Blemain Finance and Blimey! Loans have collaborated on providing a lifeline deal for a business owner, after he was turned away by a high street bank.
The £50,000 deal was for a long established third generation family business where the current owner wanted to retire. The client, who runs a successful butcher shop in Central Scotland, wanted to buy a second shop. The sale price of the new business was priced for a quick sale.
Despite that the business was well established, trading for 20 years from the site in question, the shop’s profits had not recovered since the recession tightened its grip. When he approached his current business bank, Clydesdale, he wasn’t entirely surprised to be given a polite thanks, but no thanks.
The client’s IFA had previously set up a Self Invested Pension Plan (SIPP) to help him acquire his existing trading premises. His IFA was able to use this vehicle to get the bulk of the lending required, but it still left a gap of £50,000.
Blimey! Loans were approached by the IFA, who had used them before for cases that went beyond the mainstream. They were able to suggest using some of the equity available in the client’s residential property by way of securing a second charge on the house.
Blimey! Loans presented the case to Blemain Finance, a long established specialised lender and experts lending on second charges for business purposes. An unregulated business purpose secured loan for £50,000 was subsequently completed and the client was able to complete the property purchase.
Net result
The client was delighted to be handed the keys to his new property. The introducing IFA received £1,087.50 for passing over the referral and in addition was able to secure substantial life insurance policies, generating further profit.
Murray Ewing of Blimey Loans said: “This loan was slightly different than the normal 2nd charge residential secured loan as this loan was for a business use.
“The lender of choice for this type of loan is Blemain Finance and without this facility being available the client would have been unable to purchase the commercial premises he requires to expand his business.”
Gary Bailey of Blemain Finance explained: “Blemain Finance is delighted to have completed this case for a good quality customer, with a proven ability to service additional borrowing.
“Blemain Finance is seeing an ever increasing trend where business owners, despite them having an excellent credit status and affordability, are being rejected by the traditional lenders.
“This case emphasises that secured loans go beyond the traditional purposes of debt consolidation and home improvements. Second charge loans can be secured on almost any property type whether it is a client’s home, retail unit, buy-to-let or a semi-commercial property.”
“The merits of this case is a great example of how business owners can still get the funds they need by using the services of a broker like Blimey! Loans who has an in depth knowledge and understanding of the specialist lenders in the market.
“This experience is of great value to any introducer to help them support all aspects of their client’s financial requirements, whatever their property type or purpose.”
By Chanice Henry