OUR SAVINGS PRODUCTS
Put your business cash to work with our simple, rewarding and easy to use business savings accounts.
Borough Junction Ltd owns nine office buildings and the freehold of a block of 12 offices in Barking. The original purchase had been made thanks to a bridging loan, even though initially the income being generated was insufficient to service the debt. However, Raj Kumar, the majority shareholder in Borough Junction Ltd, knew the potential of the site and used his commercial property experience and local market knowledge, to increase income before this became an issue.
Increasing income however took longer than expected, so additional capital was injected into the company to buy time, whilst longer term finance was sourced.
Fortunately, for entrepreneur Raj Kumar, this particular challenge came to the attention of Redwood Bank’s team of experts.
Left to right: John Hall (Business Development Manager of Redwood Bank), Sanjay Rughani (Regional Director of Sterling Professional Finance Ltd) and Manish Babla (Senior Consultant of Sterling Professional Finance Ltd).
Having been introduced to Raj by Manish Babla and Sanjay Rughani of Sterling Professional Finance Ltd, Redwood set about finding a way to clear the expensive short-term borrowing, which could have nullified the success of Raj’s operational business.
Redwood embraced the complexity of the situation to ensure a smooth, workable solution was in place that suited all parties. The Bank set about finding a way to clear the expensive short-term borrowing and agreed a loan of almost £3 million, with drawdown taking place within 18 days, minimising the substantial weekly interest penalties being incurred by Borough Junction Ltd.
John Hall, Business Development Manager of Redwood Bank said: “Getting the customers to buy in to the personalities behind the Bank sold this deal to Raj, as it gave him the comfort he was looking for, in that we were here to help rather than putting obstacles in the way.
“We were able to show that this was a bank-wide attitude from Redwood, and was evidenced by the dialogue we had with both the broker and the customer when getting this loan on board.”
Left ro right: Gary Wilkinson (CEO and Co-Founder of Redwood Bank), Sanjay Rughani (Regional Director of Sterling Professional Finance Ltd) John Hall (Business Development Manager of Redwood Bank), Manish Babla (Senior Conultant of Sterling Professional Finance Ltd), Lynn Kemp (Business Development Officer of Redwood Bank), Graham Reynolds (Chief Development Officer of Redwood Bank).
Mr Hall added: “At the time, the proposition was outside the Bank’s current standard policy on single asset value and term of the loan, but Redwood’s ability to be innovative in our thinking, and our unrivalled speed, service and flexibility, allowed us to develop a workable solution for all parties.”
Manish Babla commented, “Raj Kumar has been a client of Sterling Professional Finance for over five years. Whilst he needed a facility, we had to be sure it was executed quickly, along with the right covenants being applied. We found that John was able to understand the complexity of the situation, while getting Redwood’s credit team to buy into the proposition.”
For more information visit: www.redwoodbank.co.uk.
For further details about Sterling Professional Finance, visit: www.sterlingpf.com or call: 020 3976 9800.
Download a PDF of this press release
Notes to editors
For further details contact Laura Pearce at Strand PR on laura@strand-pr.co.uk or 01763 274674 / 07903 106405.
Redwood Bank was launched in August 2017, becoming Britain’s newest business bank for SMEs and completing its ‘mobilisation’ phase just over four months after securing its initial banking licence in April 2017. Redwood Bank offers secured SME mortgages for business owners, as well as for experienced commercial and residential property investors. It delivers fast and efficient mortgage decisions to help their business customers seize property opportunities, and also offers competitive business savings accounts. Redwood Bank was founded by Jonathan Rowland and Gary Wilkinson. It has a unique private-public ownership structure, in which Warrington Borough Council has a one-third stake.