Unlocking Financial Flexibility: The Power of a Revolving Line of Credit

Property investors, landlords and developers often require adaptable and swift financial solutions. One such powerful tool is a revolving line of credit, specifically the Alternative Overdraft. Our flexible financial product gives you financial flexibility and is designed to cater to diverse financial needs, providing borrowers with immediate access to funds without the hassle of reapplying each time.

Understanding the Alternative Overdraft:

What is the Alternative Overdraft?

The Alternative Overdraft is a unique revolving credit facility that offers unparalleled financial flexibility. Available for up to two years, it allows borrowers to draw, repay, and redraw funds as needed. This facility can be secured by a first charge over commercial or residential properties, or a second charge over residential properties. Interest is charged only on the outstanding balance, making it a cost-effective solution for managing short-term financial needs.

Why Choose the Alternative Overdraft?

Benefits of a Drawdown Facility

The drawdown nature of the Alternative Overdraft offers several key advantages:

• Immediate Access: Once the revolving line of credit facility is approved, funds can be accessed instantly without repeated applications.
• Cost Efficiency: Interest accrues only on the drawn amount, not the entire limit, saving on unnecessary interest costs.
• Flexibility: Borrowers can adjust their outstanding balance according to their financial needs, ensuring optimal use of available funds.

Using the Alternative Overdraft:

Versatile Financial Solutions

The Alternative Overdraft can be leveraged for various financial scenarios, making it a versatile tool in any financial strategy:

• Auction and Private Treaty Purchases: Ideal for purchasing properties quickly, especially in auction scenarios where immediate funding is crucial.
• Refinancing: Provides the necessary time to secure long-term financing options when existing deals are expiring.
• Working Capital: Ensures projects continue smoothly by providing essential funds to cover unexpected costs.
• Releasing Equity: Unlocks equity in current properties to seize new opportunities without delay.

Properties Eligible for the Alternative Overdraft:

The flexibility of the Alternative Overdraft extends to a wide range of properties, including:

• Retail units
• Shopping centres
• Office buildings
• Industrial and distribution premises
• Residential investments
• Owner-occupied dwellings (second charge only)

Loan Amounts and Limits:

The Alternative Overdraft is designed to accommodate substantial financial needs:

• First Charges: Minimum loan of £250,000 up to a maximum of £2,000,000.
• Second Charges: Available for residential properties, with loan amounts ranging from £250,000 to £2,000,000.
• Loan to Value (LTV): Up to 70% for first charges and 65% for second charges.

The Power of Short-Term Loans:

In the dynamic financial environment, the Alternative Overdraft stands out as a robust solution for managing short-term financing needs. Its revolving line of credit structure provides borrowers with the flexibility to respond swiftly to opportunities and challenges alike. Whether it’s securing a property at auction, managing cash flow for a project, or refinancing existing loans, Alternative Overdraft offers a tailored solution to meet these needs.

Case Study: Using the Alternative Overdraft to Avoid Staged Payments and Extra Costs

A developer, operating through a limited company, was looking for funding which didn’t have constraints associated with traditional development finance.

They had acquired a development site with planning approval for two new houses. However, they wanted to avoid staged payments, relatively high interest rates, and extra costs from repeated site inspections.

Utilising the Alternative Overdraft, the client was able to avoid the logistical barriers and extra costs of expenses from repeated monitoring surveyor site visits.

The security:
Structured against three buy-to-let investment properties at 70% LTV

The exit strategy:
Future refinancing of the two houses post-construction completion

In conclusion, the Alternative Overdraft is a versatile and powerful tool in the realm of short-term loans. Its flexibility, cost efficiency, and broad applicability make it an ideal choice for those seeking to navigate the financial landscape with agility and confidence. Embrace the power of a revolving line of credit, apply for our overdraft facility and unlock your financial potential today.