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THE SITUATION
One of Redwood Bank’s existing customers enquired through their broker Sterling Professional Finance about the options available to them for restructuring their existing property assets with a further advance to invest in other business opportunities.
The East London business owns a number of retail outlets on short-term leases, as well as office space and residential units. The customer had formed a new limited company and wanted to transfer one of his assets to this new company and needed to split the loan between the two businesses.
To facilitate the plans, the client required a £8.5m loan.
THE SOLUTION
Redwood Bank has never shied away from any challenge and was keen to support the aspirations of the customer. After careful consideration, it was able to lend against the market value of the assets. In spite of the size of the loan, the time from application to offer was just five months with an LTV of 66 per cent.
The customer said: “We have banked with Redwood for the last three years and they were incredibly helpful and understanding during the pandemic. During the process of a new loan application, they were cooperative and flexible throughout.”
THE EXPERIENCE
Sterling Professional Finance’s Senior Consultant Manish Babla said: “When looking at funding a transaction in the current volatile climate, nothing is black and white. As always, a proper appraisal needs to be carried out, which is exactly what we did, so there were no surprises.
“Following this I approached Redwood Bank as a specialist lender, having understood their appetite to support small businesses. With a full review and credit assessment, the team at Redwood were able to put together an offer, both in terms of a decent and acceptable rate and indeed the loan to value, allowing the client to raise sufficient funds for an onward purchase.
“The approach from everyone involved, including the client, was one of flexibility, cooperation and, of course, some give and take.
“We would certainly continue to consider transactions with Redwood, whether it’s vanilla or complex, as they will consider each transaction on its own merit and find a way where possible.”
Mark Dobson, Redwood Bank’s Head of Business Development (South & London), said: “It’s been a pleasure working alongside Manish and the team at Sterling Professional Finance to support this existing Redwood customer with his restructure and further advance exercise, meaning they now have the funds to invest in other assets.”