A broker referred some property developer clients based in Chester who were looking for a bridging loan via their Limited Liability Partnership (LLP) to pay off the balance of a development finance facility and raise capital to assist with the purchase of a further development site.
The clients had a fully completed development of 12 houses of which 3 remained unsold. Ten days before the Christmas break in 2017, the sale of one of the remaining units fell through a breakdown in the chain. The developer was dependent on the sale to repay his existing facility with significant penalties for non-payment, and funds for the exchange on the new site. If he did not exchange on the new site it was to be sold to another party.
Five years previously, one of the developers had defaulted on some credit and as a consequence, had entered into a repayment arrangement that continues to the present day. This has adversely affected his credit record. BFS completed the loan in 8 working days and the client was able to secure the new site and avoid any penalties with the development lender.
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Image source: https://commons.wikimedia.org/wiki/File:Bridge_Street,_Chester.jpg
