In the case, two directors and shareholders of Jubilee Infrastructure Pty Ltd sought to finance the purchase and development of a property located in Hillcrest, South Australia in February 2022, by obtaining funds of between A$10 to A$15 million (approx. US$6.36 to US$9.54 million).
Following enquiries, the directors were introduced through mutual connections to the sole director of iLend, a loan broker business, which facilitated offers of finance. Jubilee entered into an agreement with iLend to procure finance of A$12million for three years at an interest rate of 7.9% per annum and, if finance was offered, a broking fee of A$250,000.
The agreement also created a charge over the property that was contingent on iLend performing its…
