A privately funded, short term secured lender has exclusively told B&C that it has launched a new commercial mezzanine facility.

Portman Finance has developed the new product suitable for commercial property investors and traders who need additional mezzanine funding to acquire investment properties for either long term holding or trading.

This product works well for the refinancing of high yielding well let commercial properties, which produce surplus cash.

Stewart Barnes, Director at Portman Finance, told B&C: “We are delighted to enter the commercial market with this product which we believe will interest a great deal of investors and brokers, and enable good deals that are currently being missed out on because of the lack of current funding, to be completed.”

Commercial Mezzanine Facility

Loan amount: £25,000 to £250,000

Eligible: Commercial property investors and traders

Term: Maximum of 24 months

Security: A second charge to a maximum of 70 per cent LTV secured on income producing commercial property, provided further security is available then higher levels of LTV will be considered

Geographical area: South and South East England preferred

Repayment: Capital and interest to be repaid on a quarterly basis from rental cash flow, with a bullet repayment, if necessary, at the end of the term.

Costs: 1 per cent front fee; from 1.5 per cent per month interest; minimum 2 per cent end fee

This is a further step by Portman in the development of becoming a full financing service. It enhanced its proposition by offering larger loans and with a reduced loan rate, after securing a new source of funding.

Portman typically lends in the South East and Home Counties, but has lent elsewhere in the UK and would be happy to consider anywhere within the UK apart from Scotland.

OTHER PRODUCTS:

Small Business Loan: aimed at small businesses needing either a working capital injection or funds to purchase a specific asset, these loans tend to be repaid on a weekly basis over the term of the loan;

Bridging Loans: to assist with funding when selling a property where the contracts have exchanged but funding is required before completion;

Business FlexiLoan: aimed at small businesses as an alternative working capital facility, which operates in a similar manner to a bank overdraft;

Development Top Up Loans: to help finish small half-completed residential developments with a shortfall in funding;

Residential Development Loans