Bridging Loan Helps Business Partners Get New Venture Underway

business partners

At UK Property Finance, we are always proud to be part of a small business success story. In this instance, we were approached by two lifelong friends who had decided to go into business together. Both experienced tradesmen and those in their mid-30s believed that the time had come to invest in property, in particular purchasing properties in need of renovation or upgrades. This would enable them to utilise their skills in order to create maximum profit when they sell.

One of the partners owned commercial property inherited from a deceased relative several years prior. The other partner had considerable savings, although even the combination of equity and savings was not enough to purchase a property outright and pay for the renovation work needed. The partners approached UK Property Finance for advice, and based on their scenario, we advised that a short-term bridging loan would be the most appropriate product for them.

The loan was secured against the first partner’s commercial property, while the second partner’s savings were used for the 10% deposit required for an auction purchase and the balance to minimise the loan required and Loan to Value (LTV) so that UK Property Finance could recommend the best interest rates available in the market and also raise the money needed to complete the renovation work. The loan was finalised from start to finish within 2 weeks, and the funds were transferred, allowing the new business partners to take formal ownership of their first investment property well before the 28 days allowed by the auction house, as such, they commenced the refurbishments earlier than expected.

We have kept in regular contact with this new fledgling business, which is well on with its first development and already on the lookout for number two.