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A new client contacted us recently, looking for a bridging loan to help their business. They wanted to raise funds against a commercial asset by taking out a second charge loan against the property. The funds would then be used to start a new business venture.
Whilst many lenders do not often supply second charges for commercial properties, we were more than happy to provide the finance they required.
Our client was also under pressure to complete quickly so they could get started with their new venture, which added a tight deadline into the mix as well.
The property still had a first charge from a private bank on it, but the borrower was unable to increase their loan.
Upon arranging the second charge, we approached the first charge lender and receive consent to conduct the second charge – they were in agreement, so we went ahead.
The client had already planned their exit strategy from the loan, which also gave us the green light to lend.
Due to the higher risk involved with second charges, and the post-pandemic climate, it can be difficult for borrowers to find a lender for commercial loans. We’re happy to be able to supply finance for our clients where other lenders cannot.
We regularly deal with second charges, and our underwriting team are well versed in arranging the finance needed.
The client was able to start their new venture, and the commercial property will soon be put on the market.
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