Case study
Case study: Refinancing and capital injection for manufacturer
Background:
- The client spent months trying to secure funding with their existing lender
- Existing lender put the client under pressure to change their business model
A manufacturing business, who had become stuck in a prolonged and unproductive funding process with their existing lender, approached Leonard Curtis for support in securing a commercial mortgage. It became evident early on that the lender was unlikely to proceed and be able to support the client.
Our Approach:
The Leonard Curtis funding team conducted a full review with the client, so we fully understood the business and their future plans to be able to source the appropriate funding solution. Our team have access to the full lending market and worked to secure a lender who could provide the most appropriate solution, in this case a Commercial Mortgage.
The £275,000 commercial mortgage cleared the existing mortgage and finance with a longer amortisation period to reduce monthly repayments to ease cash flow pressures. In parallel, the client’s day-to-day banking was switched.
Simultaneously, we also worked with professional advisors to move assets into a group structure and set up separate Trading and Property Companies. This provided both asset protection and flexibility for future planning.
Navigating the legal requirements around owning and financing commercial property can be tricky, but we stay at the forefront to ensure nothing is overlooked. We proactively identified that the property’s EPC had expired and used contacts to complete a new report.
When the updated rating returned as a G, below the minimum requirement, the team worked closely with the lender to keep the deal on track. Another issue arose when it was discovered that the property was underinsured; this was promptly addressed by increasing the cover in line with the reinstatement value.
Managing both client and lender solicitors, the Leonard Curtis team drove the legal process forward, stepping in to overcome delays and ensuring the deal progressed despite external challenges whilst also managing the existing banking relationship through the refinance and exit process.
Both the client and their accountant felt Leonard Curtis had gone above and beyond by acting as the main point of contact, removing pressure, and resolving issues that had previously proved difficult to manage.
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Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with a an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.