UTB steps in on a classic car refinance to save a development deal
United Trust Bank was contacted late one Friday by an introducing broker frustrated at having just been let down by another funder on a re-finance of a rare classic car. His customer intended to use the funds to secure a development opportunity and needed to act quickly.
The broker had already received a formal acceptance for the facility from the other funder, and all signed documents had been forwarded on and conditions met, with the broker expecting the deal to be paid out.
At the eleventh hour, the broker was told that the funder’s credit team had added a further condition to the re-finance and were insisting on another legal document being drawn up. With the customer anticipating funds being released, the delay could impact the customer’s ability to negotiate the potential development and the broker decided that he needed another funder to look at the deal quickly, in order to safeguard the good faith of his customer.
Over the weekend, a valuation was sought on the vehicle, so that on Monday morning UTB were able to proceed with the proposal and provide a speedy acceptance on the re-finance, subject to the usual due diligence for this type of transaction.
The broker was able to go back to the customer and advise him of the last minute change to the original deal, but with the contingency acceptance by UTB in place. UTB documents were quickly
signed and the deal paid out just a few days after receiving the original request for assistance.
Loan Amount: £400,000