Case Studies

Property Lending London

Case Study – Property Lending

For:                            Commercial Investment Property
Location:                  Belfast, N. Ireland
Amount:                   £250,000

The Customer had debt of £50,000 with one of the ‘Big 4’ High Street Banks secured against a property (worth £120,000) however the Bank refused to support the Customer in purchasing a further investment property, despite having had a relationship for over 25 years.

The property to be purchased had a long lease, with an established Company, and was located in Central Belfast.

CS Finance were able to arrange a new facility of £250,000, at Bank base rate plus 5.5% per annum, to clear the existing Bank debt and assist in the purchase of the new property.

Unsecured Lending London

Case Study – Unsecured/Peer-to-Peer Lending

For:                            Debt restructure / Stock purchase
Location:                  Lisburn, Northern Ireland
Amount:                   £125,000

The Customer operates a medium sized trading business plus a family farm in Co. Antrim. The Customer approached us seeking £40,000 to purchase livestock – he had approached his Bank but they had declined his request.

As part of our service, CS Finance completed a review of both of the Customers farm & trading businesses and discovered that the Customer had raised over £80,000 of F&L debt against his farm assets to fund his trading business.

It transpired that the Customer had been refused an overdraft by his Bank and so had been forced to take out numerous expensive short term facilities, to fund his working capital, resulting in an unaffordable monthly repayment that was putting both businesses in jeopardy.

CS Finance recommended that rather than just seek addition funds, the Customer also refinance the existing debt onto a longer term commercial loan facility with a lower monthly repayment to ease his cashflow issues.

An unsecured loan facility of £125,000 was sanctioned, repayable over a period of x60 months, at a rate of 11.9%.

Bridging Finance London

Case Study – Bridging Finance

For:                            Refinance of a Residential Investment Property Portfolio
Location:                  Belfast, N. Ireland
Amount:                   £1,200,000

Our Customer has a large investment property portfolio of over 40 properties in Belfast that he was requested to refinance by his Bank.

Due to pressure from the Bank to repay the debt, the only available option was to arrange a ‘bridging’ loan to expedite the refinance and avoid legal action being commenced.

CS Finance were able to arrange a ‘Bridging’ loan of £1,200,000 for a x12 month period through a UK based Lender that we have an exclusive Broker agreement with for Northern Ireland.

The facility of £1,200,000 was agreed at 70% loan-to- value at a margin of 1.4% per month.

Once the loan completed, we then had a period of x12 months to arrange the refinance of the portfolio onto more competitive Buy-To-Let facilities.

Asset Finance London

Case Study – Asset Finance

For:                            Vehicle purchase
Location:                  Co. Antrim, Northern Ireland
Amount:                   £10,000

Our Customer owns a successful trading business and had agreed the purchase of a motor vehicle however at the last minute their Bank declined to extend the necessary finance despite providing numerous assurances that it would be provided.

CS Finance were able to quickly arrange a loan facility of £10,000, repayable over a period of x5 years, at a rate of 10.2%.

Agricultural Finance UK

Case Study – Agricultural Finance

For:                            Farm purchase
Location:                  Co. Armagh, Northern Ireland
Amount:                   £700,000

The Customer was introduced by his accountant after his Bank declined a loan application following several months of assurances that it would be sanctioned. The deadline for completion was due to pass and the Sellers’ solicitor was pushing for cancellation of the sale. The Customer was well known in the locality and failure to complete on the deal would have caused considerable embarrassment.

CS Finance were quickly able to obtain alternative finance allowing the purchase to complete and protect the Purchasers reputation in the local community.

The Customer required a funding of £650,000 however as part of the review, CS Finance recommended that the facility be sanctioned in two parts: £325,000 on variable rate & £325,000 on fixed rate so as to offer a degree of stability to the future monthly repayments. CS Finance were also able to agree the sanction of a £50,000 overdraft facility.

Fixed Rate Loan:             5.06% for x5 years

Variable Rate Loan:       Bank base rate plus 3% per annum

Overdraft:                        Bank base rate plus 3% per annum

Hospitality Loans London

Case Study – Hospitality

For:                            Refinance of x3 Youth Hostels
Location:                  England
Amount:                   £4,000,000

CS Finance were approached by a Customer who was struggling to maintain a deteriorating relationship with his Bank who refused to support the Business. As would be common in the sector, the buildings required modest capital expenditure however the Bank were unwilling to consider any new monies.

Following review, it was agreed to move the Company accounts to a more progressive financial Bank who would support the Business going forward.

The new Bank agreed to refinance the existing debt plus sanction additional monies to fund the construction of a new Bar in one of the Hostels that was projected to provide significant additional income.

Facilities totalling £4,000,000 were sanctioned, on a x5 year amortising profile, at LIBOR plus 2.5%

Debt Negotiation London

Case Study – Debt Negotiation

All of the settlement agreements made with the Banks are underpinned by a binding legal agreement which includes a comprehensive non-disclosure agreement – as such we are unable to provide specific examples of deals we have brokered however would estimate that we have negotiated a combined debt write-offs in excess of £50,000,000 over the past x5 years.

For more information come and speak to our team of experts.

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