Mr Robinson had been running a successful building company for 10 years with the support of an equity investor who provided all necessary funds in return for an agreed profit share.
Due to the economic downturn this funding was no longer available and we were approached to assist in finding £1.4 million to support his next project.
We offered the project to two merchant banks whom we knew would be interested in the proposition and the unique location of the development site.
Within two weeks both offered terms and our client accepted the offer that we felt reflected best overall value and flexibility to complete the scheme.
The loan offered a 50% advance towards the site purchase and 100% of build costs drawn in agreed stages against interim inspection reports – charges to the client were 2% set up fees, 2% on exit of the facility and an interest rate of 7% over 3 month LIBOR.