London/Brighton Overdraft Case

Alternative Overdraft provides cashflow injection for business investment

Alternative Overdraft is a flexible drawdown facility that can be secured as a first or second charge providing a cashflow injection for business investment.

This was the case with an entrepreneurial client we recently worked with who required £580,000.  This was to purchase additional artwork for his studio, but also fund the refurbishment of nightclubs he owned in London and Brighton.

The Issue

• There was no Energy Performance Certificate (EPC) for the property.
• Tight timeframes to meet the client’s funding needs.
• The property’s remote location, which added complexity to the process.

The Remedy

The client took an Alternative Overdraft, which was secured as a second charge loan secured on his main residence.  This enabled him to release funds as and where they were needed.  He only payed interest on the funds that had been drawn down.

Speed. The loan application was processed and completed within three weeks from the initial enquiry.

Flexibility. The client had the freedom to use the funds at his discretion, be it for acquiring artwork or financing the renovation of his nightclubs.

Experience. We worked hard to ensure the absence of an EPC for the property and its remote location did not hold back our ability to provide the client with the funds he needed.  We ensure the EPC was obtained quickly and efficiently.

The Outcome

Some funds were used to purchase various pieces of art which would be displayed and then sold at his gallery.  The rest was used for the refurbishment of his nightclubs. The facility gave him a cashflow injection with the flexibility to quickly draw down funds whenever he needed them.   He could even pay some back as the artwork was sold.   With his exit strategy being to re-finance once the nightclub refurbishments had been completed.

The case was processed and completed quickly, even though the property didn’t have a valid EPC.   Alternative Bridging worked with the client to ensure this was rectified in a short timeframe and the client’s funds were ready to draw down.

This case shows how the Alternative Overdraft can be used as a second charge to raise funds for business cashflow purposes.