A professional landlord, with a large rental property portfolio business became a Nucleus client when they decided to sell one of their properties. In order to achieve maximum resale value, they wanted to renovate the property first which required capital – something they wanted to release using equity in the property itself. It was a unique scenario and for that reason the business owner had struggled to obtain finance from his bank in the turnaround time that was required. Due to the lengthy and slow decision making process when applying for finance with a bank, many businesses find themselves waiting weeks, sometimes months, often only to hear a ‘no’ at the end. Often small businesses simply cannot afford to wait.
The business was introduced to Nucleus by Lime Consultancy, who knew that to meet the client’s need for fast, flexible, funding, the invariably longer turnaround time at a high street bank was not an option: an alternative approach was required.
The business planned to use the rent they earned from their tenants to service the interest for the loan – with the property held as security. The money from the eventual sale would be used to pay off the loan, so affordability was not an issue and in this case a two year secured bridging loan from Nucleus was the ideal solution to suit the client’s short term needs.
Interest only bridging loans, typically for up to 12 months, are an ideal solution, if like this business you have a short term need for a cash injection. This allows you time to complete a specific project, turn your business around or have breathing space to search the market and find a more long-term finance solution.
The business needs were initially complex to understand but ultimately the Nucleus Property Finance team listened to the story, understood the urgency and delivered a solution in the timeframe required.
The team at Nucleus shares our drive and ingenuity to get it done. This takes experience, commitment and some innovative thinking to overcome the challenges and barriers that invariably come up in the SME sector. I'm happy and the client is happy: you can't ask much more from your relationship with a lender than that.