Somo completes £260k nursery bridging loan despite complex security

Specialist lender Somo has completed a £260,000 first charge bridging facility to support a well-established day nursery in Hertfordshire, navigating third-party security, age criteria exceptions and urgent payroll deadlines to deliver funding on time.

The nursery required capital to redeem an existing short-term facility, clear a small amount of personal debt secured against family property, and inject working capital to support growth and upcoming wage commitments.

With payroll deadlines approaching and existing borrowing no longer suitable, timing was critical.

The complexity centred on the security. The property used as collateral was a residential home owned by the director’s mother rather than the borrowing company, creating third-party charge considerations and owner-occupier implications.

The age profile also fell outside standard criteria, and the loan purpose included a mix of business funding and redemption of a personal lifetime mortgage.

Despite these layers, the underlying fundamentals were strong: an established trading business, clean credit profile, clear profit projections and solid residential security supported by comparable sales evidence.

Somo structured a 12-month first charge facility of £260,000 gross (£218,270 net), secured at 67% loan-to-value. The funding consolidated short-term liabilities, redeemed the lifetime mortgage and released capital back into the nursery at a critical moment.

Although initial valuation queries and third-party charge requirements required careful handling, the deal progressed smoothly once the security position and compliance were clarified.

Jade Keval, Sales Director at Somo, commented:

“This is exactly where specialist lending makes a difference. On paper, third-party security, age exceptions and mixed-use funds can look complicated.

But when you step back and assess the full story — a profitable trading business, clear projections and strong security — the solution becomes clear.

Our role is to structure the deal properly and move quickly, especially when payroll deadlines are involved.”

Funding completed in time to stabilise the business, remove unsuitable borrowing and protect family security.

With forward planning in place and profitability supporting a refinance exit, the nursery now has the breathing room to focus on growth.

A structured solution delivered at pace, for a business that simply needed the right lender.