Completed Deals – £800k Land Purchase That Required a Cross Guarantee

Deal Type: Land Acquisition

Loan Amount: £800k

Loan Type: Reparo Bridging Loan

Security: Land

Region: North Yorkshire

Reparo helped an entrepreneur fund the acquisition of land when traditional lenders weren’t willing to provide capital.

The land was being acquired by a company with no history or track record, but the directors also owned a second established and highly profitable business. The directors set up the land acquisition company so they could separate their business activities – this new company was incorporated to manage all land acquisition projects.

In the eyes of the traditional lenders the new company that was used to purchase the land was a risk – with no trading history or assets the lenders were unwilling to provide capital to the new company. This was highly frustrating for the directors who were more than happy to provide a cross guarantee from the more established company.

In this case Reparo were able to provide capital at 70% LTV with the cross guarantee in place from the established business. This enabled the directors to quickly obtain the capital and close out the deal while keeping their business interests appropriately separated within different companies.

Reparo Finance director Sharon Bryden had this to say about the deal:

“This was a straightforward deal for us to agree and complete quickly. Whereas most lenders were not willing to lend to a new company, we were comfortable with the loan and security within a few hours. We always take a closer look at the circumstances of a loan proposal, and with the cross guarantee from a highly successful business and a fixed charge on land at 70% LTV, we were in a position to execute the loan.”

To discuss a business loan between £10,000 and £1m, please get in touch with one of the team on or 0161 451 5710.