Reparo Finance – The Perfect Solution When Time is Running Out

Reparo is the lender of choice for businesses that need a loan to be reviewed, approved and completed quickly with the minimum of fuss.

In this article, we’re going to look at a recent Reparo loan that was completed under extreme time-pressure and with a lot at stake for the borrower.

The Situation

A business had spent a year working on a property purchase worth just over £500,000.

They had spent a considerable amount of time sourcing the property, negotiating terms and putting the financing in place. Everything was looking good as the deal ticked down to completion: the deposit was paid, the financing was ready, and the team were looking forward to finally completing a hard-won deal.

Then a huge problem derailed the project. For reasons unknown the initial lender backed out, and the deal was left hanging in the balance.

The business was left with a huge funding gap of £375,000 and with deal completion getting close they needed a new lender to provide financing for the project – quickly.

The Solution

In these circumstances, Reparo were an ideal lender to step in and provide funding. Liam, one of Reparo’s experienced commercial lenders, hit the road and went to visit the management team.   

Liam describes the initial meeting: “It was a really difficult situation, the completion date was very close, and they feared they’d lose the deal. They were quite panicked and understandably very frustrated that the loan was going to be scuppered through no fault of their own”.

Because the time frame was so tight there was no chance of getting any financing from traditional lenders – the due diligence process would have taken months – and this deal needed to be wrapped up much sooner.

Reparo make lending decisions by understanding a prospective borrowers’ circumstances. In this case, Liam was able to quickly assess the strength of the loan application by gleaning that:

• Excellent due diligence had been conducted on the investment; the management team were making a solid investment based on sound business fundamentals.
• The management team had an excellent professional reputation.
• The value of the property was easily verified, and the risk could be measured quickly. The property was valued, and the loan agreed.
• The client had already put down a healthy deposit that signalled their commitment to the deal, which would have been lost if Reparo had not completed in the required timescale.

In short, Liam was able to quickly assess the application from a financial standpoint and by its business fundamentals.

Liam explains how the funding was agreed in such a short period of time, “I worked with the operations team and other members of the commercial team to assess the documentation, value the property and ready the paperwork – there were many stakeholders, and we worked hard to chase everything up and make sure we could complete by the deadline”.

The Outcome

Reparo were able to make a loan to the team so that the purchase happened on the originally planned date.

There was one final and severe complication. On completion day, the client was short of the final amount required due to unexpected completion fees; without this extra cash the deal couldn’t go ahead. Alongside the original investment Reparo were able to offer an additional unsecured last-minute line of credit to make sure the final amount of cash was in place to get the deal completed.

The client was both relieved and delighted with the purchase. They are now looking forward to the future with confidence – something that wouldn’t have been possible without Reparo taking the time to understand their urgent financing needs and deliver a last-minute solution.

To discuss a loan between £10,000 and £1m, please get in touch with one of the team on sales@reparofinance.co.uk  or 0161 451 5714. You can find out more about us on our website:   www.reparofinance.co.uk