As part of our series of regular case study updates, read about a loan we have recently completed that is secured against a warehouse in south-east England.
This deal showcases our stabilisation product, and highlights our ability to underwrite a loan based on business projections rather than recent trading history.
Deal scenario
Our client needed to release equity from their existing commercial property to help fund business expansion through a series of new projects.
The security was the borrower’s warehouse in the south-east of England from where they have been operating their business for more than 20 years.
They had enjoyed good business performance in both 2021 and 2022 but encountered financial headwinds in 2023, caused by the loss of their largest customer who was responsible for the majority of their revenue.
This downturn prompted the client to expand the scope and earnings potential of their business, with investments in marketing and product development.
Our lending solution
We were able to understand the borrower’s business plan and forecasts despite the downturn they had experienced in 2023.
To avoid the client facing interest payments on borrowing they are not using, we structured our 24-month loan in two tranches.
The initial loan of £400,000 was advanced immediately, with a subsequent advance of £200,000 available to the client when required. This minimises the cost of drawn funds, but provides a commitment to a further advance.
Our exit from this deal will be through commercial refinancing when the client is able to obtain a loan from a traditional commercial lender.
Get in touch
If you’d like to talk to us about our commercial lending proposition and how we can help you and your clients, speak to the Relationship Director in your local office.
Beyond Bridges: The next step for borrowers and investors
“This expansion in Ortus’ product range is part of our ongoing effort to serve our loyal clients and introducers. We have had a particular focus on commercial property since our inception and providing 5-year commercial loans was the next logical step in growing our offering. This product now enables us to help borrowers and investors for the next step beyond a bridging or acquisition loan.”
