We were contacted by the client looking to raise money for a business rates bill of £32,000.
They had a large commercial and residential building in London and had intended to let the commercial premises to a third party. Despite the third party spending money and 18 months getting planning permission for their intended use they withdrew!
They would have covered the business rates as well as paying a significant sum in advance rent without which left the client in a difficult situation. The council were insisting on payments of £1500 a week!
Despite having several million of equity in the property their first charge lender refused a further advance and also refused to allow a second charge on the property.
However we have a lender that will consider a restriction instead of a charge and as such don’t need the first charge lenders consent.
So we applied for this facility; unfortunately for several reasons the lender couldn’t lend on this basis.
However they also offer a business loan facility and agreed to do this instead.
We arranged a 12 month loan of £40,000 so that the interest payments were covered allowing them the time needed to arrange a new tenancy.
The clients went from paying £1500 a week to £700 a month.
The first 3 payments were also rolled up giving them a bit of breathing space.
The loan has no redemption penalties and interest is charged by the day so incredibly flexible.
From the initial enquiry to when the funds were released was 2 weeks.
These facilities are available to all types of businesses including property; get in touch if we can help.