by Conrad Robins | Feb 24, 2023
Background – Expanding the business through property acquisition
Our clients, an engineering company, owned two commercial investment properties. They wished to buy a third light industrial property for £1 million adjacent to the two they own where they would relocate their business. Simple you might think, however they needed to borrow the full purchase price plus stamp duty and VAT. They approached their own bank who declined to assist. However, we made a more compelling application to the same bank and were able to demonstrate that they could afford the repayments on the total debt, and that taking a charge on one of the existing properties together with the new one would be sufficient security for them to lend against.
Challenges – Legal complexities with property security
The bank agreed. Valuations were done, signed off and solicitor instructed. The client’s solicitor then informed us of a little-known piece of English law stating that if someone owns a number of adjacent properties, the rights and easements fall away and if the bank had to exercise its rights over the properties being offered for security, then these two units would not have the rights required… The only way was to offer the bank security over all three units.
Solution – Structuring the deal to satisfy lender requirements
Luckily we knew the right people to approach at the bank and this was quickly proposed by us and subsequently executed with the correct caveats and the transaction moved to completion.
Outcome – Successful £1m loan completion
Thanks to ASC’s expertise and lender relationships, the £1m loan was successfully completed, allowing the client to expand their operations and secure their long-term growth. This case highlights how strategic financing can unlock new opportunities — learn more about our Commercial Mortgages and how we can support your next project.
by Conrad Robins | Oct 6, 2021
Background – Helping an architectural practice secure ownership of their premises
Some of the most rewarding cases that we get involved in raising finance for are those where the solution ends up being almost the opposite of where everyone expected it to be from the start. Giles Codrington, ASC Director in London, had one such case recently, which he helped the client to secure finance successfully. Our clients are the proprietors of a well-established business, an architectural practise currently operating from rented premises situated at Old Marylebone Road.
Challenges – Finding the right property and securing funding simultaneously
Our client’s plan was to move from their rented premise above, to freehold offices in North West London. We helped the client secure what they needed, £1,575,000 to complete the purchase of the new offices. We were able to do a first charge over the freehold of the office premises which our client (with an estimated value of £2,250,000) was paying £125,860 per annum in rent, and ASC ensured that the cost of servicing the loan would be the same monthly sum.
Solution – A proactive approach to loan approval before purchase
What was interesting in this case was that the approach the team used to get this favourable arrangement for the client was to get the loan approved in the first instance, before the client had found the property. That meant that he could look for properties with more confidence, speed up the transaction, and thus being able to negotiate the price more assertively.
Outcome – A successful purchase and valuable broker expertise
Giles comments,” This deal really highlights the importance of the knowledge a broker can offer through our service to securing finance for a client’s project. The client would just not have been able to approach things in this way without sound tailor-made advice.”
Is it worth taking a loan to grow your business? Well, that depends on each case. But, in general terms and if your business is viable, funds to help you expand as we see in this case, can mean more space, more employees, and more customers which can be an overall positive step.
As with any other financial product, each case is dealt with separately, and can be tailored to maximise the outcome. If you think your business may be able to take advantage of this type of financial product, please contact your local ASC office for more details.
by Conrad Robins | Aug 20, 2021
Background – Helping a plumbing business expand its premises in London
Giles Codrington, ASC’s Director in London has recently helped a bathroom and plumbing business in London to secure funds to help their expanding business, and purchase the property next door.
Challenges – Turning a rental situation into a purchase opportunity
The clients owned their showroom but rented the property next door, but the property came up for sale and we were able to raise the full asking price of £950,000 by combining the two properties together. We structured the loan for our client to make it the best possible deal for them.
Solution – Structuring finance for long-term growth and stability
The final deal has the borrowing costs beat the rental payments that the client was paying before to rent the property, thereby improving the business cash flow allowing them to prosper further and save money in the long run. By securing the loan for them, ASC has allowed them to reinvest back into the business for further expansions which can also mean a better IT system for a better customer experience, among other improvements.
Outcome – A cost-effective deal that strengthened the client’s business
Giles comments, “we always want to add value for our clients and present their application in the best way we can with the assets they have available. Not just so that the bank will say yes, but also so that the client gets the most cost-effective solution they can.” In this case, we were able to identify the best financial opportunity for our client. It is always a pleasure to help businesses grow by enabling their cashflow to increase by purchasing instead of renting. Many businesses have benefitted through time with ASC’s help to purchase over renting as it can lower the costs, and improve cashflow.
If you are thinking about expanding your business, buying a new business or organising a new finance structure, then talk to ASC. You know the banks that don’t lend; we know the banks that do.
by Conrad Robins | Aug 20, 2021
Background – Supporting a growing creative business during lockdown
One of the things we love about working with small businesses across the UK are the varied and different types of industries we get the pleasure of working with. Petites Properties, a manufacturer and supplier of Dolls House’s and Model Railway buildings and accessories is one that ASC Director, Richard Scotney had the pleasure of supporting recently. The business is operated by a stellar husband and wife team and came to Richard because they needed new business premises after outgrowing its current workshop space during lockdowns. One of the positives of the Covid lockdowns was the number of people taking up new hobbies which meant that the business really expanded its operations.
Challenges – Securing finance for a unique property purchase
With ASC’s support, the client was able to successfully purchase a Grade 2 disused Church to use as its premises – a significant upgrade from the large shed in their garden they had previously been using! Given the property’s previous use as a church, the client needed to get planning permission (which can sometimes affect applications for finance). This was made even more difficult in this case as the local authorities keep suggesting that different councils needed to give the approval. With Richard’s expertise, local knowledge and contacts he was able to guide the client through the process.
Solution – Expert guidance through complex finance and planning hurdles
Richard comments, “Even though the requested finance presented more than the common hurdles, we were able to overcome them, and complete the deal for our client. We are always pleased to see our clients’ businesses expanding and be able to take part in their growth.”
Outcome – Expansion achieved and a thriving community space created
Our client was delighted ASC was able to help them reach their goal of expanding their prosperous business and will also open an art gallery at the front of the building to enhance the facilities for the local community. Our client comments, “Thank you Richard for being able to secure finance for my expanding business given the circumstances we all went through with COVID. Quite pleased with the service and the overall process and timings.”
At ASC we are able to help individuals or businesses looking to grow or expand and provide the assistance they need to apply for business finance. We have been successful at doing this for over five decades and therefore, we know the right people.
