Our client approached us to raise 100% finance for a business based in Scotland. He told us that he had already spoken to several of the major high street banks. Unsurprisingly, in view of the requested Loan to Value, coupled with the location of the business, they were not interested.
When we first spoke with our client we did what we always do, which is to get an understanding of both the actual funding request and gather background information. We never start with preconceived ideas or make assumptions at the outset. In discussions with our client we discovered two very important facts;
- The family had a portfolio of investment properties in the South East
- Our client was not in fact our client! The plan was to acquire the business in the name of the son and daughter for Dad to operate when he retired
Armed with these additional facts, and other relevant information, we approached some of the lenders who we considered most likely to consider the proposition. We secured an offer of a commercial mortgage of £320,000 on favourable terms for the son and daughter to buy the business with no deposit, secured on the freehold in Scotland and the investment properties. In fact the actual mortgage agreed was some £90,000 higher than the purchase price. This enabled the family to clear some other debts, cover the fees and it provided working capital for the business being acquired.
This enabled the family to realise their retirement plans for their father whilst adding to their investment portfolio. And just by asking an extra couple of questions.
Why not put us to the test and ask us about your finance requirements? For a free consultation simply call us on 0800 093 5240. We look forward to hearing from you.