We received an refinance enquiry from a business person who owns a small industrial estate in Northamptonshire, compromising of a combination of industrial units and self-storage containers.

They wanted funding, to refinance away from an existing lender, having come to the end of their term with the loan during the lockdown.

The client also wanted to raise additional funds to increase the number of units and self-storage, in turn increasing their revenue.

Despite the lockdown and inability to arrange property inspections, the Genie Lending Case Manager was able to discuss with lenders and obtain a competitive long-term mortgage for the client.

Moving away from the norm, we were able to get a fully credit backed mortgage offer without the valuation having taken place, enabling solicitors to start their process and giving the existing lender comfort that they were going to be repaid on time.

Once the lockdown eased and Registered Institute of Chartered Surveyors (RICS) valuers, were able to go out, a formal valuation was arranged.

Once the valuation was back, the lender was able to ensure a speedy completion so that our client was able to continue trading seamlessly.

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.

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The ambitious client, had been steadily growing the business and consistently repaying the existing commercial mortgage facility with their high street lender. However, having now outgrown the building, they were required to move to a new location. This presented an opportunity to rent out the existing premises, an idea that had been in the planning for some time and would give them the ability to diversify their portfolio for income stability. They would split the current building into three separate units to let out, generating additional income.

From what seemed like a relatively straight forward plan there were some hurdles to overcome. This became clear when they approached the high street banks for funding. Having no previous commercial landlord experience being one, the change in structure and no tenants in place at the time. These factors seen as prohibitive by the high street banks forced the client to refinance and seek funding elsewhere.

When the client approached Genie Lending the Case Manager spent time understanding the client’s requirements, and various complexities within the case. He looked at these carefully with the client and their solicitor helping them to draw upon relevant information to present in order to obtain their funding.

Among the plus points were that the new premises were in the local vicinity of the existing, therefore this meant the client could keep a good handle on the three tenants.

A solution was found and an agreement in principle obtained from a competitive lender providing appropriate long term funding. The client was happy with the terms provided and proceeded accordingly.

This concluded with an acceptable formal offer being provided and legal representatives instructed within 12 working days of submitting the application.

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 Convenience store owner develops business portfolio to become a landlord. appeared first on Genie Lending: Business Loan Alternative Finance Specialists.

Many companies opt for a commercial bridging loan because they can be arranged in a very short amount of time compared to other types of finance. They are also available up to very large amounts – up to £20 million from private and flexible lenders. Short term bridging loans are available to individuals or businesses, but are generally used for the same purpose.

In today’s uncertain economic market, it is likely that most small businesses will experience hardship at some point. Cash flow is a major concern, as sometimes bills are going out before your clients have paid their invoices. It’s difficult to balance the books, and to keep the business going you may need to consider applying for finance.

Lots of companies depend on loans and other alternative finance solutions to keep them afloat. Most of the time it’s their only option to stop the business going bust or to keep up crucial payments. Sometimes these difficult times are out of the control of the business, it is often external factors which influence their position. However, you need a good back up financial plan to get you out of the red and into a safe place while the market improves. A bridging loan could be the answer.

What is a Bridging Loan?

The name of this loan is based on imagery – think of a bridging loan as a temporary financial bridge, to keep the borrower out of water until they can pay the money back. Bridging finance is a short term loan, up to millions of pounds, which is usually secured by against property.

What are the Advantages?

As a secured, short term loan, bridging finance can be arranged very quickly. This makes it ideal for property investors or anybody looking to buy a property at auction or looking to renovate a property for resale.  Bridging loans are typically paid back between one and 12 months, which is why they are often used in buying and selling property.

However, businesses can also benefit from bridging finance if they need help with cash flow and are expecting a large chunk of income in the next year. For example, businesses with a seasonal sales fluctuation may require some extra cash in the winter, but know they will be able to pay it back in the summer when sales increase.

Bridging loans are a simple way to take advantage of short term opportunities. They are also relatively easy to be accepted for, as they are a quick loan with no credit checks – often a logical choice for lenders who have been refused for other types of loans. However, you must make sure you have a strong repayment plan in place as it can become difficult to repay the loan in such a short amount of time.

What can a bridging loan be used for?

Generally, because bridging loans are a short term finance option which needs to be repaid within 12 months, they are used for property development or purchases. For example, if you want a quick sale of a property or need urgent funds for repairs or renovations, a bridging loan could help. Most people don’t have large sums of money saved up for property investment, but taking out a traditional loan can take too long in the property chain. To take advantage of investment opportunities, sometimes bridging finance is needed.

Bridging loans are a great option at auctions and lots of buyers complete purchases with bridging finance. A typical loan from a traditional lender would probably take too long for someone who wants to snap up a property at an auction.

Another option is property investment for a quick resale. If a buyer wants to make minor improvements and then put the property back on the market to sell within 12 months, a bridging loan can assist with the initial purchase.

What happens at the end of the term?

Before taking out a bridging loan, it’s important to understand the implications of such a short term loan. The finance term usually ranges from one to 12 months, and there will be security set up on the loan if you don’t repay it in time. There will also be a lump sum of interest added at the end of the loan to take into account.

There is another option – at the end of the loan, you can convert the bridging finance to a commercial mortgage if you have used the cash for a business property. This gives borrowers even more opportunities for repayments and further investments.

If you’d like to find out more about bridging finance and how it could help you, speak to our professional brokers.

Updated: 3rd April 2018

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Finance is a barrier for many businesses, but a lack of cash shouldn’t hold you back. In fact, the majority of companies wouldn’t have achieved success unless they borrowed money to grow. In order to expand and flourish, you require a funding solution which allows you to purchase the type of property you need – shops, retail units, farm buildings or industrial warehouses.

So is it really possible to buy a commercial property without help from the bank? Yes.

Commercial mortgages from the high street banks

A commercial mortgage is a bank loan which is intended to be used for purchasing a business property. A general business loan will have lower lending limits than a commercial mortgage. This type of mortgage differs from a residential mortgage, and you will likely need a large cash deposit as commercial mortgages tend to cover 70% of the property price.

As always, when borrowing from high street lenders the level of risk is measured precisely and if any factor falls slightly outside the risk profile, the mortgage application will be refused.  It is becoming very difficult to obtain any loan from a bank, especially a mortgage.

Other options to Buy a Commercial Property

Almost all businesses require some sort of premises, whether it’s an office or a factory. If you need to purchase commercial property for your business, or you want to buy a business which is for sale such as a B&B or a restaurant, then you don’t always have to rely on the high street banks.

The finance market has changed drastically over the last decade, allowing loan brokers and alternative finance providers to offer a range of alternate solutions. They explore funding streams to offer businesses commercial mortgages to companies that would typically get refused a loan from the bank. Alternative finance providers offer tailored solutions to fit your business, whether it’s development funding, a bridging loan or a traditional commercial mortgage.

If you need to purchase a commercial property and would like to discuss the options available to you, call our business finance managers on 012020 868843.

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