Development Loan, 13 Apartments

Posted by Fusion Finance on 11th November 2019 -

Our client Mr Robinson had been running a successful York-based building company for ten years. Previously he obtained financial support from an equity-based investor who provided funds in return for an agreed profit share. When this funding ended, the client approached us to help find £1.4 million for his next project.

An initial consultation placed the project with two merchant banks. Two weeks later the underwriter meetings were complete, and an updated project summary report plus GDV valuation obtained from Knight Frank.

Both underwriters issued ‘heads of terms’, and our client accepted the offer. The loan included a 50% advance towards the site purchase and 100% of build costs, drawn in agreed stages, against interim inspection reports. Client charges were 2% set up fees, 2% exit fee on the facility and an interest rate of 7% over three month LIBOR.

There is an ever-growing range of specialist commercial finance products available to borrowers. The challenge is to find the product that best suits your particular needs and circumstances. That is precisely where the services of a specialist broker such as Fusion Finance can make all the difference. Firstly, we bring expertise along with access to the wider lender market including private banks and funds. Secondly, we aim to find you the best funding for your particular circumstances. Finally, our help and advice are impartial, in confidence and given without obligation.

Please contact us today to see how we can help you or submit an email enquiry, and we will get back to you.