Our customer provides services to the construction industry. A number of years ago it acquired a site a few miles from its headquarters and, using its many contacts in the construction industry, developed it into a single luxury home.
Our customer had funded the acquisition and build costs from its own resources, but given the difficulties in its sector, it now required funds for its own cash flow purposes pending the sale of the newly developed property.
We advanced just over £618,000 which included repaying an element of the customer’s borrowings with its Bank that had been cross secured on the property.
We took a first charge on the property and a personal guarantee from the principal shareholder and a director of the borrower company. The property is being marketed for sale in order to repay the loan and release the remaining equity.