Corporate second charge

Posted by Keystone Wealth Management Ltd on 29th July 2019 -

A large established business with multiple cross charges on assets required funds to use for cashflow in the business whilst a deal they are working on comes to fruition later this year. As the funds were only needed for a few months, the best option was a second charge bridge. With security documents needing to be signed in person, the issue was that two of the applicants were living in Malaysia and the third applicant was from Miami, but at the time was resident in Sierra Leone. We found suitable solicitors based in their jurisdictions, whom the lender was happy for the clients to utilise. (Although initially the lender was happy to send a staff member to those countries to sign the paperwork!) To add to the complexity the resulting valuation was lower than expected, bringing the loan amount over the lenders maximum against value. However, because I had a long established relationship with the lender, I successfully negotiated an exception for these clients and the lender honoured the original loan requested.

Photo by Jansen Yang on Unsplash