Commercial Expert, an independent commercial finance broker, has secured a £175,000 funding package for a newly established limited company aiming to acquire multiple units in a complex used for both residential and commercial purposes in the Highlands of Scotland.
Ray Mutch, the business owner, has been leasing various units within the Tain property for the past decade. His operations include a small shop, a butchery, and a sub post office.
Keen to expand both the retail and butcher businesses and improve the property’s fabric, Mutch required affordable and fair finance to purchase the complex’s freehold and fund the renovations.
Despite the case’s complexity, resulting from the property’s semi-commercial use and mixed construction types, Commercial Expert successfully obtained the necessary finance from a lender who recognised the business potential in Scotland. Mutch received £175,000 in funding through a 70% LTV commercial mortgage with Allica Bank at a rate of 5.5% + BoE Base Rate.
Tracey Barnes, the business manager at Commercial Expert who led the case, said: “This was a case of making sure we knew exactly what the security consisted of before the client paid out any money for valuations. It certainly helped that we had Ken nearby to physically see the property. It all ended well, and happily, the Mutch’s can now continue to grow their business.”
The case was introduced to Commercial Expert’s Scottish Highlands Representative, Ken Macrae, by the Highland Council Business Investment Team. Macrae met with Mutch to understand the case’s complexity before passing it on to Barnes, who managed the application to the point of funding. The process involved collaboration with Michael Horner of Allica Bank and solicitors Rona Plowman & Jennifer Simpson from BBM Solicitors.
Despite the challenges encountered, such as a limited choice of valuers willing to act, the structure of the Limited Company, a complex LBTT (Stamp Duty) position, and the establishment of a new company bank account, the necessary funding was received within three months.
Upon receiving the funding, Mutch stated: “I knew getting into this process that there would be barriers, but Commercial Expert has been brilliant in limiting the impact of these during what I can only describe as a very stressful time. Not only does this mean great things for our family, but it also fuels a dream I’ve had for a long time, and I can now fully excel in the business. I would recommend Commercial Expert to anyone in our position looking for finance.”
