The loan value was £260,000 gross (£218,270 net), secured at 67% LTV against the security property.
The business required capital to clear an existing short-term facility, pay off a small amount of personal debt secured against family property and inject working capital to support growth and pay upcoming wage bills.
Payroll deadlines were approaching and the existing facilities were no longer fit for purpose.
The property offered as collateral was a residential home owned by the director’s mother, not the borrowing company.
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This introduced additional complexity due to third-party security and charge requirements, owner-occupier considerations and an age profile outside standard criteria.
The loan also involved mixed-use funds — partly business and partly the redemption of a personal lifetime mortgage.
The facility consolidated short-term liabilities, redeemed the lifetime mortgage and released capital back into the nursery at a critical moment.
With strong comparable evidence, third-party charge compliance and funder sign-off secured, the deal progressed smoothly and efficiently.
Funding completed in time to stabilise the business, remove unsuitable borrowing and protect family security.
With profitability projections in place to support refinance and forward planning, the nursery is now able to grow.
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