Excavator refinance funds a property purchase

United Trust Bank (UTB) was approached by an existing broker partner representing a client who had the opportunity to purchase a commercial property at a very advantageous price, but needed to act quickly. The customer wished to fund the purchase over 4 years, a relatively short period for a property purchase. The more traditional funding option, a commercial mortgage, didn’t really suit his requirements because of the short term of the loan and the quick turnaround needed.

The client had five items of plant, mainly 2011/2012 excavators and, since UTB does not have an aged asset policy, the Bank was able to look at refinancing these to release the capital tied up in them. Having received the proposal in the morning the deal was agreed in principal the same day and having valued the plant and established good title to the assets, the funds were paid out the day the scanned documentation was received by UTB’s administration team.

Gordon McArthur, UTB Asset Finance BDM for the North of England and Scotland, commented:

“This was a great example of how refinancing can provide funding for a business opportunity when the more orthodox route to purchase, in this case a commercial mortgage, is less suited to the customer’s needs. We were able to agree the proposal quickly, assuring the customer that he could complete the property purchase as planned, and then release the funds required very soon afterwards. The customer was impressed with the quick decision and pay-out and the broker even more so, as he also received a superb luxury food and wine hamper as part of our winter refinance promotion.”

Loan amount: £150,000

Term: 4 years