suppliers and customers.
- Maintain control: Keep trading through while you negotiate a refinance or sale, rather than handing control to receivers.
- Be targeted and short term: Only borrow what’s required for the workout milestones, then exit when the plan completes.
- Move at the speed of business: Private funding can be arranged quickly when banks can’t meet urgent timelines.
- Reduce complexity: One facility can cover multiple use-cases—arrears, completion costs, BAS, or settlement top-ups.
- Keep equity working: Protect upside by resolving the immediate issue instead of crystallising losses.
Typical Uses of Second Mortgage Funding in a Standstill
- Cure arrears with the first mortgagee to secure a longer standstill period.
- Pay critical suppliers to keep trading continuity during negotiations.
- Complete works needed for valuation uplift before refinance.
- Meet a contract deadline or urgent settlement to avoid penalties.
- Consolidate short-term debts into a single structured facility.
- Cover legal and advisory fees tied to the Enforcement workout.
How a Second Mortgage is Structured in This Context
- Security and ranking: We take a registered second mortgage behind your first mortgage. We coordinate any deed of priority or intercreditor arrangements required.
- Assessment: We review current debt, security position, equity, and the workout plan. The emphasis is on asset value, feasibility, and exit clarity.
- Facility design: Interest, term, and covenants are aligned to your milestones—standstill dates, refinance timelines, or staged asset sales.
- Exit pathways: Common exits include refinance with a mainstream lender once stability returns, sale of a non-core asset, or project completion and takeout.
- Documentation: We focus on clear, practical terms so documents are signed and settled with minimal friction.
Private Lender Advantage
As a private lender in Australia, Secured Lending operates Australia wide: Sydney, Adelaide, Melbourne, Brisbane, Perth, Gold Coast, Canberra. We’re a non-bank lender, so we can assess and structure second mortgage loans quickly based on asset strength, the standstill mechanics, and your exit strategy. That means practical solutions, not red tape, when timing is critical.
Speed, Certainty, and Key Terms You Can Plan Around
- Fast credit decisions with minimal formality when the facts are clear.
- Same day settlement is achievable where due diligence is complete and consents are in place.
- Funding within 24 hours after final approval and execution for straightforward scenarios.
- Facilities tailored for urgent settlement, including bridging loans where needed.
- We offer secured business loan and second mortgage facilities designed for urgent and emergency needs in an Enforcement workout.
- Loan sizes: borrow up to $10 million, subject to security and assessment.
- Pricing aligned to risk and term, including an interest rate of 11.95% on suitable scenarios.
- Collateral: You can leverage residential or commercial property as security; we don’t accept other obscure assets as collateral.
What Lenders and Counterparties Care About in a Standstill
- Clarity of plan: How the funds will stabilise the position and the timeline to exit.
- Intercreditor cooperation: The first mortgagee’s consent and clear ranking terms.
- Realistic valuations: Support for current and “as is” values, not just end-value speculation.
- Evidence of progress: Contracts, construction schedules, refinance term sheets, or sale campaigns.
- Governance: Clean reporting and defined triggers keep everyone aligned.
What to Prepare to Move Quickly
- Current loan statements, arrears position, and any notices from the first mortgagee.
- The standstill letter or proposed terms from your senior lender.
- Recent valuation or agent opinion and details of the security property.
- A short, practical use-of-funds and exit plan with dates and milestones.
- Company financials and BAS (enough to confirm feasibility, not a six-month audit exercise).
- Your solicitor’s details so documents and consents don’t stall.
How We Can Help
Secured Lending specialises in time-sensitive Enforcement workout funding using second mortgages. We review your position quickly, coordinate with your advisers and the first mortgagee, and structure a facility that protects value and buys time. Our team has facilitated over 200 strategic second mortgages and has provided strategic lending advice for Enforcement workout scenarios. We operate as a private lender with a direct line to decision-makers, so you get clear answers and firm timelines. We focus on the essentials: viable security, a credible plan, and a defined exit. With us, you can leverage residential or commercial property as collateral; we don’t accept other obscure assets as collateral. If you need bridging loans or secured business loans to support the standstill, we can arrange a combined pathway so your milestones are funded and documented. Assess your scenario today. Secured Lending is a short-term lending solution you can rely on. When you’re ready, our team is here to help you move quickly and confidently. Our team specialises in urgent short term loans solutions such as bridging finance, second mortgages, and caveat loans.
FAQs
1) Do I need my first mortgagee’s consent for a second mortgage during a standstill?
Yes. We typically arrange a deed of priority or written consent to confirm ranking and permitted payments. This cooperation keeps the Enforcement workout on track and avoids surprises at settlement.
2) How fast can you settle if I’m facing an urgent settlement or notice to complete?
Where valuation support and consents are in place, we can target same day settlement. In many straightforward cases, we achieve funding within 24 hours after final approval and execution.
3) What loan-to-value ratio (LVR) do you consider for second mortgages in a workout?
It depends on asset type, location, and the exit plan, but we generally work to conservative combined LVRs to protect all parties. We’ll confirm the workable range once we review your security and plan.
4) What can the second mortgage funds be used for in an Enforcement workout?
Common uses include arrears, legal fees, supplier payments, tax obligations, completion costs, or settlement top-ups—anything that stabilises operations and supports the agreed workout milestones.
5) What security do you accept, and what don’t you accept?
We accept residential or commercial property as collateral. We don’t accept other obscure assets as collateral. Clear, property-backed security helps keep the process efficient and predictable.
