Client circumstances:
Our client, a seasoned entrepreneur had identified a significant opportunity to establish a business in the pet services sector. Their initial plan to acquire an existing business unexpectedly fell through when the current owners increased the sale price beyond the agreed terms. As a result, they decided to launch a new business instead, funding it through a combination of personal savings and equity released from their high value investment property. Having already secured an attractive high-street location for the business, they needed to raise an additional £100,000 to complement their capital investment. Although they had offers from other investors, they wanted to raise the funds independently and this was when their broker approached us.
MT Finance solution:
Recognising the client’s strategic approach and clear business plan, our underwriting team got to work immediately. Having conducted a comprehensive review of the financial plan and assessed all necessary documentation, we were able to create a tailored solution with a structured loan of £122,932.61 at a competitive loan-to-value ratio of 69% set for a 12-month loan term designed to align with the business’s initial growth phase.
The benefits:
This case shows the benefits of using bridging for business purposes. Our ability to move quickly ensured the client could proceed with the capital injection plans for their business. The 12-month term will give them ample time to grow the business and exit using their refinance exit strategy. If this happens before the end of their term, they won’t face any early repayment charges or exit fees.