Online broker Loan.co.uk has just completed a complex £1m bridging loan to enable an entrepreneur to float his business.
The client made an inquiry directly with Loan.co.uk looking to borrow the money to provide his pharmaceutical business with a cash injection to assist with an imminent IPO.
However, as lenders are not willing to accept an IPO as a sufficient exit strategy for a bridge, Loan.co.uk’s advisers had to find an alternative to the client’s pressing requirements.
Kamal Panchal, head of bridging and development finance at the company, said: “We always put the client first and, due to our sophisticated AI platform and great relationship with lenders, we know to delve deeper into people’s situations because in many cases we can help – even if the case is highly complicated or requires specialist lending.
“The client had been searching for a financial solution for more than two months without success, so when he came to us he was frustrated and time was extremely short.
“It was instantly apparent that this loan was extremely important both for him and his business. As I dug into his situation, it came to light he had his main residence and three other properties he could use as collateral against a loan.
“We were then able to structure a complex arrangement where we took a first charge on his primary residence, and a comfort charge over one of the other properties, clearing a second charge for him in the process as well as providing the necessary funding for his IPO.
“We took the proposition to West One, which specialises in deals of this complexity and was clearly the most cost effective in the way we were structuring the deal, they were extremely helpful in assisting us to meet tight deadlines.”
Panchal added that the icing on the cake was that the entire arrangement was completed within four weeks of receiving the initial documents, delighting the client.
Nick Jones, sales director from West One, added: “This case is a prime example of ‘thinking outside the box’ and emphasises the importance of close relationship between lenders and brokers. It just goes to show how far the uses of short-term finance has diversified over the years.
“We were very pleased that our team, including experienced expert underwriters, were able to help put together this complex package which was a vital element to enable an important IPO.”
