B&C can announce that commercial lender Just Cashflow has officially launched a unique product aimed at property entrepreneurs.

 While reflecting on what led to the launch of the Portfolio Builder product, John McLellan CEO of Just Cashflow said the lender had recently encountered a number of clients faced with one of three situations:

•    They needed access to funds in advance of a new acquisition that was being bought at a discount for cash or at an auction,

•    They needed working capital to improve the quality of their current stock,

•    They were troubled by slow paying tenants. Especially with changes in social housing benefits causing cash flow issues and a threat of not being in a position of making mortgage payments on time.

As a solution to all of the above cases the Portfolio Builder product can be operated in one of two ways. Firstly, as an exact replica to a normal bank overdraft which helps flatten out the peaks and troughs of late rental payments and can allow the release of funds to carry out repairs and improvements for a new let. Alternatively as a replica of a normal bridging loan when a much larger amount of funds is required for a new purchase for example.

The major difference with Just Cashflow as a business lender and not a property lender is that diligence is paid AS to how the business is being managed and who is managing it. This results in potential access to loans at significantly higher LTV's if security is taken over real assets, although this is only part of the lender’s consideration when underwriting a case.

An example of this facility in action is seen in one of Just Cashflow’s active cases involving a Scottish Farm project. Part of the land is planned to be given over to biomass production and so funds were needed to make essential improvements prior to the installation of the equipment.
 
After considering the strength of the project, the lender plans to advance a second charge at 90 per cent LTV against the property on the farm.
 
Interested in the Portfolio Builder product? Contact Just Cashflow for more information on 0121 418 4545