Bridging loan for business development

THE SCENARIO

I was recently approached by a married couple in their sixties who were looking to raise funds for their business. Enness had been recommended to the couple as a company with extensive experience in securing money promptly in unusual cases. The clients own a company which is currently in a start-up phase, and were looking for a short-term bridging loan to support the business through this stage. The company itself owns the royalties to a product in the oil and gas industry. They were looking to raise money quickly, but feared there would be an obstacle to their plans.

Both clients had poor credit reports, which can pose a serious challenge when attempting to secure a loan. Fortunately, Enness has an excellent relationship with a non-status lender who is known to be one of the quickest lenders on the market. Furthermore, as a non-status-lender, they don’t take bad credit reports into account. This particular lender also requires less information, no application form, and as an additional bonus, this lender arranges valuation reports themselves which speeds up the process.

The clients owned two properties in the Midlands; one being their main residence, and the other a buy to let (BTL). Combined, these properties had a value of over £1.8million, with an existing first charge of £664,000.

In order to help the clients achieve their goal, we cross collateralised to raise debt against their property portfolio. We took out a second charge over both their main residential and BTL property. Ultimately, the couple were able to take out a gross loan of £441,000 at 1.02% retained interest for twelve months.

I was very pleased to use my experience to advise the couple and work successfully with the lender. Having been concerned that their credit histories would hold them back in this endeavour, the couple were delighted that I was able to work swiftly to help them secure this loan. This was a fantastic result, and another example of how Enness works confidently with unusual cases.



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