Shawbrook supports small business with strategic investment and debt consolidation
Increased loan facility assists motor trade business to purchase premises from landlord.
At a glance
A long-established business securing its future
After many years trading from the same site on the outskirts of Woking, a family-run motor trade business was given the chance to purchase the premises from its landlord. The opportunity offered long-term stability – but to make it a reality, the business first needed to consolidate borrowing held across three different lenders and secure a funding package that supported its ambitions.
The team initially approached Shawbrook looking for £1.05m to refinance their existing facilities. Following a higher-than-expected valuation of the property, the loan facility was increased to £1.08m.
The deal was structured at 70% LTV on a 10-year interest-only term, with a 5-year fixed rate, reflecting the strength of the business and the value of the underlying asset. Directors provided personal guarantees for 25% of the loan.
A property at the heart of the business
The site has played a central role in the company’s success for many years. Set in a semi-rural location just outside Woking, it includes MOT and repair garages, a forecourt and rear yard for vehicle display, office space and a self-contained flat. The commercial areas are let to a connected party, while the residential unit is let on an AST.
By purchasing the premises, the business has not only consolidated its debt into a single, more manageable facility, but also secured the place that has underpinned its growth for so long. The refinance provides stability, protects a well-established trading base and allows the team to look ahead with confidence.
A partnership approach
Shawbrook worked closely with the broker and business owners throughout the process, providing a facility that addressed both immediate refinancing needs and the longer-term opportunity to invest in the property.
This case demonstrates how we work closely with brokers to deliver solutions that support both the immediate and long-term needs of small businesses. By recognising the strength of the borrower’s trading history and the quality of the underlying asset, we’re thrilled to have provided a fantastic solution that consolidates debt and secures a strategic location for the business’s continued growth.
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