When can it be of assistance to you ?
Do you know when it can be of assistance to you?
The selection of bridging finance case studies below demonstrates the multiple uses of this fast and flexible form of short term funding.
Funding Stock
A client who specialises in importing and selling second hand cars from China required funds urgently to finance an order.
He owned a property worth £159,000 with no mortgage and we provided a £50,000 bridging loan in 2 days.
Buying Selling Property
A client had agreed to buy a beachfront property from the local authority for £146,000. Prior to contacting ourselves, the client had struggled to raise the £105,000 needed to complete.
We were approached during a 'Notice to Complete' when the client had just 3 days left to complete. We instructed our solicitor immediately, completed in just 2 days and the client later sold the property for almost £600,000.
Discharging a bankruptcy
A client was facing a petition to be made bankrupt by the Inland Revenue. He owned 2 properties, one commercial, one residential, both mortgaged.
We were approached to lend £45,000 to settle the debts under the petition and to clear the client's arrears with the mortgage companies.
We obtained a settlement figure for the petition, obtained consent for second charges on each property, obtained undertakings from the client's solicitor and then put the solicitor in funds in order that an application could be made to the courts to settle debts under the petition.
Upon receipt of the sealed order from the court, our in house legal team liaised with the client's solicitor to complete the transaction.
Property Development
A client owned a piece of land worth £40,000 at the end of a row of terraced houses and obtained planning permission to add another terrace to the end of the row.
We arranged for a valuation to be carried out and the client provided a schedule of works for the project. The valuer stated that on completion the terrace would sell for around £135,000 and we agreed to provide the client with a facility of £78,000, available in 3 equal stages.
Property Conversion
A client owned a hotel with no mortgage which had a bricks and mortar value of £300,000.
The client wished to convert the property into luxury apartments and required a facility of £600,000 for the project.
We provided the client with an initial advance of £152,000 and the rest in various stages throughout the project.
The end result was that the 8 flats sold in total for more than £1.2m.
Company Restructuring
A client owned a manufacturing business and was in talks with new bankers following a disagreement with the existing lender.
Unfortunately talks with the new lender had become protracted and the existing lender decided to 'call in' the outstanding overdraft facilities and was preparing to appoint a receiver.
A valuation had already been carried out for the new lender and we completed a £1m bridging loan in 5 days which bought the company sufficient time to refinance the business.
Overseas Property Acquisition
A client owned a property in the UK worth £200,000.
She urgently required £51,000 to complete the purchase of a property in the US.
We obtained a valuation of the property and sent the client an illustration of the bridging loan and an application form by email within an hour.
She completed and faxed back the application form the same and we sent out the legal agreements that evening.
She saw her solicitor the following morning, returned the documents to us and then sent her the funds by telegraphic transfer.
Back to: topBack to: Property Finance
Business Assistance is accredited by the National Association of Commercial Finance Brokers.