Capital Raise for Business Expansion Without Remortgaging in Surrey
£185,000 · 9 months · 1.05% pm. A business owner needed £185,000 to fund an acquisition of a smaller competitor but did not want to disturb his existing first charge mortgage, which was on an advantageous fixed rate w...
The Client
Business owner
The Challenge
A business owner needed £185,000 to fund an acquisition of a smaller competitor but did not want to disturb his existing first charge mortgage, which was on an advantageous fixed rate with heavy early repayment charges.
Our Solution
Doulton placed a second charge bridge behind the existing first mortgage, secured on the borrower's residential home. First charge lender consent was obtained within four working days. Funds were released within 12 days of enquiry.
The Outcome
Business acquisition completed. The acquisition target's own revenue stream provided the capital to repay the bridge nine months later. The borrower's first charge mortgage remained undisturbed. Key highlights: First charge mortgage preserved - no ERC triggered; First charge consent obtained in 4 days; Business acquisition funded and repaid from target's revenue.