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£1m Bridging Loan To Plant 300,000 Trees

Bridging Loans

Bridging loans can be used for all sorts of situations. They initially came to the market to plug a hole and fix chain breaks, but over the years bridging lenders have been extremely creative in making their products as flexible as possible. Now, the bridging loan is used across a range of situations including acquiring properties, raising equity on properties already owned and even financing business projects. When it comes to creating financial solutions it is important as advisers to have all of the options in your arsenal when delivering the most effective advice.

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Creative Advice

The P10 Financial team is experienced in delivering creative lending solutions for our clients. We are often approached with quirky complex requirements by high net-worth individuals.

In this particular situation, our client approached our team to help them raise £1,000,000 to assist one of their business investments. Our client had an investment into green energy and carbon credit. As part of this investment, they had to plant 300,000 in the UK to be grown within the next 3 years.

The problem our client was facing was the speed they required the funds. They had to raise the funds within 6 weeks as one of the main investors had pulled out of the transaction. This posed a huge risk to our client's business and had the potential to disrupt the whole operation for the foreseeable future.

The P10 commercial team is well-versed in delivering complex lending solutions that need a creative touch too them. We needed a lender that understood the client's position, but could also deliver with speed. Once our client was able to complete on the £1,000,000, they had commitment from their investors that a further £3,000,000 was available to cashflow their operations.

To deliver this the client was happy to use a residential asset that he owned as security. We were able to take security on a second charge and deliver the following structure.

Delivery for our Clients

The solution we delivered was as follows:

  • Property Value - £3,450,000

  • Net Loan - £1,000,000

  • Rate – 9.5% PA fixed

  • Term – 12 months

  • Exit – Repayment from the business,

This solution delivered on all objections for our client:

  • Allowed our client to release £1,000,000 to keep operations in their business run

  • Delivered a solution that cleared funds in 6 weeks

  • Allowed our client to fulfil their order for 300,000 trees to be planted

Lending for HNMI

Do you have a complex lending requirement? Our specialists have years of experience in delivering the most creative lending solutions in the market.