Holme Finance Bridging Solutions provides rapid bridging finance solution for commercial developer

By Bridging Loan Directory 30th October 2023

A commercial developer had an ongoing project nearing completion. Like most commercial projects, there were timelines to be adhered to and payments to be made.

An unforeseen cash-flow issue cropped up at a critical moment, creating a potential roadblock in the project’s path.

As the deadline for contractor payments approached, the developer realised that his own business cash-flow would be insufficient to cover the balance due.

The shortfall was £26,000. The deadline pressure intensified the situation since a delay in payment could result in penalties, delayed project completion, and potentially strained business relationships.

Upon realising the shortfall, the developer approached his broker seeking a swift financial solution.

Recognising the urgency, the broker proposed using a second charge on the developer’s home as collateral through HFBS.

The property considered as security was the developer’s residential address. It had a desktop valuation of £500,000. With the developer’s existing first charge mortgage at £240,000, there was ample equity in the property to cover the loan.

This decision to consider the residential property as opposed to the commercial development site was based on the fact that the commercial site was under the developer’s limited company.

In the span of three days HRBS were able to:

Wednesday: Documents were dispatched and received.

Thursday: A personal visit was made for verification and further discussions.

Friday: The deal was finalised, and a net loan of £26,000 was sanctioned.

HFBS provided the client with the urgently needed funds, allowing him to clear the contractors’ dues on the very same Friday.

Dan Yendall-Collings, Senior Underwriter, Holme Finance Bridging Solutions said:

“This rapid action not only saved the developer from potential late fees and penalties but also maintained his reputation in the business community.”

HFBS provided the £26,000 loan over 12 months at an interest rate of 2% per month.

Dan went on the say:

“We’re pleased to say the developer anticipates clearing the bridging loan within the next couple of months, given the projected cash inflows from his nearly completed commercial project.”