THE PROPERTY DEVELOPER
An Independent Property Developer
A seasoned independent property developer approached us last year to raise some much needed finance to get his latest project across the line and sold. His circumstances were very straight forward and his exit clear – it is a scenario we have seen and helped with on a number of occasions in the last few years.
What Was The Property Developers Situation?
The residential development that was being worked on was almost complete. Two bathrooms left to fit out. Carpets still to go down, some tiling to be finished and then some painting and final snagging left to do in order to get the property onto the market. Not forgetting the Home Report to be commissioned.
Property Developer Finance Challenges
The problem our client had was that he had run out of funds at the final stage. The development had taken longer than hoped and cost a little more than budgeted – a familiar story to many who have worked in this industry.
What About The Bank?
The bank would not extend borrowings due to affordability. The credit card was already maxed out. A personal loan unattractive as making monthly repayments would be a stretch for the next 3-4 months.
Leaving a dilemma. Try to sell property unfinished and risk getting far less for it, or try to find the much-needed funds to complete what had been started and return the maximum projected amount?
How Did Edinburgh Asset Finance Help?
Edinburgh Asset Finance were able to offer a solution. The man owned an Italian sports car which had been bought many years ago with the proceeds from a previous development. It was something which he coveted and would not consider selling. He contacted us on the Monday for a chat about what we could offer. On Tuesday we loaned £40,000 to him secured against the car. Within 6 weeks the property was on the market and a sale was secured within 4 weeks. The new owners moved in 8 weeks later. Edinburgh Asset was repaid and the man reunited with his prized vehicle within 5 months. All of this was done without the need for any credit checks, affordability assessments or personal guarantees. Just a straightforward, transparent process tailored to the customer’s needs when it was needed most.
If you would like to learn more about how Edinburgh Asset Finance can help you as a property developer of business owner