Our client had a self-storage unit valued at £350k in the North West. He had an existing loan with a high street bank and was looking to re-finance to raise £190k capital.
This was a new business with a charge to an Invoice Finance provider. The Director was also attached to a previous liquidated company.
As the business hadn’t been trading for 12 months there were no formal accounts and due to the nature of the business there were no formal leases in place with his tenants to prove debt service cover.
Due to our clients circumstances most lenders had no appetite to support however, we were able to secure a facility for £230k which repaid the previous lender and provided additional capital that the client needed to take his business forward. Repayments were manageable on an interest only basis. Although the rates are slightly elevated, the facility is offered on flexible terms which will allow the client to refinance with the high street once he can demonstrate a trading history.