Case Study –Using a Bridging Loan to Buy a Business

Value	£3,750,000
Loan Amount	£700,000
Location	Notting Hill
LTV	19%
Achieved Rate	0.48% per month

Using a Bridging Loan to Buy a Business

How Homeowners Used Property Equity to Invest in a Business

Our client planned on using property equity to invest in a business. Their property in Notting Hill had an outstanding mortgage of £200,000, and it was already on the market to be sold at a value of £3.75m. However, the client needed to raise funds in the sum of £500,000, and required the finance within 14 working days.

The Solution

We were able to secure a short-term bridging loan against our client's current property. This enabled our client to extract the necessary funds from the property to buy into the business. The bridging finance allowed the client to repay the funds once the current property was sold. The lender felt confident that the property wouldn’t have any issues selling due to its prime location. Therefore, they were able to offer a market-leading rate of 0.48% per month on the business bridging loan.

The Henry Dannell Difference

We were able to act quickly to secure a fast bridging loan within two weeks. While some lenders are unable to lend bridging finance for business investment for a business transaction, using our market knowledge and relationships, we were able to source a suitable lender willing to lend in this scenario. The funds were granted within two weeks, and this enabled the client to complete the business buy-in on time and without compromise, using the sale of their property as an exit strategy.