Using Bridging Finance to Prevent Business Failure and Protect Assets

Client Background

Our clients were high-net-worth individuals with significant property holdings and a well-established business. One of the clients was a self-employed financial trader generating substantial income, while together they owned multiple residential properties with considerable equity.

Despite their strong financial position and extensive asset base, the clients were facing urgent pressure after a lender called in an existing corporate facility, placing both their business and wider financial position at risk.

 

The Scenario

The clients needed to raise funds quickly in order to stabilise their business and protect their wider financial interests.

Their objectives were to:

• Repay a £2.35 million corporate facility that had been called in
• Avoid forced liquidation or potential bankruptcy
• Use existing property assets to secure short-term funding
• Transition onto a longer-term refinance solution

With multiple high-value properties available as security, the clients required a lender capable of delivering a substantial funding solution within a tight timeframe.

The Challenge

This was a highly complex and time-sensitive case that required careful structuring and fast execution.

The clients were working against an urgent deadline following the lender’s decision to call in the facility. The transaction also involved a large loan requirement, multiple properties being used as collateral, and personal guarantees that increased the overall risk exposure.

In addition, the proposed exit strategy relied on securing a longer-term refinance, meaning the bridging facility needed to be structured carefully to ensure the clients had sufficient time and flexibility to complete their refinance plans.

Without immediate action, the clients faced potentially severe financial consequences, including the loss of assets and the collapse of their business operations.

The Solution

We arranged a tailored regulated bridging loan secured across multiple properties, designed specifically around the clients’ complex circumstances and urgent requirements.

The funding solution included:

• A net loan amount of approximately £3.87 million
• A competitive loan-to-value of approximately 55%
• A 6-month term
• Rolled-up interest with no monthly repayments required
• A fixed interest rate to provide cost certainty
• Security taken across three separate properties

The facility allowed the clients to repay the existing borrowing, reduce the corporate debt exposure, and create the breathing space needed to progress onto a longer-term refinancing solution.

 

Implementation Process

Given the scale and urgency of the transaction, proactive management and detailed financial assessment were essential throughout the process.

We carried out a full review of both the clients’ personal and business financial structures before carefully structuring the multi-property security arrangement. We then sourced a lender comfortable with delivering a large-scale bridging facility under complex circumstances.

The loan was aligned closely with the clients’ proposed exit strategy, while the entire process was managed under tight deadlines to ensure funding could be completed without unnecessary delays.

Through clear communication and hands-on case management, all parties remained aligned throughout the transaction.

 

The Outcome

The bridging loan completed successfully, allowing the clients to repay the urgent corporate facility and stabilise their financial position.

As a result, the clients were able to:

• Avoid potential bankruptcy and business failure
• Protect their substantial property portfolio
• Reduce immediate financial pressure
• Move forward with a long-term refinancing strategy