Alternative Bridging Corporation has cut the rates on its Alternative Overdraft drawdown product by 0.10%.
The Alternative Overdraft provides delivers funds on 24 hours’ notice, and allows borrowers the opportunity to draw, repay or reduce funds to match their needs.
It is available for two years and provides multiple drawdowns on demand, which can be repaid or redrawn repeatedly.
Interest is only charged on the outstanding balance and can be serviced.
This approach was developed to avoid expensive, repetitive setting-up costs, aimed at site acquisitions, property auction purchases or to fund work-in-progress.
Loans are from £250,000 to £2m and the facility enables under-utilised assets to be used to finance new investment.
Jonathan Rubins (pictured), director at Alternative Bridging Corporation, said: “The Alternative Overdraft is the ideal loan arrangement for the property industry and business community, enabling the peace of mind of being able to quickly access liquidity when it is needed, without additional charges or delay.
“At the same time, interest is only charged when funds are used.”
He concluded: “We think it is best secured by first charge on under-utilised property assets or by first charge over commercial or residential and second charge over residential properties, but however it’s used, we know that the Alternative Overdraft can be a valuable tool in any investor’s toolkit.”
