Lakepoint reduces client's debt servicing costs by $10,000+/month

Amount: $3,400,000

LTV: 48.5%

Amortization: 20 years

Lender: Credit union 

Location: Kelowna

Industry: Transportation

Goals achieved: Lower costs, Greater flexibility

We are extremely pleased to highlight the recent funding of a $3,400,000 commercial mortgage secured by industrial land located in Kelowna, BC. The land was partially used by a related company of the Borrower for yard space, and partially leased out to arms-length third parties for the same purpose.

By optimizing this client's financing, they are now saving over $10,000 per month in principal and interest costs. In addition, the incoming lender funded the deal without a corporate guarantee from the Principals' operating company, which the incumbent lender had previously required. By removing the corporate guarantee, the financial covenants of the related operating company were significantly improved, which in turn provided significantly more borrowing flexibility for the operating company.

This outcome didn't come easy, and was the culmination of two years of perseverance, setbacks, resiliency and creativity. Multiple moving parts and parties were involved, and we couldn't be more pleased to finally get this one across the line and post about it.

This financing success is a reminder that persistence, creativity, and the right strategy can make a material difference for business owners. By removing unnecessary guarantees, improving covenant flexibility, and lowering monthly costs, our client is now better positioned to grow with confidence.

If you’re considering a new acquisition, refinancing existing debt, or simply want to understand whether your current financing structure is truly optimized, we’d be glad to have a conversation. Reach out to Lakepoint Capital to explore how we can help you achieve the same kind of results.