We Only Just Made It…
In this week’s blog, I wanted to share details of a deal we completed recently.
On occasions, we have clients who need to move quickly. And they don’t need funding in a month or two, or even a few weeks. They need funds within a few days.
That was the case recently when a client contacted us needing to raise funds urgently.
The background was that funding had been arranged by another broker and our client thought everything was okay and ready to complete. Unfortunately, at the eleventh hour the lender decided that because the security for the loan was a petrol station, they would be unable to proceed and so withdrew their offer.
When the client contacted us through a referral from another of our clients, he told us that he needed funding within 14 days.
As I’ve already mentioned, the property being used as security was a petrol station which my client had owned for several years as a long-term property investment. The property was let on a fully repairing and insuring lease to a major petrol retailer and had proved to be a very successful investment.
However, in relation to another business venture in which my client was involved, he had accrued a considerable tax liability which was well overdue and on which HMRC were now applying severe pressure, insisting that the tax bill was settled without delay.
Raising funding against the equity in the commercial property was the only option, however it also necessitated repaying an existing bank loan on the property.
We needed to move quickly and the first thing we did was meet the client, which enabled us to gain a full understanding of the deal. As a result, we not only understood the clients funding requirements but also how we could structure the deal and which lender we would approach.
In summary here’s the background to the deal and what we achieved for the client:
- Property was a petrol service station let on a fully repairing and insuring lease
- Client needed funding urgently to settle a large tax bill
- As part of the overall deal structure, an existing bank loan also needed to be repaid
- We arranged a bridging loan of £530,000
- Interest rate of 0.66% per month
- 12-month term – with no exit fees
- Time scale from start to finish? 12 days!
This included meeting the client, structuring the deal for the lender, getting an update on the existing valuation, having all the loan documentation issued and also ensuring all the legal work was carried out.
We were of course involved from start to finish and made sure we saw the deal “over the line”.
AND THE RESULT? ONE VERY HAPPY AND RELIEVED CLIENT!
If you have an urgent need for funding and would like to talk to an expert about your options, then get in contact with us at Funding Track.
You can email us at firstname.lastname@example.org or alternatively give us a call on 020 8949 2122.