Central Bridging Loans – Unusual Cases
A cursory search of the Bridging Loan market highlights an industry that is buoyant, with widespread reports of success. Figures recently released from Bridging Index saw the Bridging Finance Industry achieve significant growth in 2012, with a 36% increase in the size of the average bridging loan and an increase of on the number of loans granted.
And according to John Clifford, MD at Central Bridging Loans, the growth is partly attributed to the increasingly innovative ways in which brokers are making bridging loans work as short-term funding vehicles.
“Alternative lending such as Bridging is now seen as a viable solution for short-term finance needs. CBL has seen a significant rise in applications for some of the more unusual a requirements, from raising capital to stave off a bankruptcy order, to settling tax demands” John said.
There have been times when a business required a short term funding to meet business obligations and payments or overcome financial difficulties such as bankruptcies and IVAs. In such instances, CBL was able to provide a bridging loan as a second charge and sometimes third charge behind a mainstream lender, as well as being used to annul an IVA and impending bankruptcy.
In other cases, CBL was able to provide a bridging loan when an untimely tax demand was made, securing the loan against the business premises and making funds available in very short timescales.
Client: Property Developer
Requirement: Bankruptcy Annulment
Mr B, a successful businessman, was left in difficult financial circumstances following the collapse of a property deal and was subsequently made bankrupt.
He approached CBL seeking a loan to annul the bankruptcy. We were able to arrange a loan of £190K over 4 months on a number of investment properties to release the funds required to discharge the bankruptcy.
This was a complex case involving a structured administrative and legal process with CBL, our solicitors, the borrower’s solicitors and the court.
Mr B proceeded to sell an investment property in order to provide the funds to discharge the loan on time.
Where business related matters cause an individual to face financial problems, Central Bridging Loans will always consider applications to provide a tailored and flexible solution to help them through the difficult times.
Urgent HMRC payment
Client: Self Employed Businessman
Requirement: Dismissal of Bankruptcy Application
Mr F, a self-employed businessman had received a tax demand from HMRC and was facing a PAB (pending action in bankruptcy) with a court date looming. He approached CBL and we were able to arrange a loan of £140K over 6 months secured on his main residence, which released funds to discharge the bankruptcy application.
The case involved complex administrative and legal processes with HMRC, CBL and our solicitors, in order to dismiss the application at The High Court. The application was dealt with speedily and CBL’s solicitors were able to provide funds to HMRC before the court date.
Mr F then had the time required to sell two investment properties, which provided the funds to discharge the loan.