Like most business owners the COVID pandemic forced the clients to act quickly with commercial decisions to adapt their business so they could continue to thrive. It therefore made complete business sense to stop renting, and purchase premises to trade from, to further strengthen the business.

When the opportunity arose to purchase the property next door, which has been vacant for around 5 years, the client spoke to Genie Lending straight away. Knowledge of the area, with a current client base and proven track record stood to strengthen the proposition. Furthermore, the property itself is a large space with an unused takeaway and restaurant on the ground floor and a huge 8 bedroom flat above.

Our client could see beyond the repairs that were required and the possible potential in the property. They approached it with a clear commercial plan, keeping their business goals in mind, whilst also seeing the opportunity for portfolio expansion. Through splitting the ground floor commercial space into a takeaway (to let out), and retail unit to move their existing business into (subject to local authority consents). They would then look to gain planning to convert the 8 bedroom flat, into four 2 bedroom flats which can be let to generate further income.

To attain the finance, our Genie Lending dedicated Case Manager worked closely with the client over the many complexities to attain the required funding. Our experienced Case Manager guided the client through the hurdles that they would face for example, with no planning in place to split the commercial element, or to convert the flats, a long term commercial mortgage is not possible. Secondly, development lenders will not lend if planning is not in place, and should they try and obtain planning before purchasing they run the risk of the vendor increasing the purchase price! Also counter to their application, was the poor condition of the property. Main stream bridging lenders were concerned that this could lead to unforeseen expense, that would be detrimental to the loan repayments.

Genie Lending were able to overcome all of this, and accomplish a bridging facility with a flexible independent lender, who could also see the potential in the property. Having visited the property personally, and obtained specialist reports, the lender was able to provide a funding facility to support the purchase, and moreover, when planning is in place will assist with the development finance.

Once fully developed the client will be able to refinance the whole building on to a long term mortgage. In doing this, our client will have an increased income from the takeaway and the accommodation rental of the flats, thus meaning that they will no longer have to pay rent on their own retail business!

If your business has found funding difficult to obtain you can trust Genie Lending to go to every extent to provide the correct finance quickly, for the result you want. As well as the household names in the industry we have access to proven lending sources who you will not find on the high street. Our aim is to help UK SME’s obtain funding for all their business requirements, whether that be growth, acquiring premises, paying HMRC liabilities or simply working capital. Genie Lending can assist with complete finance solutions.

The post Purchase of a commercial property appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Did you know that Tim Westergren, founder of music streaming website Pandora, was rejected 300 times for venture capital before hitting the big time with his dream? The story just goes to show that persistence pays off in the end. Still not convinced? Here are a handful of case studies from our very own clients, which prove that the money is there to be had – if you’ll let us help you find it.

Home Counties Independent Cinema Company

With suppliers demanding immediate payment on outstanding accounts, an independent cinema in the South of England needed to find £25,000 at short notice. The problem? The company’s director suffered from a poor credit rating as a result of a messy divorce, with defaults, county court judgements and mortgage arrears staining his record.

After looking closely at the company’s accounts, our Business Finance Manager concluded that the cinema was still very much a viable business, if only it could overcome its short-term cash-flow issues. Despite suffering two further rejections, Genie Lending worked closely with the client to obtain an unsecured business loan to the value of £25,000 over a 24-month period. The funds were deposited in the company’s accounts within 48 hours and the cinema was able to keep its doors open to the public, against all the odds.

North East England Food Wholesaler

Desperate for a cash injection to improve efficiency in product sourcing and enhance their profit margins, a food wholesaler from the North of England approached Genie Lending to help them find the funds. The owner of the business had failed in his previous venture in administration, leading to county court judgements against his name and subsequent difficulties in securing the loan from a high street bank.

Notwithstanding his track record, our Business Finance Manager was able to secure a second charge commercial mortgage on the wholesaler’s warehouse. This allowed the company to access £80,000, repayable over a 15-year period, and strengthened the owner’s bargaining positioning with his suppliers. As a result, the business boomed over the Christmas months and profit margins far surpassed initial projections.

Midlands Civil Engineering Company

A civil engineering company based in Nottinghamshire enjoyed a moderate profit in their first year of trading and healthy projections in their second. Just 20 months old, they set their sights on expanding out of their old offices and upgrading their machinery inventory, but required capital to do so. Despite the positives on their balance sheets, the relatively short time they had been in business discouraged banks from granting them the loan.

Genie Lending stepped in and after confirming the financial viability of the company, were able to source an unsecured business finance loan of £50,000 over a four-year period, requiring only personal guarantees from the directors of the company. The client first approached Genie Lending on the 29^th October and received the funds in their account on the 20^th November, meaning the whole process took just 17 working days from start to finish!

Get in touch

Now that you’ve seen what Genie Lending has done for other companies, why not hear what we can do for you? If you’re in need of a commercial loan, get in touch with us today. We’re waiting to hear from you!

The post Business Loan Success Stories appeared first on Genie Lending: Business Loan Alternative Finance Specialists.