Finance Firm Rescues Charity From Bank Refusal, Saves Millions
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The financial firm Mimondalan successfully intervened to secure 16 million shekels for a prominent Israeli charity that had been denied a loan by its bank. Mimondalan's experts re-engineered the deal by presenting a new risk profile to the bank's senior management and obtaining an updated property appraisal that increased asset value. The firm also refinanced the charity's existing 70 million shekel debt, significantly lowering interest rates and saving the organization millions. This intervention allowed the charity to complete a crucial property acquisition and avoid financial collapse.
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- Mimondalan secured 16 million shekels for a charity after its bank refused the loan request.
- The firm also refinanced the charity's 70 million shekel debt, cutting interest rates.
- An updated property appraisal significantly increased the charity's asset valuation.
- Mimondalan presented a new risk profile directly to the bank's senior management.
- The deal allows the charity to complete a property acquisition and save millions.
A prominent Israeli charity, facing financial ruin and the potential loss of its assets, has been rescued through a complex financial maneuver orchestrated by the firm Mimondalan. The charity had acquired a strategic property crucial for its expansion but needed an additional 16 million shekels to finalize the legal transfer and registration. This need arose despite the charity already possessing two active properties, which were encumbered by a 70 million shekel loan with high interest rates that strained its cash flow.
When the charity's management independently approached their bank for the additional 16 million shekels, their request was outright rejected, jeopardizing the entire transaction and risking significant financial losses. At this critical juncture, Mimondalan's finance and real estate experts intervened. "We understood that at the branch or regular level, the previous refusal was fixed and there was no chance of moving the system," explained Matityahu Vagshal, owner and partner at Mimondalan. "To make the bank change its stance 180 degrees and want to fight for this account, we had to re-engineer the deal at the highest levels. We built a new, transparent, and accurate risk profile, and presented the case directly to the bank's management and CEO level."
Concurrently, Mimondalan engaged with a senior appraiser approved by the bank. Through a thorough assessment of the properties' potential, an updated appraisal was produced, significantly increasing the stated value of the assets. This strategic move improved the loan-to-value ratio, provided the bank with the necessary security, and transformed the risky portfolio into a safe and desirable banking transaction.
The bank's management subsequently reversed its earlier decision and approved the full 16 million shekel financing, enabling the charity to complete the property transfer. Furthermore, Mimondalan successfully refinanced the charity's existing 70 million shekel debt, drastically reducing interest rates. This refinancing is projected to save the charity millions of shekels over the loan's term, freeing up funds for its operational expansion.
"Divine assistance accompanied us every step of the way," shared Eli Rabinowitz, also a partner at Mimondalan. "In complex deals of tens of millions, there is no such thing as 'no' or 'impossible.' The secret lies in a combination of uncompromising financial professionalism, a deep understanding of the banking system's mindset, and positive persistence that doesn't give up until the perfect result is achieved. Seeing a vital charity rescued from a bank's refusal, completing a dream property deal, and saving millions of shekels is the fulfillment of our mission."