USING THE BUSINESS OWNERS HOME AS SECURITY
We were approached for a £1m unsecured facility for an ice cream business to purchase new machinery, however had been declined by the main unsecured lenders.
The business had 10 shareholders who could act as guarantor, all homeowners, however their wives were not happy to be guarantors.
We sourced a £1m homeowner business loan to the Limited Company, secured on 8 properties, without the wives being applicants. This was done at 5.99% – so cheaper than unsecured borrowing – on an interest only basis for 10 years. The matter was even more complicated by the discovery of mild adverse for one shareholder, however the deal was restructured to allow this to continue.