Central London, Bethnal Green – Alternative Overdraft

Central London Overdraft Facility

The Issue

In Central London, a property development project faced significant financial constraints due to unforeseen circumstances from the COVID-19 pandemic. The borrower was involved in developing a six-unit industrial site in Bethnal Green. They found themselves encountering increased costs and urgent financial requirements to complete the project on time. Despite the progress made, the client needed immediate access to additional funds to cover increasing expenses and finalise the development.

The Remedy

To address the pressing financial needs of the client, our Alternative Overdraft facility was leveraged. Secured against the borrower’s property portfolio in Bethnal Green, valued at £1.67 million, the Alternative Overdraft offered a flexible and expedient solution. With three flats within the secured property already let out on Assured Shorthold Tenancies (ASTs). The borrower would be able to utilise this existing asset to secure the loan. The Alternative Overdraft provided the necessary liquidity to meet the immediate financial requirements of the ongoing industrial site development.

The Alternative Overdraft provided the client with the ability to draw funds as and when needed. The loan facility offering a convenient cash flow solution tailored to the dynamic nature of property development projects. By utilising existing assets as collateral, the process streamlined legal procedures and minimised due diligence efforts, ensuring a swift and efficient resolution to their financial challenges.

The Outcome

The use of our Alternative Overdraft facility enabled the borrower to successfully navigate the financial hurdles delaying the completion of the industrial site development. With access to timely funds, the client could expedite construction activities, settle outstanding invoices

promptly, and reduce project delays. The flexible drawdown feature of the Alternative Overdraft facility ensured that financial resources were utilised carefully, minimising interest payments and optimising cost-efficiency.

Ultimately, the Alternative Overdraft facility not only facilitated the completion of the industrial site project but also demonstrated its efficiency as a versatile financial instrument for property investors. By leveraging existing assets to unlock liquidity for new ventures, the client could navigate challenging market conditions. In return, was also able to sustain momentum in their property development endeavours.