Case Study –Bespoke Overdraft Facility for a Property Developer

Property Value	£1,300,000
Loan	£910,000 Gross
Location	Hackney
LTV	70%
Rate	0.75% PCM
Adviser	Matt Karagul

The Challenge

The developer’s requirements fell outside the scope of traditional lending products. Most commercial lenders were comfortable offering term loans or project-based facilities, but were less inclined to support an open, on-demand liquidity solution.

Key challenges included:

The client did not need a large upfront facility, but instead required flexible access to capital to bridge short-term expenditure gaps.
Income from completed projects was variable and often realised at exit, making conventional affordability metrics difficult to satisfy.
The purpose of the funding was non-project-specific, meaning it could not be secured directly against a development site or end asset.

While the client’s broader balance sheet was strong, their working capital needs required a lender who could take a forward-looking view of their business model and cash flow dynamics.

The Solution

We positioned the requirement as a strategic funding line, framed around the client's development pipeline and historic track record. By working with a specialist lender that understood the development cycle, we structured a revolving overdraft facility backed by a portfolio of completed and in-progress assets. Our client also owned an unencumbered residential property, which ABC Finance was able to utilise as additional security against the loan, strengthening the overall structure. Key features of the facility included: A £1 million overdraft limit, with interest only charged on drawn funds No fixed repayments, offering maximum flexibility across the planning and pre-construction stages Facility renewal on an annual review cycle, aligned with the developer’s forecast pipeline Secured via a mix of personal covenant and property charges on completed units, rather than live development sites

Outcome

The client now has immediate access to a seven-figure working capital facility, structured to complement, not compete with, their core development finance. As a result, they have increased their site acquisition rate and can engage legal, planning, and consultancy teams earlier in the pipeline. The overdraft is now an embedded part of their financial strategy, providing optionality across deal flow and risk management. This case illustrates how developers with strong fundamentals but fluid timelines can benefit from tailored, non-traditional finance solutions, particularly when conventional debt products fall short of delivering the flexibility required at scale. If you’re a property developer seeking greater liquidity between phases, or looking to establish a funding structure that supports growth without rigidity, we would be pleased to advise on a bespoke solution.