Bridging for a Startup Business Injection
See how we helped our UK national client inject money into his startup business.
Bridging for a Startup Business Injection
Our client, a UK national with a solid credit history, approached us seeking funding to inject £100,000 into his startup business. However, the challenge was that his business had not yet generated any income, leaving traditional financing options unavailable.
The client’s main asset was an unencumbered £400,000 studio flat in London, which presented an excellent opportunity for unlocking capital through bridging finance.
Given the urgency to secure the funding, a bridging loan was identified as the ideal solution.
We successfully arranged a loan of £104,500, covering the £100,000 business injection and associated costs.
The loan was structured with flexibility to ensure the client could focus on growing his business without the pressure of monthly repayments.
The bridging finance provided the freedom to concentrate on business development during its early stages. The client’s exit strategy involved selling the studio flat, using the proceeds to repay the loan. This approach not only gave him immediate access to capital but also ensured a smooth repayment once the flat was sold, offering a clear path forward as he expanded his business.
Secured against the client’s unencumbered studio flat in a prime London location, the loan took advantage of significant equity in the property. To ease cash flow concerns, the interest on the loan was rolled up, meaning there were no monthly payments.
The loan was approved and completed in just five weeks, even over the Christmas period, demonstrating the speed and flexibility bridging finance can provide in urgent situations.
Overview of Case Study
- Product – Bridging Loan
- Amount Raised – £104,500
- Loan Term – 12 months (flexible to the client’s needs)
- Interest Rate – 10.68% per annum (interest rolled up)
- Exit Strategy – Proceeds of studio flat sale to be used
Comments From The Introducer
“I’ve worked with Forecast Finance recently for several of my clients needing bridging finance, because I specialise in regulated first-charge mortgages over £1M and feel it’s better to use an expert for bridging and commercial mortgages.
Most of my clients are high net worth and expect a high level of service and responsiveness – and I must say Forecast Finance delivered every time on securing the best possible terms, and ensuring the offers and completions happened without delay, keeping me and my clients informed throughout the process.
I would encourage anyone needing bridging or commercial mortgages, whether it’s for themselves or for their clients, to give them a try.”
Ref no – CS19
