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How we got finance in 5 days and saved our client £42,000…….

This is the second in a series of blogs, where I’m telling the stories behind some of the recent deals we’ve done.

It will give you an insight into the different types of funding we can arrange, and also enable you to understand exactly how we’ve helped some of our clients.

So this week, it’s the story of how we helped a client of ours who came to us with only 5 days to raise finance otherwise they stood to lose £42,000.

So how exactly did we help our client get the finance they needed and save them from losing £42,000? Well here’s what happened…….

What Was The Background To The Deal?

  • Our client had exchanged contracts at auction on a commercial investment property with a purchase price of £420,000.
  • As a result, he paid a 10% deposit – £42,000.
  • Our client was putting in approximately £200,000 from his own cash resources and so had not envisaged any problems in raising the required finance.
  • He went to his own bank, who he’d been with for many years. They were aware that he had bought at auction and had 28 days to complete.
  • He was therefore delighted when his bank agreed to assist.
  • Then one week before completion our client’s bank reviewed the deal and having done so decided not to proceed and withdrew their offer!!
  • As a result, our client was now in the situation of needing to raise funds quickly to complete the purchase.
  • Desperation set in when he was unable to complete in time. He was therefore served notice to complete and given 10 days to do so.
  • If he didn’t complete, then he would lose his £42,000 deposit.
  • That’s when the client’s accountant put him in contact with us.

What Were The Problems?

There were several problems:

  • Having initially agreed to assist, our client was badly let down by his bank only one week before he was due to complete.
  • As a result, our client was in danger of not only losing the investment property he wanted to buy, but also the £42,000 deposit he had already paid.
  • By the time we were contacted to help, he was already into his notice period and only had 6 days left to complete.

How Did We Solve the Problems?

Here’s what we did:

  • Perhaps the most important thing we did was to immediately arrange a meeting with the client.
  • We call this meeting our DEEP DIVE EVALUATION, and is arguably the most important thing we do. During that initial meeting we take the time to completely understand the deal, and as a result suggest possible solutions.
  • Having done this, we immediately approached a lender with whom we have a longstanding relationship built up over many years.
  • They were prepared to accept the valuation that had already been carried out.
  • At the same time, the lender also issued a formal offer letter and instructed solicitors.
  • One key point, we didn’t waste time “punting the deal” to lenders we hoped might help, but rather went straight to a lender with whom we have a strong relationship and who we knew could do the deal in time.

AND THE OUTCOME…….?

  • 5 days after first approaching us the deal completed with 1 day to spare.
  • Our client became the proud owner of a new commercial investment property.
  • And of course, it also meant we saved him from losing his £42,000 deposit!

Needless to say, one very happy client!!