The Client Background
A broker approached us on behalf of an established electrical and building contractor with a 24-year trading history.
The business had recently entered into a Company Voluntary Arrangement (CVA), with outstanding unpaid debtors creating added complexity around the case. The client required funding to refinance existing borrowing, while also releasing equity from a recently refurbished semi-commercial freehold property.
The security comprised an owner-occupied semi-commercial property, with the business operating from the ground floor. This demonstrated clear owner-occupier stability and supported the wider strength of the proposition.
In addition, the upper floors had been converted into a 4-bedroom HMO, creating an additional rental income stream and adding further value to the property.
The Loan
Product: Commercial Mortgage
Client: Owner Occupier
Lender: Together
Loan amount: £123,000
Monthly payments: £1,064
Rate: 8.99%
LTV: 65%
Broker commission: £768
Process: Advised
The “Positive” Solution
Despite the recent financial challenges, we were able to present the case as a well-structured proposition, supported by multiple layers of security.
The security package included:
✓ First legal charge over the semi-commercial property
✓ Debenture over the trading business
✓ Unlimited personal guarantee from the director/shareholder
By clearly setting out the client’s trading history, the mixed-use nature of the property, the additional rental income, and the strength of the security available, we were able to give the lender confidence in the overall proposition.
The case demonstrated that, while the CVA added complexity, the wider structure and security package provided a strong basis for funding.
Why Choose Positive?
Complex commercial cases can require a lender to look beyond recent financial challenges and consider the wider strength of the proposition. Positive Lending works with brokers to clearly present the trading history, property and available security, helping identify lenders prepared to consider more complex circumstances.