Client Profile
Our client is the owner of a diversified farming enterprise in the UK, with an estimated asset value of £3 million. The business is well-established and has demonstrated strong long-term potential.
The Challenge
During the COVID-19 lockdown, the client secured a series of unsecured loans to fund a strategic expansion of the business. While the expansion was successful and led to increased operational capacity, it also resulted in a high number of monthly finance commitments. This placed considerable pressure on cashflow and limited the business’s financial flexibility.
The Objective
To relieve short-term financial pressure and create breathing space, the client sought a £1.5 million bridging loan. The aim was to refinance existing unsecured debts and a commercial mortgage, stabilise monthly outgoings, and provide time to realise non-core assets to significantly reduce overall debt.
Our Solution
We conducted a comprehensive search across the market, approaching a wide panel of lenders. After reviewing several competitive offers, we proceeded with a lender offering flexible terms aligned with the client’s needs.
Final Terms Agreed:
- Loan Amount: £1.5 million
- Term: 24 months
- First 12 months: interest retained
- Final 12 months: interest serviced monthly
- Interest Rate: 0.83% per calendar month
Early Repayment Charges: None – critical as the client had identified two parcels of land for sale to reduce the debt
Exit Strategy:
The lender confirmed they would consider converting any outstanding balance at the end of the term into a long-term facility, avoiding the need for another refinance and keeping future costs low.
The Result
The bridging loan provided immediate relief from cashflow constraints and allowed the client to move forward with a plan to reduce overall debt through asset disposal. With no penalties for early repayment and the option for long-term refinancing, the facility offered the flexibility and security the client needed to focus on business performance and future growth.
Want to find out the costs regarding a bridging loan? Why not use our Steel River Bridging Loan calculator as a guide or get in touch with our team.
