Case Studies
NA Ltd was a successful business in air conditioning and air handling systems. Based near a major airport which was also one of its principle customers, the company provided an industrial process and high quality fitting service to airports, major retailers and manufacturers.
The company had a blue chip client base but contract payments could be erratic and dependent on completion of specific jobs. The company's banks were ill-equipped to fully understand the business and cashflow profile.
Business Lending were able to support the company using its business premises as security for a £330,000 commercial mortgage over 15 years, at 3% above base and 75% loan to value. The company repaid its existing mortgage borrowings and raised additional funds to provide cashflow and invest in the business.
Post completion note. The business has grown from strength to strength since the funding package was completed in summer 2005, and recently approached Business Lending for an 80% loan to enable it to expand and buy larger premises.
Mr C was a highly experienced publican and bar manager, but always as an employed manager. He wished to buy his own pub and had saved a sizeable deposit but due to his perceived lack of experience as a business owner found the mainstream banks and lenders unsupportive.
Business Lending was able to provide a loan of £210,000 being 70% of the property value over 25 years at base +4.25%.
Mrs K had leased a small shop and post office for the last three years and had operated it successfully and profitably. Her landlord was keen to sell but Mrs K lacked the deposit funds to obtain a regular commercial mortgage.
Working closely with the applicant and the valuer to understand the "marriage value" of the leasehold interest with the freehold purchase we were able fund her purchase of the property at a discount to its vacant possession market value. Business Lending was able to provide a 25 year commercial mortgage of £180,000 for 70% of the value but which represented 100% of the purchase price at base +4.5%.
Mr & Mrs H ran a successful interior design business which had been operating for over 15 years. However let down by a major supplier they were nursing losses on several significant fitting contracts.
Being out of pocket due to their supplier they sued for damages but the action failed as they could not continue to fund the legal costs. The result was that they had to liquidate their business.
Starting again they re-built their client base but the shadow of the previous insolvency hung over them. Business Lending was able to understand their business plan and look carefully at their business pipeline and financial forecasting. We provided funding to refinance their high street bank at £100,000 and an additional £50,000 to invest in and improve their retail premises with a mortgage for £159,000 over 20 years at base +3.5%.
Mr T was already an established investor & property trader when he came to Business Lending. He had seen an opportunity to acquire a site for static caravans in an established location on the south coast.
There is a ready market for these sites but they are unpopular with traditional lenders and not valued by the main surveying firms.
Using a local valuer with a detailed knowledge of the market for these types of property Business Lending was able to satisfy itself on the value of the site and that it was saleable security. We provided a 20 year loan to assist with the purchase of the site at base +4.5%.
Mr P had retired early from public sector employment and with his wife had set up a highly successful boarding kennels business. However expenditure on the business & premises had exceeded budget and was funded by short term loans and borrowing.
The business whilst successful needed putting on a firm financial footing with a long term secured loan. Business Lending offered a consolidation facility allowing the applicants to repay their short term debt and consolidate to a single monthly payment.
A loan of £600,000 was provided at 80% loan to value plus fees at base +3.8% reflecting the quality of the underlying business proposition.