A client recently approached me as a result of our online presence. My client was the owner of large business in the North East of England and was looking for help with business equity release on an unencumbered industrial site, with a view to expanding his business.
My client wished to expand his business by purchasing the industrial area adjacent to the one he currently owned. The purchase price was given at £700,000 and he required a loan of £500,000 to complete the purchase.
From the outset, however, my client had stipulated his desire for an interest only loan at the beginning of his term. My client required this because he did not want to put too much pressure on his business and be left with a lack of equity in his current business.
With this in mind, it was crucial I found a lender who would be willing to meet my client’s requirements. Fortunately, at Enness we are exposed to such a wide variety of lenders, all of whom we maintain excellent relationships with, so I had a good idea of my chosen lender already.
The lender I chose was a high street bank who offers very attractive commercial rates at present. After presenting my client’s case to them, they were willing to allow a 24-month capital repayment holiday at the start of the loan term with an option to have a second? at any time within the loan’s lifetime.
I was therefore able to secure exceptionally favourable rates for my client. I secured the full amount at £500,000 at a rate of 3% over 17 years, with 2-years interest only and 15 years on a capital repayment basis.
This is an excellent example of how Enness can help grow your business – if you would like to discuss how you can expand your business, get in touch with one of our expert commercial finance brokers, we would be delighted to help.