18 Month Bridging Loan For Hotel Owner In Gloucester To Pay Off Outstanding Commercial Mortgage To Avoid Repossession

Area
Gloucester
Capital Raised
£590K

We're often approached by business owners who need short-term finance to give themselves a breathing space to sell an asset or a business.

Complex business sales are necessarily a protracted process. No vendor wants to allow a sense of desperation to enter the negotiations if a mortgage is expiring. But as time moves on an orderly sale risks becoming a knockdown-price sellout - often to the advantage of a potential buyer who is finding reasons to procrastinate.

In such situations bridging finance can be a very useful tool to take the heat out of the process and give control back to the vendor. Depending on the situation it can often be arranged in a matter of days. 

The Scenario:

We were approached by a hotelier in Gloucester looking for a short-term bridging loan to repay an existing commercial  mortgage where the mortgage term had expired.

The client was under some pressure from their mortgage lender to repay the debt, and was facing imminent repossession.

He had put the hotel up for sale but needed more time to market the business to achieve a purchase price which came closer to reflecting its true value. 

Our Solution:

We appreciate that hotel sales can be complicated.

This is a hands-on service industry where the owner usually has to be involved day-to-day to maintain the relationships and reputation of the business. As a vendor they need to be driving the sales process, but as a manager they also need to be taking care of the business to a continuing high standard, and ensuring future bookings so that the business doesn't lose value.

Our client needed refinancing quickly, but also for a period long enough to achieve a sale in an orderly fashion.

We were able to arrange for them a short-term loan extending to 18 months which would give them sufficient time to sell the business.

We set up the facility in less than 10 working days, which allowed them to repay the commercial mortgage to their first-charge lender and avoid repossession. They then had a reasonable period of time to find a buyer who would pay a market-value sale for the business they had built up. 

I had the privilege of being introduced via my accountant and I have not been disappointed. Honest, reliable, and helpful. They can advise and help in situations others would refuse. Bad credit / intermittent income is not an obstacle yet everything is above board. If you have obstacles to overcome they will patiently see you through - it may not be overnight but they will keep pursuing on your behalf to get the very best options for you and your situation. Easy to reach, easy to research for validification of financial adherence and welcoming. 

Client Testimonial

Are you in a similar situation? Contact our team to find out how we can help you in accessing short-term commercial finance. Call:

0203 900 4322

And read our blog about business loan finance »

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

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