Sometimes, a lucky coincidence at just the right time can present a business opportunity you simply can’t miss.
Read our case study on how a collaborative approach enabled us to deliver a commercial business loan in under 4 weeks.
That was the case for our borrowers when they learned that the property next door to their premises was up for sale – they own a specialist grocery and butcher’s shop and had been looking to expand so this opportunity offered the perfect next step.
With an April deadline, they had to act fast. In the midst of a pandemic, and at the height of a property market frenzy caused by the stamp duty holiday, this was no easy task.
Then there were the challenges of navigating strict government regulation around residence, as SJPR specialises in working with Brazilian and Portuguese clients in London.
But by working with ourselves, Capitalise and SJPR we were able to secure a commercial bridging loan of £265,000 for 12 months, allowing our borrower to purchase the property, move in and get their new plans underway.
A bridge to business growth
A commercial bridging loan was the perfect solution for our borrower as the property was mixed-use, with retail on the ground floor and residential flats above and so it was not available for a commercial mortgage at the time. The bridging loan bought them the necessary time and breathing space to purchase the property, begin refurbishment and move in, before securing a mortgage to retain ownership in the long term.
making it happen
At this stage in the process, it’s good to know who you’re speaking to, beyond the names on bits of paperwork.
With everyone on the same page, it was time to gather the necessary documentation and ensure the deal went through. The main challenge was to do with residence, ‘know your customer’ (KYC) and anti-money laundering (AML) processes.
Because the business was owned by non-UK nationals, a highly detailed, granular level of information was needed to meet strict regulations. This was further complicated by the fact the firm’s owners, like many London residents, were not homeowners.
Fortunately, we have strong experience in working with complex cases and were flexible and innovative enough to overcome those challenges and move forward with the deal.
Sometimes it helps to have a conversation face to face with somebody, so you can really get a feel for what they’re about. We’re a people organisation, and we’re proud to have continued to lend throughout COVID when some of our competitors withdrew from the market. We’ve always believed in giving priority to the individual rather than the process, so it’s a great feeling to see deals that are empowering borrowers to go and achieve their dreams and ambitions.
We’re also really lucky that we have the freedom to lend to anyone who we think is a good borrower. At the moment, many lenders are nervous about commercial property, and you won’t find people jumping over themselves to fund retail especially. But we take a bit of a different view. For us, it’s all about lending to really good people, and that’s who these guys were.
New premises, a new chapter
The process certainly wasn’t without its hurdles, but through the hard work of everyone involved, the deal was completed just in time and with their new premises secured, our borrower is getting geared up for an exciting new chapter of business growth.