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Overview

Short term lending is a specialist business that in order to succeed long term, it requires experts in each of the three main areas;


  1. Lending
  2. Industry specific legal representation
  3. Recovery

Why use ARC?

Often when it comes to debt collection there is a significant gap between the lender and the litigation solicitor. Australian Recovery Corporation (ARC) has pioneered the way for short term lenders when it comes to loan recovery, risk mitigation and strategic thinking. ARC is interested in one thing only;


Premium commercial results in the quickest way possible.

Our Experience

Having worked with 23 short term lenders across Australia over 11 years, our experience has developed strategies that far exceed our client’s expectations. Our highly developed negotiating skills, knowledge of advanced debt psychology, intimate knowledge of legal options in most states and industry experience in almost every conceivable difficult scenario has produced results when lenders have simply given up on a loan.


The Cost

What we hear most from lenders is that no lender likes having to pay for recovery. This is a premium service and ARC is not cheap. However, by incorporating our clauses into your documents you will not have to pay for our services. The borrower will bare all costs allowing this premium service free of charge to the lender. ARC will also examine the litigating solicitor’s workflow and timeframes driving down any unnecessary costs.
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Client Testimonials
My client lent $300,000 at 5% per month on a 1st mortgage against a $400,000 property and after the loan had expired and we mortgagee sold the property there was a $60,000 shortfall. On the day the loan had expired we advised our client to caveat an additional property. The new property already had 2 mortgages on it.

After reviewing the new security and speaking with the 1st mortgage (a major bank) and the 2nd mortgagee (a short term lender) we determined that there would be insufficient funds for payment to our 3rd ranking mortgage. The 2nd mortgagee was also hostile.

In our investigation with the other 2 mortgagees we found out that the 1st mortgagee’s loan was in arrears and had been so for 15 months. On this occasion the 1st mortgagee did not invoke their default interest. Under our loan agreement we paid out the 1st mortgagee, $845,000, so we were now 1st mortgagee and third mortgagee, we backdated the default interest, sold the property under mortgagee sale and created $54,000 for our client that previously did not exist. The 2nd mortgagee was furious however they could do nothing about this.

This scenario was only possible as our client allowed ARC to act quickly and trusted our unorthodox but very strategic methods.
My client lent $1,400,000 against on a 1st mortgage commercial property valued at $2,000,000 at 3% per month. At the expiry of the term the borrower owed $1,700,000. The borrower had a favorable lease back to himself for three years. We knew that it would be difficult to mortgagee sell with this lease in place so we gave the borrower an option. The 1st mortgagee buys the property of the borrower for $1,700,000, allows the borrower to lease back at a much higher rent than he was currently paying on a new three month lease and give the borrower the first option to buy the property back at $1,900,000.

The only condition was the borrower must pay rent on time to have the first option to buy back. As this avoided a mortgagee sale for the borrower, the borrower agreed and sold the property to my client however he missed his first months rent. My client sold and settled the property for $2,150,000 within three months with vacant possession.

This scenario has avoided a lengthy mortgagee sale as the 1st lease return was not desirable at all. It has also produced over $350,000 in revenue after stamp duty, agent’s fees and recovery costs.