MORTGAGE broking company Refund Home Loans has been placed in voluntary administration two years after its founder Wayne Ormond was voted Queensland’s richest bachelor worth an estimated $25 million.

It is understood Refund owes its banks more than $2.5m.

The company, which operates as a franchisor, has more than 320 franchisees nationally.

Brisbane-based administrators SV Partners is looking to sell the company as a going concern. It is believed that the company has been hit by difficult trading conditions over the past 18 months, made worse by the sluggish property market in Queensland after the floods earlier this year.

“Everything I have is in the business. Ultimately, Refund is a good business,” Mr Ormond, 38, told The Australian.

“What went wrong? We can blame everything, but we are in voluntary administration. So something went wrong. It’s not just one thing but a combination of events.”It is understood that banks have been tightening up their lending to small business and have made it particularly hard.

“The company is effectively underfunded. The banks had no choice but to put it into voluntary administration,” a source said.

Administrators are trying to leverage Refund’s strong brand to get a good price for the business.

It is believed that a number of franchisees have indicated their interest in buying the company.

Refund has a loan book of about $2 billion.

Mr Ormond said Refund Real Estate and Refund Financial Planning were not affected.